REVISED SAN PEDRO BAY CARGO FORECAST (2009) In 2007 The Tioga Group Inc. prepared a demand-based cargo forecast for the San Pedro Bay ports through the year 2030. The forecast was based on 2006 actual trade and economic data available at the time. Actual performance has been much worse than forecast as U.S. and world-wide economic downturns have bitten deeply into containerized trade. Volumes were flat in 2007 and down in 2008, container counts dropped another 22% in the first quarter of 2009 compared to 2008. The U.S. is currently in the worst recession since World War II. Recently the Tioga Group Inc. updated the forecast for the Ports of Los Angeles and Long Beach. Findings were based on the latest economic data and are consistent with the most current thinking in the container industry. Recovery is expected to begin in 2010 and be slow, without the sharp rebound that has characterized some previous recessions. Most previous recessions have had specific root causes (e.g. the dot com bust, or the 9/11 terrorist attacks), and ended when those issues were resolved. In those cases pent-up demand resulted in rapid short-term growth, and a quick return to trend. This recession has multiple causes, and has been greatly exacerbated by failure of the financial industry. These multiple causes will be resolved slowly over time, and not necessarily on the same timetable. For a copy of the report contact The Tioga Group.