DIALECTIC CAPITAL MANAGEMENT

As of the date hereof, the Investment Manager may be deemed to be the beneficial owner of 1,467,861 Shares, constituting approximately 5.2% of the Shares outstanding.

The aggregate purchase cost of the 1,467,861 Shares beneficially owned in the aggregate by DCP, DOF, DAP, DAO and DL2 is approximately $8,004,641. ($5.45 per share)

To that end, the
Reporting Persons have had several communications between October 29, 2010 and December 29, 2010 with the Issuer’s Chairman, Jack
Saltich, regarding the Reporting Persons obtaining representation on the Issuer’s board of directors. No agreement was reached between the
Reporting Persons and the Issuer as a result of such communications.
On December 30, 2010, the Reporting Persons delivered a letter to the Issuer (the “Nomination Letter”), notifying the Issuer that the
Reporting Persons intend to appear at the Issuer’s 2011 Annual Meeting of Stockholders and any adjournments or postponements thereof (the
“Annual Meeting”), in person or by proxy, to nominate and seek to elect two individuals as members of the board of directors of the Issuer (the
“Solicitation”). The two individuals named as nominees in the Nomination Letter are Kenneth Potashner and John Fichthorn (each a
“Nominee” and collectively, the “Nominees”). The Reporting Persons intend to file a proxy statement with the Securities and Exchange
Commission and solicit proxies on behalf of the Nominees.