The long-term satisfaction of the customer is the underlying principle of our investment philosophy. This is not something to which we take lightly, but necessary for our own commercial success. Therefore, in the following we describe the philosophy which ACRONŽ, on behalf of its customers has pursued up to now, and will pursue in the future, the geographic interests which receive emphasis and the criteria established for selecting real estate.

1. "Private and Public Placements"
The ACRONŽ investment strategy is consistently pursued through two channels: retail investment funds and private placements. Private placement means serving a single investor or a very few investors who solely or jointly purchase a property. Here, the direct contact between ACRONŽ and the customer is intense and takes on distinct forms. As in the past, the focus of the ACRONŽ strategy will be private placement. Specifically, ACRONŽ has identified for its customers clear advantages for the investments of US-$200,000 and higher. For instance, a private placement with "manageable" overall volume, offers the customer individual structuring options, greater voting rights (shares of 10 to 20 percent) as well as ownership interests in a property which can be sold again relatively easily due to its size (fungibility).

The same criteria apply to retail investment funds. Naturally, the volume of the real estate investment is usually larger and due to the larger expense, the after-tax returns are somewhat smaller. Nonetheless, our first objective is to earn a rate of return that makes an investment in the range of US-$30,000 and higher economically worthwhile for an investor. For this reason, we have put a cap on the volume of the properties for the retail investment funds. As a rule, the volume of a single property should not exceed $25 million. With this limitation, we seek to achieve two purposes: first, the individual investor who invests, let's say US-$50,000, should have an opportunity to participate in the relative matters. Secondly, we consider the resaleability of properties of this magnitude to be far greater than that of big volume properties, because the investor group is much larger.

2. Geographic Concentration of Investments
With regards to geography, we concentrate on two locations, the Midwest (i.e., Tulsa, Dallas, Houston) and Southeast Florida metropolitan areas. Contrary to the familiar, widespread practice, it is of secondary importance to us whether a location is known to everyone in Germany or Europe. To us, and to our customers, it is more important how the site is assessed from the American viewpoint, as that primarily determines the resale opportunity.

According to a current study by the business journal "Forbes" (May 1999 issue), Tulsa is designated 32nd "Top Booming Area" of the USA, and rightly so! Here is a summary of Tulsa's extremely favorable real estate investment qualities:

• Population 760,000
• Economic upswing due to a very strong business community
• Low unemployment rate of only 2.8 percent
• Top location for successful high-tech companies (transportation equipment)
• Low cost of living
• Total income in district in 2000; US-$72.3 billion
• Per capital income of US-$26,113, well above the national average
• Annual retail sales volume of US-$8.3 billion
• Three universities and one community college with 43,000 students in all

Moreover, Tulsa encourages real estate investment by allowing commercial buildings to be written down in Tulsa over 22 years rather than the normal 39 years. The effect, even if the investment is high, is that the returns remain tax-free. Tulsa owes this to its unique history as former Indian territory.

Alongside Tulsa, Dallas was ranked #3 of the "Top-Booming Areas" in all of the USA in the Forbes study. The advantages of Dallas are:

• One million inhabitants
• Ninth largest city in the USA, third largest in Texas
• Average age 32.1 (national average 34.8)
• 140,000 firms. Headquarters for more than 5,000 companies
• One of the largest high-tech centers in the USA, named "Silicon Prairie."
• Moderate cost of living, below the national average
• New commercial properties worth US-$20.26 million added in 2000
• 200,000 students, 26 colleges and universities, 5 community colleges

In the future, we have the intention to invest also in the south of Florida. The existing geographical conditions make an increase in value of the land highly probable.

3. ACRONŽ Management
For our customers, there is another aspect which is crucially important with respect to both Tulsa and Dallas: every commercial property, shopping center or office building requires excellent administration and excellent management. We ourselves perform administrative and management duties in the Tulsa and Dallas business regions. Therefore, we consequently also give preference to these locations for ACRONŽ properties. Be assured: the success of a real estate investment is determined by the management. Due to our management capacities in Tulsa and Dallas, we are in the position to administer and manage all properties located there ourselves. We have an altogether different program for success and to the product, and consequently feel, due to our ties with the owners, that we are in a different position than a normal management company.

Should ACRONŽ elect to pursue other geographic regions in the future, our management philosophy will not change.

4. Location Criteria
Apart from the properties described above, there are also so-called "stand-alone" single-tenant properties with "triple-net" leases, which we also prefer as investment vehicles. These are properties with just one tenant, where the lease runs for at least 15 years, which burdens the tenant with the entire cost. Net Operating Income is thus more similar to the interest income from a bond than a return on property. In contrast of the criteria for choosing a property for private placement or for an investment fund, here there is no restriction whatsoever as to locality. Rather, it is exclusively a question of the tenant (investment grade, credit rating, type of business) and how the tenant services or goods for sale will meet the needs of the community in which it plans to operate. Since it involves little in the way of administrative effort and since management can be carried out from any location, we pursue this idea nationwide in the USA and judge each investment project according to financial aspects and the situation of the property in the community.

But, here again, one must not neglect the underlying property and determine its ultimate value based in a large part on LOCATION. Each lease ultimately is not renewed, making the property location very important. For that reason, ACRONŽ places especially high demands on the location of such triple-net properties. The location must be promising, have excellent surroundings (established area, transportation, accessibility, public facilities) and lend itself to imaginative improvement. Considering Land Appreciation, the goal is for the land value or exceed the original investment when the lease expires.