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Request for Board Response to Questions about Status of Evaluation Process

(July 18, 2003)

Copied below is a July 18, 2003 letter to the directors of Farmer Bros. Co., responding to a July 17, 2003 letter from the company's Treasurer.  The board is asked, again, to address the questions raised in a July 10, 2003 letter concerning the status of the company's process of evaluating strategic options.  The board is also encouraged to assure management's responsible conduct in identifying any information believed to be inaccurate.

 

 

[letterhead]

LUTIN & COMPANY

575 Madison Avenue

New York, New York 10022

Telephone (212) 605-0335

Facsimile (212) 605-0325

 

                                                      July 18, 2003

 

By telecopier: 310/320-2436

 

Messrs. Guenter W. Berger,

Lewis A. Coffman,

Roy E. Farmer,

Roy F. Farmer,

Thomas Maloof,

John H. Merrell, and

John Samore, Jr.

c/o Farmer Bros. Co.

20333 South Normandie Avenue

Torrance, California 90502

 

 

To the members of the board of directors of Farmer Bros. Co.:

 

      The accompanying letter from the company's treasurer, Mr. Simmons, was transmitted to me at approximately 7PM last night.

 

      It is not clear why Mr. Simmons believes that the quoted section of your April 30, 2003 press release is inconsistent with the questions presented to the board in my July 10, 2003 letter.  In any event, Mr. Simmons has not answered my letter's questions about the status of your evaluation process, and the board is therefore asked, again, to do so.

 

      Mr. Simmons also states that my letter "misrepresents" a news report and that I have been circulating "rumors and misquotes."  Please instruct Mr. Simmons to identify anything he considers inaccurate, specifically, so that I can respond appropriately.  Whatever he presents will be distributed to participants in the shareholders' Forum, according to standard practice.  If Mr. Simmons cannot identify any inaccuracies, Forum participants will appreciate your report of actions taken to assure management's responsible conduct.

 

                                                      Sincerely yours,

 

 

 

                                                      Gary Lutin

 

cc:  John M. Anglin, Esquire

      Mr. John E. Simmons

 

 

[Copy of accompanying letter: July 17, 2003 letter from John E. Simmons of Farmer Bros. Co. to Gary Lutin (52 KB, in PDF format)]

 

 

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.

For additional information or to be included in an email distribution list, send an inquiry to farm@shareholderforum.com.