SRA BUSINESS CONTINUITY PLAN

September 7, 2004 Security Research Associates, Inc.’s Business Continuity Planning
Security Research Associates, Inc. (SRA) has developed a Business Continuity Plan on how we plan to respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. This information is provided to assist you if such an event occurs.

Contacting Us – If after a significant business disruption you cannot contact us as you usually do at , or by Email at , you should contact our clearing firm, Wedbush Securities, Inc. (Wedbush), at , or through their website at www.wedbush.com for instructions on how they may provide prompt access to funds and securities, enter orders and process other trade-related, cash, and security transfer transactions.

Our Business Continuity Plan – We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our plan is designed to permit resumption of operations as quickly as possible, given the scope and severity of such an event.

Our business continuity plan addresses:
* Data back up and recovery
* All mission critical systems
* Financial and operational assessments
* Alternative communications with - Customers - Employees - Regulators
* Alternate physical location of employees * Citical supplier, contractor, bank and counter-party impact
* Regulatory reporting
* Assuring our customers prompt access to their funds and securities if we are unable to continue our business

Wedbush backs up our important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our clearing firm that adequate technological redundancy is in place and that alternative operational services have been prepared.

It is SRA’s objective to restore its own operations and be able to complete existing transactions and accept new transactions and payments within 3 to 10 business days, depending on the event.

Until SRA restores its own operations, clients are encouraged to contact Wedbush regarding their account. Your orders and requests for funds and securities could be delayed during this period.

Varying Disruptions – Significant business disruptions can vary in their scope (location) and severity (minimal to severe). In a disruption to only our firm or a building housing our firm, we will transfer operations to a local site when needed and expect to recover and resume business within 3 business days.

In a disruption affecting our business district, city, or region, SRA expects to recover and resume business within 10 business days. In either situation, we plan to continue in business, transfer operations to our clearing firm if necessary, and notify you through our contact information or through our emergency contact liaison at Wedbush on how to contact us.

If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to their funds and securities.

For more information
– If you have questions about our business continuity planning, you can contact us at .