Bryant and Tom--

Term deal #VC3697 (Sitara deal #'s 1064276, 1064290, and 1064301) were all originally executed with Alcoa, Inc. on 5/25/01.  Subsequently, these deal was approved by Credit because the deal fit under Alcoa's credit profile.  This deal was recently moved to PACE  Global Energy Services, LLC.  Credit has not been approved for PACE, nor do we have any financial information on PACE.  As a matter of fact, the little information that we have for PACE is not positive at all.

No new deals should be executed with PACE Global Energy Services, LLC until credit has reviewed and assessed a credit line, etc.

I have asked Deal Validation to have these deals moved back to where they were originally booked to (Alcoa, Inc.).  If you have any questions or any information on PACE, you can give me a call at x6-6002.


Thanks,

Veronica Espinoza