Why did Galleon recently consider strategic alternatives?
On July 27, 2010, Galleon announced that a special committee of the Board of Directors had completed a strategic review process. During the strategic review process, the Board of Directors and management engaged in an exhaustive examination of the Corporation’s assets and opportunities to identify strengths, weaknesses and opportunities, and to address each in turn. Galleon emerged from the strategic review process with a four part operational and financial plan: • To increase balance sheet strength to give the Corporation the flexibility to execute the operational plan: This has been accomplished through the previously announced asset sale of Puskwa resulting in net debt of approximately $120 million (approximately one times 2010 cash flow) and available credit facilities of $250 million. The Corporation will continue to look at non-core asset dispositions to further enhance financial flexibility. • To adopt a goal of significantly increasing the proportion of total reserves which are
