The benefits of conducting competitive sales of bonds and notes over this Internet auction web site are summarized below. Interested parties can contact PFM to learn more about

Feature Benefits
Auction Format Bids can be submitted using the traditional All-Or-None (AON) method or on a Maturity-By-Maturity basis (MBM). Dual bidding methods can increase competition.
Multiple Bids Bids are submitted using auction system whereby bids can be improved. This fosters increased demand for an issuer's bonds.
Bid Error Elimination All bid information is entered into a web-based table with strict error control. This eliminates bid errors.
Process Transparency The issuer and issuer-invited guests can observe the auction in real time, viewing all elements of the auction process.
Instant Bid Calculation Upon the end of an auction period, the results of the auction are posted instantly to all bidders. The winning bidder is verified within seconds.
Electronic Documents The Preliminary Official Statement (POS) and Notice of Sale (NOS) are distributed electronically, at no cost to the issuer.
Cost Reduction The posting of documents online coupled with electronic advertising can save issuers thousands of dollars in issuance costs.
Security No funds are transmitted over the Internet.
Confidentiality Bidders must be preauthorized by the Issuer. Bidders have unique password/ID combinations. Bidders are anonymous during the auction.
Flexibility Allows a competitive sale to be held with 24 hours notice. Auction, Electronic documents, and Auction Announcement to bidders can be set up on the web site and distributed electronically within minutes.
Modernization Allows issuer to illustrate a commitment to technology by using the latest technology to reduce financing costs.

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