NARFE MEMBERSHIP John Clements, Director of Membership

AGENDA A. Datum Corporation supplies products and services to people world-wide. This presentation provides an overview of our financial performance. Unless marked as Company Confidential, all information has been made public. Highlights Income Revenue Balance Sheet Assets Stock Performance

Membership Gain/Loss 1979 New Members Recruited 91,925 64,973 National 26,952 Chapter Deaths 6,882 Non-Renewing 14,185

Why Members Drop

Membership Surveys Dorf & Stanton1992 NARFE Survey1992 Beta Research Membership Study2000 Beta Research Former Member Study2001 NARFE Survey2005

Dorf & Stanton Chapter Level and National Involvement –Many Respondents do not wish to pay chapter dues because they “do not wish to participate…” Recommendation –“Make chapter membership voluntary”

NARFE In-House Survey Reasons for Non-Renewal –Required Chapter Membership18.4% –Unreported Death 18% –Ill/Nursing Homes/Assisted Care 10% –Misplaced Renewal Notice 7%

BETA Research Membership Study 2000 “If the chapter requirement was removed” Total65 or Under65+ …Yes, would remain 61%55%63% …No, would not (Includes no answer) 39%45%36%

BETA Research Former Member Survey 2002 Disliked having to belong to a chapter22% Not enough value for dues19% Not enough time to devote to membership19% Dissatisfaction with perks, Retirement Life, Legislative Program, & NARFE services13%

NARFE Survey 2005 Major Reasons for Non-Renewal: –Death22% –Ill-Health17% –Dissatisfaction with Chapters13% –NARFE not doing enough or what they promised12% –Membership is expensive10%

Conclusion Survey data very consistent Top three reasons for Non-Renewal –Chapter Requirement –Unreported Deaths –Ill-Health (Nursing Home/Assisted Living)

CY 2006 Conclusion 34,726Members Dropped/Cancelled 8,763Members were reinstated 28,063Actually Dropped 28,063 x 20% Dropped for Chapter Requirement 5,600 28,063 x 20% Unreported Deaths 5,600 28,063 x 10% Assisted Care 2,800 Total Unrecoverable Members 14,000