<PAGE>   1


                                                                   EXHIBIT 99.4






                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES

                       CONSOLIDATED FINANCIAL STATEMENTS


                                 MARCH 31, 2000


<PAGE>   2


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES

                       CONSOLIDATED FINANCIAL STATEMENTS


                               TABLE OF CONTENTS

<TABLE>
<CAPTION>


                                                                                                            Page


   <S>                                                                                                      <C>
   Consolidated Balance Sheets as of March 31, 2000 and December 31, 1999..............................        2

   Consolidated Statements of Operations for the three months ended March 31,
         2000 and March 31, 1999.......................................................................        3

   Consolidated Statement of Stockholder's Equity (Deficit) for the three months
         ended March 31, 2000..........................................................................        4

   Consolidated Statements of Cash Flows for the three months ended March 31,
         2000 and March 31, 1999.......................................................................        5

   Notes to Consolidated Financial Statements..........................................................        6
</TABLE>


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<PAGE>   3


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)

<TABLE>
<CAPTION>

===================================================================================================

                                                                         March 31,     December 31,
                                                                           2000            1999
                                                                        ---------      -----------

<S>                                                                     <C>             <C>
ASSETS
Current assets:
  Cash and cash equivalents ......................................      $   1,838       $   3,078
  Accounts receivable - trade ....................................         10,144          11,648
  Inventories ....................................................         21,744          18,086
  Other current assets ...........................................          2,507           1,066
                                                                        ---------       ---------
     Total current assets ........................................         36,233          33,878

Property, plant and equipment, at cost, less
      accumulated depreciation of $7,395 and $5,376 ..............        117,962         116,169
Other ............................................................          3,605           3,272
                                                                        ---------       ---------
     Total assets ................................................      $ 157,800       $ 153,319
                                                                        =========       =========

LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
  Credit facilities and current portion of notes payable .........      $  44,735       $  39,982
  Accounts payable - trade .......................................         36,166          32,412
  Due to affiliates ..............................................            686             394
  Accrued taxes ..................................................          8,106           9,483
  Accrued interest ...............................................            315             474
  Other accrued liabilities ......................................          2,211           3,401
                                                                        ---------       ---------
     Total current liabilities ...................................         92,219          86,146

Long-term portion of notes payable ...............................         11,645          12,578
Participating loan ...............................................         39,261          37,849
Other liabilities ................................................          4,295           5,436

Commitments and contingencies

Stockholder's equity:
  Common stock, par value $1 per share, 701,000 shares authorized,
     authorized, issued and outstanding ..........................            701             701
  Additional paid-in-capital .....................................        103,115         103,115
  Deficit ........................................................        (93,436)        (92,506)
                                                                        ---------       ---------
     Total stockholder's equity ..................................         10,380          11,310
                                                                        ---------       ---------

     Total liabilities and stockholder's equity ..................      $ 157,800       $ 153,319
                                                                        =========       =========
</TABLE>


                  The accompanying notes are an integral part
                   of the consolidated financial statements.


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<PAGE>   4


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)

<TABLE>
<CAPTION>

===============================================================================

                                                        Three Months Ended
                                                      -------------------------
                                                      March 31,       March 31,
                                                        2000            1999
                                                      ---------       ---------

<S>                                                   <C>            <C>
Net sales* .......................................    $ 40,261       $ 22,362
Cost of sales* ...................................      35,082         18,412
                                                      --------       --------

Gross profit .....................................       5,179          3,950
Operating, selling, administrative and
     general expenses ............................       4,808          2,648
                                                      --------       --------

Operating income .................................         371          1,302

Other income (expense):
   Interest expense ..............................      (3,537)        (3,940)
   Gain on sale of assets ........................                      8,478
   Gain on foreign currency exchange .............       1,223          2,270
   Other, net ....................................         (29)            51
                                                      --------       --------

(Loss) income before income taxes ................      (1,972)         8,161
Benefit for income taxes .........................      (1,042)        (1,717)
                                                      --------       --------

Net (loss) income ................................    $   (930)      $  9,878
                                                      ========       ========
</TABLE>

--------------
*        Net sales and Cost of goods sold include excise taxes of $4,659 and
         $1,485 for the three months ended March 31, 2000 and 1999,
         respectively.


                  The accompanying notes are an integral part
                   of the consolidated financial statements.


                                      -3-
<PAGE>   5


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
            CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY (DEFICIT)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)

<TABLE>
<CAPTION>

============================================================================================================================

                                                              Common Stock             Additional
                                                              ------------               Paid-In
                                                        Shares           Amount          Capital       Deficit         Total
                                                        ------           ------          -------       -------         -----

<S>                                                     <C>              <C>           <C>            <C>            <C>
Balance, December 31, 1999....................           701,000          $ 701         $103,115      $(92,506)      $ 11,310

Net loss......................................                                                            (930)          (930)
                                                         -------          -----         --------      --------       --------
Balance, March 31, 2000.......................           701,000          $ 701         $103,115      $(93,436)      $ 10,380
                                                         =======          =====         ========      ========       ========
</TABLE>


                  The accompanying notes are an integral part
                   of the consolidated financial statements.


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<PAGE>   6


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)

<TABLE>
<CAPTION>

=============================================================================================

                                                                      Three Months Ended
                                                                      ------------------
                                                                 March 31,          March 31,
                                                                   2000               1999
                                                                   ----               ----


<S>                                                             <C>                 <C>
Net cash (used in) provided by operating activities ........    $ (4,292)           $  6,646
                                                                --------            --------

Cash flows from investing activities:
      Capital expenditures .................................      (2,775)            (13,248)
                                                                --------            --------
Net cash used in investing activities ......................      (2,775)            (13,248)
                                                                --------            --------

Cash flows from financing activities:
      Repayments of debt ...................................      (1,241)                (79)
      Borrowings under credit facilities ...................      17,000               8,412
      Repayment under credit facilities ....................      (9,600)
                                                                --------            --------
Net cash provided by financing activities ..................       6,159               8,333
                                                                --------            --------

Effect of currency rate translation on cash ................        (332)               (319)
                                                                --------            --------

Net (decrease) increase in cash and cash equivalents .......      (1,240)              1,412

Cash and cash equivalents, beginning of period .............       3,078               2,722
                                                                --------            --------
Cash and cash equivalents, end of period ...................    $  1,838            $  4,134
                                                                ========            ========
</TABLE>


                  The accompanying notes are an integral part
                   of the consolidated financial statements.


                                      -5-
<PAGE>   7


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)



1.       ORGANIZATION

         Brooke (Overseas) Ltd. ("the Company"), a Delaware corporation, is a
         wholly-owned subsidiary of BGLS Inc. ("BGLS") and an indirect
         subsidiary of Brooke Group Ltd. ("Brooke"). The consolidated financial
         statements of the Company include Western Tobacco Investments LLC
         ("Western Tobacco Investments"), a Delaware limited liability company.
         Western Tobacco Investments holds the Company's 99.9% interest in
         Liggett-Ducat Ltd. ("Liggett-Ducat"), a Russian closed joint stock
         company engaged in the manufacture and sale of cigarettes in Russia,
         and Liggett-Ducat Tobacco Ltd., a wholly-owned subsidiary of
         Liggett-Ducat which recently completed construction of a new cigarette
         factory.

         The interim consolidated financial statements of the Company are
         unaudited and, in the opinion of management, reflect all adjustments
         necessary (which are normal and recurring) to present fairly the
         Company's consolidated financial position, results of operations and
         cash flows. These consolidated financial statements should be read in
         conjunction with the Company's consolidated financial statements and
         the notes thereto included as Exhibit 99.4 in Brooke's and BGLS'
         Annual Report on Form 10-K for the year ended December 31, 1999, as
         filed with the Securities and Exchange Commission. The consolidated
         results of operations for interim periods should not be regarded as
         necessarily indicative of the results that may be expected for the
         entire year.

         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities and disclosures of contingent assets and liabilities and
         the reported amounts of revenues and expenses. Actual results could
         differ from those estimates.

         Certain amounts in the 1999 consolidated financial statements have
         been reclassified to conform to the 2000 presentation.


2.       LIQUIDITY

         At March 31, 2000, the Company had a net working capital deficiency of
         $55,986 which included $44,735 of payments due over the next twelve
         months to third parties under credit facilities and notes payable. The
         Company plans to use cash flows from operating activities to fund
         ongoing working capital needs in 2000 and is in the process of
         negotiating with a number of Russian banks for revolving credit
         facilities that would be used to repay existing credit lines.
         Furthermore, the Company may request additional funding from its
         parent in order to meet its liquidity needs.


3.       SALE OF BROOKEMIL

         In connection with the sale by the Company of its 99.1% of the
         outstanding shares of BrookeMil Ltd. ("BrookeMil") to New Valley
         Corporation ("New Valley") in 1997, a portion


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<PAGE>   8


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
         (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)-(CONTINUED)
                                  (UNAUDITED)

         of the gain was deferred in recognition of the fact that the Company's
         parent, BGLS, retained an interest in BrookeMil through its then 42%
         equity ownership of New Valley and that a portion of the property sold
         (the site of the third phase of the Ducat Place real estate project
         being developed by BrookeMil) was subject to a put option held by New
         Valley. The option expired when Liggett-Ducat ceased factory
         operations at the site in March 1999. The Company recognized that
         portion of the deferred gain, $8,478, in March 1999.


4.       INVENTORIES

         Inventories consist of:

<TABLE>
<CAPTION>
                                            March 31,    December 31,
                                              2000           1999
                                            ---------    ------------

<S>                                         <C>          <C>
Leaf tobacco ......................         $ 5,794        $ 6,727
Other raw materials ...............           6,626          4,582
Work-in-process ...................             683            959
Finished goods ....................           5,338          3,201
Replacement parts and supplies ....           3,303          2,617
                                            -------        -------
                                            $21,744        $18,086
                                            =======        =======
</TABLE>

         At March 31, 2000, the Company had leaf tobacco purchase commitments
         of approximately $43,907.


5.       PROPERTY, PLANT AND EQUIPMENT

         Property, plant and equipment consist of:

<TABLE>
<CAPTION>

                                      March 31,      December 31,
                                        2000            1999
                                      ---------      ------------

<S>                                   <C>            <C>
Buildings ..........................  $  47,061      $  46,510
Factory machinery and equipment ....     66,961         64,385
Computers and software .............      1,347          1,343
Office furniture and equipment .....      1,449          1,205
Vehicles ...........................      4,120          3,839
Construction-in-progress ...........      4,419          4,263
                                      ---------      ---------
                                        125,357        121,545
Less accumulated depreciation ......     (7,395)        (5,376)
                                      ---------      ---------
                                      $ 117,962      $ 116,169
                                      =========      =========
</TABLE>


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<PAGE>   9


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
         (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)-(CONTINUED)
                                  (UNAUDITED)


6.       CREDIT FACILITIES AND NOTES PAYABLE

         Credit facilities and notes payable consist of the following:

<TABLE>
<CAPTION>
                                                            March 31,    December 31,
                                                              2000           1999
                                                            -------------------------

<S>                                                         <C>           <C>
Notes payable ....................................          $ 19,891      $ 23,090
Credit facilities ................................            36,489        29,470
                                                            --------      --------
Total notes payable and credit facilities ........            56,380        52,560
Less current portion .............................           (44,735)      (39,982)
                                                            --------      --------
Amount due after one year ........................          $ 11,645      $ 12,578
                                                            ========      ========
</TABLE>

         At March 31, 2000, Liggett-Ducat had various credit facilities under
         which $36,489 was outstanding. The facilities bear interest at rates
         of 13% to 20% per annum and expire within the next twelve months. The
         facilities are collateralized by the new factory building, factory
         equipment and tobacco inventory.

         Western Tobacco Investments has entered into several contracts for the
         purchase of cigarette manufacturing equipment. Approximately 85% of
         the amount of the contracts were financed with promissory notes
         generally payable over a period of five years. The outstanding balance
         on these notes, which are denominated in various European currencies,
         is $15,891 at March 31, 2000. In addition, at March 31, 2000, the
         Company had several short-term notes payable totaling approximately
         $4,000 for additional equipment purchases. The terms of these notes
         ranged from four to twelve months and carried interest rates of up to
         16%.

         The Company paid in full a promissory note for approximately $1,290
         due March 31, 2000.


7.       PARTICIPATING LOAN

         In February 1998, New Valley and Apollo Real Estate Investment Fund
         III, L.P. ("Apollo") organized Western Realty Development LLC
         ("Western Realty Development") to make real estate and other
         investments in Russia. Western Realty Development had made a $30,000
         participating loan to Western Tobacco Investments with the proceeds
         used by the Company to reduce intercompany debt to BGLS and for
         payments on the new factory construction contracts. The loan bears no
         fixed interest and is payable only out of 30% of distributions made by
         Western Tobacco Investments to the Company. After the prior payment of
         debt service on loans to finance the construction of the new factory,
         30% of distributions from Western Tobacco Investments to the Company
         will be applied first to pay the principal of the loan and then as
         contingent participating interest on the loan. In addition, Western
         Realty Development is entitled to receive a 15% annual rate of return
         on amounts advanced under the participating loan agreement under
         certain circumstances in the event of a sale or refinancing of Western
         Tobacco Investments or the new factory. Any rights of payment on the
         loan are subordinate to the rights of all other creditors of the
         Company. For the three months ended March 31, 2000 and March


                                      -8-
<PAGE>   10


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
         (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)-(CONTINUED)
                                  (UNAUDITED)


         31, 1999, the net effect of these preference requirements is recorded
         as interest expense of $1,412 and $1,002, respectively.


8.       INCOME TAXES

         For the three months ended March 31, 2000, the tax benefit consists of
         U.S. income tax benefit of $1,042 in accordance with the Company's tax
         sharing agreement with Brooke. In connection with the construction of
         Liggett-Ducat's new cigarette factory, Liggett-Ducat has received an
         exemption from Russian taxes on income from certain production lines
         for the 2000 tax year. Such exemption may be also available in 2001 and
         2002 and resulted in no provision for Russian taxes being recorded.

         For the three months ended March 31, 1999, the tax benefit of $1,717
         consists of income tax benefit pursuant to Russian statutory
         requirements of $485 and U.S. income tax benefit of $1,232 in
         accordance with the Company's tax sharing agreement with Brooke.


9.       CONTINGENCIES

         BGLS Notes. BGLS has pledged its ownership interest in the Company's
         common stock as collateral in connection with the issuance of BGLS'
         15.75% Senior Secured Notes due 2001 ("BGLS Notes").

         In March 1998, BGLS entered into an agreement with AIF II, L.P. and an
         affiliated investment manager on behalf of a managed account
         (together, the "Apollo Holders"), who then held approximately 41.8% of
         the BGLS Notes, in which the Apollo Holders (and any transferees)
         agreed to defer the payment of interest on the BGLS Notes held by
         them, commencing with the interest payment that was due July 31, 1997,
         which they had previously agreed to defer, through the interest
         payment due July 31, 2000. The deferred interest payments will be
         payable at final maturity of the BGLS Notes on January 31, 2001 or
         upon an event of default under the Indenture for the BGLS Notes. In
         connection with the agreement, the Company pledged 50.1% of Western
         Tobacco Investments to collateralize the BGLS Notes held by the Apollo
         Holders (and any transferees).

         Operating environment. The Russian Federation continues to experience
         economic difficulties following the financial crisis of August 1998.
         Consequently, the country's currency continues to devalue, there is
         continued volatility in the debt and equity markets, hyperinflation
         persists, confidence in the banking sector has yet to be restored and
         there continues to be a general lack of liquidity in the economy. In
         addition, laws and regulations affecting businesses operating within
         the Russian Federation continue to evolve.

         The Russian Federation's return to economic stability is dependent to
         a large extent on the effectiveness of the measures taken by the
         government, decisions of international lending organizations, and
         other actions, including regulatory and political developments, which
         are beyond the Company's control.


                                      -9-
<PAGE>   11


                    BROOKE (OVERSEAS) LTD. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
         (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)-(CONTINUED)
                                  (UNAUDITED)


         The Company's assets and operations could be at risk if there are any
         further significant adverse changes in the political and business
         environment. Management is unable to predict what effect those
         uncertainties might have on the future financial position of the
         Company. No adjustments related to these uncertainties have been
         included in these consolidated financial statements.

         Taxation. Russian tax legislation is subject to varying
         interpretations and changes occurring frequently. Further, the
         interpretation of tax legislation by tax authorities as applied to the
         transactions and activity of the Company may not coincide with that of
         management. As a result, transactions may be challenged by tax
         authorities and the Company may be assessed additional taxes,
         penalties and interest, which can be significant.

         Management regularly reviews the Company's taxation compliance with
         applicable legislation, laws and decrees and current interpretations
         and from time to time potential exposures are identified. At any point
         in time a number of open matters may exist; however, management
         believes that adequate provision has been made for all material
         liabilities. The periods remain open to review by the tax and customs
         authorities with respect to tax payments for three years.


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