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                           SCHEDULE 14A INFORMATION

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                             ERLY INDUSTRIES INC.
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               (Name of Registrant as Specified In Its Charter)

                               THE POWELL GROUP
                      FARMERS RICE MILLING COMPANY, INC.
                               NANETTE N. KELLEY
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   (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

   
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Notes:


 
                       [LETTERHEAD OF THE POWELL GROUP]

                                October 7, 1997

Dear ERLY Shareholder:

     Please allow me to thank you for the time you took today to visit with me 
regarding the Annual Meeting of ERLY Industries, Inc.

     As you know, the outcome of this meeting will determine whether existing 
management, which we believe has poorly represented shareholder interests, will 
be allowed to continue.  We are hopeful that our proposed director nominees, 
whose values include honesty and integrity, will be able to truly make a 
difference for the shareholders of ERLY.

     We believe the shareholders deserve to have the value of their shares 
increased by building shareholders' equity, and by decreasing the cost of 
capital.  Our proposed directors are committed to holding management accountable
for those results.

     If you would like me to send you any information to help you make your 
decision about how to vote in this contest, please let me know.

                                          Sincerely,


                                          /s/ Nanette N. Kelley
                                          ----------------------
                                          Nanette N. Kelley


NNK/wsr