Bulletin: CA000035

Dear Associates:

As you are aware, Stewart Title Guaranty Company has made certain adjustments to its filed rates for trustee sale guarantees and limited trustee sale guarantees. These adjustments were made as part of the settlement of a class action lawsuit (the "Bell Case") which involved the propriety of the fees which should be charged for TSG's.

The rates revised pursuant to the Bell Settlement are those which became effective for use on July 1, 1998. Copies of the relevant sections of the Rate Manual (Section IV) and Rate Schedules for both TSG's and Limited TSG's are available form the California Agency Department or the California State Offices. These rates are the usual rates for TSG's, and should be the rates generally being used in your offices. Additional charges are permitted only when unusual risks are being assumed or unusual services performed. As you know, your underwriting agreement with Stewart requires that you charge rates as permitted by law and which are not inconsistent with Stewart's rate filing.

As a part of the settlement agreement, Stewart is required to confirm to the court and the plaintiffs that the appropriate rates are being used for all TSG's issued by Stewart offices and agents in California. To that end, please confirm that the rates referred to are those being used in your operation and make sure that the rates have been integrated into all rate manuals and accounting systems in use.

If you have any questions, please contact the California Agency Department or the California State Offices.