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To: Don Lloyd who wrote (140159)	12/23/2001 5:15:20 PM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 436258

Don, I do not want to get into a perfect system discussion, but this is how I look at the world of ADM and its delivering shares as part of the dividend compensation. The company purchases shares in the open market when they are selling at a discount to the value of the company. (I use Warren Buffett’s definition of a discount) BTW, if you look at the recent quarter balance sheet you will note the shares outstanding are decreasing. For example, they were buying shares at $8 and $9 during September of 2000. During the year 2001 they distributed some of these shares to the stockholders. The stockholder can now hold these shares and sell in the future with a long term capital gain tax instead of the 38% tax on ordinary dividends. If they had sent me a cash dividend of say $42.50 per hundred shares (which would have been their cost) my tax cost would be $24.40 in Minnesota. I can hold these shares for a long term capital gains and my tax cost is $8.50 in Minnesota. As a sharehold I can control when I sell these shares and can maximize my returns. All this assumes the company stays in business and the companies value is constant. Looks like a good deal to me. Joan