Bulletin: CA000036

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 VI) and Rate Schedules for both TSG's and Limited TSG's may be obtained by contacting Patty Hoesl, Claims & Litigation Paralegal, at fax # 713-629-2248, by email at phoesl@stewart.com , at 1-800-729-1902, or 713-625-8239, or by mail at the address shown above.*. 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 attached rates 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 State Manager at (619) 692-1600 or the California Agency Managers at either (415) 403-9093 or (818) 546-3978.

*Readers will note that the printed bulletin which was distributed to all California Issuing Offices included attachments of the referenced sections of rate manual and rate schedules.