2002 YEAR END SUMMARY

George Smith: "It just keeps getting better. Since opening at the absolute bottom of the financing market on July 1, 1992, GSP's financing volume has been higher every year than the prior year. 2002 marked the 6th successive year with volume over $1 billion. In 2002, we did some very unusual deals in addition to our core business. As an example, we closed our first farm loan and also our first stand-alone multiplex movie theater loan (for an independent chain). We closed transactions with 69 financial institutions and private investors, another record. The production mix changed last year as we saw fewer "value added" bridge loan and equity opportunities, very little new office construction, and the "Opportunity Fund" activity was more conservative as the economy slowed and vacancies started rising in certain property categories. We did more government agency tenant buildings (we found lenders who were comfortable with the appropriations risk and fund perms) and residential tract housing joint venture/debt transactions reflected the booming housing market. Our core business was refinancing as interest rates remained at 40 year lows throughout the year, both at the short, intermediate and long end of the curve.

In 2002, we formalized our consulting and litigation support division, becoming the advisor to a Taft Hartley Union Pension Fund and adding two full time professionals (each with more than 25 years experience). We opened a Las Vegas loan origination office on the heels of the success of our Anchorage office (servicing the Pacific Northwest and wealthy Alaskan investors doing business in the Continental U.S.) and the maturing of our office in Orange County. Steve Bram, one of the GSP founders and a 17 year veteran with me, completed his first full year as President and Chief Operating Officer, in addition to his most successful production year ever.

GSP has continued to grow and mature. We have developed a corporate culture unique for most real estate services companies where there is virtually no turnover, we foster growth from within and a program where producers can become owners. We have broadened our geographic coverage and increased the breadth of client services. For an income property mortgage brokerage company to be successful it must be nimble, constantly abreast of market changes and be able to find the "proverbial needle in the haystack" for certain transactions while running a competitive bid for others. This means "knowing who is doing what" and "having relationships with the decision makers at these institutions".

2003 is starting off with interest rates at 40 year lows and inflation at a 34 year low. Economists are predicting modest increases in rates at both the short and long end of the curve toward the end of the year although we believe that wherever rates are means "the bet has been placed and rates are in equilibrium. There is uncertain job formation, talk of a "jobless recovery" and continued soft spots in office, industrial, hospitality and with many retailers. We expect apartments and housing to continue to flourish. Most important, there is more money for debt and equity than there are good deals. This is an unprecedented borrower's market.

As GSP enters its 2nd decade, we want to thank our customers (borrowers and lenders) and the many professionals we work with that make this such an exciting business."