Groveland Group Says That Now Is the Time for Reform and Positive Change at Biglari Holdings - Seite 2

-- Summarizing the Reports Issued by Two Leading Proxy Advisory Firms

Recently, two leading proxy advisory firms issued their recommendations regarding this proxy contest. Institutional Shareholder Services ("ISS") recommended that shareholders WITHOLD on all six incumbent directors because of "repeated failures of governance". Glass Lewis recommended that shareholders DO NOT VOTE for any of the Company's six incumbent directors, but VOTE FOR two of Groveland Group's director nominees: Mr. James W. Stryker and Mr. Stephen J. Lombardo.

While Groveland would have preferred for ISS to have recommended in favor of our slate, and for Glass Lewis to have recommended in favor of our full slate, it is clear that neither advisory firm finds the re-election of the Company's directors to be desirable. Both proxy advisory firms were UNANIMOUS in recommending that no one should vote in favor of the Company's nominees.

"This leaves shareholders with a choice regarding our nominees," said Mr. Swenson, "and we are convinced that shareholders should vote in favor of our full slate. Neither ISS nor Glass Lewis are voting as shareholders in this election, you are. We urge shareholders to not lose sight of the big picture that corporate governance reform and operational improvement at Biglari Holdings is critical. We strongly believe that our plan is sound, thoughtful and strategic, and we are confident that our efforts can drive significant shareholder value at BH."

Groveland's Sound Transition Plan

Biglari Holdings may seem like a complex situation. However, we believe the plan needed to drive shareholder value is straight forward.

-- New CEO

• First and foremost, Groveland believes it is critical to put the right restaurant executive(s) in place. Appointing restaurant veteran Mr. Gene Baldwin as Interim CEO allows the board to gather credible intelligence and make immediate and necessary operational changes, including the reduction of consolidated SG&A expenses and repairing the broken relationship with franchisees and employees.
• With the assistance of a highly regarded executive search firm, we plan to promptly hire a permanent CEO. We believe we will have a number of well-qualified executives from which to select a Permanent CEO.

-- Groveland's Operational, Financial and Strategic Review of Biglari Holdings