The proposed partial settlement creates a fund in the amount of $4.5 million in cash and will include interest that accrues on the fund prior to distribution. Recoveries from this fund will depend on a number of variables, including the number of shares of PHP common stock purchased during the class period and the timing of your purchases and any sales.

To the extent there are sufficient funds in the settlement fund, authorized claimants will receive an amount equal to the their claims. If, however, the amount in the settlement fund is insufficient to permit payment of total claims, each claimant will be paid a pro rata share of the fund. Claims will be computed as follows: (1) For shares of PHP common stock that were purchased between July 27, 1995, through November 19, 1998, and sold from July 27, 1995, through November 19, 1998, the claim per share is the difference between the price paid for the shares of PHP common stock and the amount realized from the sale of any such shares. For all such shares that were retained at the end of November 19, 1998, the claim per share is the difference between the price paid for the shares of PHP common stock and $0.12 per share (5-day average closing price November 30, 1998 through December 4, 1998). For stockholders who held shares at the beginning of the class period or made multiple purchases or sales during the period, the first-in, first-out ("FIFO") method will be applied to such holdings, purchases and sales for purposes of calculating a claim. Under the FIFO method, sales of shares during the class period will be matched, in chronological order, first against shares held at the beginning of the class period. The remaining sales of shares during the class period will then be matched, in chronological order, against shares purchased during the class period.

A copy of the Notice of Settlement and the Proof of Claim Form necessary to make a claim can be viewed at the settlement web site. The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for April 26, 2004.