American Partnership Board Brings High Standards to Secondary Limited Partnership Market With IRS-approved ``Qualified Matching Service''.

Business Editors

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 7,2000

American Partnership Board, Scottsdale, the nation's leading Internet auction site for trading limited partnerships, has been approved by the IRS as a "Qualified Matching Service"(QMS). By using a QMS, a general partner insures that its partnership interests are being traded in a manner that protects its partnership tax status. American Partnership Board believes it is the only firm operating as a QMS in the limited partnership secondary market.

At present, secondary limited partnership transfers often use unapproved market procedures. These include tender offers, which many times are not in the best interests of the general and limited partners. By operating as an approved QMS, American Partnership Board brings the high standards to the market by utilizing IRS- approved procedures. Under QMS rules, transfers between limited partners and general partners follow strictly defined procedures. This pre-approved process decreases the rate of low value impulse sales by limited partners, and increases safety for both limited and general partners.

As the nation's only online limited partnership auction, ABP offers a fast and efficient way of matching buyers and sellers. Combining the auction process with the safety of its QMS status offers improved flexibility and liquidity benefits to general partners, to brokers seeking the best prices for their units, and to transfer agents seeking more efficient and reliable service.

One of the biggest advantages to both general and limited partners is that a QMS limits unregistered tender offers to two (2) percent. "Until now predatory unregistered tender offers at prices substantially below market could be made for up to 4.9 percent of a partnership's interests," said Jeff Lundgren, marketing manager of APB. "This practice has victimized sellers and put enormous strain on the back offices of the general partners. Under the QMS rules, however, acceptance of unregistered tenders will be limited to 1.9 per cent, which makes it less attractive for lowball tender companies to flood the market with mass tender offers to unknowing limited partners."

APB was designated a QMS through a Private Letter Ruling from the IRS in March and also received a confirming opinion of counsel from the law firm of Proskauer Rose LLP, acknowledged authorities in partnership taxation. Christopher L. Davis, President of The Investment Program Association, the national trade association representing firms which originate partnership securities offerings, in Washington, D. C., recently stated: "The designation of APB as a Qualified Matching Service by the IRS offers general partners a solution to the many potential legal and tax problems that have plagued secondary partnership trading. It provides general partners, buyers and sellers alike with a new level of safety and comfort in their transactions."

To operate as a QMS, APB has conformed their auction and business system to a rigid set of rules and timelines. "These constraints are important safeguards for the seller, the buyer and the general partner, " said Lundgren. "The QMS status provides assurance that these transactions will be handled in a safe and businesslike manner for all concerned."

Lundgren pointed out that all QMS transactions will be handled through APB's recently introduced automated on line auction site (www.apboard.com) which allows bidders to know immediately if their bid is high, and supports improved prices for the units sold.

The first interactive automated web-based auction in the industry, the APB site has seen a 60 percent increase in traffic and an increase in average pricing since its launch in April.

APB is a division of TC Advisors Network Inc. Member NASD/SIPC