ALLIED Group Mortgage Company is aware of the possible impact on its operations if its electronic systems are not compliant in advance of January 1, 2000. Because of this we have established a Y2K oversight committee made up of senior management to monitor the progress of our Y2K effort. We have also formed a Y2K Team made up of managers representing key business functions at ALLIED.

The Y2K Team members are working diligently to identify our year 2000 system exposures. All of our hardware, software, facilities and vendor relationships are being evaluated for year 2000 compliance. We are on schedule and plan to be fully compliant and ready for the year 2000 rollover.

In addition to the testing of our internal systems, we are participating in the Mortgage Bankers Association Inter-Industry test. The Inter-Industry test helps us to see how our remediated systems will work with our trading partners.

We are developing contingency plans to keep satisfactory customer service levels and mitigate losses, in the event ALLIED is adversely affected by external systems or data.

In summary, ALLIED Group Mortgage is very committed to making the year 2000 rollover a smooth transition for the company and its customers.