(1) The accompanying financial statements have been prepared assuming that PGS will continue as a going concern. PGS is, however, experiencing certain financial difficulties that raise doubt about its ability to continue as a going concern. Among other things, PGS has $1.1 billion of indebtedness maturing in 2003, which must be restructured or rescheduled. PGS is seeking to effect a financial restructuring that would address these financial difficulties, but there can be no assurance that it will be successful in doing so. The accompanying consolidated financial statements do not include any adjustments that will be the result from the proposed financial restructuring (see Financial Restructuring for further information on the restructuring process).
(2) See enclosed Support Tables for reconciliation of EBITDA, as defined.
EBITDA, as defined, may not be comparable to other similarly titled measures
from other companies. We have included EBITDA, as defined, as a supplemental
disclosure because management believes that it provides useful information
regarding PGS's ability to service debt and to fund capital expenditures and
provides investors a helpful measure for comparing our operating performance
with the performance of other companies.