For the year in total, primarily due to the decline in both mortgage refinancing and home sales,  we experienced a 14% decline in premiums written. To achieve growth in earnings in periods of  declining activity, it is imperative that we manage operations to bring expenses in line with lower  premium volume and maintain our focus on building market share. To increase our share of title  premiums written, we have increasingly focused on establishing new agency relationships in  areas beyond our traditional operating territories. Efforts have included identifying markets with  attractive profit potential, researching local underwriting customs and building the staff  necessary to provide ongoing support.  As we have expanded these initiatives, we have witnessed improvement in both the process and  the end result. Our growing experience in the start up of agency operations allows us to help  newer ventures achieve profitability at a quicker pace. As these agents mature, we typically see a  significant pick up in the premiums they generate. Successfully increasing premiums written in  new operating markets will allow us over time to minimize the impact of cyclical downturns in  mortgage lending.  In our branch operations, we continue to focus on improving both our market share and  operational efficiency. A significant accomplishment in 2000 was the completion of a rollout of  proprietary software. The rollout went smoothly with minimal disruption to production. Our new  software will serve as a foundation to add refinements to our processes and procedures and to  make better utilization of the data that the branch offices generate.  In addition to the rollout, we devoted considerable resources to developing and furthering our e- commerce strategy. Work was done on a number of projects including a web-based tool for  ordering title policies. The application will serve as a production tool for customers and a method  for us to gather data electronically. Integrating and sharing data with customers electronically  will significantly improve our operational efficiency over time.  In related businesses, our tax-deferred exchange subsidiary continues to achieve double digit  increases in transaction volume. Section 1031 of the Internal Revenue Code allows investors in  real property to swap for other like-kind property and defer payment of the tax realized on any  gains. Our staff has developed extensive expertise in order to support clients in handling these  complicated transactions.  On September 15, 2000, the IRS issued a new Revenue Procedure, which provided safe harbors  for handling exchanges of real property on a reverse basis. The original safe harbors, which  established procedures to follow for standard exchange transactions, explicitly excluded the more  complicated reverse transaction.  Upon evaluation and analysis of the Revenue Procedure, we moved quickly to develop extensive  documentation and internal procedures for handling these exchanges. Although the majority of  transactions are handled on a straightforward basis, a significant percent are not easily structured  as such. Serving as an accommodator and qualified intermediary on reverse exchanges provides  us an opportunity to further develop relationships with key sources of exchange and title  insurance business.  4 © Investors Title Company 