[Matt]

"Adjustments to consignor proceeds for the $10.1 million dollar REA spring 2009 auction were ZERO cents on 1559 of the 1560 lots. (The one exception involves a single lot for which no payment was received, eventually requiring legal action on our part. The lot was sold to the underbidder. We are extremely confident that the incremental amount lost due to this one non-paying winning bidder will be collected, along with our legal fees, allowing us to ensure that the seller receives the full amount that he should have, even if he is very happy with the payment he has already received from the sale to the second high bidder). So, for the past $47 million dollars in auction sales at Robert Edward Auctions, we have an unresolved collection problem affecting only one consignor with one single lot. And we are working diligently to resolve even that. This is unheard of in the auction world. Year after year Robert Edward Auctions has set a standard of perfection for the collection of auction proceeds. Many auctions report sales that for one reason or another are not executed, or have to be adjusted down due to nonpaying winning bidders, costing consignors money. We take the integrity of the auction process very seriously. Bidders appreciate knowing that when they top a bid at Robert Edward Auctions, they are topping a REAL bid. Consignors appreciate getting paid 100 cents on the dollar. This is a very big deal to bidders and, naturally, to consignors as well. Consignors also appreciate being paid in a timely manner. All REA consignors were paid within thirty days. Consignment checks started going out literally the day following the auction. REA does not rely on a line of credit. (We don’t even have one. We don’t need it). Consignors are never at risk of nonpayment at REA. There is no leverage at REA, no borrowing, no paying one consignor with another consignor’s auction proceeds. Nothing fancy. Just simple common sense good business practices. This peace of mind offered by REA is rarely emphasized by us and often not even factored in by consignors. We take it for granted too. But in these difficult economic times, it can be a big deal, so we think we should point it out every once in a while."