FCSTONE GROUP

Fcstone Group Inc is a integrated commodity risk management company providing risk management consulting and transaction execution services to commercial commodity intermediaries, end-users and producers. They assist primarily middle-market customers in optimizing their profit margins and mitigating their exposure to commodity price risk. In addition to their risk management consulting services, they operate one of the leading independent clearing and execution platforms for exchange-traded fut... ures and options contracts. They serve more than 7,500 customers, and in the twelve months ended November 30, 2006, executed 50.2 million derivative contracts in the exchange-traded and over-the-counter (“OTC”) markets. As a natural complement to their commodity risk management consulting services, they also assist their customers with the financing, transportation and merchandising of their physical commodity requirements and inventories. Their net income increased $8.7 million, or 131.8%, from $6.6 million in fiscal 2005 to $15.3 million in fiscal 2006, and increased $2.9 million, or 85.3% from $3.4 million in the three months ended November 30, 2005, to $6.3 million in the three months ended November 30, 2006.More