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To: CanynGirl who wrote (792)	3/16/1999 6:29:00 AM
From: TFF	Respond to of 2802

The Company's results of operations for the three months and year ended Dec. 31, 1998 are not comparable to the three months and year ended Dec. 31, 1997, partially as a result of the volume of assets sold during the first half of 1997, the establishment of two new businesses (Fourteen Hill Capital, L.P. and Allegiance Capital, LLC) in the second half of 1997 and the write-off of $1.1 million of non-marketable securities in the third quarter of 1998. In addition, prior to the third quarter of 1998, all losses associated with Dignity Partners Funding Corp. I ("DPFC"), a wholly owned special purpose finance subsidiary of the Company, were charged against a reserve which was originally established in 1996 for the estimated loss of Point West's equity interest in DPFC. During the third quarter of 1998 the reserve was fully depleted. In 1998, the total loss realized by DPFC was $4.0 million, $2.3 million of which was charged against the reserve, and $1.7 million of which was otherwise reflected in the Company's consolidated statements of operations and comprehensive income (loss). At Dec. 31, 1998, DPFC's accumulated deficit was $1.7 million. Any future losses associated with DPFC will increase the amount of the deficit. Upon the retirement of the securitized notes issued by DPFC, the Company will recognize a gain in an amount approximately equal to any accumulated deficit reflected at that time on DPFC's balance sheet. At Dec. 31, 1998, Fourteen Hill Capital had loans outstanding in the aggregate principal amount of $864,318, non-marketable securities carried at a cost of $3.7 million and marketable securities carried at $2.0 million. Any unrealized gains or losses on marketable securities are reflected as "Accumulated Comprehensive Income Net Unrealized Investment Gains (Losses)" in stockholders' equity. At Dec. 31, 1998 the unrealized gains were immaterial. At Dec. 31, 1997, unrealized gains were $2.6 million, including $1.2 million recognized in connection with the exercise of warrants in January 1998. Any gains or losses for such securities will be recognized on the income statement, if ever, upon sale. The non-marketable securities include 329,490 convertible preferred shares of FlashNet Communications, Inc. ("FlashNet") which Fourteen Hill purchased for $2 million. In December 1998, FlashNet filed a registration statement for an initial public offering. Such offering is scheduled for March 1999. In connection with such offering, Fourteen Hill's shares will be automatically converted into 1,120,266 common shares of FlashNet, after giving effect to a 3.4 to 1 stock split which was authorized to occur in connection with such offering. The shares are subject to a standard six-month lockup agreement which Fourteen Hill has executed. If the FlashNet initial public offering occurs, the FlashNet shares will become marketable securities. As a result, any unrealized gains or losses in such investment will also be reflected as "Accumulated Comprehensive Income -- Net Unrealized Investment Gains (Losses)" in stockholders' equity. In addition, non-marketable securities include preferred shares convertible into marketable securities. If the Company had converted such shares in 1998, the unrealized gains would have been $4.1 million and would have been reflected as "Accumulated Comprehensive Income Net Unrealized Investment Gains (Losses)" in stockholders equity. Allegiance had five loans outstanding at Dec. 31, 1998 in the aggregate principal amount of $9.1 million. All loans bear a fixed interest rate, which on a dollar weighted basis was 9.3%. On Aug. 19, 1998, Allegiance put in place a structured financing which may provide up to $56.4 million to support any future lending activities of Allegiance. The financing will provide interim floating rate financing through Aug. 31, 1999 and it is anticipated it will ultimately provide 15 year fixed and floating rate financing for loans Allegiance has made in the past and may make in the future. However, if Allegiance does not originate $30 million in loans by Aug. 31, 1999, the term certificates may not be issued and Allegiance would be responsible for finding an alternative financing source to repay the interim financing. The Company continues to evaluate other strategic business opportunities. Fourteen Hill Capital and Allegiance may or may not be indicative of the types of business opportunities the Company intends to continue to pursue.

To: CanynGirl who wrote (792)	3/16/1999 5:10:00 PM
From: TFF	Respond to of 2802

800 Travel Systems (IFLY): Travel agency reports FY98 earnings of $0.04, vs a yr-ago loss of $0.04; revenue rose 38% to $11.5 mln; says Internet site received more than 1 million hits in first month of operation. Traded 6.4 mil today. Float is 1.4 mil. the rest is held by insiders. Expect a squeeze tomorrow once the stock finds support. IFLY has a market cap of 56 mil vs PTVL which has a market cap of 300 mil with comparable sales and lower earnings. Cheaptickets.com's IPO will probably help as well: cbs.marketwatch.com. It's coming to market @ 13 with 20 million shares outstanding - a mkt cap of 250 mil.