Workshop for Shareholder Proposals

The Workshop for Shareholder Proposals is intended for Farmer Brothers shareholders or their advisers who may be considering the submission of a proposal to be presented for voting at the next stockholders meeting.

Generally, if a shareholder who has held stock for at least a year submits a proposal and brief supporting statement to the company by June 27, 2002, according to Rule 14a-8 of the Securities Act of 1934, the company will be required to present it in the proxy statement which is filed with the SEC and mailed to shareholders for the annual meeting.  The purpose of this Workshop is to support shareholder preparation of such proposals that meet the procedural and form requirements.

Several shareholders have expressed an interest in presenting proposals, and Forum participants are encouraged to suggest any issues which shareholders may want to consider.  The following proposals are currently being explored by the Workshop:

• Registration under the Investment Company Act of 1940

• Bylaw revisions to require a majority of independent directors

• Qualifications of directors restricting conflicting fiduciary duties

• Cumulative voting for the election of directors

A report of an informal survey of Forum participants, conducted during the week of June 10, 2002, provides some indications of investor priorities and preferences.

In addition to information listed on the Workshop Reference page, the following Farmer Brothers documents may be relevant to anyone considering a proposal:

• Stated submission deadline

• Articles of Incorporation

• Bylaws