US Facilities : COSTA MESA

Nature of Business: Underwrites, markets and reinsures medical stop-loss coverage and provides property and casualty insurance Total employees: 186 In Orange County: 125 Stock listing in The Times: On NASDAQ “US Facl” Ticker Symbol: “USRE” Friday’s Stock Close: $9.38 One-week Change: Down $0.75 Analyst Review: “US Facilities brokers and reinsures stop-loss coverage, which limits the amount of losses a company that is self-insured can have to an individual or group. It also participates in the property and casualty reinsurance business and we anticipate that the economic effects of Hurricane Andrew will cause an upward swing in the six-year softness in the reinsurance market. US Facilities’ stock is trading below book value, which is very difficult to find in this environment--especially when the book value is cash and investments. We’re bullish on the company’s long-term prospects, even though it has had two quarters in a row that have been slightly disappointing. For investors that are willing to take a little more risk, the potential returns are very high. Ira Malis, analyst Alex. Brown & Sons Inc., Baltimore SALES and PROFITS Dollar amounts in millions.

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 qtrs. 3 qtrs. 1989 1999 1991 1991 1992 Sales $62.9 $67.4 $63.8 $47.2 $60.9 Profits $2.1 $3.3 $7.0 $4.9 $3.4

Corporate Outlook: “The continuing trend toward self-insurance and the need for cost containment has helped US Facilities’ medical stop-loss revenue grow substantially over the last five yars. Premium revenue from property and casualty reinsurance is also expected to grow due to the impact of Hurricane Andrew. US Facilities plans to remain focused and expand in these two specialized areas, and is well position to respond to employers’ needs to reduce the cost of group medical programs.” --Mark Burke, chief financial officer RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 qtrs. 1989 1999 1991 1991 1992 52-Week High $4.88 $5.75 $17.38 $14.38 52-Week Low $1.25 $2.25 $3.75 $3.75 Book Value Per Share $5.19 $6.02 $8.58 $12.05 Price Per Share $4.50 $3.63 $14.38 $11.25 Net Earnings Per Share $0.56 $0.84 $1.64 $1.18 Price-to-Earnings Ratio 8:1 4:1 9:1 7:1 Avg. Return on Investor Equity 10% 13% 14% 13%

Fiscal year ending 3 qtrs. 1989 52-Week High $19.00 52-Week Low $7.00 Book Value Per Share $9.31 Price Per Share $9.50 Net Earnings Per Share $0.58 Price-to-Earnings Ratio 12:1 Avg. Return on Investor Equity 8%

For more information call or write, US Facilities Corp.: 650 Town Center Dr., Suite 1600, Costa Mesa, Calif. 92626. (714) 549-1600 Source: US Facilities Corp. Researched by DALLAS M. JACKSON/Los Angeles Times