<SUBMISSION>
<ACCESSION-NUMBER>0000950144-03-004966
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20030415
<ITEMS>7
<ITEMS>9
<FILING-DATE>20030415
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PERSONNEL GROUP OF AMERICA INC
<CIK>0000948850
<ASSIGNED-SIC>7363
<IRS-NUMBER>561930691
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0103
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-13956
<FILM-NUMBER>03650051
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>5605 CARNEGIE BLVD
<STREET2>STE 500
<CITY>CHARLOTTE
<STATE>NC
<ZIP>28209
<PHONE>7044425100
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>5605 CARNEGIE BLVD
<STREET2>SUITE 500
<CITY>CHARLOTTE
<STATE>NC
<ZIP>28209
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g82046e8vk.htm
<DESCRIPTION>PERSONNEL GROUP OF AMERICA, INC.
<TEXT>
<HTML>
<HEAD>
<TITLE>PERSONNEL GROUP OF AMERICA, INC.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center"><FONT size="2">SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, DC 20549</FONT>

<P align="center"><FONT size="4"><B>FORM 8-K</B></FONT>

<P align="center"><FONT size="4"><B>CURRENT REPORT</B></FONT>

<P align="center"><FONT size="2">Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</FONT>

<P align="center"><FONT size="2">Date of Report (Date of earliest event reported): April&nbsp;15, 2003</FONT>

<P align="center"><FONT size="4"><B>PERSONNEL GROUP OF AMERICA, INC.</B></FONT>
<HR width="50%" align="center" size="1" noshade>
<DIV align="center"><FONT size="2">(Exact Name of Registrant as
Specified in its Charter)</FONT></DIV>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><FONT size="2">Delaware</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
001-13956
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">56-1930691</FONT></TD>
</TR>
<TR>
    <TD align="center" valign="top"><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
<HR size="1" noshade>
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><FONT size="2">(State or Other Jurisdiction</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
(Commission File Number)
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">(I.R.S. Employer</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><FONT size="2">of Incorporation)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">Identification No.)</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">Five LakePointe Plaza, 2nd Floor<BR>
2709 Water Ridge Parkway<BR>
Charlotte, North Carolina 28217</FONT>
<HR width="50%" align="center" size="1" noshade>
<DIV align="center"><FONT size="2">(Address of Principal Executive Offices)<BR>
(Zip Code)</FONT></DIV>

<P align="center"><FONT size="2">(704)&nbsp;442-5100</FONT>
<HR width="50%" align="center" size="1" noshade>
<DIV align="center"><FONT size="2">(Registrant&#146;s Telephone
Number, Including Area Code)</FONT></DIV>

<P align="center"><FONT size="2">Not Applicable</FONT>
<HR width="50%" align="center" size="1" noshade>
<DIV align="center"><FONT size="2">(Former name or address, if
changed from last report)</FONT></DIV>

<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<P align="left"><FONT size="2">Item&nbsp;7. <U>Financial Statements
and Exhibits</U>.</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp; Not applicable.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp; Not applicable
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp; The following exhibits are filed as part of this report.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit&nbsp;99.1 &#150; Press release dated April&nbsp;15, 2003
</FONT>
<P align="left"><FONT size="2">Item&nbsp;9. <U>Regulation&nbsp;FD
Disclosure</U>.</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April&nbsp;15, 2003, Personnel Group of America, Inc. (the &#147;Company&#148;) issued
a press release announcing the completion of a comprehensive financial
restructuring with its senior lenders and the holders of approximately $109.7
million of the outstanding 5 3/4 % Subordinated Convertible Notes due 2004 in
which it reduced its outstanding indebtedness by more than $120.0&nbsp;million in
the aggregate and issued a significant number of new shares of capital stock to
the participating noteholders in a privately negotiated exchange transaction.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the press release is filed as Exhibit&nbsp;99.1 and incorporated
herein by reference.
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P align="center"><FONT size="2">SIGNATURES</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="44%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">Date: April&nbsp;15, 2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top"><FONT size="2">PERSONNEL GROUP OF AMERICA, INC.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
By:
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">/s/ Ken R. Bramlett, Jr.</FONT></TD>
</TR>
<TR>
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Ken R. Bramlett, Jr.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Senior Vice President</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center"><FONT size="2"><U>Exhibit&nbsp;Index</U></FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="55%">
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="left"><FONT size="1"><B>Exhibit</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center"><FONT size="1"><B>Exhibit No.</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Press release dated April&nbsp;15, 2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
99.1</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">&nbsp;</FONT>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>g82046exv99w1.htm
<DESCRIPTION>EX-99.1 PRESS RELEASE DATED APRIL 15, 2003
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1 PRESS RELEASE DATED APRIL 15, 2003</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right"><FONT size="2">Exhibit&nbsp;99.1</FONT>

<P align="center"><FONT size="3"><B>PERSONNEL GROUP OF AMERICA, INC.</B></FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="36%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">PGA Contacts:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
James C. Hunt
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Ken Bramlett, Jr.</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
Chief Financial Officer
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Senior Vice President</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
704-442-5105
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">704-442-5106</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="3"><B>PERSONNEL GROUP OF AMERICA COMPLETES FINANCIAL RESTRUCTURING</B></FONT>
<HR width="26%" align="center" size="1" noshade>
<DIV align="center"><FONT size="3"><B>SIGNIFICANTLY REDUCES
OUTSTANDING INDEBTEDNESS</B></FONT></DIV>

<P><FONT size="2">CHARLOTTE, NC (April&nbsp;15, 2003) &#151; Personnel Group of America, Inc. (OTCBB:
PRGA), today announced the closing of a comprehensive financial restructuring
in which it amended and restated its revolving credit facility, issued new
shares of common stock and Series&nbsp;B preferred stock to certain of the holders
of its 5.75% Convertible Subordinated Notes due 2004 in exchange for their
convertible notes and eliminated approximately $120.0&nbsp;million of its
outstanding indebtedness.
</FONT>
<P><FONT size="2">&#147;Completing this transaction is particularly significant since it culminates
such a long journey for PGA,&#148; Larry Enterline, PGA Chief Executive Officer,
commented. &#147;We are grateful for the support we received throughout the process
from our shareholders, bondholders, senior lenders and especially our
employees. The debt overhang on our balance sheet has distracted our
management and employees, restricted our flexibility and created negative
perceptions about our prospects for some time. Clearly, these concerns only
worsened with the deterioration in the economy over these last three years.
Now that the financial restructuring is behind us, this pressure is gone and we
can refocus our team on its core mission of building value in our operations.
We are excited about taking advantage of all of the hard work put in by our
field management and their personnel and to participating in a strengthening
economy with a much improved balance sheet. We look forward to discussing the
financial restructuring further on our first quarter earnings call, which is
scheduled for May&nbsp;13, 2003.&#148;
</FONT>
<P><FONT size="2"><B>Description of Financial Restructuring</B><BR>
In the financial restructuring, which was privately negotiated, the holders of
approximately $109.7&nbsp;million (or 95%) of PGA&#146;s 5.75% Notes exchanged notes with
the Company and received the following for each $1,000 in principal amount of
notes exchanged:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">$28.75 in cash;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">190.9560 shares of newly issued shares of the Company&#146;s common stock; and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">9.5242 shares of Series&nbsp;B preferred stock of the Company, each
share of which will be convertible into 100 shares of common stock and
will automatically convert into shares of common stock upon any
amendment to the Company&#146;s charter increasing the authorized number of
shares of common stock or effecting a reverse split of outstanding
shares of common stock that increases the number of authorized but
unissued shares. The Series&nbsp;B preferred stock will vote on all matters
with the common stock as if converted, will have
a liquidation preference of $.01 per share, and otherwise will have no
greater rights or privileges than the common stock.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>




<P><FONT size="2">PGA Completes Financial Restructuring<BR>
Page 2<BR>
April&nbsp;15, 2003
</FONT>
<P><FONT size="2">In connection with this notes exchange, the Company entered into an agreement
with each of the participating noteholders to provide them with registration
rights with respect to the shares of common stock issued in the exchange or
acquired upon conversion of the Series&nbsp;B preferred stock.
</FONT>
<P><FONT size="2">As a result of the notes exchange, the participating noteholders in the
aggregate were issued 20,940,425 shares of common stock and 1,044,433 shares of
Series&nbsp;B preferred stock, which together represent approximately 82% of the
Company&#146;s outstanding common stock (assuming for this purpose that all shares
of the Series&nbsp;B preferred stock issued to the participating noteholders have
been converted). The existing shareholders retained ownership of their
outstanding 26,881,212 shares of common stock, which represent approximately
18% of the outstanding common stock (on the same, as-converted basis). Total
common shares outstanding after the notes exchange, as converted, are
152,264,937.
</FONT>
<P><FONT size="2">In connection with this ownership change, the Company also reconstituted its
Board of Directors to provide for a seven-person Board and the designation of
two representatives of the new major shareholders to serve as new Board
members, together with the Company&#146;s Chief Executive Officer, three independent
Board members, two of whom are incumbents, who were designated by the
participating noteholders (although these two incumbents have stated their
intention not to stand for reelection at the upcoming 2003 Annual Meeting of
Shareholders) and one incumbent independent Board member who was designated by
the Company with the consent of the participating noteholders. As
reconstituted, the board of directors is comprised of Larry L. Enterline, the
Company&#146;s CEO, Janice L. Scites, James V. Napier, William J. Simione, Jr., all
incumbent, independent directors, Elias J. Sabo and Christopher Pechock,
designees of the new major shareholders, and Victor E. Mandel, a new
independent director. Mr.&nbsp;Sabo is a founding partner of The Compass Group
International LLC, and Mr.&nbsp;Pechock is a partner of MatlinPatterson Global
Opportunities Partners. Affiliates of The Compass Group International LLC and
MatlinPatterson Global Opportunities Partners received common and Series&nbsp;B
preferred stock in the notes exchange representing approximately 45% of the
voting power of the Company&#146;s outstanding stock. Mr.&nbsp;Mandel is a founder and
Managing Member of Criterion Capital Management, an investment company.
</FONT>
<P><FONT size="2">In order to permit the closing of the notes exchange contemplated in the
financial restructuring and to provide for the terms on which the existing
senior lenders would continue to finance the Company&#146;s working capital needs,
the Company and its existing senior lenders also amended and restated the
Company&#146;s revolving credit facility, extended the maturity date of the facility
and eliminated the equity appreciation rights that PGA granted to the credit
facility lenders in 2002. In connection with these transactions, the Company
used approximately $38.0&nbsp;million of its cash on hand (substantially all of its
cash after payment of expenses of the transactions) to repay outstanding
borrowings under the facility.
</FONT>
<P><FONT size="2">The amended credit facility provides for a $70.7&nbsp;million revolving line of
credit due May&nbsp;1, 2004 and is subject to certain maturity date extensions in
six-month increments up through May&nbsp;1, 2005. Availability of borrowings under
the amended credit facility is subject to a borrowing base calculated as
specified percentages of the Company&#146;s eligible accounts receivable (as
defined) in the aggregate, and the Company had approximately $8.0&nbsp;million of
availability thereunder as of the closing date. The amended credit facility
contains customary covenants, including financial covenants that require
monthly maintenance of cumulative monthly EBITDA levels commencing
with April 2003 and an interest and funded indebtedness ratio. The amended
credit facility also
</FONT>
<P align="center"><FONT size="2">-MORE-</FONT>


<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<P><FONT size="2">PGA Completes Financial Restructuring<BR>
Page 3<BR>
April&nbsp;15, 2003
</FONT>
<P><FONT size="2">contains restrictions on the payment of cash dividends on
the Company&#146;s capital stock and places additional limitations on share
repurchases, acquisitions and capital expenditures. Finally, in lieu of the
equity appreciation rights included as part of the revolving credit facility
that was in effect in 2002 the Company has issued common stock purchase
warrants to the lenders under the amended credit facility entitling them to
purchase a total of 19,224,916 shares of common stock, or 10% of the
outstanding common stock on a fully diluted basis. These warrants are
exercisable in whole or part over a 10-year period and the exercise price
thereunder is $0.3121 per share. Interest rates payable under the amended
credit facility are set at prime plus 325 basis points through June 2003 with
increases during each six-month period thereafter through May&nbsp;1, 2005.
</FONT>
<P><FONT size="2"><B>Pro Forma Financial Information</B><BR>
As discussed above, the financial restructuring resulted in significant
elimination of indebtedness and principal debt repayment. Because of the
significance of the financial restructuring on the Company&#146;s financial
position, the Company has included certain pro forma financial information to
highlight the impact of these transactions at the end of this press release.
</FONT>
<P><FONT size="2"><B>Other Terms</B><BR>
In connection with the financial restructuring the Company has agreed to seek
shareholder approval at the 2003 Annual Meeting of Shareholders for certain
amendments to its certificate of incorporation, including the following:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">a reverse stock split of the Company&#146;s Common Stock at a
one-for-twenty-five ratio;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">elimination of provisions that separate the Board of Directors into
three classes and that prohibit action by consent of shareholders
without a meeting;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">an election by the Company not to be governed by Section&nbsp;203 of the
Delaware General Corporation Law, which restricts the ability of the
Company to engage, directly or indirectly, in a business combination
transaction with a holder 15% or more of its voting stock;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">addition of provisions requiring a supermajority vote of the Board
of Directors or shareholders to adopt changes to the certificate of
incorporation or bylaws; and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">addition of a provision to protect minority shareholders in
connection with certain transactions with a shareholder that
beneficially owns 20% or more of the shares of the Company&#146;s capital
stock.</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">Each of the noteholders that participated in the exchange has agreed to vote
their shares of common and Series&nbsp;B preferred stock in favor of these
proposals. The Company has agreed that pending shareholder approval of the
amended and restated certificate of incorporation it will comply with the
proposed provision to protect minority shareholders described above as if it
had already been approved.
</FONT>
<P><FONT size="2">In addition, in connection with the financial restructuring, the Board of
Directors amended and restated the Company&#146;s bylaws to provide, among other
things, that, as long as there are &#147;Significant Holders&#148; (defined as the
beneficial owners of shares of capital stock of the Company representing 20% or
more of the votes entitled to be cast by holders of outstanding shares of
voting capital stock), such Significant Holders shall be entitled to designate,
in the aggregate, two members (such designees, being &#147;Significant Holder Designees&#148;) of the Board of
Directors, the
</FONT>
<P align="center"><FONT size="2">-MORE-</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<P><FONT size="2">PGA Completes Financial Restructuring<BR>
Page 4<BR>
April&nbsp;15, 2003
</FONT>
<P><FONT size="2">size of which is initially set at seven members, and to
designate two observers to attend all meetings of the Board of Directors and
its committees. Furthermore, the amended and restated bylaws provide that,
subject to applicable law and for so long as there are any Significant Holders,
a committee comprised of the two Significant Holder Designees and one
independent director who is not also a Significant Holder Designee shall be
responsible for designating a range of one (1)&nbsp;to four (4)&nbsp;independent nominees
for election to the Board of Directors each year, with the number within such
range depending on the amount of voting stock beneficially owned by the
Significant Holders.
</FONT>
<P><FONT size="2">As a result of the financial restructuring, three former noteholders, two of
which are affiliates of one another, are Significant Holders within the meaning
of the amended and restated bylaws. These three former noteholders are also
senior lenders under the amended credit facility. As a result of the financial
restructuring, these three former noteholders collectively beneficially own
common and Series&nbsp;B preferred stock of the Company having approximately 45% of
the voting power of the Company&#146;s outstanding capital stock in the aggregate,
excluding any shares of common stock purchasable under warrants issued to them
as senior lenders in connection with the amendment and restatement of the
revolving credit facility. Accordingly, these three former noteholders have
the power to control the designation either directly, or through a committee
including Significant Holder Designees, of six of the seven nominees for
election to the board of directors each year.
</FONT>
<P><FONT size="2">In connection with the financial restructuring, the Company amended and
restated the shareholder rights agreement that governs the terms of preferred
share purchase rights that currently accompany the common stock. These
amendments include, among other things, exemptions preventing the following
from triggering separation of the rights from the common stock: (i)&nbsp;beneficial
ownership of capital stock by the participating noteholders acquired in the
financial restructuring; (ii)&nbsp;beneficial ownership by any Significant Holder of
capital stock of the Company acquired in accordance with the amended and
restated certificate of incorporation; and (iii)&nbsp;beneficial ownership by any
third party of capital stock of the Company acquired in a transfer from a
Significant Holder pursuant to a transaction that complies with the amended and
restated certificates of incorporation. In addition, the shareholder rights
plan was amended to include a tag-along right for the benefit of any holder
(including certain holders of more than 2% acting together as a group) of 5% or
more of the voting stock of the Company pursuant to which such holder (or
group) will be entitled to participate pro rata, for the same amount and form
of consideration and otherwise on substantially the same terms and conditions,
in any transfer by any Significant Holders of capital stock of the Company of
20% or more of the voting stock of the Company.
</FONT>
<P><FONT size="2">In connection with the Company&#146;s financial restructuring, the Company
terminated its 1995 Stock Option Plan. Additionally, a number of the Company&#146;s
employees, including each of the Company&#146;s executive officers at the end of
2002, and all but one of the Company&#146;s 2002 independent directors have
irrevocably canceled any and all rights that they had to exercise any and all
stock options that were previously granted to such persons and agreed that all
such options would be forfeited to the Company. These employees and directors
held in the aggregate 2,190,030 of the stock options that were outstanding
under the 1995 Stock Option Plan as of December&nbsp;29, 2002. As a result of these
voluntary forfeitures, only 545,445 stock options remain outstanding under the
1995 Stock Option Plan and these options have a weighted average exercise price
of $9.23 per share. Although the 1995 Stock Option Plan has been terminated
and no future issuances will be made thereunder, these remaining outstanding stock
options will continue to be exercisable in accordance with their terms.
</FONT>
<P align="center"><FONT size="2">-MORE-</FONT>


<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<P><FONT size="2">PGA Completes Financial Restructuring<BR>
Page 5<BR>
April&nbsp;15, 2003
</FONT>
<P><FONT size="2">The Company&#146;s Board of Directors adopted the 2003 Equity Incentive Plan
simultaneously with the completion of the Company&#146;s financial restructuring.
The 2003 Equity Incentive Plan authorizes grants of stock options, stock
appreciation rights (or &#147;SARS&#148;), restricted stock, deferred stock awards and
performance awards (and dividend equivalent rights relating to options, SARs,
deferred stock and performance awards), in the case of stock or option awards,
for up to 19,870,873 shares, or 10.336%, of the Company&#146;s fully diluted common
stock. Awards under the 2003 Equity Incentive Plan are to be made to key
employees, directors and consultants as selected by the Board of Directors or
the Compensation Committee. The duration of any option or SAR granted under
the 2003 Equity Incentive Plan will not exceed ten years. Awards will
generally vest 20% on each anniversary of the date of grant unless either the
Board of Directors or Compensation Committee approves or a participant&#146;s
employment agreement provides otherwise. Following a termination of
employment, vested options and/or SARs must be exercised within three months
(12&nbsp;months in the case of death or disability), except that options and SARs
terminate immediately upon a termination for cause as defined in the relevant
participant&#146;s employment agreement, or as determined in the discretion of the
Board of Directors or the Compensation Committee if no employment agreement
exists. Any non-vested option, SARS or other awards issued under the 2003
Equity Incentive Plan will be forfeited upon any termination. The Board of
Directors and Compensation Committee retain the discretion to extend the
post-employment exercise period of an option or SAR and to accelerate vesting
of awards under the 2003 Equity Incentive Plan.
</FONT>
<P><FONT size="2">In connection with the financial restructuring, four executive officers,
including the Company&#146;s chief executive officer and chief financial officer,
entered into employment agreements with the Company, which replaced the
existing employment agreements with these executive officers. Each of these
employment agreements provides for an annual base salary for each executive
equal to the current base salary of such person (subject to annual adjustment
as determined by the Company&#146;s Compensation Committee), the right to earn
annual bonuses ranging from a maximum of 60% of annual salary up to 100% of
annual salary (for the chief executive officer) and, subject to shareholder
approval of the 2003 Equity Incentive Plan, an initial grant of stock options
under that plan as described below. Each employment agreement is for an
initial term of two years, with automatic one-year extensions thereafter unless
either party provides written notice of termination at least three months prior
to any scheduled expiration date. Each employment agreement provides severance
pay equal to one year&#146;s salary (two years&#146; salary for the chief financial
officer) and a pro-rated portion of any earned bonus following termination of
employment by the Company without cause. In addition, certain of these
executive officers, other than the chief financial officer, are entitled to
additional severance of up to one year&#146;s salary if in the first year following
the financial restructuring the Company is acquired at a price per share below
a specified threshold.
</FONT>
<P><FONT size="2">Subject to shareholder approval of the 2003 Equity Incentive Plan at the
Company&#146;s 2003 Annual Meeting, the Board of Directors has approved the granting
of stock options for 12,585,000 shares, representing 6.5% of the Company&#146;s
fully diluted common stock, to these four executive officers. Of these initial
grants, 8,700,000 options have an exercise price of $0.3121 per share, and the
other 3,885,000 options have an exercise price of $0.4681 per share. The
initial stock option grants to these officers vest monthly at an annual rate of
25% and each will have 12&nbsp;months following the termination of his employment
(other than for cause) to exercise vested stock options held as of the
termination date. Following these initial grants, options for 7,285,873
shares, or 3.8% of the Company&#146;s fully diluted common stock, will remain
authorized for issuance under the 2003 Equity Incentive Plan and will be
reserved for future grants.
</FONT>
<P align="center"><FONT size="2">-MORE-</FONT>


<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<P><FONT size="2">PGA Completes Financial Restructuring<BR>
Page 6<BR>
April&nbsp;15, 2003
</FONT>
<P><FONT size="2">The Company&#146;s common stock has traded since November 2002 on the Over the
Counter Bulletin Board. As contemplated in the Company&#146;s restructuring
agreement, PGA intends to apply for a new stock exchange listing following
completion of its planned reverse stock split. In the meantime the Company
expects that the common stock will continue to trade on the Over The Counter
Bulletin Board.
</FONT>
<P><FONT size="2">For a more complete description of the financial restructuring, see the
Company&#146;s Report on Form&nbsp;8-K (and the related exhibits) to be filed with the
Securities and Exchange Commission (once filed, this report will be available
on the Commission&#146;s website at http://www.sec.gov).
</FONT>
<P><FONT size="2"><B>About PGA</B><BR>
Personnel Group of America, Inc. is a nationwide provider of information
technology consulting and custom software development services; high-end
clerical, accounting and other specialty professional staffing services; and
technology systems for human capital management. The Company&#146;s IT Services
operations now operate under the name &#147;Venturi Technology Partners&#148; and its
Commercial Staffing operations operate as &#147;Venturi Staffing Partners&#148; and
&#147;Venturi Career Partners.&#148;
</FONT>
<P><FONT size="2"><B>Forward-looking Statements</B><BR>
Certain statements contained in this press release are forward-looking
statements regarding events and financial trends that may affect PGA&#146;s future
operating results or financial position. These statements may be identified by
words such as &#147;estimate,&#148; &#147;forecast,&#148; &#147;plan,&#148; &#147;intend,&#148; &#147;believe,&#148; &#147;should,&#148;
&#147;expect,&#148; &#147;anticipate,&#148; or variations or negatives thereof, or by similar or
comparable words or phrases. Forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ materially from
those expressed in such statements.
</FONT>
<P><FONT size="2">These risks and uncertainties include, but are not limited to, the following:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">changes in levels of unemployment and other economic conditions in
the United States, or in particular regions or industries;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">continuing weakness or further reductions in corporate information
technology spending levels;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">the ability of the Company to maintain existing client
relationships and attract new clients in the context of changing
economic or competitive conditions;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">the impact of competitive pressures, including any change in the
demand for the Company&#146;s services, or the Company&#146;s ability to maintain
or improve its operating margins;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">an Internal Revenue Service audit of the Company&#146;s income tax
returns and the risk that assessments for additional taxes, penalties
and interest could be levied against the Company;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">the entry of new competitors into the marketplace or expansion by
existing competitors;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">the Company&#146;s success in attracting, training and retaining
qualified management personnel and other staff employees;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">reductions in the supply of qualified candidates for temporary
employment or the Company&#146;s ability to attract qualified candidates;</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">-MORE-</FONT>



<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<P><FONT size="2">PGA Completes Financial Restructuring<BR>
Page 7<BR>
April&nbsp;15, 2003
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">the possibility of the Company incurring liability for the activities of
its temporary employees or for events impacting its temporary employees
on clients&#146; premises;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">the risk in an uncertain economic environment of increased
incidences of employment disputes, employment litigation and workers&#146;
compensation claims;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">the risk that further cost cutting or restructuring activities
undertaken by the Company could cause an adverse impact on certain of
the Company&#146;s operations;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">economic declines that affect the Company&#146;s liquidity or ability to
comply with its loan covenants;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">the risks of defaults under the Company&#146;s credit agreements or the
demand by any holder of the Company&#146;s remaining outstanding 5.75% Notes
for repayment following the occurrence of a repurchase event under the
indenture applicable to the 5.75% Notes;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">adverse changes in credit and capital markets conditions that may
affect the Company&#146;s ability to obtain financing or refinancing on
favorable terms;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">adverse changes to management&#146;s periodic estimates of future cash
flows that may affect management&#146;s assessment of its ability to fully
recover its goodwill;</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">whether governments will impose additional regulations or licensing
requirements on staffing services businesses in particular or on
employer/employee relationships in general; and</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">&#149;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">other matters discussed in this press release and the Company&#146;s SEC
filings.</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">Because long-term contracts are not a significant part of PGA&#146;s business,
future results cannot be reliably predicted by considering past trends or
extrapolating past results. The Company undertakes no obligation to update
information contained in this release and is not responsible for any changes
made to this release by wire or Internet services.
</FONT>
<P align="center"><FONT size="2">-MORE-</FONT>


<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<P><FONT size="2">PGA Completes Financial Restructuring<BR>
Page 8<BR>
April&nbsp;15, 2003
</FONT>
<P><FONT size="2"><B>Pro Forma Consolidated Balance Sheet</B><BR>
The following pro forma consolidated balance sheet as of December&nbsp;29, 2002 has
been derived from the application of pro forma adjustments to the Company&#146;s
historical consolidated financial statements and gives effect to the financial
restructuring as if the financial restructuring had occurred on the date of the
consolidated balance sheet. This pro forma data is presented for illustrative
purposes only and is not necessarily indicative of the financial position that
would have actually been reported had the financial restructuring occurred as
of December&nbsp;29, 2002, nor is it indicative of the Company&#146;s future financial
position.
</FONT>
<P align="center"><FONT size="2"><B>Pro Forma Consolidated Balance Sheet<BR>
December&nbsp;29, 2002<BR>
(in thousands)</B>
</FONT>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="56%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Pro Forma</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Historical</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Adjustments</B></FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD nowrap align="center" colspan="3"><FONT size="1"><B>Pro Forma</B></FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Assets</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Cash and cash equivalents</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">22,623</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">(14,795</FONT></TD>
    <TD nowrap><FONT size="2">)(1)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">1,575</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3,153</FONT></TD>
    <TD nowrap><FONT size="2">)(2)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(3,100</FONT></TD>
    <TD nowrap><FONT size="2">)(4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other current assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">80,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">80,118</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Recoverable income taxes</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">25,476</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">25,476</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total current assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">128,217</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(21,048</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">107,169</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Noncurrent assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">119,189</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(642</FONT></TD>
    <TD nowrap><FONT size="2">)(3)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">118,547</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total assets</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">247,406</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">(21,690</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">225,716</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><B>Liabilities and Shareholders&#146; Equity (Deficit)</B></FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Current portion of long-term debt</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">38,633</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">(13,685</FONT></TD>
    <TD nowrap><FONT size="2">)(1)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">24,948</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other current liabilities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">72,090</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,100</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">70,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total current liabilities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">110,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(14,785</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">95,938</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Long-term debt:</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Convertible, subordinated notes</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">115,000</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(109,661</FONT></TD>
    <TD nowrap><FONT size="2">)(2)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">5,339</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Revolving credit facility</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">65,015</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(1,110</FONT></TD>
    <TD nowrap><FONT size="2">)(1)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">63,905</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Other long-term liabilities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">9,016</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(439</FONT></TD>
    <TD nowrap><FONT size="2">)(1)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">8,577</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total liabilities</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">299,754</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(125,995</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">173,759</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#eeeeee">
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total shareholders&#146; equity (deficit)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">(52,348</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">104,305</FONT></TD>
    <TD nowrap><FONT size="2">(1,2,3,4)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">51,957</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="1" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Total liabilities and shareholders&#146; equity (deficit)</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">247,406</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD nowrap align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">(21,690</FONT></TD>
    <TD nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right"><FONT size="2">$</FONT></TD>
    <TD align="right"><FONT size="2">225,716</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD colspan="2"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">&nbsp;</FONT></DIV></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>
<HR size="1" width="18%" align="left" noshade>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2"><I>(1)</I></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><I>Adjustments to reflect cash paid to existing senior lenders which
includes $13,685 of principal debt repayments and $1,110 of fees paid in
connection with the completion of the Credit Facility, as amended, and
cancellation of equity appreciation rights resulting in a reduction in
accrued liabilities of $439.</I></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2"><I>(2)</I></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><I>Adjustments to reflect payments to participating holders of the 5.75%
Notes and exchange of $109,661 of such notes for newly issued shares of
the Company&#146;s Common and Series&nbsp;B Preferred Stock. The equity issued in
exchange for the 5.75% Notes is recorded at estimated fair value.</I></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2"><I>(3)</I></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><I>Adjustments to reflect the write-off of deferred debt issuance costs
of $642 associated with the 5.75% Notes exchanged for equity.</I></FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2"><I>(4)</I></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2"><I>Adjustment to record estimated professional fees incurred and paid in
connection with the comprehensive financial restructuring, including
$1,100, which had been accrued in the Company&#146;s historical balance sheet
at December&nbsp;29, 2002.</I></FONT></TD>
</TR>
</TABLE>

<P align="center"><FONT size="2">&nbsp;</FONT>




</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SUBMISSION>
