Exhibit 99(b)(4)
CONFIDENTIAL
FOR INTERNAL USE ONLY
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PROJECT ALPHA
PRESENTATION TO THE BOARD OF DIRECTORS
DECEMBER 15, 1998
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[LOGO]
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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TABLE OF CONTENTS
Section
-------
I. Executive Summary
II. Offer Analysis
III. Precedent Going Private Premiums
IV. Indications of PEC Valuation
Appendix
--------
A. PEC Trading History
B. Holding Company Discounts
- -------------------
These materials were prepared by BT Wolfensohn ("BTW") based on publicly
available information and information supplied by PEC and Prof. Swary, without
independent verification by BTW. These materials are subject to further due
diligence and discussion and do not constitute a specific transaction
recommendation or an opinion as to valuation or otherwise, and should not be
relied upon as the basis for any investment decision. No representation or
warranty (express or implied) is made by BTW or BT Alex. Brown as to the
accuracy or completeness of the information herein. The materials are intended
solely for review by the client and are not for publication or distribution to
any other parties.
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[LOGO]
February 17, 1999 Page ii
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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I. EXECUTIVE SUMMARY
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[LOGO]
February 17, 1999 Section I
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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EXECUTIVE SUMMARY
- - The negotiations between IDBD and the independent committee resulted in
an agreement to buy out the minority shareholders of PEC at a price of
$30 per share, payable in cash.
- - This price represents a 31.5% premium over the PEC stock price on
September 4, 1998, prior to the initial offer announcement, and a 17.6%
premium over the initial offer price of $25.50.
- - The transaction is pending requisite Board of Director and shareholder
approvals.
- - The objectives of this presentation include:
- Review of premium implied by $30 per share agreed to price
- Comparison of premium to precedent market benchmarks
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[LOGO]
February 17, 1999 Page 1
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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II. OFFER ANALYSIS
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[LOGO]
February 17, 1999 Section II
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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OFFER ANALYSIS
INITIAL OFFER FINAL OFFER
AT $25.50 AT $30.00
------------- -----------
Date of Offer: September 6, 1998 December 8, 1998
Premium of Offer Over:
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Prior to PEC
Announcement Date Stock Price
--------------------- ----------------- ---------------
1 day September 4, 1998 $22.8125 11.8% 31.5%
1 week August 28, 1998 23.8125 7.1 26.0
4 weeks August 7, 1998 25.0625 1.7 19.7
- -------------------------
Note: Final offer of $30 per share represents a 17.7% increase over the initial
offer of $25.50.
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[LOGO]
February 17, 1999 Page 2
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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III. PRECEDENT GOING PRIVATE PREMIUMS
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[LOGO]
February 17, 1999 Section III
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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PRECEDENT GOING PRIVATE PREMIUMS
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BTW HAS REVIEWED TRANSACTIONS ANNOUNCED / COMPLETED IN THE U.S. SINCE MARCH 3,
1990, WITH DEAL VALUE GREATER THAN $100 MILLION, WHERE THE ACQUIROR HELD AT
LEAST A 51% OWNERSHIP POSITION IN THE TARGET. SUMMARIZED BELOW ARE THE ANALYSIS
RESULTS.
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ALL OBSERVATIONS - FINAL OFFER PREMIUMS
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FINAL OFFER PREMIUM TO:
------------------------------------------------------- % INCREASE OF
ANNOUNCEMENT DATE: FINAL TRANSACTION
-------------------------------------------------------- PRICE SINCE
1 DAY PRIOR 1 WEEK PRIOR 4 WEEKS PRIOR INITIAL OFFER
------------ -------------- --------------- -----------------
Mean 18.6% 25.6% 25.7% 8.5%
Median 15.6 18.8 23.6 4.5
High 60.3% 78.8% 78.8% 31.3%
Low (0.8) 2.3 (3.6) 0.0
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FOUR OF THE GOING PRIVATE TRANSACTIONS HAD PUBLIC FLOAT BELOW 25%.
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25% OR LESS FLOAT PRECEDENTS - FINAL OFFER PREMIUMS
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FINAL OFFER PREMIUM TO:
------------------------------------------------------- % INCREASE OF
ANNOUNCEMENT DATE: FINAL TRANSACTION
-------------------------------------------------------- PRICE SINCE
1 DAY PRIOR 1 WEEK PRIOR 4 WEEKS PRIOR INITIAL OFFER
------------ -------------- --------------- -----------------
Mean 6.0% 7.3% 6.8% 5.9%
Median 5.3 7.3 1.1 5.5
High 13.3% 12.5% 28.6% 12.6%
Low 2.0 2.3 (3.6) 0.0
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[LOGO]
February 17, 1999 Page 3
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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PRECEDENT GOING PRIVATE PREMIUMS
(continued)
KOOR-TADIRAN OFFER ANALYSIS
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IN A RECENT GOING PRIVATE TRANSACTION, KOOR AGREED TO PAY $36.375 PER SHARE FOR
THE 34% OF TADIRAN IT DID NOT ALREADY OWN. THE OFFER REPRESENTED A 38.6% PREMIUM
TO TADIRAN'S UNAFFECTED STOCK PRICE ONE DAY PRIOR TO THE INITIAL OFFER.
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KOOR OFFERS:
-----------------------------------------
INITIAL OFFER FINAL OFFER
OCTOBER 25, 1998 NOVEMBER 19, 1998
-----------------------------------------
$31.150 $36.375
Premium of Offer Over:
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Prior to Tadiran
Announcement Date Stock Price
--------------------- ----------------- ---------------
1 day October 23, 1998 $26.2500 18.7% 38.6%
1 week October 16, 1998 24.6875 26.2 47.3
4 weeks September 25, 1998 29.0000 7.4 25.4
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[LOGO]
February 17, 1999 Page 4
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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IV. INDICATIONS OF PEC VALUATION
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[LOGO]
February 17, 1999 Section IV
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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INDICATIONS OF PEC VALUATION - PER SWARY ANALYSIS
(US$ in millions, except per share data)
PEC
Ownership Gross
Interest % Value PEC Share
----------------- ------- -----------
Elron Electronics 13.5% $312.2 $42.2
Property and Building 41.1 425.1 174.7
Super-Sol 17.6 551.4 97.0
Cellcom 12.5 1,784.5 223.1
Other Investments 370.5
-------
Implied NAV $907.5
PER SHARE $49.42
Tax Expense (192.5)
-------
AFTER TAX NAV $715.0
PER SHARE $38.94
Closed End Fund Discount
(%) 30% - 50%
($) (214.5) - (357.5)
------- -------
Underlying Value $500.5 - $357.5
PER SHARE $27.26 - $19.47
Going Private Premium
(%) 26% 7%
($) $130.1 - $25.0
- ---------------------------------------------------------------------------------------------
FINAL INDICATION OF VALUE $630.6 - $382.5
PER SHARE $34.34 - $20.83
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[LOGO]
February 17, 1999 Page 5
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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INDICATIONS OF PEC VALUATION
BASED ON THE PEC-DIC EXCHANGE RATIO
(in US$, as of December 7, 1998)
DIC Stock Price(a) $25.80
PEC-DIC Exchange Ratio 1.1642x
---------
Implied Value per PEC Share $30.03
- ------------------------
(a) NIS to $US spot rate: 4.179. DIC stock price as of December 7, 1998.
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[LOGO]
February 17, 1999 Page 6
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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APPENDIX A. PEC TRADING HISTORY
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[LOGO]
February 17, 1999 Appendix A
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
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HISTORICAL TRADING LEVELS
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SINCE JANUARY 1, 1996, PEC SHARES HAVE TRADED AS HIGH AS $26.375 ON 9/18/98, AND
AS LOW AS $14.625 ON 11/08/96, WITH AN AVERAGE DAILY TRADING VOLUME OF 10,624
SHARES.
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[GRAPHIC]
Date Total Weekly Volume $ Per Share
2-Jan-96 2800 24.75
3-Jan-96 1400 24.25
4-Jan-96 8700 24
5-Jan-96 5100 24
8-Jan-96 1700 24.25
9-Jan-96 6800 24.125
10-Jan-96 1600 23.5
11-Jan-96 1900 23.625
12-Jan-96 1300 23.5
15-Jan-96 1400 23.125
16-Jan-96 800 23
17-Jan-96 31600 24.125
18-Jan-96 16500 23.625
19-Jan-96 30600 23.125
22-Jan-96 4000 23.125
23-Jan-96 3900 23.25
24-Jan-96 30600 23
25-Jan-96 3000 23.25
26-Jan-96 20500 23.25
29-Jan-96 400 23.25
30-Jan-96 25900 23.125
31-Jan-96 3400 23
1-Feb-96 1800 23
2-Feb-96 41000 22.625
5-Feb-96 1400 22.625
6-Feb-96 7000 22.625
7-Feb-96 10100 22.625
8-Feb-96 30400 22.875
9-Feb-96 9000 22.875
12-Feb-96 4200 23.125
13-Feb-96 3400 23
14-Feb-96 3700 22.75
15-Feb-96 2800 22.875
16-Feb-96 2200 23
20-Feb-96 22700 22.5
21-Feb-96 11800 22.25
22-Feb-96 33800 21.875
23-Feb-96 10600 21.875
26-Feb-96 2100 21.625
27-Feb-96 3900 22.125
28-Feb-96 5800 21.875
29-Feb-96 300 21.75
1-Mar-96 12300 21.5
4-Mar-96 1200 21.5
5-Mar-96 2800 21.375
6-Mar-96 5100 21.25
7-Mar-96 1200 21.375
8-Mar-96 4000 20.75
11-Mar-96 7600 21
12-Mar-96 4300 20.875
13-Mar-96 1700 20.875
14-Mar-96 6400 20.5
15-Mar-96 10400 19.875
18-Mar-96 7600 19.75
19-Mar-96 5300 20
20-Mar-96 2200 20
21-Mar-96 4900 20
22-Mar-96 2600 20.375
25-Mar-96 1000 20.875
26-Mar-96 10000 21.5
27-Mar-96 2200 21.5
28-Mar-96 2600 21.375
29-Mar-96 18700 21.5
1-Apr-96 112100 21.875
2-Apr-96 100 21.875
3-Apr-96 400 21.875
4-Apr-96 1200 22.125
8-Apr-96 900 21.75
9-Apr-96 1200 21.5
10-Apr-96 5000 21.5
11-Apr-96 200 21.25
12-Apr-96 100 21.25
15-Apr-96 4000 21.5
16-Apr-96 1000 22
17-Apr-96 9400 22.125
18-Apr-96 800 22
19-Apr-96 1500 21.75
22-Apr-96 4100 22.25
23-Apr-96 2500 22.5
24-Apr-96 1300 22.375
25-Apr-96 600 22.375
26-Apr-96 7800 22.75
29-Apr-96 4800 22.5
30-Apr-96 5600 22.625
1-May-96 6300 22.375
2-May-96 14300 22.25
3-May-96 2200 22.375
6-May-96 5300 22.25
7-May-96 8000 22.125
8-May-96 9300 21.625
9-May-96 1900 21.125
10-May-96 27800 21.25
13-May-96 3900 21.75
14-May-96 5200 21.625
15-May-96 24800 21.5
16-May-96 3800 21.375
17-May-96 6800 21.75
20-May-96 600 22
21-May-96 17700 21.25
22-May-96 4800 21.125
23-May-96 20500 20.75
24-May-96 2900 20.375
28-May-96 17900 20
29-May-96 18200 19.625
30-May-96 31400 19.125
31-May-96 63300 19.25
3-Jun-96 17700 18.875
4-Jun-96 16800 18.75
5-Jun-96 25500 18.75
6-Jun-96 13500 18.75
7-Jun-96 1800 18.75
10-Jun-96 10600 18.75
11-Jun-96 1900 18.625
12-Jun-96 12600 18.125
13-Jun-96 12700 17.75
14-Jun-96 103300 17.625
17-Jun-96 7800 18.625
18-Jun-96 6300 19
19-Jun-96 6500 18.625
20-Jun-96 2500 18.25
21-Jun-96 1700 18.375
24-Jun-96 9700 17.875
25-Jun-96 1100 17.75
26-Jun-96 1800 17.625
27-Jun-96 1200 17.875
28-Jun-96 2300 18.125
1-Jul-96 2300 18.25
2-Jul-96 13800 18.125
3-Jul-96 1100 18
5-Jul-96 1400 18.25
8-Jul-96 2500 17.875
9-Jul-96 6400 17.5
10-Jul-96 15400 16.5
11-Jul-96 21100 16
12-Jul-96 5700 15.875
15-Jul-96 15100 15.875
16-Jul-96 1200 15.5
17-Jul-96 12200 16
18-Jul-96 36400 17.25
19-Jul-96 9700 17.125
22-Jul-96 3000 16.5
23-Jul-96 2500 16.125
24-Jul-96 9600 16.375
25-Jul-96 7500 16.375
26-Jul-96 5200 16.375
29-Jul-96 21800 16.5
30-Jul-96 5300 17
31-Jul-96 13700 17.375
1-Aug-96 24600 17.375
2-Aug-96 2900 17.25
5-Aug-96 7500 17.5
6-Aug-96 5500 17.75
7-Aug-96 6100 17.75
8-Aug-96 3500 17.75
9-Aug-96 2700 17.875
12-Aug-96 1200 18
13-Aug-96 24400 17.75
14-Aug-96 29800 18
15-Aug-96 23800 18
16-Aug-96 5100 18.25
19-Aug-96 6200 17.875
20-Aug-96 18600 18
21-Aug-96 1100 17.75
22-Aug-96 15700 18
23-Aug-96 4600 18
26-Aug-96 6000 17.5
27-Aug-96 7200 17.25
28-Aug-96 7900 17.375
29-Aug-96 3300 17.25
30-Aug-96 3800 17.625
3-Sep-96 9000 17.875
4-Sep-96 18800 18.375
5-Sep-96 2500 18.25
6-Sep-96 8000 18.375
9-Sep-96 4700 18.875
10-Sep-96 13900 18.75
11-Sep-96 9400 18.625
12-Sep-96 21500 18
13-Sep-96 4500 18.125
16-Sep-96 5500 18.375
17-Sep-96 23200 18
18-Sep-96 7600 17.875
19-Sep-96 104800 17.375
20-Sep-96 4900 17.75
23-Sep-96 2900 17.625
24-Sep-96 2200 17.625
25-Sep-96 3500 17.375
26-Sep-96 16700 17.25
27-Sep-96 3600 17.125
30-Sep-96 3600 17.125
1-Oct-96 4800 16.875
2-Oct-96 2800 17.375
3-Oct-96 7200 17.125
4-Oct-96 5300 17.125
7-Oct-96 2700 17.125
8-Oct-96 9700 17
9-Oct-96 1300 16.875
10-Oct-96 2400 16.875
11-Oct-96 11700 16.875
14-Oct-96 10100 16.75
15-Oct-96 7600 16.375
16-Oct-96 1800 16.375
17-Oct-96 1000 16.625
18-Oct-96 800 16.5
21-Oct-96 2800 16.75
22-Oct-96 2200 16.625
23-Oct-96 1600 16.625
24-Oct-96 4100 16.25
25-Oct-96 8500 16
28-Oct-96 500 15.875
29-Oct-96 29100 15.375
30-Oct-96 44700 15.125
31-Oct-96 28800 15.25
1-Nov-96 13200 15.25
4-Nov-96 4900 15.75
5-Nov-96 4700 15.5
6-Nov-96 3500 15
7-Nov-96 164500 14.75
8-Nov-96 11100 14.625
11-Nov-96 600 14.75
12-Nov-96 20200 15
13-Nov-96 12100 15.5
14-Nov-96 7700 15.5
15-Nov-96 15800 15.125
18-Nov-96 40200 15.5
19-Nov-96 15600 15.625
20-Nov-96 16000 15.75
21-Nov-96 8800 16.25
22-Nov-96 14300 16.25
25-Nov-96 4300 16.25
26-Nov-96 6700 16.125
27-Nov-96 18100 16.25
29-Nov-96 9700 16.625
2-Dec-96 20700 16.5
3-Dec-96 10100 17
4-Dec-96 3800 17
5-Dec-96 8600 17
6-Dec-96 7300 16.625
9-Dec-96 13900 17.125
10-Dec-96 7300 17.25
11-Dec-96 50400 17
12-Dec-96 33800 16.875
13-Dec-96 44700 16.875
16-Dec-96 53800 16.5
17-Dec-96 2300 16.125
18-Dec-96 13500 16.625
19-Dec-96 41600 17.375
20-Dec-96 4500 17.625
23-Dec-96 19700 17.875
24-Dec-96 26500 18
26-Dec-96 18300 17.625
27-Dec-96 2200 17.5
30-Dec-96 7000 17.25
31-Dec-96 12500 16.75
2-Jan-97 13500 17.75
3-Jan-97 42100 17.75
6-Jan-97 6300 17.5
7-Jan-97 800 17.625
8-Jan-97 2700 17.5
9-Jan-97 4900 17.5
10-Jan-97 4200 17
13-Jan-97 12700 17.875
14-Jan-97 8100 18.125
15-Jan-97 24300 18.875
16-Jan-97 14400 19.25
17-Jan-97 1800 19.375
20-Jan-97 6200 19.5
21-Jan-97 24800 19.875
22-Jan-97 4000 20
23-Jan-97 6600 20.375
24-Jan-97 3600 19.875
27-Jan-97 900 19.75
28-Jan-97 2500 19.75
29-Jan-97 11000 20
30-Jan-97 3000 20.25
31-Jan-97 3100 20.125
3-Feb-97 9000 20.75
4-Feb-97 3400 20.875
5-Feb-97 8100 20.875
6-Feb-97 1100 20.5
7-Feb-97 13400 20.75
10-Feb-97 12400 20.75
11-Feb-97 600 20.625
12-Feb-97 10900 20.75
13-Feb-97 5000 21
14-Feb-97 1000 20.75
18-Feb-97 4500 21.5
19-Feb-97 6100 21.375
20-Feb-97 6300 21.375
21-Feb-97 6600 21.5
24-Feb-97 1700 21
25-Feb-97 1700 21.375
26-Feb-97 4400 21.125
27-Feb-97 14500 20.25
28-Feb-97 1100 20.125
3-Mar-97 2000 20.125
4-Mar-97 3900 20.25
5-Mar-97 4200 20.25
6-Mar-97 5100 20.375
7-Mar-97 11000 20.5
10-Mar-97 300 20.375
11-Mar-97 11000 20.625
12-Mar-97 2800 20.25
13-Mar-97 1900 20.125
14-Mar-97 1100 20.125
17-Mar-97 4100 19.875
18-Mar-97 4700 19.875
19-Mar-97 5400 19.625
20-Mar-97 10700 19.375
21-Mar-97 2000 19.25
24-Mar-97 900 19
25-Mar-97 3200 18.375
26-Mar-97 3900 19.125
27-Mar-97 13100 18.875
31-Mar-97 3300 18.875
1-Apr-97 18700 18.875
2-Apr-97 36000 18.75
3-Apr-97 1100 18.75
4-Apr-97 5300 19.25
7-Apr-97 1800 19.375
8-Apr-97 0 19.375
9-Apr-97 3100 19
10-Apr-97 1100 19.25
11-Apr-97 5500 18.625
14-Apr-97 5900 19.125
15-Apr-97 5500 18.75
16-Apr-97 800 18.75
17-Apr-97 500 18.75
18-Apr-97 1000 18.75
21-Apr-97 1100 18.625
22-Apr-97 8600 18
23-Apr-97 1700 18.375
24-Apr-97 2400 18.75
25-Apr-97 0 18.75
28-Apr-97 3300 18.5
29-Apr-97 3100 18.75
30-Apr-97 3000 19
1-May-97 3600 18.875
2-May-97 2600 19.125
5-May-97 1600 19.625
6-May-97 300 19.75
7-May-97 400 19.375
8-May-97 1000 19.125
9-May-97 1200 19.25
12-May-97 22700 19.25
13-May-97 16300 19.875
14-May-97 4800 20.25
15-May-97 8300 20.375
16-May-97 1300 20.75
19-May-97 3900 21.125
20-May-97 3700 21.5
21-May-97 2400 21.75
22-May-97 4000 21.75
23-May-97 3400 21.625
27-May-97 1600 21.875
28-May-97 7300 22.5
29-May-97 7800 22.875
30-May-97 2700 22.75
2-Jun-97 10600 23.125
3-Jun-97 39700 23.125
4-Jun-97 11300 23.25
5-Jun-97 2000 23.375
6-Jun-97 4500 23.875
9-Jun-97 1600 23.75
10-Jun-97 1900 23.625
11-Jun-97 1300 23.875
12-Jun-97 2300 23.875
13-Jun-97 19200 24.5
16-Jun-97 20500 24.5
17-Jun-97 152900 25
18-Jun-97 30500 25.125
19-Jun-97 79200 24.875
20-Jun-97 43800 24.625
23-Jun-97 5100 24.125
24-Jun-97 3000 23.625
25-Jun-97 900 23.75
26-Jun-97 9200 24.25
27-Jun-97 100 24
30-Jun-97 3900 24
1-Jul-97 6100 23.875
2-Jul-97 4500 24
3-Jul-97 1200 24
7-Jul-97 2600 24
8-Jul-97 7900 24
9-Jul-97 8000 23.625
10-Jul-97 15700 24.25
11-Jul-97 2000 24.125
14-Jul-97 300 24.125
15-Jul-97 600 23.9375
16-Jul-97 9000 23.8125
17-Jul-97 7300 23.1875
18-Jul-97 7900 23.4375
21-Jul-97 7400 22.8125
22-Jul-97 3000 22.8125
23-Jul-97 4000 22.875
24-Jul-97 6900 22.5
25-Jul-97 5000 22.25
28-Jul-97 4100 22.8125
29-Jul-97 20500 22.8125
30-Jul-97 4000 22.5
31-Jul-97 0 22.625
1-Aug-97 3100 22.5625
4-Aug-97 600 22.25
5-Aug-97 2200 22.5625
6-Aug-97 1500 22.75
7-Aug-97 300 22.6875
8-Aug-97 1000 22.1875
11-Aug-97 6600 22
12-Aug-97 11400 21.6875
13-Aug-97 5500 21.875
14-Aug-97 12300 21.75
15-Aug-97 16700 20.625
18-Aug-97 11300 20.5625
19-Aug-97 28400 20.625
20-Aug-97 58500 21.25
21-Aug-97 16700 21.875
22-Aug-97 5400 21.25
25-Aug-97 9700 20.8125
26-Aug-97 7500 20.8125
27-Aug-97 17100 20.875
28-Aug-97 6800 20.875
29-Aug-97 2900 20.6875
2-Sep-97 8300 20.75
3-Sep-97 2900 20.625
4-Sep-97 24100 20.75
5-Sep-97 9400 20.75
8-Sep-97 6800 20.8125
9-Sep-97 3700 20.6875
10-Sep-97 1100 20.375
11-Sep-97 1400 20.6875
12-Sep-97 2300 20.625
15-Sep-97 6600 20.6875
16-Sep-97 16700 20.125
17-Sep-97 2300 20.0625
18-Sep-97 700 20.125
19-Sep-97 5600 19.9375
22-Sep-97 34200 19
23-Sep-97 12700 19.125
24-Sep-97 303800 19.25
25-Sep-97 5000 19.4375
26-Sep-97 8100 19.5
29-Sep-97 23600 19.25
30-Sep-97 11700 19.3125
1-Oct-97 41900 19.8125
2-Oct-97 12600 20.125
3-Oct-97 7400 20
6-Oct-97 18700 19.875
7-Oct-97 15500 20
8-Oct-97 67300 19.9375
9-Oct-97 49000 19.9375
10-Oct-97 106200 20.0625
13-Oct-97 15200 20.5625
14-Oct-97 24700 21
15-Oct-97 64200 21.5625
16-Oct-97 13200 21.5
17-Oct-97 25500 21.5
20-Oct-97 9900 21.5
21-Oct-97 2600 21.5
22-Oct-97 13100 21.5
23-Oct-97 22600 21.25
24-Oct-97 8100 21.125
27-Oct-97 34400 19.625
28-Oct-97 15900 19.9375
29-Oct-97 14000 20.375
30-Oct-97 13200 20.1875
31-Oct-97 4800 20
3-Nov-97 3900 20.25
4-Nov-97 15300 20.25
5-Nov-97 6200 20.375
6-Nov-97 20700 20
7-Nov-97 19700 19.75
10-Nov-97 28400 19.8125
11-Nov-97 9300 19.75
12-Nov-97 14000 18.9375
13-Nov-97 4600 18.9375
14-Nov-97 6800 19.5625
17-Nov-97 3700 20.125
18-Nov-97 3700 19.375
19-Nov-97 5100 19.0625
20-Nov-97 11600 19.625
21-Nov-97 9500 20.4375
24-Nov-97 7800 20.25
25-Nov-97 4100 20.125
26-Nov-97 3100 20.4375
28-Nov-97 100 20.4375
1-Dec-97 44900 20.375
2-Dec-97 27400 20.4375
3-Dec-97 24500 21.125
4-Dec-97 14800 22
5-Dec-97 9100 22.1875
8-Dec-97 4500 22
9-Dec-97 12000 21.625
10-Dec-97 4800 21.8125
11-Dec-97 4100 21.125
12-Dec-97 4400 21.125
15-Dec-97 5500 21.5
16-Dec-97 2000 21.5
17-Dec-97 8800 21
18-Dec-97 1000 21.0625
19-Dec-97 2100 21.0625
22-Dec-97 10300 21.4375
23-Dec-97 16200 21.6875
24-Dec-97 5300 21.625
26-Dec-97 3600 21.625
29-Dec-97 18700 21.625
30-Dec-97 2900 21.5
31-Dec-97 3700 21.625
2-Jan-98 700 21.75
5-Jan-98 13400 21.6875
6-Jan-98 6400 21.6875
7-Jan-98 50800 21.625
8-Jan-98 1400 21.3125
9-Jan-98 2400 21
12-Jan-98 8200 20.625
13-Jan-98 5200 20.75
14-Jan-98 1300 20.75
15-Jan-98 1500 20.5
16-Jan-98 5600 20.875
20-Jan-98 9600 21
21-Jan-98 6500 20.5
22-Jan-98 3500 19.9375
23-Jan-98 6000 20.375
26-Jan-98 7300 20.375
27-Jan-98 4500 20.3125
28-Jan-98 4500 20.3125
29-Jan-98 5400 20.5
30-Jan-98 6700 20.6875
2-Feb-98 6800 21.25
3-Feb-98 3800 21.75
4-Feb-98 15600 21.25
5-Feb-98 2700 20.6875
6-Feb-98 500 20.5
9-Feb-98 800 20.4375
10-Feb-98 1500 20.625
11-Feb-98 1400 20.1875
12-Feb-98 12800 20
13-Feb-98 41900 20.4375
17-Feb-98 3900 20.875
18-Feb-98 2700 20.625
19-Feb-98 1500 20.5
20-Feb-98 7000 20.375
23-Feb-98 4200 20.625
24-Feb-98 2100 20.875
25-Feb-98 1400 20.625
26-Feb-98 5900 20.3125
27-Feb-98 4900 20.1875
2-Mar-98 2900 20.6875
3-Mar-98 6600 20.875
4-Mar-98 1800 20.8125
5-Mar-98 2900 20.75
6-Mar-98 6500 20.9375
9-Mar-98 3100 21.0625
10-Mar-98 7600 21.6875
11-Mar-98 18800 21.8125
12-Mar-98 4600 21.875
13-Mar-98 8400 21.8125
16-Mar-98 4600 21.875
17-Mar-98 200 21.8125
18-Mar-98 2500 21.75
19-Mar-98 3200 21.9375
20-Mar-98 2800 21.9375
23-Mar-98 3000 21.5
24-Mar-98 2900 21.125
25-Mar-98 2700 21.375
26-Mar-98 36500 22.9375
27-Mar-98 20600 23.0625
30-Mar-98 13000 22.6875
31-Mar-98 21800 22.9375
1-Apr-98 22800 23.625
2-Apr-98 11400 23.75
3-Apr-98 45800 24.25
6-Apr-98 15600 24
7-Apr-98 13300 23.8125
8-Apr-98 8500 23.5
9-Apr-98 3400 23.1875
13-Apr-98 12500 23.5
14-Apr-98 7900 23.8125
15-Apr-98 9700 23.9375
16-Apr-98 3200 23.9375
17-Apr-98 13100 24
20-Apr-98 10600 24
21-Apr-98 1500 24.125
22-Apr-98 4100 24.125
23-Apr-98 32000 23.75
24-Apr-98 30000 23.625
27-Apr-98 20300 23.125
28-Apr-98 8600 23.375
29-Apr-98 3300 23.375
30-Apr-98 4600 23.5625
1-May-98 300 23.625
4-May-98 17500 23.8125
5-May-98 4700 23.875
6-May-98 8300 23.5625
7-May-98 15100 23.3125
8-May-98 21700 23.3125
11-May-98 26900 23.3125
12-May-98 17200 23.375
13-May-98 34500 23.25
14-May-98 4700 23.25
15-May-98 3800 23.125
18-May-98 12800 23.125
19-May-98 5200 23.0625
20-May-98 13200 22.875
21-May-98 4100 22.875
22-May-98 3700 22.6875
26-May-98 1400 22.6875
27-May-98 13800 22
28-May-98 7300 22
29-May-98 12800 22.125
1-Jun-98 11600 21.8125
2-Jun-98 15100 21.6875
3-Jun-98 20600 22.4375
4-Jun-98 30400 22.375
5-Jun-98 27000 22.375
8-Jun-98 2500 22.3125
9-Jun-98 20500 22.8125
10-Jun-98 5300 22.75
11-Jun-98 2700 22.875
12-Jun-98 1600 22.6875
15-Jun-98 5200 22.25
16-Jun-98 11200 22.375
17-Jun-98 16300 22.25
18-Jun-98 5900 22.6875
19-Jun-98 10700 23.125
22-Jun-98 4000 23.125
23-Jun-98 2800 23.0625
24-Jun-98 7400 23.4375
25-Jun-98 6500 23.6875
26-Jun-98 3200 23.75
29-Jun-98 10800 23.75
30-Jun-98 6100 23.875
1-Jul-98 8900 23.875
2-Jul-98 2800 23.9375
6-Jul-98 17000 24
7-Jul-98 46400 23.9375
8-Jul-98 10900 24
9-Jul-98 8200 24.25
10-Jul-98 1900 24.3125
13-Jul-98 11100 24.75
14-Jul-98 8000 24.75
15-Jul-98 5300 24.9375
16-Jul-98 9900 24.9375
17-Jul-98 500 24.8125
20-Jul-98 2400 25
21-Jul-98 6500 24.8125
22-Jul-98 13200 24.9375
23-Jul-98 2200 24.8125
24-Jul-98 12800 25
27-Jul-98 9300 25.1875
28-Jul-98 8600 24.8125
29-Jul-98 8200 24.625
30-Jul-98 4200 24.6875
31-Jul-98 14800 24.875
3-Aug-98 2700 24.5625
4-Aug-98 15500 24.6875
5-Aug-98 1200 24.4375
6-Aug-98 12700 25.0625
7-Aug-98 11000 25.0625
10-Aug-98 3800 25.0625
11-Aug-98 3600 24.25
12-Aug-98 17100 25
13-Aug-98 20200 25
14-Aug-98 4800 24.8125
17-Aug-98 5100 25
18-Aug-98 11800 25.125
19-Aug-98 8000 25.125
20-Aug-98 8000 25
21-Aug-98 5200 24.5625
24-Aug-98 4500 24.75
25-Aug-98 4900 25
26-Aug-98 4300 24.875
27-Aug-98 14000 23.75
28-Aug-98 4900 23.8125
31-Aug-98 16500 23.25
1-Sep-98 17400 23.4375
2-Sep-98 5800 23.5625
3-Sep-98 19400 22.8125
4-Sep-98 8900 22.8125
8-Sep-98 37500 25
9-Sep-98 61200 25.625
10-Sep-98 22500 25.375
11-Sep-98 15700 25.875
14-Sep-98 8300 26.0625
15-Sep-98 1600 26
16-Sep-98 5300 26.25
17-Sep-98 8500 26.1875
18-Sep-98 5400 26.375
21-Sep-98 4000 26.125
22-Sep-98 2800 26.125
23-Sep-98 6900 25.875
24-Sep-98 13000 26.0625
25-Sep-98 7000 25.875
28-Sep-98 8400 25.875
29-Sep-98 18800 25.5
30-Sep-98 1600 25.625
1-Oct-98 7700 24.875
2-Oct-98 17100 25.625
5-Oct-98 12100 25.5
6-Oct-98 4000 24.875
7-Oct-98 6600 24.5
8-Oct-98 11800 24.1875
9-Oct-98 3500 24.125
12-Oct-98 18200 25
13-Oct-98 200 25
14-Oct-98 1700 24.9375
15-Oct-98 3700 24.6875
16-Oct-98 1300 24.9375
19-Oct-98 1900 24.9375
20-Oct-98 1600 25.1875
21-Oct-98 3100 24.5625
22-Oct-98 900 24.8125
23-Oct-98 100 24.875
26-Oct-98 900 24.9375
27-Oct-98 5000 24.8125
28-Oct-98 1200 24.875
29-Oct-98 600 24.8125
30-Oct-98 1400 24.8125
2-Nov-98 20300 25.0625
3-Nov-98 8000 24.9375
4-Nov-98 0 25.0625
5-Nov-98 4300 24.75
6-Nov-98 1200 24.875
9-Nov-98 2200 24.9375
10-Nov-98 4700 24.3125
11-Nov-98 1500 24.625
12-Nov-98 0 24.5
13-Nov-98 3000 24.125
16-Nov-98 12300 23.9375
17-Nov-98 4400 24.25
18-Nov-98 700 24.375
19-Nov-98 1800 24.5
20-Nov-98 3600 24.3125
23-Nov-98 400 24.25
24-Nov-98 2700 24.0625
25-Nov-98 400 24.1875
27-Nov-98 0 24.1875
30-Nov-98 700 24.0625
1-Dec-98 600 24.375
2-Dec-98 1400 24.5625
3-Dec-98 2000 24.5625
4-Dec-98 0 24.5625
7-Dec-98 700 24.5
- --------------------------------------------------------------------------------
[LOGO]
February 17, 1999 Appendix A - Page 1
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
- --------------------------------------------------------------------------------
[GRAPHIC]
PEC Adjusted DIC PEC Actual
6-Sep-96 18.375 21.0594 18.375
9-Sep-96 18.875 21.3026 18.875
10-Sep-96 18.75 20.9678 18.75
11-Sep-96 18.625 19.999 18.625
12-Sep-96 18 20.2018 18
13-Sep-96 18.125 20.1905 18.125
16-Sep-96 18.375 20.5995 18.375
17-Sep-96 18 20.3282 18
18-Sep-96 17.875 20.2187 17.875
19-Sep-96 17.375 20.2675 17.375
20-Sep-96 17.75 20.2545 17.75
23-Sep-96 17.625 20.2639 17.625
24-Sep-96 17.625 20.2147 17.625
25-Sep-96 17.375 20.1796 17.375
26-Sep-96 17.25 19.113 17.25
27-Sep-96 17.125 19.078 17.125
30-Sep-96 17.125 18.4361 17.125
1-Oct-96 16.875 18.2561 16.875
2-Oct-96 17.375 18.1701 17.375
3-Oct-96 17.125 17.9371 17.125
4-Oct-96 17.125 17.929 17.125
7-Oct-96 17.125 18.3313 17.125
8-Oct-96 17 18.3894 17
9-Oct-96 16.875 18.0512 16.875
10-Oct-96 16.875 17.5029 16.875
11-Oct-96 16.875 17.5037 16.875
14-Oct-96 16.75 16.8203 16.75
15-Oct-96 16.375 17.5387 16.375
16-Oct-96 16.375 18.0471 16.375
17-Oct-96 16.625 18.4642 16.625
18-Oct-96 16.5 18.3351 16.5
21-Oct-96 16.75 18.1426 16.75
22-Oct-96 16.625 18.4637 16.625
23-Oct-96 16.625 18.9927 16.625
24-Oct-96 16.25 19.0709 16.25
25-Oct-96 16 19.047 16
28-Oct-96 15.875 18.8035 15.875
29-Oct-96 15.375 18.4566 15.375
30-Oct-96 15.125 18.4582 15.125
31-Oct-96 15.25 18.8321 15.25
1-Nov-96 15.25 18.9452 15.25
4-Nov-96 15.75 18.9937 15.75
5-Nov-96 15.5 18.653 15.5
6-Nov-96 15 19.1361 15
7-Nov-96 14.75 19.6531 14.75
8-Nov-96 14.625 19.6322 14.625
11-Nov-96 14.75 20.2401 14.75
12-Nov-96 15 20.613 15
13-Nov-96 15.5 20.933 15.5
14-Nov-96 15.5 20.9529 15.5
15-Nov-96 15.125 20.9829 15.125
18-Nov-96 15.5 20.3437 15.5
19-Nov-96 15.625 20.5329 15.625
20-Nov-96 15.75 20.7629 15.75
21-Nov-96 16.25 20.4317 16.25
22-Nov-96 16.25 20.4105 16.25
25-Nov-96 16.25 20.2648 16.25
26-Nov-96 16.125 20.2782 16.125
27-Nov-96 16.25 20.2476 16.25
29-Nov-96 16.625 20.4139 16.625
2-Dec-96 16.5 20.2167 16.5
3-Dec-96 17 21.2208 17
4-Dec-96 17 21.3866 17
5-Dec-96 17 21.8049 17
6-Dec-96 16.625 21.7858 16.625
9-Dec-96 17.125 21.6876 17.125
10-Dec-96 17.25 22.0722 17.25
11-Dec-96 17 21.789 17
12-Dec-96 16.875 21.8603 16.875
13-Dec-96 16.875 21.8273 16.875
16-Dec-96 16.5 21.2189 16.5
17-Dec-96 16.125 20.8012 16.125
18-Dec-96 16.625 20.9647 16.625
19-Dec-96 17.375 21.1635 17.375
20-Dec-96 17.625 21.2286 17.625
23-Dec-96 17.875 21.6214 17.875
24-Dec-96 18 21.6811 18
26-Dec-96 17.625 21.7378 17.625
27-Dec-96 17.5 21.8186 17.5
30-Dec-96 17.25 21.8441 17.25
31-Dec-96 16.75 21.3667 16.75
2-Jan-97 17.75 22.3471 17.75
3-Jan-97 17.75 22.2879 17.75
6-Jan-97 17.5 23.9572 17.5
7-Jan-97 17.625 24.2976 17.625
8-Jan-97 17.5 24.5802 17.5
9-Jan-97 17.5 24.4563 17.5
10-Jan-97 17 24.3802 17
13-Jan-97 17.875 25.2368 17.875
14-Jan-97 18.125 25.2345 18.125
15-Jan-97 18.875 25.7276 18.875
16-Jan-97 19.25 26.2635 19.25
17-Jan-97 19.375 26.1688 19.375
20-Jan-97 19.5 25.6484 19.5
21-Jan-97 19.875 25.5175 19.875
22-Jan-97 20 24.916 20
23-Jan-97 20.375 24.3068 20.375
24-Jan-97 19.875 24.3585 19.875
27-Jan-97 19.75 23.969 19.75
28-Jan-97 19.75 24.3519 19.75
29-Jan-97 20 25.0039 20
30-Jan-97 20.25 25.1249 20.25
31-Jan-97 20.125 25.1225 20.125
3-Feb-97 20.75 26.686 20.75
4-Feb-97 20.875 26.2616 20.875
5-Feb-97 20.875 26.2614 20.875
6-Feb-97 20.5 26.119 20.5
7-Feb-97 20.75 26.0062 20.75
10-Feb-97 20.75 25.7644 20.75
11-Feb-97 20.625 25.5863 20.625
12-Feb-97 20.75 25.4099 20.75
13-Feb-97 21 24.9079 21
14-Feb-97 20.75 24.9085 20.75
18-Feb-97 21.5 26.6191 21.5
19-Feb-97 21.375 26.4907 21.375
20-Feb-97 21.375 27.1065 21.375
21-Feb-97 21.5 27.1347 21.5
24-Feb-97 21 26.1837 21
25-Feb-97 21.375 25.0564 21.375
26-Feb-97 21.125 24.5007 21.125
27-Feb-97 20.25 24.377 20.25
28-Feb-97 20.125 24.3878 20.125
3-Mar-97 20.125 23.6649 20.125
4-Mar-97 20.25 24.1246 20.25
5-Mar-97 20.25 23.8599 20.25
6-Mar-97 20.375 23.7778 20.375
7-Mar-97 20.5 23.7707 20.5
10-Mar-97 20.375 23.4136 20.375
11-Mar-97 20.625 22.54 20.625
12-Mar-97 20.25 22.5426 20.25
13-Mar-97 20.125 22.753 20.125
14-Mar-97 20.125 22.7594 20.125
17-Mar-97 19.875 22.9871 19.875
18-Mar-97 19.875 22.505 19.875
19-Mar-97 19.625 22.456 19.625
20-Mar-97 19.375 22.4567 19.375
21-Mar-97 19.25 22.4998 19.25
24-Mar-97 19 21.9845 19
25-Mar-97 18.375 22.2458 18.375
26-Mar-97 19.125 22.2897 19.125
27-Mar-97 18.875 22.9579 18.875
31-Mar-97 18.875 24.1603 18.875
1-Apr-97 18.875 24.3386 18.875
2-Apr-97 18.75 25.1903 18.75
3-Apr-97 18.75 25.9394 18.75
4-Apr-97 19.25 25.8982 19.25
7-Apr-97 19.375 25.9595 19.375
8-Apr-97 19.375 25.8026 19.375
9-Apr-97 19 25.1517 19
10-Apr-97 19.25 25.0438 19.25
11-Apr-97 18.625 25.0109 18.625
14-Apr-97 19.125 25.5928 19.125
15-Apr-97 18.75 25.1651 18.75
16-Apr-97 18.75 24.9401 18.75
17-Apr-97 18.75 24.2813 18.75
18-Apr-97 18.75 24.2698 18.75
21-Apr-97 18.625 24.3482 18.625
22-Apr-97 18 24.3153 18
23-Apr-97 18.375 24.8305 18.375
24-Apr-97 18.75 24.8008 18.75
25-Apr-97 18.75 24.7731 18.75
28-Apr-97 18.5 24.7566 18.5
29-Apr-97 18.75 24.5174 18.75
30-Apr-97 19 24.633 19
1-May-97 18.875 24.5024 18.875
2-May-97 19.125 24.4539 19.125
5-May-97 19.625 25.3791 19.625
6-May-97 19.75 25.8873 19.75
7-May-97 19.375 25.9067 19.375
8-May-97 19.125 25.906 19.125
9-May-97 19.25 25.9394 19.25
12-May-97 19.25 25.9612 19.25
13-May-97 19.875 26.0161 19.875
14-May-97 20.25 27.1232 20.25
15-May-97 20.375 27.2228 20.375
16-May-97 20.75 27.3261 20.75
19-May-97 21.125 27.736 21.125
20-May-97 21.5 28.5595 21.5
21-May-97 21.75 28.274 21.75
22-May-97 21.75 28.5932 21.75
23-May-97 21.625 28.6095 21.625
27-May-97 21.875 28.9071 21.875
28-May-97 22.5 29.1586 22.5
29-May-97 22.875 28.6512 22.875
30-May-97 22.75 28.5907 22.75
2-Jun-97 23.125 28.8426 23.125
3-Jun-97 23.125 28.854 23.125
4-Jun-97 23.25 28.6761 23.25
5-Jun-97 23.375 29.3857 23.375
6-Jun-97 23.875 29.3826 23.875
9-Jun-97 23.75 30.6739 23.75
10-Jun-97 23.625 30.6333 23.625
11-Jun-97 23.875 30.6582 23.875
12-Jun-97 23.875 29.7549 23.875
13-Jun-97 24.5 29.6768 24.5
16-Jun-97 24.5 30.222 24.5
17-Jun-97 25 30.0248 25
18-Jun-97 25.125 30.3745 25.125
19-Jun-97 24.875 30.3192 24.875
20-Jun-97 24.625 30.2098 24.625
23-Jun-97 24.125 29.7222 24.125
24-Jun-97 23.625 28.7198 23.625
25-Jun-97 23.75 28.3277 23.75
26-Jun-97 24.25 27.574 24.25
27-Jun-97 24 27.3893 24
30-Jun-97 24 26.9267 24
1-Jul-97 23.875 28.2084 23.875
2-Jul-97 24 29.0033 24
3-Jul-97 24 29.0085 24
7-Jul-97 24 29.9803 24
8-Jul-97 24 29.5501 24
9-Jul-97 23.625 29.025 23.625
10-Jul-97 24.25 28.5274 24.25
11-Jul-97 24.125 28.4616 24.125
14-Jul-97 24.125 28.6715 24.125
15-Jul-97 23.937 28.7735 23.9375
16-Jul-97 23.812 28.4599 23.8125
17-Jul-97 23.187 29.3202 23.1875
18-Jul-97 23.437 29.3845 23.4375
21-Jul-97 22.812 28.5312 22.8125
22-Jul-97 22.812 28.6013 22.8125
23-Jul-97 22.875 29.8616 22.875
24-Jul-97 22.5 30.7306 22.5
25-Jul-97 22.25 30.8133 22.25
28-Jul-97 22.812 31.6639 22.8125
29-Jul-97 22.812 32.682 22.8125
30-Jul-97 22.5 31.977 22.5
31-Jul-97 22.625 32.9564 22.625
1-Aug-97 22.562 32.9509 22.5625
4-Aug-97 22.25 32.2497 22.25
5-Aug-97 22.562 31.8886 22.5625
6-Aug-97 22.75 31.2395 22.75
7-Aug-97 22.687 31.5602 22.6875
8-Aug-97 22.187 31.6775 22.1875
11-Aug-97 22 31.1878 22
12-Aug-97 21.687 31.1271 21.6875
13-Aug-97 21.875 31.176 21.875
14-Aug-97 21.75 31.7572 21.75
15-Aug-97 20.625 31.9211 20.625
18-Aug-97 20.562 31.1804 20.5625
19-Aug-97 20.625 31.0784 20.625
20-Aug-97 21.25 31.3536 21.25
21-Aug-97 21.875 30.8999 21.875
22-Aug-97 21.25 30.9716 21.25
25-Aug-97 20.812 29.1237 20.8125
26-Aug-97 20.812 28.4177 20.8125
27-Aug-97 20.875 28.8034 20.875
28-Aug-97 20.875 28.7394 20.875
29-Aug-97 20.687 28.6872 20.6875
2-Sep-97 20.75 28.2114 20.75
3-Sep-97 20.625 28.7534 20.625
4-Sep-97 20.75 28.4862 20.75
5-Sep-97 20.75 28.5288 20.75
8-Sep-97 20.812 27.3717 20.8125
9-Sep-97 20.687 28.4586 20.6875
10-Sep-97 20.375 28.7554 20.375
11-Sep-97 20.687 29.321 20.6875
12-Sep-97 20.625 29.4042 20.625
15-Sep-97 20.687 28.8123 20.6875
16-Sep-97 20.125 28.0267 20.125
17-Sep-97 20.062 27.7229 20.0625
18-Sep-97 20.125 27.2788 20.125
19-Sep-97 19.937 27.3049 19.9375
22-Sep-97 19 27.7551 19
23-Sep-97 19.125 28.0379 19.125
24-Sep-97 19.25 27.8009 19.25
25-Sep-97 19.437 28.335 19.4375
26-Sep-97 19.5 28.2674 19.5
29-Sep-97 19.25 29.3704 19.25
30-Sep-97 19.312 29.1437 19.3125
1-Oct-97 19.812 29.0785 19.8125
2-Oct-97 20.125 29.1159 20.125
3-Oct-97 20 29.1076 20
6-Oct-97 19.875 30.0363 19.875
7-Oct-97 20 30.035 20
8-Oct-97 19.937 30.8638 19.9375
9-Oct-97 19.937 30.5108 19.9375
10-Oct-97 20.062 30.4874 20.0625
13-Oct-97 20.562 30.9402 20.5625
14-Oct-97 21 30.9407 21
15-Oct-97 21.562 30.8062 21.5625
16-Oct-97 21.5 30.8424 21.5
17-Oct-97 21.5 30.6799 21.5
20-Oct-97 21.5 30.9621 21.5
21-Oct-97 21.5 31.1041 21.5
22-Oct-97 21.5 30.9959 21.5
23-Oct-97 21.25 31.0015 21.25
24-Oct-97 21.125 30.8345 21.125
27-Oct-97 19.625 29.1389 19.625
28-Oct-97 19.937 26.1148 19.9375
29-Oct-97 20.375 28.0717 20.375
30-Oct-97 20.187 27.1087 20.1875
31-Oct-97 20 27.1985 20
3-Nov-97 20.25 28.0723 20.25
4-Nov-97 20.25 27.4138 20.25
5-Nov-97 20.375 28.0834 20.375
6-Nov-97 20 28.0839 20
7-Nov-97 19.75 28.003 19.75
10-Nov-97 19.812 27.1293 19.8125
11-Nov-97 19.75 27.6404 19.75
12-Nov-97 18.937 26.7703 18.9375
13-Nov-97 18.937 27.0144 18.9375
14-Nov-97 19.562 27.0103 19.5625
17-Nov-97 20.125 28.3894 20.125
18-Nov-97 19.375 27.6749 19.375
19-Nov-97 19.062 27.0531 19.0625
20-Nov-97 19.625 26.9287 19.625
21-Nov-97 20.437 26.9393 20.4375
24-Nov-97 20.25 26.5516 20.25
25-Nov-97 20.125 26.6396 20.125
26-Nov-97 20.437 26.9471 20.4375
28-Nov-97 20.437 27.415 20.4375
1-Dec-97 20.375 28.092 20.375
2-Dec-97 20.437 28.2494 20.4375
3-Dec-97 21.125 28.2758 21.125
4-Dec-97 22 28.248 22
5-Dec-97 22.187 28.1666 22.1875
8-Dec-97 22 28.2106 22
9-Dec-97 21.625 28.1845 21.625
10-Dec-97 21.812 27.5892 21.8125
11-Dec-97 21.125 26.9777 21.125
12-Dec-97 21.125 26.9423 21.125
15-Dec-97 21.5 27.0561 21.5
16-Dec-97 21.5 27.696 21.5
17-Dec-97 21 28.08 21
18-Dec-97 21.062 27.9114 21.0625
19-Dec-97 21.062 27.9271 21.0625
22-Dec-97 21.437 26.8411 21.4375
23-Dec-97 21.687 27.4813 21.6875
24-Dec-97 21.625 26.7177 21.625
26-Dec-97 21.625 26.997 21.625
29-Dec-97 21.625 27.445 21.625
30-Dec-97 21.5 27.9868 21.5
31-Dec-97 21.625 27.9595 21.625
2-Jan-98 21.75 27.8912 21.75
5-Jan-98 21.687 27.4173 21.6875
6-Jan-98 21.687 27.1265 21.6875
7-Jan-98 21.625 26.7408 21.625
8-Jan-98 21.312 26.348 21.3125
9-Jan-98 21 26.3513 21
12-Jan-98 20.625 24.1701 20.625
13-Jan-98 20.75 24.7965 20.75
14-Jan-98 20.75 24.3692 20.75
15-Jan-98 20.5 23.7824 20.5
16-Jan-98 20.875 23.6647 20.875
20-Jan-98 21 24.5273 21
21-Jan-98 20.5 24.764 20.5
22-Jan-98 19.937 24.0968 19.9375
23-Jan-98 20.375 24.1301 20.375
26-Jan-98 20.375 24.0398 20.375
27-Jan-98 20.312 24.0196 20.3125
28-Jan-98 20.312 24.0456 20.3125
29-Jan-98 20.5 24.601 20.5
30-Jan-98 20.687 24.5535 20.6875
2-Feb-98 21.25 25.2886 21.25
3-Feb-98 21.75 24.782 21.75
4-Feb-98 21.25 24.3088 21.25
5-Feb-98 20.687 24.512 20.6875
6-Feb-98 20.5 24.5005 20.5
9-Feb-98 20.437 24.2115 20.4375
10-Feb-98 20.625 24.002 20.625
11-Feb-98 20.187 24.2446 20.1875
12-Feb-98 20 24.2347 20
13-Feb-98 20.437 24.2056 20.4375
17-Feb-98 20.875 24.6541 20.875
18-Feb-98 20.625 25.1201 20.625
19-Feb-98 20.5 24.9971 20.5
20-Feb-98 20.375 24.9791 20.375
23-Feb-98 20.625 26.1139 20.625
24-Feb-98 20.875 25.5643 20.875
25-Feb-98 20.625 24.7525 20.625
26-Feb-98 20.312 24.5185 20.3125
27-Feb-98 20.187 24.528 20.1875
2-Mar-98 20.687 25.3869 20.6875
3-Mar-98 20.875 25.2754 20.875
4-Mar-98 20.812 24.6928 20.8125
5-Mar-98 20.75 23.9542 20.75
6-Mar-98 20.937 23.9351 20.9375
9-Mar-98 21.062 25.4226 21.0625
10-Mar-98 21.687 26.1089 21.6875
11-Mar-98 21.812 26.0843 21.8125
12-Mar-98 21.875 26.1292 21.875
13-Mar-98 21.812 26.1644 21.8125
16-Mar-98 21.875 25.737 21.875
17-Mar-98 21.812 26.2541 21.8125
18-Mar-98 21.75 25.9258 21.75
19-Mar-98 21.937 26.0864 21.9375
20-Mar-98 21.937 26.0373 21.9375
23-Mar-98 21.5 26.6315 21.5
24-Mar-98 21.125 26.2702 21.125
25-Mar-98 21.375 26.6075 21.375
26-Mar-98 22.937 26.529 22.9375
27-Mar-98 23.062 26.4476 23.0625
30-Mar-98 22.687 26.3747 22.6875
31-Mar-98 22.937 26.2888 22.9375
1-Apr-98 23.625 26.6512 23.625
2-Apr-98 23.75 26.5602 23.75
3-Apr-98 24.25 26.4305 24.25
6-Apr-98 24 26.9144 24
7-Apr-98 23.812 26.5961 23.8125
8-Apr-98 23.5 26.5823 23.5
9-Apr-98 23.187 27.5553 23.1875
13-Apr-98 23.5 28.119 23.5
14-Apr-98 23.812 27.8495 23.8125
15-Apr-98 23.937 28.1549 23.9375
16-Apr-98 23.937 28.1396 23.9375
17-Apr-98 24 28.1321 24
20-Apr-98 24 28.2642 24
21-Apr-98 24.125 27.5891 24.125
22-Apr-98 24.125 26.7305 24.125
23-Apr-98 23.75 26.9383 23.75
24-Apr-98 23.625 26.9037 23.625
27-Apr-98 23.125 26.507 23.125
28-Apr-98 23.375 27.1719 23.375
29-Apr-98 23.375 27.2723 23.375
30-Apr-98 23.562 27.2686 23.5625
1-May-98 23.625 27.3062 23.625
4-May-98 23.812 28.9142 23.8125
5-May-98 23.875 29.2313 23.875
6-May-98 23.562 29.0802 23.5625
7-May-98 23.312 28.6154 23.3125
8-May-98 23.312 28.6762 23.3125
11-May-98 23.312 28.9391 23.3125
12-May-98 23.375 28.9087 23.375
13-May-98 23.25 29.8911 23.25
14-May-98 23.25 29.8701 23.25
15-May-98 23.125 29.8767 23.125
18-May-98 23.125 29.6634 23.125
19-May-98 23.062 29.5085 23.0625
20-May-98 22.875 29.5754 22.875
21-May-98 22.875 30.6286 22.875
22-May-98 22.687 30.7013 22.6875
26-May-98 22.687 31.7879 22.6875
27-May-98 22 30.7993 22
28-May-98 22 30.2742 22
29-May-98 22.125 30.2372 22.125
1-Jun-98 21.812 30.1712 21.8125
2-Jun-98 21.687 30.1934 21.6875
3-Jun-98 22.437 31.2931 22.4375
4-Jun-98 22.375 31.4517 22.375
5-Jun-98 22.375 31.4277 22.375
8-Jun-98 22.312 32.0507 22.3125
9-Jun-98 22.812 31.8118 22.8125
10-Jun-98 22.75 31.4289 22.75
11-Jun-98 22.875 30.8819 22.875
12-Jun-98 22.687 30.748 22.6875
15-Jun-98 22.25 29.7268 22.25
16-Jun-98 22.375 30.3646 22.375
17-Jun-98 22.25 31.203 22.25
18-Jun-98 22.687 31.4261 22.6875
19-Jun-98 23.125 31.5471 23.125
22-Jun-98 23.125 31.6557 23.125
23-Jun-98 23.062 31.3556 23.0625
24-Jun-98 23.437 32.4041 23.4375
25-Jun-98 23.687 32.7513 23.6875
26-Jun-98 23.75 32.6704 23.75
29-Jun-98 23.75 32.8349 23.75
30-Jun-98 23.875 32.0362 23.875
1-Jul-98 23.875 31.918 23.875
2-Jul-98 23.937 32.0933 23.9375
6-Jul-98 24 32.1568 24
7-Jul-98 23.937 31.7907 23.9375
8-Jul-98 24 31.428 24
9-Jul-98 24.25 31.1531 24.25
10-Jul-98 24.312 31.1826 24.3125
13-Jul-98 24.75 31.3708 24.75
14-Jul-98 24.75 32.0426 24.75
15-Jul-98 24.937 31.903 24.9375
16-Jul-98 24.937 31.6506 24.9375
17-Jul-98 24.812 31.6376 24.8125
20-Jul-98 25 32.5679 25
21-Jul-98 24.812 32.5032 24.8125
22-Jul-98 24.937 33.4199 24.9375
23-Jul-98 24.812 33.1244 24.8125
24-Jul-98 25 33.223 25
27-Jul-98 25.187 33.8065 25.1875
28-Jul-98 24.812 33.4993 24.8125
29-Jul-98 24.625 33.195 24.625
30-Jul-98 24.687 33.058 24.6875
31-Jul-98 24.875 33.1079 24.875
3-Aug-98 24.562 32.1945 24.5625
4-Aug-98 24.687 32.0828 24.6875
5-Aug-98 24.437 31.1623 24.4375
6-Aug-98 25.062 31.7367 25.0625
7-Aug-98 25.062 31.4688 25.0625
10-Aug-98 25.062 34.1729 25.0625
11-Aug-98 24.25 33.3941 24.25
12-Aug-98 25 33.9669 25
13-Aug-98 25 33.1142 25
14-Aug-98 24.812 33.1265 24.8125
17-Aug-98 25 32.1955 25
18-Aug-98 25.125 32.203 25.125
19-Aug-98 25.125 32.2129 25.125
20-Aug-98 25 32.0324 25
21-Aug-98 24.562 31.9986 24.5625
24-Aug-98 24.75 30.2896 24.75
25-Aug-98 25 30.407 25
26-Aug-98 24.875 29.4375 24.875
27-Aug-98 23.75 27.8817 23.75
28-Aug-98 23.812 27.3589 23.8125
31-Aug-98 23.25 27.8236 23.25
1-Sep-98 23.437 26.8401 23.4375
2-Sep-98 23.562 26.4745 23.5625
3-Sep-98 22.812 25.658 22.8125
4-Sep-98 22.812 25.7928 22.8125
8-Sep-98 21.848 27.6774 25
9-Sep-98 21.774 27.5844 25.625
10-Sep-98 20.766 26.3067 25.375
11-Sep-98 20.796 26.3453 25.875
14-Sep-98 22.180 28.0983 26.0625
15-Sep-98 21.610 27.3762 26
16-Sep-98 21.976 27.8401 26.25
17-Sep-98 21.312 26.9986 26.1875
18-Sep-98 21.388 27.095 26.375
21-Sep-98 21.411 27.1235 26.125
22-Sep-98 21.389 27.0959 26.125
23-Sep-98 21.500 27.2371 25.875
24-Sep-98 21.434 27.1526 26.0625
25-Sep-98 21.370 27.0724 25.875
28-Sep-98 20.696 26.2177 25.875
29-Sep-98 20.694 26.2154 25.5
30-Sep-98 20.693 26.2138 25.625
1-Oct-98 19.511 24.717 24.875
2-Oct-98 19.161 24.2739 25.625
5-Oct-98 19.154 24.2648 25.5
6-Oct-98 17.642 22.3493 24.875
7-Oct-98 16.788 21.2681 24.5
8-Oct-98 15.567 19.7202 24.1875
9-Oct-98 15.646 19.8211 24.125
12-Oct-98 15.586 19.7442 25
13-Oct-98 16.558 20.9765 25
14-Oct-98 16.481 20.8782 24.9375
15-Oct-98 16.993 21.5273 24.6875
16-Oct-98 17.005 21.543 24.9375
19-Oct-98 17.096 21.6579 24.9375
20-Oct-98 17.319 21.9398 25.1875
21-Oct-98 17.136 21.7084 24.5625
22-Oct-98 17.615 22.3148 24.8125
23-Oct-98 18.030 22.8404 24.875
26-Oct-98 18.284 23.1623 24.9375
27-Oct-98 18.481 23.4128 24.8125
28-Oct-98 18.330 23.2206 24.875
29-Oct-98 17.872 22.6404 24.8125
30-Oct-98 17.987 22.7865 24.8125
2-Nov-98 17.891 22.6654 25.0625
3-Nov-98 17.893 22.6673 24.9375
4-Nov-98 17.944 22.7324 25.0625
5-Nov-98 17.631 22.336 24.75
6-Nov-98 17.598 22.2933 24.875
9-Nov-98 16.834 21.3255 24.9375
10-Nov-98 16.589 21.0159 24.3125
11-Nov-98 16.955 21.4786 24.625
12-Nov-98 16.747 21.2156 24.5
13-Nov-98 16.747 21.2156 24.125
16-Nov-98 17.089 21.6493 23.9375
17-Nov-98 17.762 22.5018 24.25
18-Nov-98 17.989 22.7891 24.375
19-Nov-98 18.44 23.3598 24.5
20-Nov-98 18.345 23.2399 24.3125
23-Nov-98 18.883 23.922 24.25
24-Nov-98 19.701 24.9572 24.0625
25-Nov-98 19.706 24.9638 24.1875
26-Nov-98 19.746 25.0145 24.1875
27-Nov-98 19.522 24.7312 24.1875
30-Nov-98 19.944 25.265 24.0625
1-Dec-98 19.472 24.6679 24.375
2-Dec-98 19.331 24.4886 24.5625
3-Dec-98 19.564 24.7841 24.5625
4-Dec-98 19.564 24.7841 24.5625
7-Dec-98 20.312 25.7322 24.5
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[LOGO]
February 17, 1999 Appendix A - Page 2
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
- --------------------------------------------------------------------------------
APPENDIX B. HOLDING COMPANY DISCOUNTS
- --------------------------------------------------------------------------------
[LOGO]
February 17, 1999 Appendix B
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
- --------------------------------------------------------------------------------
PEC HISTORICAL DISCOUNTS(a)
- --------------------------------------------------------------------------------
OVER THE LAST YEARS, INDEPENDENT THIRD PARTY RESEARCH ANALYSTS HAVE ESTIMATED
PEC'S DISCOUNT TO ITS AFTER-TAX NAV FROM APPROXIMATELY 30% TO 51%.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
ESTIMATED DISCOUNT TO NAV
ANALYST PRE-TAX NAV SHARE ---------------
REPORT DATE PER SHARE PRICE PRE-TAX AFTER-TAX
------------- ------------- ------- --------- -----------
PEC(b) 11/19/98 $45.10 $24.500 (45.7%) (38.30%)
09/11/98 46.76 25.875 (44.7) (36.97)
05/26/98 51.94 22.688 (56.3) (50.26)
03/27/98 51.10 23.063 (54.9) (50.71)
12/05/97 35.29 Conservative 22.188 (37.1) (30.97)
38.16 Aggressive 22.188 (41.9) (36.63)
11/19/97 35.29 Conservative 19.063 (46.0) (40.69)
38.16 Aggressive 19.063 (50.0) (45.55)
11/18/97 34.47 19.375 (43.8) NA
09/12/97 36.41 Conservative 20.625 (43.4) (37.44)
39.28 Aggressive 20.625 (47.5) (42.45)
09/03/97 34.15 20.625 (39.6) NA
06/24/97 36.68 Conservative 23.625 (35.6) (30.04)
38.59 Aggressive 23.625 (38.8) (33.79)
04/09/97 28.03 19.000 (32.2) NA
- --------------------------------------------------------------------------------------------------------------
- ------------------------------
(a) Research analysts valued the Company's NAV under both aggressive and
conservative scenarios.
(b) Incorporated in the U.S. and subject to U.S. taxation.
Source: Publicly disclosed research reports.
- --------------------------------------------------------------------------------
[LOGO]
February 17, 1999 Appendix B - Page 1
CONFIDENTIAL
PROJECT ALPHA FOR INTERNAL USE ONLY
- --------------------------------------------------------------------------------
ISRAELI HOLDING COMPANY BENCHMARKS(a)
(continued)
- --------------------------------------------------------------------------------
THE DISCOUNT TO AFTER-TAX NAV FOR AMPAL-AMERICAN, A COMPARABLE U.S. HOLDING
COMPANY, HAS INCREASED TO OVER 47% DURING 1998.
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
ESTIMATED
ANALYST PRE-TAX NAV SHARE DISCOUNT TO NAV
REPORT DATE PER SHARE PRICE PRE-TAX AFTER-TAX
----------- ----------- ------- ------------------------
Ampal-American Israel 09/04/98 $9.92 Conservative $4.563 (54.0%) (47.74%)
Corporation(b)
12/05/97 9.76 Conservative 4.875 (50.1) (43.12)
10.16 Aggressive 4.875 (52.0) (46.13)
09/12/97 8.18 Conservative 5.438 (33.5) (19.92)
8.84 Aggressive 5.438 (38.5) (28.08)
06/25/97 8.97 Conservative 6.125 (31.7) (16.21)
9.60 Aggressive 6.125 (36.2) (25.40)
09/04/96 7.88 Conservative 4.750 (39.7) (22.39)
8.25 Aggressive 4.750 (42.4) (32.05)
- -------------------------------------------------------------------------------------------------------------
- ----------------------------
(a) Research analysts valued the Company's NAV under both aggressive and
conservative scenarios.
(b) Incorporated in the U.S. and subject to U.S. taxation.
Source: Publicly disclosed research reports.
- --------------------------------------------------------------------------------
[LOGO]
February 17, 1999 Appendix B - Page 2