Since its existance, Aurora has sold the following investor owned projects on a basis that was satisfactory to both the buyer and seller: Parkview Apartments West Creek Apartments Greenridge Apartments Chalet Townhouses several single family homes. We realize the responsibility we have when you invest your funds in our partnerships and since you are ail general partners you are really part of your particular property. Admittedly, Aurora Capital Corporation has the management responsibility, and we are always convinced that the future potential of our properties we offer to you are great. However, you must understand that our investments are structured to provide you tax savings now, and your funds car be tied up for several years. When they come back to you, they very likely will be in interest bearing paper, secured by the property. When a property is sold you must recapture the amounts you have deducted from your ordinary income. This however, is done at capital gains rates and in most cases, the properties are sold on an installment sale; consequently, your tax recapture is spread out over many years. The higher your tax bracket the more advantages our investments have for you, as it allows you to invest dollars you would normally pay in taxes. While we are always optimistic concerning the outcome of our investments, in most instances the risks are substantial and you must be aware that the properties may not always work out as we plan. We have an excellent track record to date, but we are not infallible. For a minute let us assess what Aurora does and has done. We provide our clients with tax savings ideas, in addition we have saved you hundreds of thousands of dollars that would have otherwise been paid in taxes. This service is provided to you free of any direct fees to you. Aurora provides monthly income at a rate of 10% or more to those of you who place funds with us for that purpose. Those funds total nearly $1,000,000.00. In every instance, they are secured either by Deeds of Trust or by personal guarantees of Aurora Capital Corporation or by the individual owners of Aurora Capital Corporation. We are proud of what we do and the results we have acheived, which I might add has been accomplished in very difficult economic times. We do not know of another company where the investors receive the service or the concern for their invested dollars as they do with Aurora. We are pleased to provide these services and we enjoy the work we do. We are very gratified that many of you have inquired as to possible ownership in Aurora Capital. We hope that some time in the future that opportunity will be available to you. -4-