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Arrangements to Provide Records or File Reports

(August 16, 2002)

Copied below is the text of an August 16, 2002 letter from Franklin Mutual Advisers, LLC, to Farmer Bros., responding to an August 5, 2002 letter from Farmer Bros. stating that management will compile and make available the records demanded in Franklin Mutual's July 26, 2002 letter, but that they wish to do so after completing current work on the annual audit. (Farmer Bros. has a fiscal year ending June 30.)

Farmer Bros. has reportedly declined requests to make copies of their August 5, 2002 letter available to the press.  Standards for providing information about communications between the company and investors were addressed in another letter to Farmer Bros.

 

 

[FRANKLIN MUTUAL SERIES FUND INC. LETTERHEAD]

 

 

August 16, 2002

By fax to 310/320-2436)

 

Mr. John E. Simmons
Treasurer

Farmer Bros. Co.
20333 South Normandie Avenue
Torrance, CA 90502

 

Re: Demand to Inspect Records

Dear Mr. Simmons:

Responding to your August 5, 2002 letter, we understand that you wish to defer our inspection of records until after your completion of the annual audit process.  We would appreciate your proposal of a specific date by which you will be prepared to make the records available.

We also encourage you to consider the alternative of preparing your own reports, included with your Form 10K or in a separate SEC filing, to provide all investors with the information we seek.  If you publicly report the information about investments and management that would be required of a registered investment company, there would be no need for us to undertake the burden of inspecting those records.

 

Very truly yours,

MUTUAL BEACON FUND
MUTUAL DISCOVERY FUND

By: FRANKLIN MUTUAL ADVISERS, LLC




_______________________________________
Name:  David Winters
Title: President, CEO & CIO
Ph:   973.912.2177

 

 

The Forum is open to all Farmer Bros. shareholders, whether institutional or individual, and to professionals concerned with their investment decisions.  Its purpose is to provide shareholders with access to information and a free exchange of views on issues relating to their evaluations of alternatives.  As stated in the Forum's Conditions of Participation, participants are expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

There is no charge for participation.  Franklin Mutual Advisers, LLC, the manager of funds owning approximately 12.6% of Farmer Bros. shares, provided initial sponsorship for the Forum and arranged for it to be chaired by Gary Lutin.  Continuing support and guidance of the Forum is provided by an Advisory Panel of actively interested shareholders.

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