By Dr. Terry L. Simpson

The recent decision by the Board of Directors to pay out a special dividend of $8,775 per 100 shares is likely on the minds of all CIRI shareholders. It’s a source of pride for both the Board and management that the equity existed that allowed such a distribution. In this message to you, I’d like to make sure proper credit is given to those most deserving of it for this accomplishment. Sometimes what gets lost in the discussion is recognition of what brought about the distribution in the first place.

As our CIRI Board has said all along, we will act when it is fiscally responsible to do so. In June of last year, we agreed to evaluate a possible special dividend to shareholders. At the end of July, after careful analysis in conjunction with our five-year plan, we determined that there was money available for a dividend, and declared a special dividend to our shareholders of $5,000 per 100 shares.

And we followed exactly the same process with this latest distribution. We made our decision this time after lengthy meetings to discuss our overall financial picture. But where did the money come from? How were we able to arrive at this latest distribution? First, the company has to make money in order to pay a dividend. The money was earned through a series of complex business transactions through our management team headed by Carl Marrs. Had some of these transactions never been made, CIRI would not have been in a position to pay the extraordinary dividends that have been distributed in the last five years. And let me stress, too, that timing is every bit as important as the investment itself. While some called for selling our VoiceStream stock much later than we did, we were fortunate to have a steady hand at the helm. And without the VoiceStream money, CIRI would not have been in a position to provide this last dividend or some of the other dividends given over the last few years.

Credit also goes to the working members of the Board who have spent significant time going over the entire financial picture to determine the dividend. The Chairman of the Finance and Investment Committee, William Prosser, has consistently stated that CIRI should balance the needs of future investment with our desire to provide dividends to our shareholders. With this principle in mind, various members of the Board put in the time and the effort to help determine the amount of the dividend, keeping in mind the best interests of CIRI shareholders both now and in the future.

CIRI shareholders can be proud of the Board members and the management team. Competence at the Board and management level helps produce sound business decisions, which in turn help provide good dividends for our shareholders. CIRI’s record over the last few years illustrates these points. We look forward to continuing to serve our shareholders in the future.

As CIRI goes through another election of directors, the issue should be who are the best qualified to be the directors to help CIRI for the next generation. Today, the Board is graced with some young, bright, savvy business people who are part of the team that has seen shareholder equity double and has paid out more in dividends than any other time in CIRI’s past.

Future growth, dividends for shareholders, and positive change - we can all agree that these are the issues and the goals for the future. How do they come about? I believe the answer is simple - by selecting qualified shareholders as directors. Finding these people, supporting them and voting for them are the way we all succeed in reaching them.

CIRI Adopts Updated Code of Conduct
In October 2003, the CIRI Board of Directors adopted a Business Conduct and Compliance Program and the “Code of Business Conduct and Compliance,” which outlines the underlying principles that govern CIRI’s business management and conduct. The Business Conduct and Compliance Program and the Code, which apply to all employees, officers, directors, and agents of CIRI, were officially introduced to CIRI staff in March.

“At CIRI we have always taken great pride in our excellent reputation and for operating with high ethical and legal standards within our business and cultural community. However, we all realize a good reputation that can take years to build can also be destroyed in an instant. To demonstrate and maintain our Heritage of Integrity, it is important that we all share a common understanding of our standards of business conduct and compliance, and that we strictly comply with them,” said Carl Marrs, CIRI president and chief executive officer.

CIRI’s Business Conduct and Compliance Program and the Code have been developed to provide CIRI directors, officers, and employees with a clear and common understanding of CIRI’s values and the legal and ethical expectations that lead the company’s business activities.

Each CIRI representative is expected to conduct herself or himself professionally, competently, honestly, diligently, courteously, and to comply with all state, federal, and local laws, rules, and directives while performing service on behalf of CIRI.

While CIRI is not mandated by the federal Sarbanes-Oxley Act of 2002, which sets minimum ethics code requirements for publicly traded companies regulated by the Securities and Exchange Commission, the CIRI Board adopted its own version of the nation’s ethics rules for public corporations in 2002. The Business Conduct and Compliance Program and the Code complete the expression of CIRI’s commitment to corporate values, its mission, and to conducting business in accordance to the highest ethical and legal standards.

The Code covers each of CIRI’s values and how they guide our actions in our business practices and relations. For a complete copy of the “Code of Business Conduct and Compliance” call 907-274-8638 or the toll-free number outside of Anchorage, (800) 764-2474.

CIRI pursues its mission by honoring the following values:

Corporate Citizenship
Cultural Heritage
Employee and Board Excellence
Ethical Conduct Integrity
Respect for Shareholders and Descendants