====================================================
CONFIDENTIAL PRESENTATION TO THE
BOARD OF DIRECTORS OF
---------------
DURA
PHARMACEUTICALS
REGARDING PROJECT OCEAN
MARCH 20, 2000
TABLE OF CONTENTS
================================================================================
I. Summary of Proposed Transaction
II. Overview of Starfish
III. Starfish Valuation Analysis
================================================================================
SUMMARY OF PROPOSED TRANSACTION
================================================================================
SUMMARY OF PROPOSED TRANSACTION
================================================================================
KEY TRANSACTION TERMS
TRANSACTION: Dolphin to acquire 100% of the outstanding callable
common stock of Starfish for $15.75 per share, comprised
of (i) $13.25 per share in cash and (ii) $2.50 per share
in Dolphin warrants (based upon the Black-Scholes Option
Model, the valuation component of which is subject to a
collar arrangement)
- Represents 35.5% premium to Starfish
closing price immediately preceding
first announcement of offer (on February
14, 2000)
- Aggregate offer value of $101 million;
net cash outlay to Dolphin of $54
million (based on assumed 6/30/00 close)
- Consideration per share can range from
$15.06 to $16.48 at closing based on
value of warrant component of
consideration
KEY DATES: Expected requisite Dolphin and Starfish Board approvals:
March 20, 2000
Expected announcement of execution of definitive
agreement: after market close on March 20, 2000
STRUCTURE: Reverse merger of a wholly-owned subsidiary of Dolphin
with and into Starfish
ACCOUNTING TREATMENT: Purchase accounting
TAX TREATMENT: Taxable transaction to shareholders of Starfish
SUMMARY OF PROPOSED TRANSACTION
================================================================================
WARRANT TERMS
SECURITY: Each Starfish share shall receive one warrant (the
"Warrant") to purchase a fraction of a share of Dolphin
common stock (subject to customary anti-dilution
adjustments), based on the Conversion Ratio described
below; Warrants exercisable at any time
EXERCISE PRICE PER
SHARE OF DOLPHIN
STOCK: The average closing price of Dolphin common stock for 10
consecutive trading days ending on the day prior to
public announcement of the transaction terms (the
"Measurement Price") multiplied by 1.25
TERM: Sixty-month term from date of closing of the transaction
CONVERSION RATIO: To be determined at time of public announcement based on
the Black-Scholes Option Valuation Model such that each
share of Starfish shall receive $2.50 in value (subject
to a collar). The Black-Scholes valuation shall use an
underlying asset value equal to the Measurement Price, a
volatility factor of 65%, a 60-month term from date of
calculation and a risk-free rate based on the interest
rate for a five-year Treasury Bill as reported by
Bloomberg on the date prior to pricing
COLLAR: A collar around the Measurement Price of PLUS OR MINUS
20% (the "Collar Range"). If the average closing price
of Dolphin common stock for 10 consecutive trading days
ending on the day prior to the date of the Starfish
special meeting of shareholders to approve the
transaction (the "Determination Price") is within the
Collar Range, then the Conversion Ratio shall not be
adjusted and shall be the same as determined above at
the time of the public announcement. If the
Determination Price is above or below the Collar Range,
then each share of Starfish shall receive that value
calculated for the Warrant at the high end of the Collar
Range or at the low end of the Collar Range,
respectively
LISTING: On NASDAQ National Market
SUMMARY OF PROPOSED TRANSACTION
===============================================================================
ANALYSIS OF CONSIDERATION
---------------------------------------------------------------------------------------------------------------
IMPLIED WARRANT WARRANT VALUE TOTAL OFFER
DETERMINATION PRICE PER CONVERSION PER STARFISH SHARE VALUE PER SHARE
PRICE(a) ONE DOLPHIN SHARE(b) RATIO AT CLOSING AT CLOSING
---------------------------------------------------------------------------------------------------------------
$10.00 $ 4.69 0.386x $ 1.81 $15.06
11.00 5.41 0.335x 1.81 15.06
---------------------------------------------------------------------------------------------------------------
11.48 5.76 0.315x 1.81 15.06
12.00 6.14 0.315x 1.93 15.18
13.00 6.90 0.315x 2.17 15.42
14.00 7.67 0.315x 2.41 15.66
14.35 (c) 7.95 0.315x 2.50 15.75
15.00 8.46 0.315x 2.66 15.91
16.00 9.26 0.315x 2.91 16.16
17.00 10.07 0.315x 3.17 16.42
17.22 10.25 0.315x 3.23 16.48
---------------------------------------------------------------------------------------------------------------
18.00 10.89 0.296x 3.23 16.48
19.00 11.73 0.275x 3.23 16.48
20.00 12.57 0.257x 3.23 16.48
- -------------------------------
(a) 10-TRADING DAY AVERAGE THROUGH THE DAY PRIOR TO THE DATE OF THE STARFISH
SPECIAL MEETING OF SHAREHOLDERS TO APPROVE THE TRANSACTION.
(b) ASSUMES 65% VOLATILITY, 5 YEARS TO EXPIRATION, A 5-YEAR RISK FREE RATE
PER BLOOMBERG AND WARRANTS ISSUED AT $17.94 STRIKE PRICE PER DOLPHIN
SHARE.
(c) 10-TRADING DAY AVERAGE UP TO, AND INCLUDING, MARCH 17, 2000.
SUMMARY OF PROPOSED TRANSACTION
================================================================================
DOLPHIN/STARFISH RELATIONSHIP
- --------------------------------------------------------------------------------
STARFISH FORMATION
- --------------------------------------------------------------------------------
- - Dolphin completed IPO of Starfish on December 16, 1997
- $94 million in net proceeds to Starfish from selling 6.325mm
units (each unit consisting of 1 common share and a 5-year
warrant to acquire 1/4 of a share of Dolphin for $55.84)
- - Dolphin contributed $75 million cash to fund Starfish operations in
return for 100% of Special Common Shares
- - Dolphin and Starfish enter into various agreements
- Technology License Agreement
- Development Agreement
- Manufacturing and Marketing Agreement
- Albuterol/Product Option Agreement
- Stock Purchase Option Agreement
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENTS BETWEEN DOLPHIN/STARFISH
- --------------------------------------------------------------------------------
- - Technology License Agreement: Agreement in which Dolphin granted
Starfish an exclusive, worldwide, perpetual, royalty-bearing license to
use the Starfish technology in research, development and
commercialization (except with respect to beclomethasone in Asia) of the
Starfish products
- $2 million annual technology access fee payable by Starfish to
Dolphin
- - Development Agreement: Agreement under which Dolphin agreed to use
commercially reasonable efforts to develop the Starfish products and to
make certain other expenditures. Dolphin will furnish all labor,
supervision, services, supplies, and materials necessary to perform the
development
- - Manufacturing and Marketing Agreement: Agreement under which Starfish
granted Dolphin an exclusive, worldwide license to manufacture and
market the Starfish products
- 7% royalty payable to Starfish
- - Albuterol and Product Option Agreement: Gives Dolphin the option to
acquire the Albuterol assets and the assets related to other Starfish
products under development
- - Stock Purchase Option: Gives Dolphin the right to purchase all of the
Starfish callable common shares at escalating purchase option exercise
prices
- Current purchase option exercise price of $25.26 per share
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CAPITAL STRUCTURE/OWNERSHIP
- --------------------------------------------------------------------------------
--------------------- ---------
Public Shareholders Dolphin
--------------------- ---------
100% of 100% of
Callable Special
Common Common
Stock Stock
Starfish
RIGHTS OF SPECIAL COMMON STOCKHOLDER
- - All 1,000 shares held by Dolphin
- - Entitles Dolphin to nominate 2 persons to Starfish Board of Directors
- - Veto rights with respect to certain significant corporate actions
- - No rights to profits of Starfish or ability to vote in regularly
scheduled Starfish shareholder meetings (except with respect to certain
significant corporate transactions)
- --------------------------------------------------------------------------------
================================================================================
OVERVIEW OF STARFISH
================================================================================
OVERVIEW OF STARFISH
================================================================================
SUMMARY
Special Purpose Corp. offered to public on 12/16/97
- Holds proprietary drug delivery technology (Starfish
Cassette) for use with specific drug formulations
- Partial cash contribution by Dolphin ($75 million)
- Additional $101 mm raised from public investors
(6,325,000 Units sold @ $16 each)
Starfish traded as Units through 12/31/99, with each unit consisting of:
- Callable Starfish common share (callable by Dolphin)
- Warrant to purchase 1/4 Dolphin share at 25% premium
(exercise price=$55.84; expires 12/31/02)
Starfish pays Dolphin:
- Reimbursement of expenses incurred in connection with
Starfish-related development activities (on cost-plus
basis)
- Annual Technology Access Fee ($2 million per year)
OVERVIEW OF STARFISH
================================================================================
SUMMARY (CONT'D)
Dolphin has option to buy Starfish at per share prices that escalate as
set forth in the Starfish charter
- Dolphin's Purchase Option expires upon earlier of
12/31/2002 or 90 days following Starfish reporting less
than $5 million cash (assuming Dolphin does not provide
it with additional funding)
Starfish has granted Dolphin an exclusive worldwide license to
manufacture and market Starfish products in exchange for a 7% royalty
- Dolphin has agreed to use diligent efforts to commence
sales of each Starfish product upon FDA approval
- Manufacturing and marketing agreement terminates upon
exercise or termination of Purchase Option
Initial focus on leading asthma drugs in combination with Starfish
delivery technology
- Beclomethasone--steroid (Phase III on-going)
- Budesonide--steroid (Phase II on-going)
- Albuterol--beta agonist (Dolphin intends to suspend
development upon consummation of transaction)
- Ipratropium--anticholinergic (work has been suspended)
- Ipratropium/Albuterol--combination (work has been
suspended)
OVERVIEW OF STARFISH
================================================================================
TECHNOLOGY UNDERLYING STARFISH
Starfish system is designed to aerosolize pharmaceuticals in dry powder
formulations
NDA was submitted for Albuterol in the Starfish cassette system in 11/97
In 11/98, Starfish received complete response letter from FDA indicating
NDA would not be approved unless certain deficiencies were addressed
- Completion of additional clinical trials to ensure
reliability; System used in original clinical trials was
enhanced in commercial manuf. system
- Resolution of several chemistry, manufacturing, and
control issues, as well as certain electromechanical
reliability issues
In 2/99, Dolphin and Starfish determined requirements for Starfish
clinical trial program and announced priority development for steroid
products, based on market dynamics
Additional clinical studies initiated (through Starfish)
- Beclomethasone patient dosing for pivotal trial began in
October
- Budesonide patient dosing for dose targeting (Phase II)
began in October
Dolphin believes that if successful, these clinical studies should allow
for product launches in the 2001-2002 time frame, if each product is
approved by the FDA
Dolphin intends to suspend development of Albuterol upon consummation of
transaction
OVERVIEW OF STARFISH
================================================================================
SUMMARY INCOME STATEMENT (a)
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
2000F 2001F 2002F 2003F 2004F 2005F 2006F 2007F
------- ------- ------- ------- ------- ------- ------- -------
OPERATING STATISTICS
- ----------------------------
Sales $0.0 $6.1 $43.1 $176.6 $257.3 $321.2 $387.9 $453.2
EBIDTA (6.0) (17.5) (44.2) 44.1 118.3 172.2 224.3 278.3
Net Income (2.7) (11.9) (33.2) 23.0 72.9 111.1 149.2 190.0
CASH FLOW
- ----------------------------
Development Costs $27.4 $28.9 $4.6 $0.0 $0.0 $0.0 $0.0 $0.0
Capital Expenditures 5.0 11.0 10.5 3.0 2.5 3.5 6.5 2.0
- ----------------------------
(a) PER DOLPHIN MANAGEMENT PROJECTIONS; ASSUMES CESSATION OF DEVELOPMENT WORK ON
STARFISH ALBUTEROL.
OVERVIEW OF STARFISH
================================================================================
STARFISH TRADING ANALYSIS (12/22/97-PRESENT)
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
17-Dec-97 17.50 26.96 24.01
18-Dec-97 17.25 26.96 24.01
19-Dec-97 17.25 26.96 24.01
22-Dec-97 17.31 26.96 24.01
23-Dec-97 17.00 26.96 24.01
24-Dec-97 17.00 26.96 24.01
26-Dec-97 17.06 26.96 24.01
29-Dec-97 16.63 26.96 24.01
30-Dec-97 16.88 26.96 24.01
31-Dec-97 17.13 26.96 24.01
2-Jan-98 17.19 26.96 24.01
5-Jan-98 17.38 26.96 24.01
6-Jan-98 17.25 26.96 24.01
7-Jan-98 17.13 26.96 24.01
8-Jan-98 17.00 26.96 24.01
9-Jan-98 17.00 26.96 24.01
12-Jan-98 16.69 26.96 24.01
13-Jan-98 16.88 26.96 24.01
14-Jan-98 17.25 26.96 24.01
15-Jan-98 17.00 26.96 24.01
16-Jan-98 17.25 26.96 24.01
20-Jan-98 17.13 26.96 24.01
21-Jan-98 18.25 26.96 24.01
22-Jan-98 18.50 26.96 24.01
23-Jan-98 17.88 26.96 24.01
26-Jan-98 17.81 26.96 24.01
27-Jan-98 17.56 26.96 24.01
28-Jan-98 17.69 26.96 24.01
29-Jan-98 17.69 26.96 24.01
30-Jan-98 17.81 26.96 24.01
2-Feb-98 17.88 26.96 24.01
3-Feb-98 17.75 26.96 24.01
4-Feb-98 17.50 26.96 24.01
5-Feb-98 17.50 26.96 24.01
6-Feb-98 17.88 26.96 24.01
9-Feb-98 17.50 26.96 24.01
10-Feb-98 17.50 26.96 24.01
11-Feb-98 17.63 26.96 24.01
12-Feb-98 17.38 26.96 24.01
13-Feb-98 17.69 26.96 24.01
17-Feb-98 17.13 26.96 24.01
18-Feb-98 17.25 26.96 24.01
19-Feb-98 17.25 26.96 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
20-Feb-98 17.13 26.96 24.01
23-Feb-98 17.50 26.96 24.01
24-Feb-98 17.38 26.96 24.01
25-Feb-98 14.75 26.96 24.01
26-Feb-98 14.75 26.96 24.01
27-Feb-98 14.50 26.96 24.01
2-Mar-98 14.50 26.96 24.01
3-Mar-98 14.25 26.96 24.01
4-Mar-98 14.00 26.96 24.01
5-Mar-98 14.50 26.96 24.01
6-Mar-98 14.75 26.96 24.01
9-Mar-98 14.75 26.96 24.01
10-Mar-98 15.63 26.96 24.01
11-Mar-98 15.38 26.96 24.01
12-Mar-98 15.38 26.96 24.01
13-Mar-98 15.38 26.96 24.01
16-Mar-98 15.25 26.96 24.01
17-Mar-98 15.75 26.96 24.01
18-Mar-98 16.38 26.96 24.01
19-Mar-98 17.00 26.96 24.01
20-Mar-98 16.63 26.96 24.01
23-Mar-98 16.75 26.96 24.01
24-Mar-98 16.63 26.96 24.01
25-Mar-98 16.38 26.96 24.01
26-Mar-98 16.38 26.96 24.01
27-Mar-98 16.00 26.96 24.01
30-Mar-98 16.00 26.96 24.01
31-Mar-98 16.00 26.96 24.01
1-Apr-98 16.13 24.86 24.01
2-Apr-98 16.00 24.86 24.01
3-Apr-98 16.00 24.86 24.01
6-Apr-98 16.25 24.86 24.01
7-Apr-98 16.50 24.86 24.01
8-Apr-98 16.25 24.86 24.01
9-Apr-98 16.75 24.86 24.01
13-Apr-98 16.13 24.86 24.01
14-Apr-98 16.25 24.86 24.01
15-Apr-98 16.50 24.86 24.01
16-Apr-98 16.00 24.86 24.01
17-Apr-98 16.50 24.86 24.01
20-Apr-98 16.13 24.86 24.01
21-Apr-98 16.63 24.86 24.01
22-Apr-98 17.25 24.86 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
23-Apr-98 16.88 24.86 24.01
24-Apr-98 16.63 24.86 24.01
27-Apr-98 16.50 24.86 24.01
28-Apr-98 16.25 24.86 24.01
29-Apr-98 16.50 24.86 24.01
30-Apr-98 16.63 24.86 24.01
1-May-98 16.88 24.86 24.01
4-May-98 16.88 24.86 24.01
5-May-98 16.50 24.86 24.01
6-May-98 16.75 24.86 24.01
7-May-98 16.88 24.86 24.01
8-May-98 17.00 24.86 24.01
11-May-98 16.63 24.86 24.01
12-May-98 16.75 24.86 24.01
13-May-98 17.06 24.86 24.01
14-May-98 16.88 24.86 24.01
15-May-98 16.75 24.86 24.01
18-May-98 16.75 24.86 24.01
19-May-98 17.00 24.86 24.01
20-May-98 16.50 24.86 24.01
21-May-98 17.00 24.86 24.01
22-May-98 16.63 24.86 24.01
26-May-98 16.50 24.86 24.01
27-May-98 16.25 24.86 24.01
28-May-98 16.38 24.86 24.01
29-May-98 16.63 24.86 24.01
1-Jun-98 16.38 24.86 24.01
2-Jun-98 16.63 24.86 24.01
3-Jun-98 16.38 24.86 24.01
4-Jun-98 16.25 24.86 24.01
5-Jun-98 16.38 24.86 24.01
8-Jun-98 16.50 24.86 24.01
9-Jun-98 16.63 24.86 24.01
10-Jun-98 16.50 24.86 24.01
11-Jun-98 16.50 24.86 24.01
12-Jun-98 16.38 24.86 24.01
15-Jun-98 17.00 24.86 24.01
16-Jun-98 16.38 24.86 24.01
17-Jun-98 16.50 24.86 24.01
18-Jun-98 16.00 24.86 24.01
19-Jun-98 16.00 24.86 24.01
22-Jun-98 16.38 24.86 24.01
23-Jun-98 16.00 24.86 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
24-Jun-98 16.00 24.86 24.01
25-Jun-98 16.00 24.86 24.01
26-Jun-98 16.25 24.86 24.01
29-Jun-98 16.25 24.86 24.01
30-Jun-98 16.13 24.86 24.01
1-Jul-98 16.13 24.86 24.01
2-Jul-98 16.00 23.17 24.01
6-Jul-98 16.13 23.17 24.01
7-Jul-98 16.13 23.17 24.01
8-Jul-98 16.25 23.17 24.01
9-Jul-98 16.13 23.17 24.01
10-Jul-98 16.50 23.17 24.01
13-Jul-98 16.13 23.17 24.01
14-Jul-98 16.50 23.17 24.01
15-Jul-98 16.44 23.17 24.01
16-Jul-98 16.25 23.17 24.01
17-Jul-98 16.75 23.17 24.01
20-Jul-98 17.00 23.17 24.01
21-Jul-98 16.25 23.17 24.01
22-Jul-98 16.25 23.17 24.01
23-Jul-98 16.25 23.17 24.01
24-Jul-98 16.25 23.17 24.01
27-Jul-98 16.25 23.17 24.01
28-Jul-98 16.38 23.17 24.01
29-Jul-98 16.75 23.17 24.01
30-Jul-98 16.50 23.17 24.01
31-Jul-98 16.50 23.17 24.01
3-Aug-98 16.00 23.17 24.01
4-Aug-98 15.88 23.17 24.01
5-Aug-98 16.00 23.17 24.01
6-Aug-98 16.00 23.17 24.01
7-Aug-98 15.88 23.17 24.01
10-Aug-98 15.88 23.17 24.01
11-Aug-98 15.50 23.17 24.01
12-Aug-98 15.63 23.17 24.01
13-Aug-98 15.50 23.17 24.01
14-Aug-98 15.25 23.17 24.01
17-Aug-98 14.75 23.17 24.01
18-Aug-98 14.75 23.17 24.01
19-Aug-98 14.00 23.17 24.01
20-Aug-98 14.00 23.17 24.01
21-Aug-98 14.00 23.17 24.01
24-Aug-98 14.13 23.17 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
25-Aug-98 14.13 23.17 24.01
26-Aug-98 14.00 23.17 24.01
27-Aug-98 13.38 23.17 24.01
28-Aug-98 13.25 23.17 24.01
31-Aug-98 13.00 23.17 24.01
1-Sep-98 13.00 23.17 24.01
2-Sep-98 13.00 23.17 24.01
3-Sep-98 12.50 23.17 24.01
4-Sep-98 12.38 23.17 24.01
8-Sep-98 12.50 23.17 24.01
9-Sep-98 12.88 23.17 24.01
10-Sep-98 12.63 23.17 24.01
11-Sep-98 12.38 23.17 24.01
14-Sep-98 12.50 23.17 24.01
15-Sep-98 12.63 23.17 24.01
16-Sep-98 12.50 23.17 24.01
17-Sep-98 12.50 23.17 24.01
18-Sep-98 12.63 23.17 24.01
21-Sep-98 12.38 23.17 24.01
22-Sep-98 12.63 23.17 24.01
23-Sep-98 12.44 23.17 24.01
24-Sep-98 9.88 23.17 24.01
25-Sep-98 10.50 23.17 24.01
28-Sep-98 11.00 23.17 24.01
29-Sep-98 12.00 23.17 24.01
30-Sep-98 12.25 23.17 24.01
1-Oct-98 11.75 21.38 24.01
2-Oct-98 11.75 21.38 24.01
5-Oct-98 11.75 21.38 24.01
6-Oct-98 11.75 21.38 24.01
7-Oct-98 11.38 21.38 24.01
8-Oct-98 10.75 21.38 24.01
9-Oct-98 10.75 21.38 24.01
12-Oct-98 11.00 21.38 24.01
13-Oct-98 10.13 21.38 24.01
14-Oct-98 10.25 21.38 24.01
15-Oct-98 10.88 21.38 24.01
16-Oct-98 10.50 21.38 24.01
19-Oct-98 10.50 21.38 24.01
20-Oct-98 10.63 21.38 24.01
21-Oct-98 10.75 21.38 24.01
22-Oct-98 11.38 21.38 24.01
23-Oct-98 11.63 21.38 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
26-Oct-98 11.50 21.38 24.01
27-Oct-98 11.13 21.38 24.01
28-Oct-98 11.00 21.38 24.01
29-Oct-98 10.88 21.38 24.01
30-Oct-98 10.75 21.38 24.01
2-Nov-98 10.88 21.38 24.01
3-Nov-98 10.75 21.38 24.01
4-Nov-98 7.69 21.38 24.01
5-Nov-98 7.50 21.38 24.01
6-Nov-98 7.75 21.38 24.01
9-Nov-98 7.25 21.38 24.01
10-Nov-98 6.63 21.38 24.01
11-Nov-98 7.63 21.38 24.01
12-Nov-98 8.50 21.38 24.01
13-Nov-98 8.25 21.38 24.01
16-Nov-98 8.63 21.38 24.01
17-Nov-98 8.81 21.38 24.01
18-Nov-98 9.31 21.38 24.01
19-Nov-98 9.88 21.38 24.01
20-Nov-98 9.75 21.38 24.01
23-Nov-98 10.00 21.38 24.01
24-Nov-98 9.00 21.38 24.01
25-Nov-98 8.75 21.38 24.01
27-Nov-98 8.50 21.38 24.01
30-Nov-98 8.50 21.38 24.01
1-Dec-98 8.50 21.38 24.01
2-Dec-98 8.88 21.38 24.01
3-Dec-98 9.38 21.38 24.01
4-Dec-98 9.25 21.38 24.01
7-Dec-98 9.25 21.38 24.01
8-Dec-98 9.59 21.38 24.01
9-Dec-98 9.50 21.38 24.01
10-Dec-98 9.25 21.38 24.01
11-Dec-98 8.75 21.38 24.01
14-Dec-98 8.81 21.38 24.01
15-Dec-98 9.00 21.38 24.01
16-Dec-98 10.25 21.38 24.01
17-Dec-98 10.75 21.38 24.01
18-Dec-98 10.25 21.38 24.01
21-Dec-98 10.00 21.38 24.01
22-Dec-98 9.88 21.38 24.01
23-Dec-98 9.63 21.38 24.01
24-Dec-98 9.25 21.38 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
28-Dec-98 8.38 21.38 24.01
29-Dec-98 9.19 21.38 24.01
30-Dec-98 8.75 21.38 24.01
31-Dec-98 8.94 21.38 24.01
4-Jan-99 8.75 19.54 24.01
5-Jan-99 9.25 19.54 24.01
6-Jan-99 10.38 19.54 24.01
7-Jan-99 9.50 19.54 24.01
8-Jan-99 8.81 19.54 24.01
11-Jan-99 9.00 19.54 24.01
12-Jan-99 8.28 19.54 24.01
13-Jan-99 8.50 19.54 24.01
14-Jan-99 8.50 19.54 24.01
15-Jan-99 8.50 19.54 24.01
19-Jan-99 9.13 19.54 24.01
20-Jan-99 8.25 19.54 24.01
21-Jan-99 8.63 19.54 24.01
22-Jan-99 8.75 19.54 24.01
25-Jan-99 8.50 19.54 24.01
26-Jan-99 8.63 19.54 24.01
27-Jan-99 8.38 19.54 24.01
28-Jan-99 8.69 19.54 24.01
29-Jan-99 8.38 19.54 24.01
1-Feb-99 8.25 19.54 24.01
2-Feb-99 8.69 19.54 24.01
3-Feb-99 9.06 19.54 24.01
4-Feb-99 9.00 19.54 24.01
5-Feb-99 9.00 19.54 24.01
8-Feb-99 8.94 19.54 24.01
9-Feb-99 8.69 19.54 24.01
10-Feb-99 8.75 19.54 24.01
11-Feb-99 8.75 19.54 24.01
12-Feb-99 8.66 19.54 24.01
16-Feb-99 8.63 19.54 24.01
17-Feb-99 8.63 19.54 24.01
18-Feb-99 8.44 19.54 24.01
19-Feb-99 8.75 19.54 24.01
22-Feb-99 8.38 19.54 24.01
23-Feb-99 8.31 19.54 24.01
24-Feb-99 8.31 19.54 24.01
25-Feb-99 8.38 19.54 24.01
26-Feb-99 8.56 19.54 24.01
1-Mar-99 8.56 19.54 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
2-Mar-99 8.38 19.54 24.01
3-Mar-99 8.50 19.54 24.01
4-Mar-99 8.50 19.54 24.01
5-Mar-99 8.50 19.54 24.01
8-Mar-99 8.75 19.54 24.01
9-Mar-99 8.75 19.54 24.01
10-Mar-99 8.50 19.54 24.01
11-Mar-99 8.50 19.54 24.01
12-Mar-99 8.50 19.54 24.01
15-Mar-99 8.56 19.54 24.01
16-Mar-99 8.88 19.54 24.01
17-Mar-99 8.63 19.54 24.01
18-Mar-99 8.50 19.54 24.01
19-Mar-99 8.50 19.54 24.01
22-Mar-99 8.50 19.54 24.01
23-Mar-99 8.50 19.54 24.01
24-Mar-99 8.56 19.54 24.01
25-Mar-99 8.50 19.54 24.01
26-Mar-99 8.75 19.54 24.01
29-Mar-99 8.50 19.54 24.01
30-Mar-99 8.38 19.54 24.01
31-Mar-99 8.50 19.54 24.01
1-Apr-99 8.38 17.73 24.01
5-Apr-99 8.50 17.73 24.01
6-Apr-99 8.50 17.73 24.01
7-Apr-99 8.75 17.73 24.01
8-Apr-99 8.81 17.73 24.01
9-Apr-99 9.25 17.73 24.01
12-Apr-99 9.13 17.73 24.01
13-Apr-99 9.25 17.73 24.01
14-Apr-99 9.38 17.73 24.01
15-Apr-99 9.38 17.73 24.01
16-Apr-99 9.50 17.73 24.01
19-Apr-99 9.94 17.73 24.01
20-Apr-99 9.88 17.73 24.01
21-Apr-99 9.63 17.73 24.01
22-Apr-99 9.88 17.73 24.01
23-Apr-99 10.00 17.73 24.01
26-Apr-99 9.75 17.73 24.01
27-Apr-99 10.13 17.73 24.01
28-Apr-99 10.63 17.73 24.01
29-Apr-99 10.25 17.73 24.01
30-Apr-99 10.06 17.73 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
3-May-99 10.25 17.73 24.01
4-May-99 10.25 17.73 24.01
5-May-99 10.25 17.73 24.01
6-May-99 9.63 17.73 24.01
7-May-99 9.50 17.73 24.01
10-May-99 9.69 17.73 24.01
11-May-99 9.50 17.73 24.01
12-May-99 9.50 17.73 24.01
13-May-99 9.75 17.73 24.01
14-May-99 9.50 17.73 24.01
17-May-99 9.38 17.73 24.01
18-May-99 9.50 17.73 24.01
19-May-99 9.38 17.73 24.01
20-May-99 9.38 17.73 24.01
21-May-99 9.38 17.73 24.01
24-May-99 9.38 17.73 24.01
25-May-99 9.50 17.73 24.01
26-May-99 9.38 17.73 24.01
27-May-99 9.88 17.73 24.01
28-May-99 9.63 17.73 24.01
1-Jun-99 9.69 17.73 24.01
2-Jun-99 9.63 17.73 24.01
3-Jun-99 9.50 17.73 24.01
4-Jun-99 9.38 17.73 24.01
7-Jun-99 9.69 17.73 24.01
8-Jun-99 9.69 17.73 24.01
9-Jun-99 9.50 17.73 24.01
10-Jun-99 9.50 17.73 24.01
11-Jun-99 9.56 17.73 24.01
14-Jun-99 9.38 17.73 24.01
15-Jun-99 9.69 17.73 24.01
16-Jun-99 9.38 17.73 24.01
17-Jun-99 9.69 17.73 24.01
18-Jun-99 9.56 17.73 24.01
21-Jun-99 9.56 17.73 24.01
22-Jun-99 9.56 17.73 24.01
23-Jun-99 9.06 17.73 24.01
24-Jun-99 9.06 17.73 24.01
25-Jun-99 9.00 17.73 24.01
28-Jun-99 8.75 17.73 24.01
29-Jun-99 9.00 17.73 24.01
30-Jun-99 8.75 17.73 24.01
1-Jul-99 8.75 15.73 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
2-Jul-99 9.00 15.73 24.01
6-Jul-99 8.75 15.73 24.01
7-Jul-99 8.75 15.73 24.01
8-Jul-99 8.75 15.73 24.01
9-Jul-99 8.38 15.73 24.01
12-Jul-99 8.25 15.73 24.01
13-Jul-99 7.50 15.73 24.01
14-Jul-99 7.69 15.73 24.01
15-Jul-99 7.75 15.73 24.01
16-Jul-99 7.75 15.73 24.01
19-Jul-99 7.69 15.73 24.01
20-Jul-99 7.63 15.73 24.01
21-Jul-99 7.63 15.73 24.01
22-Jul-99 7.63 15.73 24.01
23-Jul-99 7.72 15.73 24.01
26-Jul-99 7.75 15.73 24.01
27-Jul-99 7.75 15.73 24.01
28-Jul-99 7.88 15.73 24.01
29-Jul-99 7.81 15.73 24.01
30-Jul-99 8.00 15.73 24.01
2-Aug-99 7.98 15.73 24.01
3-Aug-99 7.98 15.73 24.01
4-Aug-99 7.88 15.73 24.01
5-Aug-99 7.88 15.73 24.01
6-Aug-99 7.75 15.73 24.01
9-Aug-99 7.50 15.73 24.01
10-Aug-99 7.38 15.73 24.01
11-Aug-99 7.38 15.73 24.01
12-Aug-99 7.00 15.73 24.01
13-Aug-99 7.25 15.73 24.01
16-Aug-99 7.38 15.73 24.01
17-Aug-99 7.00 15.73 24.01
18-Aug-99 7.00 15.73 24.01
19-Aug-99 7.25 15.73 24.01
20-Aug-99 7.63 15.73 24.01
23-Aug-99 7.63 15.73 24.01
24-Aug-99 6.88 15.73 24.01
25-Aug-99 7.00 15.73 24.01
26-Aug-99 6.88 15.73 24.01
27-Aug-99 7.00 15.73 24.01
30-Aug-99 7.13 15.73 24.01
31-Aug-99 6.75 15.73 24.01
1-Sep-99 7.19 15.73 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
2-Sep-99 6.75 15.73 24.01
3-Sep-99 6.88 15.73 24.01
7-Sep-99 7.00 15.73 24.01
8-Sep-99 7.00 15.73 24.01
9-Sep-99 7.00 15.73 24.01
10-Sep-99 7.00 15.73 24.01
13-Sep-99 7.13 15.73 24.01
14-Sep-99 7.50 15.73 24.01
15-Sep-99 7.50 15.73 24.01
16-Sep-99 7.50 15.73 24.01
17-Sep-99 7.13 15.73 24.01
20-Sep-99 7.00 15.73 24.01
21-Sep-99 7.00 15.73 24.01
22-Sep-99 6.88 15.73 24.01
23-Sep-99 6.88 15.73 24.01
24-Sep-99 6.94 15.73 24.01
27-Sep-99 6.63 15.73 24.01
28-Sep-99 6.75 15.73 24.01
29-Sep-99 6.88 15.73 24.01
30-Sep-99 7.00 15.73 24.01
1-Oct-99 6.81 13.23 24.01
4-Oct-99 7.00 13.23 24.01
5-Oct-99 7.06 13.23 24.01
6-Oct-99 6.63 13.23 24.01
7-Oct-99 6.63 13.23 24.01
8-Oct-99 6.63 13.23 24.01
11-Oct-99 6.75 13.23 24.01
12-Oct-99 6.75 13.23 24.01
13-Oct-99 6.50 13.23 24.01
14-Oct-99 6.69 13.23 24.01
15-Oct-99 6.50 13.23 24.01
18-Oct-99 6.00 13.23 24.01
19-Oct-99 6.00 13.23 24.01
20-Oct-99 6.00 13.23 24.01
21-Oct-99 6.00 13.23 24.01
22-Oct-99 6.25 13.23 24.01
25-Oct-99 6.13 13.23 24.01
26-Oct-99 6.00 13.23 24.01
11-Nov-99 5.44 13.23 24.01
12-Nov-99 5.63 13.23 24.01
15-Nov-99 5.44 13.23 24.01
16-Nov-99 5.75 13.23 24.01
17-Nov-99 5.50 13.23 24.01
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
18-Nov-99 5.44 13.23 24.01
19-Nov-99 5.31 13.23 24.01
22-Nov-99 5.31 13.23 24.01
23-Nov-99 5.88 13.23 24.01
24-Nov-99 5.38 13.23 24.01
26-Nov-99 5.31 13.23 24.01
29-Nov-99 4.88 13.23 24.01
30-Nov-99 5.06 13.23 24.01
1-Dec-99 5.06 13.23 24.01
2-Dec-99 5.00 13.23 24.01
3-Dec-99 5.00 13.23 24.01
6-Dec-99 5.06 13.23 24.01
7-Dec-99 5.00 13.23 24.01
8-Dec-99 5.00 13.23 24.01
9-Dec-99 5.00 13.23 24.01
10-Dec-99 5.06 13.23 24.01
13-Dec-99 5.19 13.23 24.01
14-Dec-99 5.06 13.23 24.01
15-Dec-99 5.13 13.23 24.01
16-Dec-99 5.19 13.23 24.01
17-Dec-99 5.31 13.23 24.01
20-Dec-99 5.19 13.23 24.01
21-Dec-99 5.25 13.23 24.01
22-Dec-99 5.88 13.23 24.01
23-Dec-99 6.13 13.23 24.01
24-Dec-99 7.50 13.23 24.01
27-Dec-99 7.75 13.23 24.01
28-Dec-99 7.63 13.23 24.01
29-Dec-99 7.63 13.23 24.01
30-Dec-99 8.00 13.23 24.01
31-Dec-99 8.00 13.23 24.01
3-Jan-00 8.00 13.23 25.26
4-Jan-00 8.44 13.23 25.26
5-Jan-00 8.50 13.23 25.26
6-Jan-00 9.25 10.28 25.26
7-Jan-00 8.88 10.28 25.26
10-Jan-00 10.25 10.28 25.26
11-Jan-00 10.00 10.28 25.26
12-Jan-00 10.00 10.28 25.26
13-Jan-00 10.00 10.28 25.26
14-Jan-00 10.25 10.28 25.26
17-Jan-00 10.00 10.28 25.26
18-Jan-00 9.88 10.28 25.26
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
19-Jan-00 9.81 10.28 25.26
20-Jan-00 10.25 10.28 25.26
21-Jan-00 10.00 10.28 25.26
24-Jan-00 10.00 10.28 25.26
25-Jan-00 9.38 10.28 25.26
26-Jan-00 9.13 10.28 25.26
27-Jan-00 8.94 10.28 25.26
28-Jan-00 9.00 10.28 25.26
31-Jan-00 9.25 10.28 25.26
1-Feb-00 9.25 10.28 25.26
2-Feb-00 9.63 10.28 25.26
3-Feb-00 11.00 10.28 25.26
4-Feb-00 10.50 10.28 25.26
7-Feb-00 10.50 10.28 25.26
8-Feb-00 11.50 10.28 25.26
9-Feb-00 12.00 10.28 25.26
10-Feb-00 11.63 10.28 25.26
11-Feb-00 11.50 10.28 25.26
14-Feb-00 12.00 10.28 25.26
15-Feb-00 12.19 10.28 25.26
16-Feb-00 12.06 10.28 25.26
17-Feb-00 12.31 10.28 25.26
18-Feb-00 12.13 10.28 25.26
21-Feb-00 12.25 10.28 25.26
22-Feb-00 12.13 10.28 25.26
23-Feb-00 12.06 10.28 25.26
24-Feb-00 12.13 10.28 25.26
25-Feb-00 12.00 10.28 25.26
28-Feb-00 12.50 10.28 25.26
29-Feb-00 12.13 10.28 25.26
1-Mar-00 12.50 8.74 25.26
2-Mar-00 12.13 8.74 25.26
3-Mar-00 12.06 8.74 25.26
6-Mar-00 12.06 8.74 25.26
7-Mar-00 12.06 8.74 25.26
8-Mar-00 12.13 8.74 25.26
9-Mar-00 12.00 8.74 25.26
10-Mar-00 12.06 8.74 25.26
13-Mar-00 12.06 8.74 25.26
14-Mar-00 12.88 8.74 25.26
15-Mar-00 12.56 8.74 25.26
16-Mar-00 12.56 8.74 25.26
17-Mar-00 12.56 8.74 25.26
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
20-Mar-00 25.26
21-Mar-00 25.26
22-Mar-00 25.26
23-Mar-00 25.26
24-Mar-00 25.26
27-Mar-00 25.26
28-Mar-00 25.26
29-Mar-00 25.26
30-Mar-00 25.26
31-Mar-00 25.26
3-Apr-00 26.57
4-Apr-00 26.57
5-Apr-00 26.57
6-Apr-00 26.57
7-Apr-00 26.57
10-Apr-00 26.57
11-Apr-00 26.57
12-Apr-00 26.57
13-Apr-00 26.57
14-Apr-00 26.57
17-Apr-00 26.57
18-Apr-00 26.57
19-Apr-00 26.57
20-Apr-00 26.57
21-Apr-00 26.57
24-Apr-00 26.57
25-Apr-00 26.57
26-Apr-00 26.57
27-Apr-00 26.57
28-Apr-00 26.57
1-May-00 26.57
2-May-00 26.57
3-May-00 26.57
4-May-00 26.57
5-May-00 26.57
8-May-00 26.57
9-May-00 26.57
10-May-00 26.57
11-May-00 26.57
12-May-00 26.57
15-May-00 26.57
16-May-00 26.57
17-May-00 26.57
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
18-May-00 26.57
19-May-00 26.57
22-May-00 26.57
23-May-00 26.57
24-May-00 26.57
25-May-00 26.57
26-May-00 26.57
29-May-00 26.57
30-May-00 26.57
31-May-00 26.57
1-Jun-00 26.57
2-Jun-00 26.57
5-Jun-00 26.57
6-Jun-00 26.57
7-Jun-00 26.57
8-Jun-00 26.57
9-Jun-00 26.57
12-Jun-00 26.57
13-Jun-00 26.57
14-Jun-00 26.57
15-Jun-00 26.57
16-Jun-00 26.57
19-Jun-00 26.57
20-Jun-00 26.57
21-Jun-00 26.57
22-Jun-00 26.57
23-Jun-00 26.57
26-Jun-00 26.57
27-Jun-00 26.57
28-Jun-00 26.57
29-Jun-00 26.57
30-Jun-00 26.57
3-Jul-00 27.96
4-Jul-00 27.96
5-Jul-00 27.96
6-Jul-00 27.96
7-Jul-00 27.96
10-Jul-00 27.96
11-Jul-00 27.96
12-Jul-00 27.96
13-Jul-00 27.96
14-Jul-00 27.96
17-Jul-00 27.96
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
18-Jul-00 27.96
19-Jul-00 27.96
20-Jul-00 27.96
21-Jul-00 27.96
24-Jul-00 27.96
25-Jul-00 27.96
26-Jul-00 27.96
27-Jul-00 27.96
28-Jul-00 27.96
31-Jul-00 27.96
1-Aug-00 27.96
2-Aug-00 27.96
3-Aug-00 27.96
4-Aug-00 27.96
7-Aug-00 27.96
8-Aug-00 27.96
9-Aug-00 27.96
10-Aug-00 27.96
11-Aug-00 27.96
14-Aug-00 27.96
15-Aug-00 27.96
16-Aug-00 27.96
17-Aug-00 27.96
18-Aug-00 27.96
21-Aug-00 27.96
22-Aug-00 27.96
23-Aug-00 27.96
24-Aug-00 27.96
25-Aug-00 27.96
28-Aug-00 27.96
29-Aug-00 27.96
30-Aug-00 27.96
31-Aug-00 27.96
1-Sep-00 27.96
4-Sep-00 27.96
5-Sep-00 27.96
6-Sep-00 27.96
7-Sep-00 27.96
8-Sep-00 27.96
11-Sep-00 27.96
12-Sep-00 27.96
13-Sep-00 27.96
14-Sep-00 27.96
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
15-Sep-00 27.96
18-Sep-00 27.96
19-Sep-00 27.96
20-Sep-00 27.96
21-Sep-00 27.96
22-Sep-00 27.96
25-Sep-00 27.96
26-Sep-00 27.96
27-Sep-00 27.96
28-Sep-00 27.96
29-Sep-00 27.96
2-Oct-00 29.41
3-Oct-00 29.41
4-Oct-00 29.41
5-Oct-00 29.41
6-Oct-00 29.41
9-Oct-00 29.41
10-Oct-00 29.41
11-Oct-00 29.41
12-Oct-00 29.41
13-Oct-00 29.41
16-Oct-00 29.41
17-Oct-00 29.41
18-Oct-00 29.41
19-Oct-00 29.41
20-Oct-00 29.41
23-Oct-00 29.41
24-Oct-00 29.41
25-Oct-00 29.41
26-Oct-00 29.41
27-Oct-00 29.41
30-Oct-00 29.41
31-Oct-00 29.41
1-Nov-00 29.41
2-Nov-00 29.41
3-Nov-00 29.41
6-Nov-00 29.41
7-Nov-00 29.41
8-Nov-00 29.41
9-Nov-00 29.41
10-Nov-00 29.41
13-Nov-00 29.41
14-Nov-00 29.41
SHARE CASH PER PURCHASE OPTION
DATE PRICE SHARE EXERCISE PRICE
---- ----- ----- --------------
15-Nov-00 29.41
16-Nov-00 29.41
17-Nov-00 29.41
20-Nov-00 29.41
21-Nov-00 29.41
22-Nov-00 29.41
23-Nov-00 29.41
24-Nov-00 29.41
27-Nov-00 29.41
28-Nov-00 29.41
29-Nov-00 29.41
30-Nov-00 29.41
1-Dec-00 29.41
4-Dec-00 29.41
5-Dec-00 29.41
6-Dec-00 29.41
7-Dec-00 29.41
8-Dec-00 29.41
11-Dec-00 29.41
12-Dec-00 29.41
13-Dec-00 29.41
14-Dec-00 29.41
15-Dec-00 29.41
18-Dec-00 29.41
19-Dec-00 29.41
20-Dec-00 29.41
21-Dec-00 29.41
22-Dec-00 29.41
25-Dec-00 29.41
26-Dec-00 29.41
27-Dec-00 29.41
28-Dec-00 29.41
29-Dec-00 29.41
================================================================================
STARFISH VALUATION ANALYSIS
================================================================================
STARFISH VALUATION ANALYSIS
================================================================================
DOLPHIN STOCK PRICE PERFORMANCE - LATEST 12 MONTHS
DATE PRICE
---- -----
3/12/1999 16.00
3/15/1999 16.31
3/16/1999 15.94
3/17/1999 15.81
3/18/1999 13.88
3/19/1999 13.75
3/22/1999 13.44
3/23/1999 12.88
3/24/1999 12.63
3/25/1999 13.16
3/26/1999 14.38
3/29/1999 14.38
3/30/1999 14.44
3/31/1999 14.13
4/1/1999 13.94
4/5/1999 14.13
4/6/1999 13.81
4/7/1999 14.19
4/8/1999 14.06
4/9/1999 14.97
4/12/1999 14.81
4/13/1999 14.50
4/14/1999 13.88
4/15/1999 12.75
4/16/1999 12.94
4/19/1999 12.50
4/20/1999 12.63
4/21/1999 12.81
4/22/1999 12.38
4/23/1999 12.13
4/26/1999 12.44
4/27/1999 12.19
4/28/1999 11.88
4/29/1999 12.00
4/30/1999 12.00
5/3/1999 11.88
5/4/1999 11.69
5/5/1999 11.50
5/6/1999 11.38
5/7/1999 11.13
5/10/1999 11.06
5/11/1999 11.50
5/12/1999 11.44
5/13/1999 11.25
DATE PRICE
---- -----
5/14/1999 10.94
5/17/1999 10.69
5/18/1999 11.13
5/19/1999 11.00
5/20/1999 11.13
5/21/1999 11.88
5/24/1999 11.50
5/25/1999 11.00
5/26/1999 10.63
5/27/1999 10.19
5/28/1999 10.38
6/1/1999 10.56
6/2/1999 10.25
6/3/1999 10.50
6/4/1999 10.28
6/7/1999 10.28
6/8/1999 10.50
6/9/1999 11.00
6/10/1999 10.75
6/11/1999 10.81
6/14/1999 10.56
6/15/1999 10.69
6/16/1999 11.38
6/17/1999 11.50
6/18/1999 11.44
6/21/1999 11.25
6/22/1999 11.50
6/23/1999 11.38
6/24/1999 11.25
6/25/1999 11.13
6/28/1999 11.19
6/29/1999 11.06
6/30/1999 11.94
7/1/1999 11.69
7/2/1999 11.44
7/6/1999 11.19
7/7/1999 10.97
7/8/1999 11.19
7/9/1999 11.50
7/12/1999 11.00
7/13/1999 10.91
7/14/1999 10.88
7/15/1999 11.06
7/16/1999 10.81
DATE PRICE
---- -----
7/19/1999 10.31
7/20/1999 10.44
7/21/1999 10.13
7/22/1999 10.00
7/23/1999 9.95
7/26/1999 10.00
7/27/1999 10.00
7/28/1999 10.25
7/29/1999 10.25
7/30/1999 10.44
8/2/1999 10.56
8/3/1999 10.69
8/4/1999 10.38
8/5/1999 10.38
8/6/1999 10.25
8/9/1999 10.31
8/10/1999 10.25
8/11/1999 10.25
8/12/1999 10.31
8/13/1999 10.50
8/16/1999 11.00
8/17/1999 11.88
8/18/1999 12.19
8/19/1999 12.09
8/20/1999 12.50
8/23/1999 12.88
8/24/1999 12.88
8/25/1999 13.38
8/26/1999 13.88
8/27/1999 14.50
8/30/1999 13.38
8/31/1999 13.31
9/1/1999 13.19
9/2/1999 13.00
9/3/1999 13.88
9/7/1999 13.38
9/8/1999 13.25
9/9/1999 13.25
9/10/1999 13.25
9/13/1999 13.88
9/14/1999 13.19
9/15/1999 13.66
9/16/1999 13.50
9/17/1999 13.50
DATE PRICE
---- -----
9/20/1999 13.56
9/21/1999 13.50
9/22/1999 13.69
9/23/1999 13.06
9/24/1999 12.88
9/27/1999 13.25
9/28/1999 13.13
9/29/1999 13.19
9/30/1999 13.94
10/1/1999 13.50
10/4/1999 13.81
10/5/1999 13.53
10/6/1999 13.69
10/7/1999 13.81
10/8/1999 13.44
10/11/1999 13.50
10/12/1999 13.56
10/13/1999 13.44
10/14/1999 13.44
10/15/1999 12.88
10/18/1999 12.47
10/19/1999 12.88
10/20/1999 12.88
10/21/1999 13.06
10/22/1999 13.06
10/25/1999 12.94
10/26/1999 12.72
10/27/1999 12.44
10/28/1999 12.88
10/29/1999 12.78
11/1/1999 12.13
11/2/1999 12.25
11/3/1999 12.50
11/4/1999 12.75
11/5/1999 12.94
11/8/1999 13.00
11/9/1999 12.50
11/10/1999 12.63
11/11/1999 13.00
11/12/1999 13.19
11/15/1999 13.13
11/16/1999 13.44
11/17/1999 13.69
11/18/1999 13.56
DATE PRICE
---- -----
11/19/1999 13.69
11/22/1999 12.88
11/23/1999 12.63
11/24/1999 13.19
11/26/1999 12.88
11/29/1999 13.00
11/30/1999 13.03
12/1/1999 12.81
12/2/1999 12.69
12/3/1999 12.88
12/6/1999 12.81
12/7/1999 13.06
12/8/1999 12.75
12/9/1999 12.25
12/10/1999 12.13
12/13/1999 12.19
12/14/1999 12.25
12/15/1999 12.25
12/16/1999 12.38
12/17/1999 12.56
12/20/1999 12.13
12/21/1999 12.88
12/22/1999 13.06
12/23/1999 13.06
12/27/1999 12.56
12/28/1999 14.06
12/29/1999 14.50
12/30/1999 14.13
12/31/1999 13.94
1/3/2000 13.38
1/4/2000 13.03
1/5/2000 12.50
1/6/2000 13.19
1/7/2000 14.00
1/10/2000 15.63
1/11/2000 16.81
1/12/2000 18.28
1/13/2000 18.31
1/14/2000 18.41
1/18/2000 17.75
1/19/2000 17.06
1/20/2000 16.63
1/21/2000 17.94
1/24/2000 17.50
DATE PRICE
---- -----
1/25/2000 17.19
1/26/2000 15.00
1/27/2000 15.38
1/28/2000 15.13
1/31/2000 15.50
2/1/2000 15.75
2/2/2000 15.00
2/3/2000 14.63
2/4/2000 14.13
2/7/2000 15.00
2/8/2000 14.72
2/9/2000 14.19
2/10/2000 14.06
2/11/2000 13.81
2/14/2000 13.94
2/15/2000 15.75
2/16/2000 15.00
2/17/2000 15.97
2/18/2000 15.06
2/22/2000 15.16
2/23/2000 15.50
2/24/2000 14.88
2/25/2000 14.13
2/28/2000 13.81
2/29/2000 13.88
3/1/2000 15.06
3/2/2000 15.44
3/3/2000 15.56
3/6/2000 15.50
3/7/2000 14.88
3/8/2000 14.31
3/9/2000 14.69
3/10/2000 14.75
3/13/2000 14.25
3/14/2000 14.00
3/15/2000 13.63
3/16/2000 13.75
3/17/2000 13.75
STARFISH VALUATION ANALYSIS
================================================================================
STOCK PRICE PERFORMANCE AND TRADED VOLUME - LATEST 12 MONTHS
DATE PRICE VOLUME
---- ----- ------
2/18/1999 8.44 27100
2/19/1999 8.75 27500
2/22/1999 8.38 300
2/23/1999 8.31 5600
2/24/1999 8.31 100
2/25/1999 8.38 77600
3/2/1999 8.38 5300
3/3/1999 8.50 2100
3/8/1999 8.75 400
3/9/1999 8.75 6900
3/10/1999 8.50 13400
3/11/1999 8.50 20900
3/12/1999 8.50 3000
3/14/1999 8.88 10100
3/16/1999 8.88 10100
3/17/1999 8.63 1600
3/18/1999 8.50 1000
3/19/1999 8.50 5300
3/22/1999 8.50 7500
3/23/1999 8.50 1200
3/25/1999 8.50 8900
3/26/1999 8.75 7100
3/29/1999 8.50 4100
3/30/1999 8.38 7400
3/31/1999 8.50 800
4/1/1999 8.38 3400
4/5/1999 8.50 9200
4/6/1999 8.50 1500
4/7/1999 8.75 34800
4/8/1999 8.81 15600
4/9/1999 9.25 1800
4/12/1999 9.13 400
4/13/1999 9.25 2700
4/14/1999 9.38 3500
4/15/1999 9.38 11100
4/16/1999 9.50 9700
4/20/1999 9.88 17800
4/21/1999 9.63 300
4/22/1999 9.88 4600
4/23/1999 10.00 1000
4/26/1999 9.75 2400
4/27/1999 10.13 23700
4/28/1999 10.63 5800
4/29/1999 10.25 1100
DATE PRICE VOLUME
---- ----- ------
4/30/1999 10.06 1400
5/3/1999 10.25 5400
5/4/1999 10.25 500
5/5/1999 10.25 9700
5/6/1999 9.63 3500
5/7/1999 9.50 300
5/11/1999 9.50 3200
5/12/1999 9.50 4000
5/14/1999 9.50 100
5/17/1999 9.38 1000
5/18/1999 9.50 1000
5/19/1999 9.38 4600
5/20/1999 9.38 1000
5/21/1999 9.38 600
5/24/1999 9.38 5800
5/26/1999 9.38 1500
5/27/1999 9.88 1000
5/28/1999 9.63 100
6/3/1999 9.50 500
6/4/1999 9.38 200
6/9/1999 9.50 1700
6/10/1999 9.50 1100
6/14/1999 9.38 200
6/16/1999 9.38 1100
6/23/1999 9.06 22700
6/24/1999 9.06 300
6/25/1999 9.00 6100
6/28/1999 8.75 500
6/29/1999 9.00 200
6/30/1999 8.75 1900
7/1/1999 8.75 100
7/2/1999 9.00 200
7/6/1999 8.75 3300
7/7/1999 8.75 1500
7/8/1999 8.75 1700
7/9/1999 8.38 24900
7/12/1999 8.25 10500
7/13/1999 7.50 398300
7/14/1999 7.69 37100
7/15/1999 7.75 4800
7/16/1999 7.75 8100
7/19/1999 7.69 2200
7/20/1999 7.63 600
7/21/1999 7.63 1100
7/22/1999 7.63 700
7/26/1999 7.75 6000
DATE PRICE VOLUME
---- ----- ------
7/27/1999 7.75 300
7/28/1999 7.88 4000
7/29/1999 7.81 2200
7/30/1999 8.00 170400
8/4/1999 7.88 3700
8/5/1999 7.88 3400
8/6/1999 7.75 5000
8/9/1999 7.50 67500
8/10/1999 7.38 800
8/11/1999 7.38 2900
8/12/1999 7.00 35900
8/13/1999 7.25 129000
8/17/1999 7.00 1300
8/18/1999 7.00 1000
8/19/1999 7.25 1400
8/20/1999 7.63 1000
8/23/1999 7.63 2000
8/24/1999 6.88 4700
8/25/1999 7.00 300
8/26/1999 6.88 6200
8/27/1999 7.00 2500
8/30/1999 7.13 7400
8/31/1999 6.75 1300
9/2/1999 6.75 8000
9/3/1999 6.88 300
9/7/1999 7.00 5600
9/8/1999 7.00 12300
9/9/1999 7.00 4600
9/10/1999 7.00 4100
9/13/1999 7.13 100
9/14/1999 7.50 9300
9/15/1999 7.50 2700
9/16/1999 7.50 5700
9/17/1999 7.13 6000
9/20/1999 7.00 1400
9/21/1999 7.00 2100
9/22/1999 6.88 13600
9/23/1999 6.88 8600
9/27/1999 6.63 1700
9/28/1999 6.75 4200
9/29/1999 6.88 51600
9/30/1999 7.00 500
10/4/1999 7.00 1000
10/5/1999 7.06 1000
10/6/1999 6.63 52700
10/7/1999 6.63 9100
DATE PRICE VOLUME
---- ----- ------
10/8/1999 6.63 800
10/11/1999 6.75 4100
10/12/1999 6.75 1800
10/13/1999 6.50 3400
10/14/1999 6.69 500
10/15/1999 6.50 5600
10/18/1999 6.00 7200
10/19/1999 6.00 2000
10/20/1999 6.00 1000
10/21/1999 6.00 1800
10/22/1999 6.25 53000
10/25/1999 6.13 2300
10/26/1999 6.00 6200
10/27/1999 6.00 1500
10/28/1999 5.75 8200
10/29/1999 5.69 13600
11/1/1999 5.63 4000
11/2/1999 5.06 147300
11/3/1999 5.75 22900
11/4/1999 5.38 32200
11/8/1999 5.25 8100
11/9/1999 5.06 6900
11/10/1999 5.13 34900
11/11/1999 5.44 15600
11/12/1999 5.63 54900
11/15/1999 5.44 2900
11/16/1999 5.75 7100
11/17/1999 5.50 72400
11/18/1999 5.44 63500
11/19/1999 5.31 6600
11/22/1999 5.31 2000
11/23/1999 5.88 24800
11/24/1999 5.38 41700
11/26/1999 5.31 3700
11/29/1999 4.88 71400
11/30/1999 5.06 33300
12/1/1999 5.06 14500
12/2/1999 5.00 100
12/3/1999 5.00 42500
12/6/1999 5.06 185700
12/7/1999 5.00 162700
12/8/1999 5.00 84800
12/9/1999 5.00 392800
12/10/1999 5.06 30200
12/13/1999 5.19 11700
12/14/1999 5.06 13100
DATE PRICE VOLUME
---- ----- ------
12/15/1999 5.13 116600
12/16/1999 5.19 400
12/17/1999 5.31 64500
12/20/1999 5.19 46700
12/21/1999 5.25 6300
12/22/1999 5.88 23200
12/23/1999 6.13 36300
12/27/1999 7.50 96600
12/28/1999 7.75 19000
12/29/1999 7.63 6600
12/30/1999 7.63 35400
12/31/1999 8.00 50800
1/4/2000 8.44 4000
1/5/2000 8.50 1400
1/6/2000 9.25 62300
1/7/2000 8.88 17700
1/10/2000 10.25 59500
1/11/2000 10.00 28400
1/12/2000 10.00 21500
1/13/2000 10.00 32000
1/14/2000 10.25 4900
1/18/2000 10.00 7100
1/19/2000 9.88 19300
1/20/2000 9.81 20400
1/21/2000 10.25 87400
1/24/2000 10.00 15800
1/25/2000 10.00 46800
1/26/2000 9.38 22500
1/27/2000 9.13 12800
1/28/2000 8.94 48400
1/31/2000 9.00 14700
2/1/2000 9.25 54000
2/2/2000 9.25 30500
2/3/2000 9.63 4700
2/4/2000 11.00 19400
2/7/2000 10.50 20700
2/8/2000 10.50 328100
2/9/2000 11.50 224100
2/10/2000 12.00 13400
2/11/2000 11.63 35600
2/14/2000 11.50 109000
2/15/2000 12.00 34900
2/16/2000 12.19 57100
2/17/2000 12.06 151100
2/18/2000 12.31 7100
2/22/2000 12.13 57200
DATE PRICE VOLUME
---- ----- ------
2/23/2000 12.25 46800
2/24/2000 12.13 53600
2/25/2000 12.06 26100
2/28/2000 12.13 56100
2/29/2000 12.00 64900
3/1/2000 12.50 35600
3/2/2000 12.13 6900
3/3/2000 12.06 30500
3/6/2000 12.06 8500
3/7/2000 12.06 5600
3/8/2000 12.13 17700
3/9/2000 12.00 31700
3/10/2000 12.06 43600
3/13/2000 12.06 7800
3/14/2000 12.88 13800
3/15/2000 12.56 44600
3/16/2000 12.56 49800
3/17/2000 12.56 28200
SHARE PRICE DATA
IMPLIED
OFFER PRICE
AVERAGE(a) PREMIUM
------------- -------
High $12.00 31.3%
30-Trading Days 9.76 61.4%
20-Trading Days 10.09 56.1%
10-Trading Days 10.43 51.0%
Pre-Announcement 11.63 35.5%
- --------------------------------
(a) HIGH, LOW AND AVERAGES CALCULATED FOR THE RESPECTIVE PERIODS PRIOR TO
THE ANNOUNCEMENT DATE OF ORIGINAL OFFER (FEBRUARY 14, 2000).
STARFISH VALUATION ANALYSIS
================================================================================
VALUATION MATRIX
- -----------------------------------------------------------------------------------------------------------------------------------
PREM. OF OFFER PRICE TO:
------------------------ OFFER OFFER NET CASH (b) IMPLIED
PRE-ANN. CONTRACT CASH VALUE OFFER PRE-ANN. CASH VALUE PRICE AS % OF VALUE OUTLAY FOR TECHNOLOGY
COMPANY PRICE PRICE PER SHARE (a) PRICE PRICE PER SHARE CONTRACT PRICE ($MM) DOLPHIN ($MM) VALUE ($MM)
===================================================================================================================================
Starfish $ 11.63 $ 25.26 $ 8.74 $ 15.00 29% 72% 59% $ 95.5 $ 27.7 $ 39.6
15.25 31% 75% 60% 97.3 27.8 41.2
15.50 33% 77% 61% 99.0 28.0 42.8
----------------------------------------------------------------------------------
15.75 35% 80% 62% 100.8 28.2 44.4
==================================================================================
16.00 38% 83% 63% 102.6 28.4 45.9
16.25 40% 86% 64% 104.3 28.6 47.5
16.50 42% 89% 65% 106.1 28.8 49.1
16.75 44% 92% 66% 107.9 28.9 50.7
17.00 46% 95% 67% 109.6 29.1 52.3
- --------------------------------
(a) NET OF CURRENT LIABILITIES.
(b) ASSUMES $13.25 PER SHARE IS THE CASH PORTION OF THE OFFER PRICE. BASED
ON ESTIMATED STARFISH CASH BALANCE AS OF FEBRUARY 2000 OF $8.74 PER
SHARE. INCLUDES $5.2 MILLION CASH TAX BENEFIT AND $3.7 MILLION OF
TRANSACTION EXPENSES.
STARFISH VALUATION ANALYSIS
================================================================================
VALUATION ANALYSIS
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
Discounted
Discounted Cash Flow-
Cash Flow- Adjusted Base Comparable
Base Case (a) Case (a)(b) Comparable Buyback Transactions R&D Vehicles
- -----------------------------------------------------------------------------------------------------------
HIGH 20.54 18.15 20.34 20.10 19.67
LOW 11.16 8.50 15.69 13.98 3.50
METHODOLOGY Perpetuity Perpetuity Premium to Premium to Price to
Growth Growth Pre-Annc. Cash Value Cash
Post-2007 Post-2007 Price(c) per Share per Share
RANGE 0% - 5% 0% - 5% 35% - 75% 60% - 130% 40% - 225%
- -----------------------------------------------------------------------------------------------------------
- ---------------------------
(a) DCF VALUES ASSUME 0% TO 5% PERPETUAL GROWTH RATE POST-2007 AND A 30.0% -
35.0% DISCOUNT RATE ON OPERATING CASH FLOWS, 5.0% DISCOUNT RATE ON
DEVELOPMENT COSTS AND 10.0% DISCOUNT RATE ON CAPITAL EXPENDITURES; CASH
PER SHARE BASED ON ESTIMATED BALANCE AT END OF FEBRUARY 2000.
(b) INCLUDES (i) ANNUAL MANAGEMENT, ADMINISTRATIVE AND TECHNOLOGY ACCESS
FEES PAID BY STARFISH TO DOLPHIN, (ii) DIRECT COSTS INCURRED BY STARFISH
AND (iii) CASH TAX BENEFIT TO DOLPHIN OF $5.2 MILLION.
(c) AS OF FEBRUARY 11, 2000, THE TRADING DATE IMMEDIATELY PRECEDING THE
FIRST PUBLIC ANNOUNCEMENT OF THE OFFER TO ACQUIRE STARFISH.
NOTE: ANALYSIS BASED ON PROJECTIONS PROVIDED BY DOLPHIN MANAGEMENT.
STARFISH VALUATION ANALYSIS
================================================================================
COMPARABLE DISCOUNTED UNIT/SHARE BUYBACK TRANSACTIONS
- --------------------------------------------------------------------------------
R&D SPONSOR ADJ. PRE- CONTRACT CASH VALUE ADJ. OFFER
VEHICLE (ACQUIROR) ANN. PRICE(a) PRICE PER SHARE PRICE(a)
================================================================================
SciGenics Genetics Institute $ 13.75 $ 69.83 $ 5.33 $ 14.00
Aramed Gensia 9.00 55.40 10.63 12.05
Tocor II Centocor 17.02 58.00 23.33 34.10
CytoRad Cytogen 3.62 19.50 3.78 6.06
Neozyme II Genzyme 28.91 108.50 5.72 29.85
PTC II PerSeptive Bio. 4.10 33.83 5.60 9.02
- ------------------------------------------------------------------------------------------
PREM. OF ADJ. OFFER PRICE TO: ADJ. OFFER ADJ. OFFER
----------------------------
R&D SPONSOR ADJ. PRE- CASH VALUE PRICE AS % OF VALUE(a)
VEHICLE (ACQUIROR) ANN. PRICE(a) PER SHARE CONTRACT PRICE ($MM)
==========================================================================================
SciGenics Genetics Institute 2% 163% 20% $ 29.3
Aramed Gensia 34% 13% 22% 34.6
Tocor II Centocor 100% 46% 59% 76.7
CytoRad Cytogen 67% 61% 31% 24.4
Neozyme II Genzyme 3% 422% 28% 72.1
PTC II PerSeptive Bio. 120% 61% 27% 23.9
--------------------------------------------------------
MINIMUM 2% 13% 20%
MEAN 54% 128% 31%
MEDIAN 51% 61% 27%
MAXIMUM 120% 422% 59%
--------------------------------------------------------
- --------------------------
(a) ADJUSTED BY THEORETICAL VALUE OF ATTACHED WARRANTS IN THE CASE OF UNIT
BUYBACK TRANSACTIONS.
STARFISH VALUATION ANALYSIS
================================================================================
COMPARABLE COMPANIES: OUTSTANDING R&D VEHICLES
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
STOCK PRICE MARKET VALUE/ SHARE PRICE/ AGGREGATE
SPONSOR R&D ENTITY 03/17/2000 CASH(a) IPO PRICE(b) TECH VALUE
- --------- -------------------- ----------- ------------ ------------- -----------
Alza Crescendo $18.00 104.2% 180.0% $27.5
Biovail Intelligent Polymers $34.00 538.9% 170.0% $101.0
Allergan Allergan Specialty $13.88 42.8% 154.2% ($59.9)
Therapeutics
- --------------------------------------------------------------------------------------------
MEAN 228.7% 168.1%
- --------------------------------------------------------------------------------------------
- -------------------------------
(a) INCLUDING OTHER INVESTMENTS, IF ANY, AND WORKING CAPITAL.
(b) IPO PRICE FOR CRESCENDO AND ALLERGAN SPECIALTY THERAPEUTICS IS THE
CLOSING PRICE AS OF THE FIRST DAY OF TRADING.
STARFISH VALUATION ANALYSIS
================================================================================
PRO FORMA ANALYSIS
(DOLLARS IN MILLIONS, EXCEPT PER SHARE DATA)
PRO FORMA EPS (a) % ACCRETION/(DILUTION)(a)
OFFER PRICE OFFER ------------------------------------------ ----------------------------------------------
PER SHARE VALUE 2001F 2002F 2003F 2004F 2005F 2001F 2002F 2003F 2004F 2005F
- ----------- -------- ------- ------- ------- ------- ------- -------- -------- -------- ------- --------
$15.75 $100.8 $0.11 $0.39 $1.80 $2.98 $3.99 -87.7% -14.8% 36.3% 19.0% 13.9%
- --------------------------------
(a) BASED ON PROJECTIONS PROVIDED BY DOLPHIN MANAGEMENT.