Joseph and Susan L. Ferraro - Page 12




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          recycling, and both relied on information provided by PI and                
          other parties related to the transaction in providing their                 
          reports.  Both individuals were paid a fee each time their                  
          reports were included as part of a private offering memorandum of           
          a plastics recycling partnership.                                           
               Burstein is a professor of mathematics at New York                     
          University.  Burstein's report concluded that the Sentinel EPE              
          recyclers were capable of continuous recycling.  Ulanoff is a               
          professor of marketing at Baruch College and has written numerous           
          books on marketing subjects.  His report covered the marketing              
          value and potential of the Sentinel EPE recyclers and expressed             
          the conclusion that the sale price paid by F&G Corp. for the                
          recyclers was fair and reasonable.  Ulanoff's report stated that            
          his conclusions were based on his personal observation of the               
          Sentinel EPE recycler prototype during a visit to PI, discussions           
          with PI employees, the needs of the plastics industry, and his              
          analysis of the economic projection provided in the offering                
          memorandum.                                                                 
               The offering memorandum represented that the Sentinel EPE              
          recyclers were unique machines.  However, they were not.  Several           
          machines capable of densifying low-density materials were already           
          on the market in 1981.  Other plastics recycling machines                   
          available at that time ranged in price from $20,000 to $200,000,            
          including the Foremost "Densilator", the Nelmor/Weiss                       





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