
<PAGE>   1


                                   PINEHURST
                    ENTERPRISE VALUATION - AFTER RESTRUCTURE
                                   5% GROWTH

<TABLE>
<CAPTION>
      ($000,000)

      <S>                         <C>        <C>
      DISCOUNT RATE                 11.50%
      ENTERPRISE VALUE                             $96.8
      LESS: DEBT                                    36.3
      EQUITY VALUE                                 $60.5
      SHARES OUTSTANDING                       2,190,619
      VALUE PER SHARE                             $27.63
</TABLE>
<PAGE>   2

                                   PINEHURST

                                   VALUATION

   
<TABLE>
<CAPTION>
($000,000)

<S>                                        <C>          <C>        <C>
DISCOUNT RATE                                           11.50%

NET PRESENT VALUE OF CASH FLOWS                                         $24.6

DEBT ASSUMED                                                             $9.2  
CASH PAID -- PER SH                         $32.0                        17.8
TRANSACTION COSTS                                                         2.0
LEVERED INVESTMENT                                                      $29.1 

NPV OF CASH FLOWS                                                       ($4.4)

INTERNAL RATE OF RETURN (IRR)                                            9.5%

INVESTMENT (CASH PD + TRANS COST)                                       $19.8
EQUITY ACQUIRED                                                          12.2
GOODWILL                                                                 $7.6

SHARES OUTSTANDING                                                  2,190,619 
MINORITY SHARES                                                       556,924
</TABLE>
    
<PAGE>   3

                                   PINEHURST

                               VALUATION SUMMARY

   
<TABLE>
<CAPTION>
                                         CASH      NET       MARKET             PINEHURST    MINORITY    MINORITY
                                         FLOW    BOOK VAL    CAPITAL    DEBT      VALUE       VALUE      SH VALUE
                                        -----    --------   --------    ----    ---------    --------    --------
<S>                                     <C>      <C>        <C>         <C>      <C>         <C>         <C> 
ENTERPRISE VALUATION                    $96.8                           $36.3     $60.5       $15.4       $27.63

BOOK VALUE:
  12/31/96                                        46.7                             46.7       $11.9       $21.32
  12/31/97 ESTIMATED                              47.7                             47.7       $12.1       $21.77   

MARKET VALUE:
  EIGHT MONTH TRADING RANGE AVG.                              $57.1               $57.1       $14.5       $26.05
</TABLE>
    
<PAGE>   4


                                   PINEHURST
                  ENTERPRISE VALUATION - PINEHURST PROJECTION
                                   5% GROWTH

<TABLE>
<CAPTION>
      ($000,000)

      <S>                         <C>        <C>
      DISCOUNT RATE                 11.50%
      ENTERPRISE VALUE                             $47.4
      LESS: DEBT                                    36.3
      EQUITY VALUE                                 $11.1
      SHARES OUTSTANDING                       2,190,619
      VALUE PER SHARE                              $5.07
</TABLE>
<PAGE>   5

                                   PINEHURST

                                   VALUATION

<TABLE>
<CAPTION>
($000,000)

<S>                                        <C>          <C>        <C>
DISCOUNT RATE                                           11.50%

NET PRESENT VALUE OF CASH FLOWS                                         $12.1

DEBT ASSUMED                                                             $9.2  
CASH PAID -- PER SH                         $32.0                        17.8
TRANSACTION COSTS                                                         2.0
LEVERED INVESTMENT                                                      $29.1 

NPV OF CASH FLOWS                                                      ($17.0)

INTERNAL RATE OF RETURN (IRR)                                            5.1%

INVESTMENT (CASH PD + TRANS COST)                                       $19.8
EQUITY ACQUIRED                                                          12.2
GOODWILL                                                                 $7.6

SHARES OUTSTANDING                                                  2,190,619 
MINORITY SHARES                                                       556,924
</TABLE>
<PAGE>   6

                                   PINEHURST

                               VALUATION SUMMARY

<TABLE>
<CAPTION>
                                         CASH      NET       MARKET             PINEHURST    MINORITY    MINORITY
                                         FLOW    BOOK VAL    CAPITAL    DEBT      VALUE       VALUE      SH VALUE
                                        -----    --------   --------    ----    ---------    --------    --------
<S>                                     <C>      <C>        <C>         <C>      <C>         <C>         <C> 
ENTERPRISE VALUATION                    $47.4                           $36.3     $11.1        $2.8        $5.07

BOOK VALUE:
  12/31/96                                        46.7                             46.7       $11.9       $21.32
  12/31/97 ESTIMATED                              47.7                             47.7       $12.1       $21.77   

MARKET VALUE:
  EIGHT MONTH TRADING RANGE AVG.                              $57.1               $57.1       $14.5       $26.05
</TABLE>
<PAGE>   7


                                   PINEHURST
                              ENTERPRISE VALUATION
                                   

<TABLE>
<CAPTION>
      ($000,000)

      <S>                         <C>        <C>
      DISCOUNT RATE                 9.51%
      PV OF FREE CASH FLOWS                        $86.3
      DEBT                                          36.3
      ENTERPRISE VALUE                             $50.0
      SHARES OUTSTANDING                       2,190,619
      VALUE PER SHARE                             $22.84
</TABLE>
<PAGE>   8

                                   PINEHURST

                               VALUATION SUMMARY

<TABLE>
<CAPTION>
                                         CASH      NET       MARKET             PINEHURST    MINORITY    MINORITY
                                         FLOW    BOOK VAL    CAPITAL    DEBT      VALUE       VALUE      SH VALUE
                                        -----    --------   --------    ----    ---------    --------    --------
<S>                                     <C>      <C>        <C>         <C>      <C>         <C>         <C> 
ENTERPRISE VALUATION                    $86.3                           $36.3     $50.0       $12.7       $22.84

BOOK VALUE:
  12/31/96                                        46.7                             46.7       $11.9       $21.32
  12/31/97 ESTIMATED                              47.7                             47.7       $12.1       $21.77   

MARKET VALUE:
  EIGHT MONTH TRADING RANGE AVG.                              $57.1               $57.1       $14.5       $26.05
</TABLE>
<PAGE>   9


                                   PINEHURST
                    ENTERPRISE VALUATION - AFTER RESTRUCTURE
                                   5% GROWTH

<TABLE>
<CAPTION>
      ($000,000)

      <S>                         <C>        <C>
      DISCOUNT RATE                 11.50%
      ENTERPRISE VALUE                             $97.8
      LESS: DEBT                                    36.3
      EQUITY VALUE                                 $61.5
      SHARES OUTSTANDING                       2,190,619
      VALUE PER SHARE                             $28.08
</TABLE>
<PAGE>   10

                                   PINEHURST

                                   VALUATION

<TABLE>
<CAPTION>
($000,000)

<S>                                        <C>          <C>        <C>
DISCOUNT RATE                                           11.50%

NET PRESENT VALUE OF CASH FLOWS                                         $24.9

DEBT ASSUMED                                                             $9.2  
CASH PAID -- PER SH                         $32.0                        17.8
TRANSACTION COSTS                                                         2.0
LEVERED INVESTMENT                                                      $29.1 

NPV OF CASH FLOWS                                                       ($4.2)

INTERNAL RATE OF RETURN (IRR)                                            9.5%

INVESTMENT (CASH PD + TRANS COST)                                       $19.8
EQUITY ACQUIRED                                                          12.2
GOODWILL                                                                 $7.6

SHARES OUTSTANDING                                                  2,190,619 
MINORITY SHARES                                                       556,924
</TABLE>
<PAGE>   11

                                   PINEHURST

                               VALUATION SUMMARY

<TABLE>
<CAPTION>
                                         CASH      NET       MARKET             PINEHURST    MINORITY    MINORITY
                                         FLOW    BOOK VAL    CAPITAL    DEBT      VALUE       VALUE      SH VALUE
                                        -----    --------   --------    ----    ---------    --------    --------
<S>                                     <C>      <C>        <C>         <C>      <C>         <C>         <C> 
ENTERPRISE VALUATION                    $97.8                           $36.3     $61.5       $15.6       $28.08

BOOK VALUE:
  12/31/96                                        46.7                             46.7       $11.9       $21.32
  12/31/97 ESTIMATED                              47.7                             47.7       $12.1       $21.77   

MARKET VALUE:
  EIGHT MONTH TRADING RANGE AVG.                              $57.1               $57.1       $14.5       $26.05
</TABLE>
<PAGE>   12


                                   BRAD RAGAN
                            MANAGEMENT PLAN - CASE 1
                                   NO GROWTH

<TABLE>
<CAPTION>
      $(MM)

      <S>                         <C>        <C>
      DISCOUNT RATE                 11.50%
      ENTERPRISE VALUE                             $34.7
      LESS: DEBT                                    36.3
      EQUITY VALUE                                 ($1.6)
      SHARES OUTSTANDING                       2,190,619
      VALUE PER SHARE                             ($0.71)
      CASH FLOW INTO PERPITUITY
</TABLE>
<PAGE>   13

                                   BRAD RAGAN

                           MANAGEMENT PLAN -- CASE 1

<TABLE>
<CAPTION>
($000,000)

<S>                                        <C>          <C>        <C>
DISCOUNT RATE                                           11.50%

NET PRESENT VALUE OF CASH FLOWS                                          $8.8

DEBT ASSUMED                                                             $9.2  
CASH PAID -- PER SH                         $32.0                        17.8
TRANSACTION COSTS                                                         2.0
LEVERED INVESTMENT                                                      $29.1 

NPV OF CASH FLOWS                                                      ($20.2)

INTERNAL RATE OF RETURN (IRR)                                            0.0%

INVESTMENT (CASH PD + TRANS COST)                                       $19.8
EQUITY ACQUIRED                                                          12.2
GOODWILL                                                                 $7.6

SHARES OUTSTANDING                                                  2,190,619 
MINORITY SHARES                                                       556,924
</TABLE>
<PAGE>   14

                                   BRAD RAGAN

                               VALUATION SUMMARY

<TABLE>
<CAPTION>
                                         CASH      NET       MARKET             PINEHURST    MINORITY    MINORITY
                                         FLOW    BOOK VAL    CAPITAL    DEBT      VALUE       VALUE      SH VALUE
                                        -----    --------   --------    ----    ---------    --------    --------
<S>                                     <C>      <C>        <C>         <C>      <C>         <C>         <C> 
ENTERPRISE VALUATION                    $34.7                           $36.3     ($1.6)      ($0.4)      ($0.71)

BOOK VALUE:
  12/31/96                                        46.7                             46.7       $11.9       $21.32
  12/31/97 ESTIMATED                              47.7                             47.7       $12.1       $21.77   

MARKET VALUE:
  EIGHT MONTH TRADING RANGE AVG.                              $57.1               $57.1       $14.5       $26.05
</TABLE>
<PAGE>   15


                                   BRAD RAGAN
                            MANAGEMENT PLAN - CASE 2
                                   3% GROWTH

<TABLE>
<CAPTION>
      ($MM)

      <S>                         <C>        <C>
      DISCOUNT RATE                 11.50%
      ENTERPRISE VALUE                             $24.8
      LESS: DEBT                                    36.3
      EQUITY VALUE                                ($11.5)
      SHARES OUTSTANDING                       2,190,619
      VALUE PER SHARE                             ($5.27)
      CASH FLOW INTO PERPITUITY
</TABLE>
<PAGE>   16

                                   BRAD RAGAN

                           MANAGEMENT PLAN -- CASE 2

<TABLE>
<CAPTION>
($000,000)

<S>                                        <C>          <C>        <C>
DISCOUNT RATE                                           11.50%

NET PRESENT VALUE OF CASH FLOWS                                          $6.3

DEBT ASSUMED                                                             $9.2  
CASH PAID -- PER SH                         $32.00                       17.8
TRANSACTION COSTS                                                         2.0
LEVERED INVESTMENT                                                      $29.1 

NPV OF CASH FLOWS                                                      ($22.8)

INTERNAL RATE OF RETURN (IRR)                                            0.0%

INVESTMENT (CASH PD + TRANS COST)                                       $19.8
EQUITY ACQUIRED                                                          12.2
GOODWILL                                                                 $7.6

SHARES OUTSTANDING                                                  2,190,619 
MINORITY SHARES                                                       556,924
</TABLE>
<PAGE>   17

                                   BRAD RAGAN

                               VALUATION SUMMARY

<TABLE>
<CAPTION>
                                         CASH      NET       MARKET             PINEHURST    MINORITY    MINORITY
                                         FLOW    BOOK VAL    CAPITAL    DEBT      VALUE       VALUE      SH VALUE
                                        -----    --------   --------    ----    ---------    --------    --------
<S>                                     <C>      <C>        <C>         <C>      <C>         <C>         <C> 
ENTERPRISE VALUATION                    $24.8                           $36.3    ($11.5)      ($2.9)      ($5.27)

BOOK VALUE:
  12/31/96                                        46.7                             46.7       $11.9       $21.32
  12/31/97 ESTIMATED                              47.7                             47.7       $12.1       $21.77   

MARKET VALUE:
  EIGHT MONTH TRADING RANGE AVG.                              $57.1               $57.1       $14.5       $26.05
</TABLE>
<PAGE>   18


                                   BRAD RAGAN
                      MANAGEMENT PLAN - MODIFIED - CASE 3

<TABLE>
<CAPTION>
      $(MM)

      <S>                         <C>        <C>
      DISCOUNT RATE                 11.50%
      ENTERPRISE VALUE                             $94.4
      LESS: DEBT                                    36.3
      EQUITY VALUE                                 $58.1
      SHARES OUTSTANDING                       2,190,619
      VALUE PER SHARE                             $26.54
      SAG REDUCED TO 25%
      CASH FLOW INTO PERPITUITY
</TABLE>
<PAGE>   19

                                   BRAD RAGAN

                     MANAGEMENT PLAN -- MODIFIED -- CASE 3

<TABLE>
<CAPTION>
($000,000)

<S>                                        <C>          <C>        <C>
DISCOUNT RATE                                           11.50%

NET PRESENT VALUE OF CASH FLOWS                                         $24.0

DEBT ASSUMED                                                             $9.2  
CASH PAID -- PER SH                         $32.00                       17.8
TRANSACTION COSTS                                                         2.0
LEVERED INVESTMENT                                                      $29.1 

NPV OF CASH FLOWS                                                       ($5.0)

INTERNAL RATE OF RETURN (IRR)                                           10.4%

INVESTMENT (CASH PD + TRANS COST)                                       $19.8
EQUITY ACQUIRED                                                          12.2
GOODWILL                                                                 $7.6

SHARES OUTSTANDING                                                  2,190,619 
MINORITY SHARES                                                       556,924
</TABLE>
<PAGE>   20

                                   BRAD RAGAN
                                        
                               VALUATION SUMMARY

<TABLE>
<CAPTION>
                                         CASH      NET       MARKET             PINEHURST    MINORITY    MINORITY
                                         FLOW    BOOK VAL    CAPITAL    DEBT      VALUE       VALUE      SH VALUE
                                        -----    --------   --------    ----    ---------    --------    --------
<S>                                     <C>      <C>        <C>         <C>      <C>         <C>         <C> 
ENTERPRISE VALUATION                    $94.4                           $36.3     $58.1       $14.8       $26.54

BOOK VALUE:
  12/31/96                                        46.7                             46.7       $11.9       $21.32
  12/31/97 ESTIMATED                              47.7                             47.7       $12.1       $21.77   

MARKET VALUE:
  EIGHT MONTH TRADING RANGE AVG.                              $57.1               $57.1       $14.5       $26.05
</TABLE>
<PAGE>   21


                                   BRAD RAGAN
                              EXIT RETAIL - CASE 4

<TABLE>
<CAPTION>
      $(MM)

      <S>                         <C>        <C>
      DISCOUNT RATE                 11.50%
      ENTERPRISE VALUE                            $102.3
      LESS: DEBT                                    36.3
      EQUITY VALUE                                 $66.0
      SHARES OUTSTANDING                       2,190,619
      VALUE PER SHARE                             $30.13
      CASH FLOW INTO PERPITUITY
</TABLE>
<PAGE>   22

                                   BRAD RAGAN

                             EXIT RETAIL -- CASE 4
                                   5% GROWTH

<TABLE>
<CAPTION>
($000,000)

<S>                                        <C>          <C>        <C>
DISCOUNT RATE                                           11.50%

NET PRESENT VALUE OF CASH FLOWS                                         $26.0

DEBT ASSUMED                                                             $9.2  
CASH PAID -- PER SH                         $32.00                       17.8
TRANSACTION COSTS                                                         2.0
LEVERED INVESTMENT                                                      $29.1 

NPV OF CASH FLOWS                                                       ($3.0)

INTERNAL RATE OF RETURN (IRR)                                           10.1%

INVESTMENT (CASH PD + TRANS COST)                                       $19.8
EQUITY ACQUIRED                                                          12.2
GOODWILL                                                                 $7.6

SHARES OUTSTANDING                                                  2,190,619 
MINORITY SHARES                                                       556,924
</TABLE>
<PAGE>   23

                                   BRAD RAGAN

                               VALUATION SUMMARY

<TABLE>
<CAPTION>
                                         CASH      NET       MARKET             PINEHURST    MINORITY    MINORITY
                                         FLOW    BOOK VAL    CAPITAL    DEBT      VALUE       VALUE      SH VALUE
                                        -----    --------   --------    ----    ---------    --------    --------
<S>                                     <C>      <C>        <C>         <C>      <C>         <C>         <C> 
ENTERPRISE VALUATION                   $102.3                           $36.3     $66.0       $16.8       $30.13

BOOK VALUE:
  12/31/96                                        46.7                             46.7       $11.9       $21.32
  12/31/97 ESTIMATED                              47.7                             47.7       $12.1       $21.77   

MARKET VALUE:
  EIGHT MONTH TRADING RANGE VG.                               $57.1               $57.1       $14.5       $26.05
</TABLE>
