On August 15, 2005, Alliance One International, Inc. (the “Company”) issued a press release announcing its operating and financial results for the quarter ended June 30, 2005, filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, and held a conference call to discuss its operating and financial results for such quarter. The cover page of the Company’s Form 10-Q reported that, as of August 11, 2005, the Company had 94,485,000 shares of Common Stock outstanding. The consolidated balance sheet included in the Form 10-Q stated that, as of June 30, 2005, the Company had 94,455,000 shares of Common Stock outstanding. In response to inquiries about the number of outstanding shares of Common Stock, the Company has further explained that both the numbers stated above include 7,853,121 shares of Common Stock owned by a subsidiary of the Company. The subsidiary that owns these shares was a subsidiary of Standard Commercial Corporation prior to the merger and in the merger received these shares in exchange for 2,617,707 shares of Standard Commercial common stock it owned. The subsidiary that owns these shares has no voting rights with respect to these shares, and has waived any and all rights to receive dividends on these shares. For that reason, these 7,853,121 shares of Common Stock are not included in the average number of shares outstanding used in calculating “Basic Earnings (Loss) Per Share” or “Diluted Earnings (Loss) Per Share” reported in the earnings press release and in the Form 10-Q or in “Non-GAAP Underlying Net Income (Loss) per Basic Share” in the earnings press release. The Company intends to continue to exclude these shares in all earnings per share or similar calculations in the future. |