2. www.newmarketstaxcredits.com Rebuilding Communities After Hurricane Katrina With New Markets Tax Credits James D. Howard, Jr. TransCapital, LLC

3. www.newmarketstaxcredits.com Working through the Damage 450,000 People Displaced $5.5 Billion in Damage to Infrastructure 56% of Schools in Affected Areas Remain Closed 30% Smaller Labor Force in New Orleans 39% Increase in Rent in New Orleans 661,057 Housing Units Damaged Sources: MS Chamber of Commerce, 2005 Louisiana Hurricane Impact Atlas, FEMA 548 2006, Brookings Institute

4. www.newmarketstaxcredits.com TransCapital's Involvement in the NMTC Program TransCapital has been extensively involved in the NMTC Program since its inception: Successfully supported NMTC applicants which have received in excess of $2 billion in allocations of New Markets Tax Credits. Structured, marketed and closed NMTC funds with committed debt and/or equity in excess of $400,000,000 of QEIs. Closed QEIs utilizing leveraged and non-leveraged structures including tax- exempt bond financing. First NMTC Go Zone transaction closed in January of 2007.

5. www.newmarketstaxcredits.com NMTC Go Zone Transactions Completed and Pending Enta: Business Loan to Start-up Louisiana Technology Company in Baton Rouge, Lousiana Mixed-Use Workforce Housing Project in Biloxi, Mississippi Revitalization of a Severally Damaged Historic Building in Hattiesburg, Mississippi Mixed-Use Workforce Housing Project in Jackson, Mississippi

6. www.newmarketstaxcredits.com Mississippi Enta: One of the First NMTC GO ZONE Transactions Completed $13,325,000 QEI Enta is a start-up technology company that provides low-cost ticketing services to sports and entertainment venues nationally Enta chose to locate in Louisiana due to the Go Zone credits ultimately selecting the Louisiana Technology Park located in a low-income community in Baton Rouge The Company expects to provide approximately 40 direct jobs in one of the poorest areas of Baton Rouge Favorable NMTC financing allows the Company to direct its cash toward expansion, instead of to providing returns for equity investors

7. www.newmarketstaxcredits.com Mixed-Use 250 Unit Workforce Housing Development $66,000,000 mixed-use workforce housing project targeting Biloxi and Gulf Coast residents The project will address Biloxis residential housing shortage while providing competitive retail and commercial space Multiple CDEs are providing allocation to the project Challenges include inflated land costs, escalation of construction costs, insurance premiums, and access to skilled labor

8. www.newmarketstaxcredits.com Revitalization of Katrina Damaged Historic Building Severally damaged building remaining vacant and in need of repair Combined effort with University of Southern Mississippi and local lenders to utilize as university classrooms and offices Approximately $12,000,000 in rehabilitation costs Challenges include conversion to functional use while maintaining historic attributes, rising cost of construction, and ability cash flow at market rates

9. www.newmarketstaxcredits.com Mixed-Use For-Sale Housing in Jackson $32,000,000 mixed-use for-sale housing development in Jackson, Mississippi Combined effort with Jackson State University and multiple CDEs 106 for-sale units sold offered up to 25% below market value, subsidized by NMTCs 25,000 SF retail with 78 for rent student housing apartments Innovative below market rate for-sale units offered to university staff and targeted priority groups

10. www.newmarketstaxcredits.com Succeeding in the Go Zone Patience Innovative capital structure to maximize subsidy and local community impact Persistence to work with local lenders, municipalities, developers, and agencies often with disparate views More patience and persistence

11. www.newmarketstaxcredits.com James D. Howard, Jr. jhoward@transcapitaltaxcredits.com 2930 East Camelback Road, Suite #215 Phoenix, AZ 85016 Phone: (602) 468-9400 Fax: (602) 468-2775