OTHER NEWS - June 3, 1994

Milken Partnership Sues Beatrice: Carlton Investments, an investor group founded by convicted financier Michael Milken, is suing TLC Beatrice International Holdings Inc., contending management has squandered resources of the nation’s leading black-owned company. The lawsuit, filed in Chancery Court in Delaware, where TLC Beatrice is incorporated, raised pressure on the family of founder Reginald Lewis, which has been running the company since his death from brain cancer in January, 1993. Milken is a stockholder in TLC Beatrice through his Carlton partnership, which owns a 26% stake and a seat on the TLC Beatrice board. Carlton said it is suing to force Beatrice to surrender company accounting books and records so the partnership can accurately evaluate the worth of its investment. Beatrice’s stock is not publicly traded, and its inner workings have largely been kept from public view.