REFERRAL REWARD PROGRAM BEGINS

While, as you know, we advertise in a variety of media nationally, our best source of new clients has been from referrals, by good clients just like you recommending us to their friends. We appreciate the fact that you have enough confidence in us to tell your friends about us. We believe that "One Good Turn Deserves Another" and so we have started a Referral Appreciation Program. Talk to your friends. If someone you know would like to find out how they can get 30 days FREE trading on the INTERNET when they open a new Freedom Investments account, send us their name, address and phone number (and please include your name and your Freedom Investments Account Number). If the person you refer opens air account within sixty days of your referral, we'll send you five trading coupons. Each of these coupons is good for one free stock trade when you use our INTERNET system to place your order.

This is NOT a one-time offer either. For each account opened as a result of your referral, we will send you an additional five commission coupons.

Thank you for your business. Thank you for your confidence in us. And, thank you for recommending us to your friend. Our goal is to remain worthy of your trust.

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FAST MARKET CONDITIONS

In light of recent record volume trading days on both the NYSE and NASDAQ exchanges we felt it was a good time to review Fast Market trading rules and procedures. It is important to realize what is actually happening when fast market conditions occur.

A fast market is due to extremely high order volume on a particular issue or sector. Market makers are not able to handle the volume on these issues in the traditional manner. Automated systems are shut off on particular issues trading in fast market conditions and are executed on a manual basis. The quotes that are displayed may or may not be accurate, due to the abnormally high volume.

These two factors can lead to lengthy delays in receiving executions. Canceling or Cancel/Replacing an order does not ensure that the order will be canceled or changed as requested. Because of the high volume the cancels/changes that are submitted have difficulty catching up with the original order, thus frequently making them "too late to change/cancel." Fast market orders may fill at prices dramatically different from the quote at the time the order was submitted. If you feel that your order may be executed it is better to contact customer service rather than continue to submit changes/cancels. Due to the heavy volume during these periods executions are often delayed and submitting changes only exacerbates the problem. It is important to protect yourself when fast market trading conditions exist. You can do this by placing "limit" orders rather than "market" orders. This will protect you from fast moving stock prices and ensure your execution price. Lastly and most importantly, Be Patient! Everyone is working as fast as possible to execute every order as soon as possible.

For more information regarding this and other relevant issues you may visit the NASD web site at www.nasdr.com.

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TRADING CORNER

STOP/STOP-LIMIT ORDERS

There are some basic rules that need to be followed in order to place stop and stop-limit orders. Stop and stop-limit orders must be placed above or below the current bid or ask.

EX. Buy 100 AOL 100 STP. The current ASK on AOL must be below 100. 

EX. Sell 100 MSFT 95 STPLMT. The current BID on MFST must be above 95. 

Stop orders will become MKT orders when they are triggered. Stop-Limit orders will become LMT orders when they are triggered. A limit order will be created at the STPLMT price.

Stop orders placed on listed vs. OTC securities are handled differently. Stop orders on listed securities are triggered by an actual trade occurring at the stop price. Stop orders on OTC securities are triggered by the bid or ask reaching the stop price.

Note: Stop orders may NOT be placed on Pink Sheet or Bulletin Board (BB) stocks, as all quotes are displayed as "subject quotes. "

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IMPORTANT! IRA Fee Schedule

Fahnestock and Co. Inc., our clearing firm, has advised Freedom Investments that the fee structure for self-directed IRA's has been revised. The annual fee for each IRA will be $35. In addition, this fee will be charged to the account in February each year. IRA Account holders have the option to submit a check to cover the fees; however the check must be received by Freedom by February 1. The only way to "reimburse" the IRA for the fee that has been debited would be to consider it a 1999 IRA contribution (if received by April 15) or a 2000 IRA contribution.

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Nothing herein is to be construed as a solicitation or any transaction. The information presented has been obtained from sources considered to be reliable, but it is not purported to be complete or without error Freedom Investments, Inc. and Fahnestock & Co., Inc. and/or the officers and directors, and/or members of their families, may at times have positions in any securities mentioned. All commissions and fees are subject to change with notice.