STAMP/SEMP/STA AND NYSE RECOMMEND REJECTION OF OLD TECHNOLOGY MEDALLION IMPRINTS AFTER DECEMBER 31, 2003

[16832] December 1, 2003 TO: OPERATIONS COMMITTEE No. 25-03 TRANSFER AGENT ADVISORY COMMITTEE No. 106-03 BANK AND TRUST ADVISORY COMMITTEE No. 15-03 BROKER/DEALER ADVISORY COMMITTEE No. 35-03 SMALL FUNDS COMMITTEE No. 31-03 RE: STAMP/SEMP/STA AND NYSE RECOMMEND REJECTION OF OLD TECHNOLOGY MEDALLION IMPRINTS AFTER DECEMBER 31, 2003 The implementation of STAMP2000 New Technology Medallion equipment became fully effective as of March 1, 2003. The majority of Guarantor firms have cooperated by certifying destruction of their old equipment. However, there are still firms who have not completed the final pre-STAMP2000 destruction certification and, in some cases, continue to use Old Technology Medallion equipment. STAMP has informed guarantors that continued use of the Old Technology Medallion equipment is a Program compliance violation of STAMP/SEMP Program Regulations Articles 6 and 7 of the STAMP/SEMP Program Application and Subscription Agreement. STAMP has advised Guarantors that they must cease using all pre-STAMP2000 equipment and submit a written destruction certification for all Old Technology Medallion equipment to the Program Administrator, Kemark Financial Services. Guarantor firms that continue to use old equipment are subject to exclusion from the Programs. The basic premise of STAMP2000 is to provide greater security for investors. Continued use of the Old Technology Medallion imprint increases the possibility that counterfeit or unauthorized imprints may not be detected and can result in wrongful transactions. Accordingly, as of December 31, 2003, STAMP has stated that Old Technology Medallion imprints will cease to be “imprints” within the meaning of the STAMP/SEMP Indemnity Agreement and Surety Bond. Since this action effectively removes Surety Bond coverage from the old imprints, STAMP Inc. and the Securities Transfer Association recommend that Transfer Agents/Issuers reject all transactions bearing unauthorized Old Technology Medallion imprints after December 31, 2003. The New York Stock Exchange has also advised guarantor participants in the NYSE Medallion Signature Program (“MSP”) that the Securities Transfer Association (“STA”) has recommended to its transfer agent members that “all transactions bearing Old Technology 2 imprints be rejected after December 31, 2003,” and the NYSE “strongly urges MSP participants to cease all use of Old Technology Medallions by December 31, 2003.” The general notice sent by STAMP to the Transfer Agent community and to Guarantor firms, the most recent STAMP Soundbytes on “Mandatory Old Technology Medallion Destruction,” and the NYSE Memorandum sent to MSP participants are attached for your reference. If you have questions, please call the program administrator, Kemark Financial Services, at 845-620-9300. Kathleen C. Joaquin Director – Transfer Agency & International Operations Attachment no. 1 (in .pdf format)