DATE:  AUGUST 6, 2007

TO:  CFG REPRESENTATIVES  & ASSOCIATES

FROM:  RANDY STUDER, CHAIRMAN

RE:  CFG REORGANIZATION

I am very pleased to inform you of several organizational changes within Central Financial Group (CFG) that took place on August 1.  The process of this reorganization had been in the works for several months and culminated in a stronger and more viable firm that will lead us forward in the next 5 – 10 years and beyond.

First, our present partners within Central Financial Group voted to sell membership units and add 5 additional members to the organization.  Those new members are Steve Heddinger, First American Bank of Ft. Dodge, Brad Whitman, Sonja Gonzalez and Merle Boeve.

Steve Heddinger has been one of the leading representatives of our agency for many years and first affiliated with our organization in 1990.  In fact, he has led our agency in securities production 6 of the past 7 calendar years and leads by a large margin again this year as of this date.  Steve is very well rounded in the sale of life insurance, annuities and securities.  As most of you know, Steve is out of Ft. Dodge and is located within First American Bank.  He will continue to work out of the bank location as we go forward. 

First American Bank is headquartered out of Ft. Dodge, Iowa, but has bank branches in many other Iowa and Florida locations.  Their representatives have utilized Ameritas Investment Corp. (AIC) through our agency as their broker – dealer for several years and write a considerable amount of life insurance and annuities through our firm.  Additionally, they own a property casualty firm, which CFG will help manage and grow.  First American Bank is excited about this opportunity to partner with CFG in order to further their insurance and investment business through their bank distribution.  We wish to thank Tom Schnurr, Chief Executive Officer of Stark Bank Group, Ltd., for his continued persistence in helping broker this reorganization.

Brad Whitman is out of our Des Moines office and joined Central Financial Group February 1, 2005.  He has several years of insurance and investment experience having previously worked with Federated Mutual, Prudential and New England Financial.  Brad graduated from Jefferson High School in Cedar Rapids and earned a BA in Economics from the University of Iowa in 1989.  I have found him to be a tremendous asset to our firm and he has considerable knowledge of both the insurance and securities business.  Brad has been instrumental to the growth of our Des Moines office and has positively impacted the sales within the First American Bank distribution over the past couple of years.

Most all of you know Sonja Gonzalez, who has been associated with our firm since 1996 in Des Moines.  Sonja initially ran our life department and handled most of the contracting of our representatives within the various companies that we write business with.  Last year, we promoted Sonja to Director of Operations and she has done an outstanding job of managing our Des Moines employees.  Sonja has a wonderful attitude and is a key to many of the positive relationships we have created with our representatives and companies.  We feel she is a critical part of our growth as we move forward.

Merle Boeve is the newest member of our firm having joined Central Financial Group in early 2006.  Merle began his insurance career with Prudential and then worked with Principal and New York Life Insurance Company.  While Merle has been associated with our firm less than two years, the production of his unit has added considerably to the growth within Des Moines and CFG.  Merle grew up in Minnesota and attended two years of college at Moorhead State University.  Merle has a knack of cultivating new relationships and will be called upon to continue his work of growing our agency.  We are very excited to have Merle as a new partner within Central Financial Group.

I am also pleased to notify you of other changes within the organization effective immediately.  These changes will have little effect upon our representatives, but will dictate some of the organizational responsibilities over the months and years ahead. Effective immediately, the following officers within CFG are as follows:

    Randy Studer   Chairman of the Board
    Doug Marlow   President
    Mark Klein   Vice President
    Tom Vautier   Secretary – Treasurer
    Joe Heffernan    Managing Partner designated by FAB
 
As you can see from the above, we are preparing this company for management and growth in the years ahead.  As President of CFG, Doug will begin to take on more responsibilities of running the entire company on a day-to-day basis.   

We are very excited about all of the changes and wish to congratulate our new CFG partners.  Please feel free to give Doug or me a call if you should have any questions regarding this letter.

Sincerely

Randy W. Studer, CLU,ChFC
Chairman & General Agent
Central Financial Group