A forward-looking indicator based on pending home sales shows the market is likely to stabilize in the
months ahead, according to the Gulf Coast MLS statistics.

The Pending Home Sales Index*, based on contracts signed in June, was higher from the
downwardly revised May index  but is below June 2006.The monthly gain is a increase over three years, since 2004.

The increase occurred in all areas in Mobile County due to upcoming development and anticipated growth from new business
However, it is too early to say if home sales have already passed bottom.  Still, major declines in home
sales are likely to have occurred already and further declines, if any, are likely to be modest given the
accumulating pent-up demand.

An index is a leading indicator for the housing sector, based on pending sales of existing homes.
A sale is listed as pending when the contract has been signed but the transaction has not closed, though
the sale usually is finalized within one or two months of signing.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year
to be examined as well as the first of five consecutive record years for existing-home sales.

Annual changes in the index are more closely related to actual market performance than are month-to-month
comparisons. As the relatively new index matures and seasonal adjustment factors are refined, the month-to-month comparisons will become more meaningful.