Zapata Corporation Announces First Quarter Results for 2001

ROCHESTER, N.Y.--(BUSINESS WIRE)--May 14, 2001--Zapata Corporation (NYSE:ZAP) today announced its consolidated financial results for the quarter ended March 31, 2001.

For the quarter ended March 31, 2001, Zapata reported a net loss of $1.2 million or $.48 per share compared to a loss of $2.7 million or $1.12 per share in the comparable quarter last year.

The net loss for the first quarter of 2001 was primarily due to losses at Omega Protein and impairment charges on non-investment grade securities, partially offset by interest income and a favorable contract settlement negotiated by Zap.Com. About Zapata Corporation

Zapata Corporation is a holding company that operates in the food segment and, until December 2000, the Internet segment. Zapata owns approximately 61% of the stock of Omega Protein Corporation (NYSE: OME), the nation's largest marine protein company, and approximately 38% of the stock of Viskase (NASDAQ:VCIC), a world leader in food packaging. Zapata is also the largest shareholder of Zap.Com Corporation (OTCBB: ZPCM).

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release which are not historical fact are forward-looking statements based upon management's current expectations that are subject to risks, and uncertainties that could cause actual results, events and developments to differ materially from those set forth in or implied by forward looking statements. Factors that could cause actual results, events and developments to differ include, without limitation, those factors listed under the caption "Significant Factors That Could Affect Future Performance And Forward Looking Statements" in the Company's Annual Report on Form 10-K dated April 2, 2001 for the fiscal year ended December 31, 2000. Consequently all forward looking statements made herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operation results.

ZAPATA CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEET
          (In thousands, except shares and per share amounts)

March 31,    December 31,
                                              2001           2000
                                           (Unaudited)    (Audited)


                               ASSETS
Current assets:
 Cash and cash equivalents                  $  69,807    $  19,237
 Short-term investments                        13,500       55,384
 Accounts receivable, net                       8,683       11,971
 Inventories, net                              27,659       37,032
 Prepaid expenses and other current assets      1,503        2,150

  Total current assets                        121,152      125,774

Investments and other assets:
 Long-term investments, available-for-sale      7,931       13,396
 Other assets                                  33,916       33,315

   Total investments and other assets          41,847       46,711
Property and equipment, net                    87,391       89,374

   Total assets                            $  250,390    $ 261,859


                LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Current maturities of long-term debt       $   1,249    $   1,227
 Accounts payable                               1,262        2,766
 Accrued liabilities                           17,368       21,153

   Total current liabilities                   19,879       25,146

Long-term debt                                 14,506       14,827
Other liabilities                               4,793        4,820
Minority interest                              51,949       52,071

   Total liabilities                           91,127       96,864

Commitments and contingencies
Stockholders' equity:
Preferred stock, ($.01 par), 200,000 shares 
 authorized, 0 shares issued and outstanding 
 as of March 31, 2001 and December 31, 2000       --           --
Preference stock, ($.01 par), 1,800,000 shares 
 authorized, 0 shares issued and outstanding 
 as of March 31, 2001 and December 31, 2000       --           --
Common stock, ($0.01 par), 16,500,000 and 
 16,500,000 shares authorized; 3,069,859 
 and 3,067,718 shares issued; and 2,390,849 and 
 2,388,708 shares outstanding on March 31, 2001
 and December 31, 2000                             31           31
Capital in excess of par value                161,769      161,755
Retained earnings                              38,191       39,389
Treasury stock, at cost, 679,010 shares at 
 March 31, 2001 and December 31, 2000         (31,668)     (31,668)
Accumulated other comprehensive loss           (9,060)      (4,512)

     Total stockholders' equity               159,263      164,995

     Total liabilities and stockholders' 
       equity                             $   250,390   $  261,859





                          ZAPATA CORPORATION
       UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except per share amounts)

                                               Three months ended
                                                   March 31,
                                              2001          2000


Revenues                             $       19,046   $     19,388
Cost of sales                                18,013         18,490

     Gross Profit                             1,033            898

Operating Expense:
   Product development                         ---             523
   Selling, general and administrative        2,980          4,219
   Consulting expense                           --           2,135
   Contract termination settlement             (403)          ---

         Total Operating Expenses             2,577          6,877

Operating loss                               (1,544)        (5,979)


Other income (expense):
   Interest income, net                         970          1,358
   Realized loss on non-investment grade
     securities                                (917)          ---
   Other income (expense), net                   22           (119)
                                                 75          1,239 
Loss before income taxes and minority 
 interest                                    (1,469)        (4,740)


Benefit from income taxes                       149          1,650
Minority interest in net loss of
   consolidated subsidiary                      163            417



Net loss                            $        (1,157)  $     (2,673)



Per share data (basic and diluted):
   Net loss per share                 $       (0.48)   $     (1.12)


Weighted average common shares and common                             
share equivalents outstanding                 2,390          2,389 

--30--jgm/ny*