1. NARFE MEMBERSHIP John Clements, Director of Membership

2. 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

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

8. Why Members Drop

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

10. 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”

11. NARFE In-House Survey - 1992 Reasons for Non-Renewal –Required Chapter Membership18.4% –Unreported Death 18% –Ill/Nursing Homes/Assisted Care 10% –Misplaced Renewal Notice 7%

12. 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%

13. 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%

14. 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%

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

16. 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