Dear Clients,

The US government has issued new regulations that require us to issue a privacy statement. While our style and philosophy of doing business in the past automatically protects your privacy to the best of our ability, we are sending you our privacy statement below in order to comply with these new regulations.

Mahler & Emerson ("M&E") recognizes the importance of protecting the confidentiality and security of nonpublic personal information we collect about you (the "Information"). This notice describes our privacy policies and practices and is designed to help you understand what Information we we gather, how we use and protect that Information and the circumstances under which we may share that Information.

We collect and use Information in connection with our providing financial services to you. These serivces may include, but are not limited to, opening and servicing your brokerage account and opening and managing your investment advisory account with M&E. We may also use the Information to develop, offer and deliver other financial services and products to you, to respond to inquiries from you about your account or other matters and and to fulfill any legal or regulatory requirements.

We obtain most Information directly from you when you apply for our brokerage or investment advisory services. The Information is provided on New Account applications or other forms and may include your name, address, telephone number, fax number, email address, social security number, age, bank reference, family information, financial information, financial goals and name of your employer. We also obtain Information about you from transactional activity in your account(s), from our own interactions with you and, with your consent, from other financial institutions if you transfer positions into our clearing agent and custodians.

Within M&E, we are careful to resist access to Information to our employees based on their repsonsibilities and their need to know the Information to assist in servicing or managing your account(s) and responding to any inquiries from you regarding your account(s). We maintainsafeguards in keeping with Industry standards and practices and changes in technology to protect against anyone gaining unauthorized access to the Information.

We may also disclose Information to government and law enforcement agencies and officials for tax reporting or pursuant to subpoena, court order or other judicial process, to regulatory agencies for purposes of demonstrating our compliance with the rules and regulations governing our business, to other organizations for fraud protection, to our attorneys and auditors for audit and other purposes and otherwise to comply with applicable federal, state and local laws, rules and requirements.

We strive to maintain complete and accurate Information about you and your account(s). If you ever believe that our records contain inaccurate or incomplete Information, please let us know immediately. We will correct any inaccuracies as quickly as possible. We reserve the right to change our Privacy Statement, and notice of any changes will be sent to you promptly. The examples contained within this notice are illustrations and are not intended to be exclusive. This notice complies with a recently enacted Federal Law and Regulation S-P promulgated by the United States Securities and Exchange Commission. You may also have additional rights under other laws that may apply to you.

Should you have any questions, please give us a call.

Herbert W. Mahler

President

This notice describes the privacy policies of Mahler & Emerson Inc. regarding how Mahler & Emerson Inc. handles and protects personal information that it collects about individuals who are prospective, current or former investment advisory clients.

Mahler & Emerson Inc. collects personal information in connection with providing investment advisory services primarily to process requests and transactions, provide customer service and communicate information about its products and services. Personal information, which is obtained from applications and other forms, may include name(s), address, social security number or tax identification number, bank account information, financial information and other investments in mutual funds or other investment programs managed by Mahler & Emerson Inc. or its affiliates ("Personal Information").

Mahler & Emerson Inc. limits access to Personal Information to those individuals who need to know that information in order to process transactions and service accounts. These individuals are required to maintain and protect the confidentiality of Personal Information. Mahler & Emerson Inc. may share Personal Information described above with its affiliates for marketing and other business purposes, such as to facilitate the servicing of accounts and to provide information about new products and services.

Mahler & Emerson Inc. shall exercise reasonable precautions to maintain the confidentiality of all information provided in connection with accessing this site. Because such information can be accessed through the Internet, no assurance can be given that this information will remain secure. Mahler & Emerson Inc. may at times, disclose such information to its employees, representatives, officers, agents or affiliates, as well as any governmental entity, in the conduct of its business, to comply with applicable rules, orders, subpoenas or other legal processes, or in order to provide information to any government agency or official requesting such information, or for any other legitimate business purpose.