The Alcor Patient Care Trust (PCT) was under the active management of
Morgan Stanley advisors and was protected from some of the market
drop. The SP500 lost approximately 38% of its value in 2008 while the
Alcor PCT lost approximately 23% of its value in 2008. Despite this
clear over-performance in 2008, the PCT Board was not satisfied with
the absolute drop in the PCT.

Therefore, we have taken the following steps for 2009:

(a) added a new PCT Board member, with extensive
investing experience, to help set up a long term management program for the PCT;

(b) significantly reduced our market exposure while still expecting reasonable returns in the future;

(c) made the decision to regularly publish information about the PCT performance on the Alcor web site as soon as our volunteers complete the reporting.