BEST BIDS TO BUY	1999: 150 tons @ $ 725/ton 2000: 50 tons @ $400/ton
BEST OFFERS TO SELL	1999: 150 tons @ $ 750/ton 2000: 100+ tons @ $1,000/ton 1999-02: 100+ tons @ $1,100/ton
RECENT TRADE PRICES	$ 725/ton (1999) $ 725/ton (1999) $ 725/ton (1999) $ 725/ton (1999) $ 725/ton (1999) $ 700/ton (1999) $ 710/ton (1999) $ 700/ton (1999) $ 700/ton (1999) $ 500/ton (1999) $ 975/ton (2000) $ 975/ton (2000) $ 950/ton (2000) $ 925/ton (2000) $ 900/ton (2000) $ 880/ton (2000) $ 855/ton (2000) $ 850/ton (2000) $ 815/ton (2000) $ 720/ton (2000) $ 950/ton (2000) $1,000/ton (2000) $ 840/ton (2000-02) $ 750/ton (2000-02) $ 975/ton (2001 & 02) in chronological order
MARKET PRICE INDEX	1999 = $ 723/ton 2000 = $ 933/ton 2000-02 = $ 795/ton The Market Price Index (MPI) is derived by averaging the Best Bid, Best Offer, and Most Recent Trades.

NOx NEWS Market Turned Around - For the first time in several months, we can report that the NOx market has most certainly turned around. After trading at low prices of $500/ton for vintage ‘99s and $720/ton for vintage ‘00s, prices have risen, respectively, to $725/ton and $975/ton at press time. In fact, over 2000 tons have traded since the last market bulletin on October 5, 1999. Increased comfort with PFC, compliance buying for vintage ’99 reconciliation, and dramatic increases in compliance buying for vintage ’00, combined with seller resistance to sell at lower levels, have converged to cause the price upswings. PFC Clarified - Prompted by Cantor Environmental Brokerage’ October 5, 1999 NOx Budget Market Bulletin, regulators from Ozone Transport Commission States, U.S. EPA, and OTC elected to hold a October 20, 1999 conference call to discuss the possibility that Progressive Flow Control (PFC) may indeed be a reality in the year 2000. Andy Kruger of Cantor Fitzgerald participated in the call. As a result of the call, regulators worked to establish a clear explanation of PFC to provide to market participants, so that market concerns could be minimized and a clear, uniform explanation could be provided. The bottom line is that PFC works as we informed you in our 10/5/99 bulletin. Please call us: a) if you would like assistance in understanding PFC and how it works; b) if you need another copy of the 10/5 Bulletin; and/or c) to discuss how you can hedge your risk. Cantor Fitzgerald is proud to have played a role in prompting these parties to get together to dispel confusion that has impacted the market. At Cantor Fitzgerald, we work hard to do more than be just another broker; we want to be your information resource. Online Real Time Pricing – Did you know that you can see NOx and SO2 Allowance market prices online? Visit our Cantor Environmental Brokerage at www.emissionstrading.com and take a look at the ticker at the top of the screen.

How is the MPI Derived? The MPI, in $/ton, is derived by averaging the following: 1) the Best Bid - the highest price at which a buyer is willing to purchase at least 5 tons of NOx Allowances. 2) the Best Offer - the lowest price at which a seller is willing to sell at least 5 tons of NOx Allowances. 3) the Most Recent Trade - the price(s) at which NOx Allowances have been agreed to be transacted (NOTE: NOx Allowances have not yet been placed in Budget Sources' NATS Accounts, and thus trades cannot yet be "transacted". Until such time, the "Most Recent Trade" represents buyer(s) and seller(s) agreement(s) on price).

Questions? Like to Place an Order? Consider a Swap? Call Us at (800) 228-2955 (x6) Trade With the Cantor Environmental Brokerage Market Experts Cantor Environmental Brokerage has Facilitated ~ $2 Billion in Transactions Involving >50 million Allowance, ERC, DER, & RTC & GHG Credits/EAs