Focus Companies

• JC Penney

  • No agreements reached
  • Shareholder Proposal to declassify the Board
  • 5-yr returns (12/31/99) down nearly 45%, while S&P Retail Dept. Stores Index gained more than 43%

• Lone Star Steak House

  • Will:
    • Perform annual evaluations of the CEO
    • Study the current director compensation
    • Form a Nom. Comm. of 100% indep. Directors
  • Declined further discussions; CalPERS considering whether to pursue shareholder proposal (majority independent directors)