Bestway Update

It looks like Bestway finally issued a definitive proxy statement for their reverse stock split. The date of the vote is set for May 23, 2005. Hopefully everything will go smoothly, and the transaction will be completed shortly after the shareholder meeting.

The proxy indicates that certain board members intend on voting for the reserve stock split, so I expect that the measure will be approved. But as we have learned, there is still some risk that the reverse stock split might not happen.

The two main questions you might have regarding the transaction are addressed in the proxy, and are as follows:

Q: What will I receive in the transaction?

A: If you own fewer than 100 shares of the Company’s Common Stock immediately before the effective time of the transaction, you will receive $13.00 in cash, without interest, from the Company for each share that you own. If you own 100 or more shares of the Company’s Common Stock at the effective time of the transaction, you will not receive any cash payment for your shares in connection with the transaction and will continue to hold the same number of shares of the Company’s Common Stock as you did before the transaction.

Q: What if I hold shares in street name?

A: The Company intends to treat stockholders holding Common Stock in street name through a nominee (such as a bank or broker) in the same manner as stockholders whose shares are registered in their name. However, nominees may have different procedures and stockholders holding Common Stock in street name should contact their nominees.

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