2/20/2008 - A MESSAGE TO MEMBERS

As TIGER 21 begins its ninth year of operations, I wanted to share with you my observations regarding our accomplishments and what we see for the future.

Today, we can proudly say that TIGER 21 is the nation’s pre-eminent peer-to-peer learning network for high net worth individuals. We celebrate our over 150 members’ extraordinary accomplishments and their unique, diverse backgrounds. We now gather in Palm Beach, Miami, Dallas, San Diego, San Francisco, Los Angeles and New York City. Our success continues to be built on our members’ willingness to share their best thinking and generosity of spirit. Their collective wisdom regarding financial, personal and more global matters, combined with the opportunities created by our confidential community creates an unmatchable opportunity to deliver compelling value. In 2008, our goal is to add new groups in Boca Raton, Orange Country, CA, and potentially in Chicago and Atlanta.

This sharing of experiences, contacts and investments has helped our members build an exclusive pipeline of financial and personal opportunities that adds value to their lives. For example:

• When a New York member reports avoiding a "million dollar mistake" because a Miami member he has never met "shoots down" his investment idea on our website, something unique and valuable has occurred.

• When a member invests hundreds of thousands of dollars in a subprime position that only months later yields many millions of dollars, because a member of another group introduced one of the best subprime investors to TIGER 21, something unique and valuable has occurred.

• When members, across the country, acknowledge that the TIGER 21 portfolio defense discipline has helped them reshape their portfolios and align their investments and expenses with their goals, something unique and wonderful has been happening.

• When a member posts a thread to our website because a close friend has been diagnosed with cancer and within 24 hours 4 members have volunteered to make personal introductions to the best specialists in the country, something unique and valuable has occurred.

• When our Headliner Series brings some of the best and brightest speakers from diverse disciplines to New York and California, and then the videos of these presentations remain available as archives on our website, something wonderful is occurring. I am happy to reflect that our program measures up to any academic or distinguished speaker series in the country.

A testament to our ability to provide an environment which allows for the development of this collective intelligence is the fact that nearly 50 percent of all new members are referred by existing members. Some members have been a source for multiple referrals.

The TIGER 21 experience is supported by our great team of facilitators who are seasoned professionals from a variety of backgrounds. Their experience and training is one of the key assets which distinguishes our ability to provide an invaluable learning environment.

We are continuing to supplement new programming with new media tools. Our member web Forum has already become an essential resource, with members creating new "threads" on topics or investments of interest almost every day. Today, members can view our growing library of world class presentations and interviews on their own schedule through our website.

TIGER 21’s Unique Value to Members – There’s More to Come

In order for us to continue to support premier programming and services, we must increase our membership dues. No one ever welcomes a dues increase, but we must provide the necessary resources to remain fresh and exciting for each member and group. Additionally, we want to make sure that our vision remains clear and compelling as we develop new programming and services that benefit our members.

I didn’t start TIGER 21 with some preconceived notion of size or revenue, but I am pleased today that we are pioneering new and exciting ways to tap into the collective intelligence of our extraordinary cohort of members.

There are misconceptions about the need for TIGER 21’s fee increase. Simply put, in order to deliver compelling value to our members in an increasingly complex and challenging economic environment, and in order to deliver annual benefits worth 10-100 times the $30,000 cost, we need to grow and deepen our team. We need a financial model that allows us to attract increasingly talented staff to help build our knowledge management capacity and deliver increasing value across our membership. In the spirit of transparency, which is a hallmark of our process, you should know that, to date, Tommy and I have never received a penny of distribution or compensation, and Richard’s compensation has been in line with other professionals in the organization. Last year, Tommy and I actually invested additional capital to underwrite TIGER 21’s operations.

We have a harmony of interests with our fellow members, because we understand that we will only create real enterprise value for our team when our membership is convinced of the extra-ordinary value we believe we are creating. Although there are many "soft" returns members receive in terms of personal, family, estate, social, and philanthropic concerns, for most members, feeling that their investment in TIGER 21 results in superior risk adjusted performance remains their major focus, and we want to deepen our capacity to meet that challenge.

We note that if TIGER 21 were an investment manager or bank, which it is not , the staffing necessary to professionally manage or just allocate over $10 billion of investment assets would be far greater than 10 times our size and certainly a lot more than ten times as expensive as our current structure. The real benchmark for assessing our fees generally should be seen in relation to the impact on members’ average net worth. On this basis, our fees reflect 3 to 15 basis points, based on most of our members’ average net worth. Ultimately, membership in TIGER 21 must create a meaningful increase in one’s ability to manage their wealth. We think it does, and we hope you do too!

New Products and Services for Members to be Introduced: Some Now, Some Soon

Finally, I would like to mention a couple of new initiatives, two of which we have just launched and the rest of which are to be launched soon.

• We have added a new section to the TIGER 21 Member website: "Best Picks," an interactive section in which members can recommend and rate their favorite business, accounting, legal, health and lifestyle resources.

• Another new section of the Member site, "Member Benefits," will provide TIGER 21 with offers from service providers with whom TIGER 21 has negotiated in order to provide Members with exclusive opportunities at low rates. We will begin by rolling out a group umbrella insurance product with deep discounts for members. The policy is underwritten by AIG and our agent will be Frank Crystal & Company. We are making this program available in response to member requests, and we want to emphasize that the offering should not be construed as an endorsement. This strategic alliance is a great example of a premium service that TIGER 21 can provide which would not be easily replicable by individual members.

• Later this year we will introduce a financial education conference for spouses. Many members have asked for such a program, and we expect to offer this program to TIGER 21 spouses in northern and southern California, Florida, and New York during the second half of 2008.

• As we grow, we look forward to bringing members together for "national" all-member events at desirable off-site locations, and separately for member "fora" where subsets of our membership from around the country will gather to focus on a specific theme, asset type or topic. These national events and member fora will allow members to interact with others outside their geographic region and form a seamless web that will become a critical part of their decision making process.

I believe that we are entering the most exciting phase of our development, and the best is yet to come. We can be proud of the experience that we are delivering and the confidential community, unlike any other, we have developed. I look forward to hearing your ideas and meeting you as I travel to our groups across the country.

We’re counting on you to help us envision TIGER 21’s future and to be part of it. All the best for a happy and prosperous 2008!

Michael W. Sonnenfeldt Founder