An Open Letter
From the Chairman of
Continental Stock Transfer.

Computershare’s recent announcement of its acquisition of Equiserve’s business speaks to a long-term trend in the stock transfer industry. Consolidation has been a pattern that has seen the number of agents drop to what today is but a handful of providers. Several mega-agents have emerged and these will likely attempt to continue their cycle of growth by additional acquisitions.

Larger Transfer Agents Do Not Result in Lower Fees or Better Service.
One might reasonably expect industry consolidation to result in significant economies of scale and bring a number of advantages to issuers and their shareholders in the form of decreased fees and improved services. Unfortunately, however, such advantages have not emerged for clients of these mega-agents.

Level of Service Falls When Transfer Agents Merge.
Costs associated with each merger have been high; these and additional overhead charges continue to be passed on to users. Management focus has been diverted from the “service” aspect of the business to “making the numbers work.” Experienced and higher cost personnel are lost and not replaced. Expensive system experiments are employed to provide “one size for all” service without regard to company specific needs. Shareholders are increasingly required to “self serve” their needs or be subject to queues of impersonal telephone banks. These are but a few of the “benefits” touted by the major agents.

Continental Is Different: Smaller, Personable, Affordable, and Service-Oriented.
At Continental, we believe that it doesn’t have to be that way. And I, as an owner/operator, want to speak to the distinctly different approach we offer.
First, understand that Continental is a family business. We are a second generation firm, and expect the business to remain in the family. We see our employees and clients as important parts of our extended family. We offer many employee-friendly programs, including a unique college assistance program for family members. These programs have allowed us to retain the best employees.
We have many employees with well over thirty years with the firm, and many of our employees even have relatives and friends working with us.
Our clients enjoy working with professionals whose understanding of their specific needs has developed over a long period of working together. We are committed to this business as is evidenced by our three acquisitions over the past fifteen years – Trust Company of New Jersey, Constellation Bank, and City National Bank of Beverly Hills.

Our Commitment Is Strong and Permanent.
I can assure all our clients and friends that Continental remains committed to:
• The stock transfer business.
• Our clients and employees.
• Offering the best in technology and service.
• Developing a professional working relationship with all our clients.
• Servicing our clients’ needs in a flexible, creative fashion.
• Low fees and excellent value.

I invite you to explore the differences that make Continental unique in today’s cookie-cutter environment.

Start by reading through more of our web site – and never hesitate to call me directly.

Steve Nelson
Chairman

Continental Stock Transfer & Trust Company
17 Battery Place • New York, NY 10004
212.509.4000

Richard Kretz, Director of Sales and Marketing
5301 East State Street, Suite 216A
Rockford, Illinois 61108 transagt@aol.com
T: Toll-Free 866.333.0611  F: 815.227.5413

Shareholders seeking information or assistance may contact Continental at 212.509.4000 ext. 541, or by e-mail at cstmail@continentalstock.com.

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