Re: 2009 Recovery Act: NOL Carryback Period Extended

Dear Client:

As you may know, NOLs can generally be carried back two years and forward 20 years. The carryback and
carryover periods are determined by the law applicable to the year in which the NOL arises, rather than any of the
years to which it is carried back or forward. An NOL that is not utilized within its statutory timeframe expires
without providing any tax benefit.

The American Recovery and Reinvestment Tax Act of 2009 (2009 Recovery Act) provides relief for small
business owners by extending the maximum carryback period for 2008 net operating losses (NOLs) from two
years to any number of years greater than two and less than six (i.e., three, four, or five years). The number of
years selected for the carryback is discretionary within these parameters, but the election must be properly
executed in a timely manner and cannot be revoked.

The Worker, Homeownership, and Business Assistance Act of 2009 modifies the extended carryback period under
the 2009 Recovery Act to allow businesses of all sizes to carryback net operating losses to more than two years
and less than six years. In addition, the provision applies to net operating losses for 2008 or 2009.

Because you sustained an NOL, these provisions present an opportunity for an immediate refund of prior year
taxes paid. Please call us at your earliest convenience to discuss the various alternatives that can be used to
optimize your tax savings and cash flow.

Sincerely yours,