Treasury Investors, Make the Smart Exchange

                     The Bureau of the PUBLIC DEBT

                           Treasury Investors

                             Make the Smart
                                Exchange

                           [Graphic Omitted]


Treasury Investors...
Make the Smart Exchange!

Do you still hold Treasury securities in paper form? If you do, you may
be taking the unnecessary risk that your securities could be lost,
stolen, or destroyed.

You can reduce these risks by joining millions of other Treasury
investors in making the Smart Exchange from paper Treasury certificates
to a book-entry account. Book-entry accounts provide a number of
benefits which make investing in Treasury securities a safer and easier
decision than ever before. These benefits include:


Safety


   * Since book-entry accounts are paper-less, there is no risk that
     your Treasury securities could be lost, stolen, or destroyed.

   * With a book-entry account, your holdings are safely kept on account
     at the U.S. Treasury, a financial institution, or a brokerage
     house.


Convenience


   * With a book-entry account, the interest and maturity payments for
     your Treasury securities are credited to your account automatically
     on the payment date. You don't need to go to a financial
     institution or Federal Reserve Bank to cash checks, clip coupons,
     or redeem matured certificates.

   * In most cases, information about your Treasury account is
     immediately available to you at the time of an inquiry, regardless
     of where your account is established. You can also review the
     status of your holdings at home simply by reviewing your statement
     of account.

Many investors have switched from paper Treasury investments to
book-entry. Now it's your turn to experience the advantages of
book-entry Treasuries.


Now It's Your Turn...


The first step in exchanging your Treasury securities for a book-entry
account is to choose the book-entry system that is best for you. Your
choice of systems should be based on how active you want to be in the
management of your Treasury securities portfolio.

     The Treasury offers two types of book-entry systems:

   * Commercial book-entry, offered through financial institutions and
     brokers; and

   * TREASURY DIRECT, offered by the U.S. Treasury's Bureau of the
     Public Debt.


Commercial Book-Entry


Commercial book-entry, available through most financial institutions and
brokers, may be most appropriate if you want a third party to manage
your account, or if you plan to sell your securities prior to maturity.
In the commercial book-entry system, your account records are maintained
on the books of the third party you select. Interest and maturity
payments are made directly to the third party who disburses the funds to
your account. These third parties may charge a fee for the services they
provide.


TREASURY DIRECT


TREASURY DIRECT, the Department of the Treasury's automated book-entry
system, is ideal if you plan to keep your securities from the purchase
to maturity, and if you wish to manage your own account. Securities held
in a TREASURY DIRECT account are maintained directly on the records of
the Bureau of the Public Debt. Since 1986, all new issues of Treasury
bills, notes, and bonds have been issued only in book-entry form.

TREASURY DIRECT offers you the following benefits:


   * TREASURY DIRECT is offered free of charge at Federal Reserve
     offices throughout the country.

   * All interest and maturity payments are deposited on time and
     automatically into an account of your choice through direct
     deposit. Direct deposit eliminates the possibility of destroyed,
     lost, or stolen checks.

   * TREASURY DIRECT provides a single master account for all Treasury
     securities holdings having the same registration, simplifying your
     record-keeping. You are mailed a statement of account after any
     transaction or change that affects your master account, including
     reinvestments.

   * With TREASURY DIRECT, you have the option of reinvesting in other
     Treasury securities being offered at the same time your current
     holdings mature.

Now that you know about the different book-entry systems available, it's
time to exchange the paper securities you've been holding for a
book-entry account.


You Know It Makes Sense


The sooner you exchange your Treasury securities for a book-entry
account, the sooner you will enjoy the benefits that book-entry systems
offer. So, make the Smart Exchange. You'll have peace of mind knowing
your Treasury investments are safer and more convenient than ever.


Call the Smart Exchange today.
1 (800) 366-3144

A Smart Exchange kit will be mailed to you immediately.

PD P-012