A 4621 --- July 14, 1997

TO: ALL PARTICIPANTS

ATTENTION: CASHIER

SUBJECT: JOURNALING INTO CNS OF ALL OPEN RIO BALANCE ORDERS WITH PARTICIPANT 796

Participants are advised that all open balance order fails with participant #796(NSCC/Philadelphia) will be journaled into CNS at the close of business Friday, July 25, 1997.

The journals will appear on the CNS Miscellaneous Activity Statement for settlement of July 28, 1997 as Code 76 (RIO Balance Order into CNS).

Open balance order obligations which have been journaled into CNS will therefore become NULL and VOID for delivery purposes.

As a result of the journal entry activity NSCC will issue new CNS Deliver/Receive instructions for those securities that are not eligible for CNS. The instructions will be issued with a new settlement date of July 29, 1997.

NOTE: All dividend obligations for the balance orders being journaled remain with the parties to the original balance order, i.e. 796 vs. the participant.

If you have any questions regarding this procedure, please contact Len Napoli (SIAC) at (212) 383-2764, or Participant Services at (212) 412-8432.

Wallace Bowling
Director,Operations