EXHIBIT 11 STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS Year Ended December 31, 1996 (Dollars in thousands, except per share amounts) Loss before cumulative effect of change in accounting accounting principle, extraordinary item, and income taxes $ (7,377) Effect of dividends in arrears on preferred stock (1,447) ----------- $ (8,824) ----------- Average shares outstanding 1,051,180 Net effect of the assumed exercise of stock options and warrants - based on the modified treasury stock method 4,073,684 ----------- 5,124,864 ----------- Loss per share before cumulative effect of change in accounting principle, extraordinary item, and income taxes $ (1.72) -----------