Parlan Financial Corporation Business Continuity Plan Disclosure to Clients

Parlan Financial Corporation (PFC) maintains a Business Continuity Plan (“BCP”) that provides a course of action for the assessment of a significant disruption to the business and for the continuation of business following such an event. The BCP outlines the steps that PFC will take to address disruptions to its normal business and assigns responsibility for the assessment of business disruptions and for the execution of business recovery procedures aimed at the resumption of normal business.

The BCP is designed to address significant business disruptions of varying scope including, but not limited to:

· Disruptions to specific business procedures or systems

· PFC-only business interruptions

· Disruptions to PFC’s main office facility

· Regional business disruptions

· The incapacity of key personnel

In each of these scenarios, the BCP provides for an evaluation of the scope of the business disruption, and sets forth various plans of action. This includes re-deployment of personnel to disaster recovery and other alternative facilities for the continuation of the business and alternative means for the dissemination of information to and communication with the firms’ employees, clients, service providers and regulators. The BCP serves as a guide that addresses how PFC will continue to conduct business during each of the above scenarios.

It is PFC’s intention to minimize the recovery time necessary to resume operations. The majority of computer system upon which PFC relies to conduct business is maintained by Nemsys LLC, an external service provider. These systems are hosted at secure sites that are remote from PFC’s business offices and are, for the most part, internet accessible, so that clients can access their accounts and funds even in the event they are unable to contact PFC.

In the unlikely event that PFC is unable to continue business following a significant business disruption; designated personnel would oversee and direct how the firm would proceed. Clients should be assured that they will have prompt access to their funds and securities through PFC’s systems and back-up procedures.

PFC’s disaster recovery site is tested regularly in order to ensure and minimize the recovery time that may attend any significant business disruption. The BCP is subject to modification based on changing circumstances and assessment of need. The BCP is reviewed periodically, and must be approved annually by a principle of the firm, and the Chief Compliance Officer.

As a client of Parlan Financial Corporation, you do not need to worry about any aspect of business continuity, including the demise of key personnel. PFC has specific action plans to follow in case of emergencies that ensure the continuance of business and the safeguarding of your accounts.

Changes to PFC’s BCP may cause this disclosure document to be updated. In the event this disclosure document is updated, the most current version will be posted out our website www.parlan.com. You may request a hardcopy of this disclosure in its most current revision at any time by contacting PFC and a copy will be sent to you by mail at no charge to you.

January 26, 2006

Helyn C. Bolanis

President and Chief Compliance Officer