TIGHT MONEY - LAND DEVELOPMENT Question Is "Tight Money" affecting your business, particularly with respect to your land development operations? Answer Our timing was fortunate in that we funded our Prudential loan about a year ago and increased this loan from $20 million to $35 million, carrying a 5-1/2% interest rate. We anticipate that with this and our other borrowings, as well as internally generated funds, that we will have sufficient capital to meet our proposed expansions. Looking beyond the next few years, as our new operations come on stream at Navajo, Blackwater and Mt. Goldsworthy, cash flow from these operation will provide ample Cont'd. capital for any further developments. With regard to our land operations, overall these have not been seriously affected as yet by the tight money situation, though we are seeing this in a few instances. Our Roseville operation, which has just reached a point where land sales could commence this Spring, has not gotten off to the start we had hoped, and sales are slow at South San Francisco as well. I think in both of these cases, tight money has been a principal contributing factor; however, neither of these were expected to make a substantial contribution to earnings this year, so the overall effect of tight money on the Company has thus far not been great, nor do I expect it to be so in the future, barring a general an renounced downturn of the entire domestic economy.