STATEMENT RE COMPUTATION OF PER SHARE EARNINGS Three Months Three Months Six Months Ended Ended Ended June 30, 1999 June 30, 1998 June 30, 1999 ------------- ------------- ------------- Diluted net (loss) income per share: Net (loss) income to common shareholders $(10,481,000) $3,042,000 $ (8,714,000) Average number of shares outstanding 11,500,000 11,252,941 11,500,000 Net effect of dilutive stock options-based on treasury stock method N/A 511 N/A ------------ ---------- ------------ Total average shares 11,500,000 11,253,452 11,500,000 ============ ========== ============ Diluted net (loss) income per share $ (0.91) $ 0.27 $ (0.76)