Joe Myatt Jeff Brook Kerri Lin Mike Suchy February 9, 2001 Papa John’s Pizza Joe Myatt Jeff Brook Kerri Lin Mike Suchy February 9, 2001

Original Reasons for Purchase: Small cap stock to balance portfolio Quality & consistency of management (earnings history) Aggressive past growth Highest customer satisfaction within industry Stock was thought to be undervalued at purchase price Very focused business plan We purchased 400 shares @ 26 9/16 on 4/26/2000

Reasons leading to review: Blaine Hurst, President and Vice Chairman and Dru Milby, Senior V.P., C.F.O., and Treasurer have left the company in the past months. The Company changed its capital structure to now included significant long-term debts. They’ve spent 187 million dollars repurchasing their shares, 1/3 total market capitalization, and have not been able to increase their share price. The economy has gone into a period of contraction, tightening the availability of credit for franchisees to open new stores. This raises concerns over their ability meet new store opening estimates.

Reasons leading to review: They’ve missed new store opening targets for 2000 that were given on 9/18/00 and 12/12/00. They’ve missed earnings in the third quarter 2000 and lowered earnings predictions by 20% for 2001. Announced that 4th quarter one time charge to dispose of long-lived assets will be between 22-28 million from previously stated 10-14 million Eroding faith in management’s credibility. Our financial models place value of firm below current share price

Summary: We have lost faith in management and do not approve of the change in their capital structure to repurchase shares. We do not believe that the company can grow new stores and free cash flow at rates high enough justify its market valuation. Therefore, Papa John’s does not offer favorable long-term price appreciation adjusted for risk and should be sold. We have sold 400 shares @ 23 15/16 on 2/9/2001