Applications For The Strand™ Index
8/10/99

Dear Clients & Friends,

This letter addresses various uses for the Strand™ Market Strength Index.

Mortgage Lenders: Strand™ Index data can be used to minimize risk in mortgage lending. For banks concerned with the government's Community Investment programs, Strand™ Index data can be used to focus business activity and measure levels of risk in targeted locations.

Secondary Mortgage Markets: After a period of gathering Strand™ Index data, this methodology may be used to measure collateral risk and grade a portfolio of loans for investors in the mortgage backed securities market. Grading loan portfolios can help facilitate sound, risk-based lending practices.

Corporate Relocation: An important use for the Strand Index is as a tool to monitor multiple markets for the corporate relocation industry. Use the Strand Index to track shifts in the real estate market weeks before the agents and appraisers recognize them through field experience. Know when the market shifts….. in what direction it's heading…. and at what pace it's headed there.

Real Estate Agents: By using the Strand™ Index to track changes in the market, agents can set more accurate listing prices or submit more competitive offers to purchase. Since most real estate agents develop some type of market specialty, by using the Strand™ Index, agents can track the market segments that reflect their areas of expertise.

As the real estate public becomes aware of the Strand™ Index, that awareness will inherently create incentive for buyers and sellers to contact a real estate agent for Strand™ Index information in the market segment of their interest.

Real Estate Agents will bring more value to a listing or sale if they can provide Strand™ Index information to the principles. Real estate technology providers will bring more value to the table if agents are given this important, analytical tool.

Real Estate Brokers: Brokers using the Strand™ Index can target capital and human resources for greater efficiency. They can manage multiple or remote locations more effectively with more accurate market data. If a market segment they track shows increasing promise, they may be able to justify opening a new office. If a market segment they track shows long term decline - then they can take appropriate damage control action.

With increasing merger and acquisition of real estate brokerage firms, managers who are aware of market cycles in distant office locations would enjoy an opportunity to implement more effective business practices. Utilizing Strand™ Index information gives them that opportunity.

The Strand™ Index can be used in any market served by an on-line MLS system and provides an accurate and standardized analysis of market conditions. This is a far better analytical tool than real estate brokers and agents presently have available to them.

Regards,

Robert E. Rothstein