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<SEC-DOCUMENT>0000893220-07-001500.txt : 20070427
<SEC-HEADER>0000893220-07-001500.hdr.sgml : 20070427
<ACCEPTANCE-DATETIME>20070427134428
ACCESSION NUMBER:		0000893220-07-001500
CONFORMED SUBMISSION TYPE:	S-3/A
PUBLIC DOCUMENT COUNT:		4
FILED AS OF DATE:		20070427
DATE AS OF CHANGE:		20070427

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMREP CORP.
		CENTRAL INDEX KEY:			0000006207
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				590936128
		STATE OF INCORPORATION:			OK
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		S-3/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-141861
		FILM NUMBER:		07794770

	BUSINESS ADDRESS:	
		STREET 1:		300 ALEXANDER PARK
		STREET 2:		SUITE 204
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08540
		BUSINESS PHONE:		(609) 716-8200

	MAIL ADDRESS:	
		STREET 1:		300 ALEXANDER PARK
		STREET 2:		SUITE 204
		CITY:			PRINCETON
		STATE:			NJ
		ZIP:			08540

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMREP CORP
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN REALTY & PETROLEUM CORP
		DATE OF NAME CHANGE:	19671019
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-3/A
<SEQUENCE>1
<FILENAME>w32814asv3za.htm
<DESCRIPTION>S-3 AMENDMENT #1 AMREP CORPORATION
<TEXT>
<HTML>
<HEAD>
<TITLE>sv3za</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As
filed with the Securities and Exchange Commission on April&nbsp;27, 2007</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><B>Registration
No.&nbsp;333-141861</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, DC 20549</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>PRE-EFFECTIVE<BR>
AMENDMENT NO. 1<BR>
to</B></div>

<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM S-3</B>
<DIV align="left"><FONT size="1">

</FONT></DIV>

</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REGISTRATION STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>AMREP CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Oklahoma</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>59-0936128</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification Number)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>300 Alexander Park, Suite&nbsp;204<BR>
Princeton, New Jersey 08540<BR>
(609)&nbsp;716-8200</B><BR>
(Name, address, including zip code, and telephone number, including area code, of registrant&#146;s principal executive offices)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Peter M. Pizza<BR>
Vice President and Chief Financial Officer<BR>
AMREP Corporation<BR>
300 Alexander Park, Suite&nbsp;204<BR>
Princeton, New Jersey 08540<BR>
(609)&nbsp;716-8200</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(Name, address, including zip code, and telephone number, including area code, of agent for service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Copies to:</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Irving Needleman</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>F. Douglas Raymond, III</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Vice President, General Counsel and Secretary</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Drinker Biddle &#038; Reath LLP</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>AMREP Corporation</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>One Logan Square</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>300 Alexander Park, Suite&nbsp;204</B>
</TD>
    <TD>&nbsp;</TD>

<TD align="center" valign="top"><B>18</B><SUP style="font-size: 85%; vertical-align: text-top"><B>th</B></SUP> <B>and Cherry Streets</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><B>Princeton, New Jersey 08540</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Philadelphia, PA 19103-6996</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Approximate date of commencement of proposed sale to the public: </B>From time to time after the
effective date of this registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the only securities being registered on this Form are being offered pursuant to dividend or
interest reinvestment plans, please check the following box. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule&nbsp;415 under the Securities Act of 1933, other than securities
offered only in connection with dividend or interest reinvestment plans, check the following box.
<FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is filed to register additional securities for an offering pursuant to Rule 462(b)
under the Securities Act, please check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act,
check the following box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is a registration statement pursuant to General Instruction I.D. or a post-effective
amendment thereto that shall become effective upon filing with the Commission pursuant to Rule
462(e) under the Securities Act, check the following box. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this Form is a post-effective amendment to a registration statement filed pursuant to General
Instruction I.D. filed to register additional securities or additional classes of securities
pursuant to Rule 413(b) under the Securities Act, check the following box. <FONT face="Wingdings">&#111;</FONT>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>The registrant hereby amends this registration statement on such date or dates as may be
necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in
accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement
shall become effective on such date as the Commission acting pursuant to said Section 8(a) may
determine.</B>
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Subject
to Completion, dated April&nbsp;27, 2007.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 11pt; margin-top: 6pt"><B>The information in this prospectus is not complete and may be changed. We may not and the
selling securityholder identified in this prospectus may not sell these securities until the
registration statement filed with the Securities and Exchange Commission is effective. This
prospectus is not an offer to sell these securities, and it is not soliciting an offer to buy these
securities in any jurisdiction where the offer or sale is not permitted.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>AMREP
CORPORATION</B></DIV>
<DIV align="center" style="font-size: 12pt; margin-top: 0pt"><B>&#091;LOGO&#093;</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>$150,000,000<BR>
Common Stock<BR>
Debt Securities<BR>
Warrants<BR>
Units<BR>
by AMREP Corporation<BR>
and<BR>
450,000 shares of Common Stock<BR>
by a Selling Securityholder</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMREP Corporation may from time to time offer and sell, together or separately, (i)&nbsp;shares of
common stock, (ii)&nbsp;debt securities, (iii)&nbsp;warrants to purchase common stock or debt securities and
(iv)&nbsp;units consisting of two or more classes of the securities registered hereunder at an aggregate
public offering price not to exceed $150,000,000. In addition, a selling securityholder, The
Karabots Foundation, may from time to time offer and sell up to an additional 450,000 shares of our
common stock for the reason described in the section entitled &#147;Selling Securityholder.&#148;
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In this prospectus, we refer to shares of our common stock, debt securities, warrants and
units collectively as the &#147;Securities.&#148; The specific terms of the securities to be offered
including their specific designation, aggregate principal amount or aggregate initial offering
price, maturity, if any, rate and times of payment of interest or dividends, if any, redemption,
conversion and sinking fund terms, if any, exercise price and detachability, if any, will be
described in a supplement to this prospectus.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may offer the securities and The Karabots Foundation may offer up to an additional 450,000
shares of our common stock from time to time in amounts, at prices and on other terms to be
determined at the time of offering. These securities may be offered to or through one or more
agents, dealers or underwriters, directly to purchasers or through a combination of these methods.
For additional information, you should refer to the section entitled &#147;Plan of Distribution.&#148; If any
agents, dealers or underwriters are involved in the sale of any of the securities, the relevant
prospectus supplement will set forth any applicable commissions or discounts. Our net proceeds
from the sale of securities also will be described in the relevant prospectus supplement. We will
not receive any proceeds from any sale of shares of our common stock by The Karabots Foundation.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investing in the securities offered hereby involves risks. See &#147;Risk Factors&#148; beginning
on page 2.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the New York Stock Exchange under the symbol &#147;AXR.&#148; Any
prospectus supplement will also contain information, where applicable, as to any other listing on a
securities exchange of the securities covered by such prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus may not be used to offer or sell our securities unless it is accompanied by a
prospectus supplement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>This prospectus is dated &#091;_______&#093;, 2007.</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">iii</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">RISK FACTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">USE OF PROCEEDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">RATIO OF EARNINGS TO FIXED CHARGES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">SELLING SECURITYHOLDER</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">GENERAL DESCRIPTION OF SECURITIES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">DESCRIPTION OF CAPITAL STOCK</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">DESCRIPTION OF DEBT SECURITIES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">DESCRIPTION OF WARRANTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">DESCRIPTION OF UNITS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112">PLAN OF DISTRIBUTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113">LEGAL MATTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">EXPERTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115">WHERE YOU CAN FIND MORE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
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<DIV align="left">
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</DIV>
<DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 60%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>About this Prospectus</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All references in this prospectus to &#147;AMREP Corporation,&#148; &#147;our company,&#148; &#147;our,&#148; &#147;us&#148; and &#147;we&#148;
refer to AMREP Corporation, an Oklahoma corporation, and its consolidated subsidiaries, except
where the context otherwise requires or as otherwise indicated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement that we have filed with the Securities and
Exchange Commission (the &#147;SEC&#148;) using the &#147;shelf&#148; registration process. Under this shelf
registration process, we may sell any combination of the securities described in this prospectus in
one or more offerings up to an aggregate initial offering price of $150,000,000. In addition, The
Karabots Foundation may sell up to 450,000 shares of our common stock in one or more offerings.
This prospectus provides you with a general description of the securities we or The Karabots
Foundation may offer. Each time we or The Karabots Foundation sells securities, we will provide a
prospectus supplement that will contain specific information about the terms of that offering. The
prospectus supplement may also add, update or change information contained in this prospectus. You
should read carefully both this prospectus and any prospectus supplement together with the
additional information described in &#147;Where You Can Find More Information&#148; before you decide whether
to invest in the securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should rely only on the information contained in, or incorporated by reference into, this
prospectus and any applicable prospectus supplement. You may obtain the information incorporated
by reference into this prospectus without charge by following the instructions under &#147;Where You Can
Find More Information&#148; below. We have not authorized any other person to provide you with
different information. If anyone provides you with different or inconsistent information, you
should not rely on it. Neither our company nor The Karabots Foundation is making an offer to sell
these securities or soliciting an offer to buy the securities in any jurisdiction where the offer
or sale is not permitted. You should assume that the information appearing in this prospectus is
accurate only as of the date of this prospectus. Our business, financial condition, results of
operations and prospects may have changed since that date.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is based on information provided by us and by other sources that we believe
are reliable. We cannot assure you that this information is accurate or complete. This prospectus
summarizes certain documents and other information, and we refer you to them for a more complete
understanding of what we discuss in this prospectus. In making an investment decision, you must
rely on your own examination of our company and the terms of the offering and the securities,
including the merits and risks involved.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not making any representation to any purchaser of the securities regarding the legality
of an investment in the securities by such purchaser. You should not consider any information in
this prospectus to be legal, business or tax advice. You should consult your own attorney,
business advisor or tax advisor for legal, business and tax advice regarding an investment in the
securities.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to historical information, this prospectus, including the information incorporated
by reference into this prospectus, may contain statements relating to future events or our future
results. These statements are forward-looking statements within the meaning of Section&nbsp;27A of the
Securities Act of 1933, as amended (the &#147;Securities Act&#148;) and Section&nbsp;21E of the Securities
Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), and are subject to the safe harbor
provisions created by statute. These forward-looking statements include, but are not limited to,
information regarding the status and progress of our operating activities, the plans and objectives
of our management and assumptions regarding our future performance, operating expenses, working
capital needs, liquidity and capital requirements, business trends and competitiveness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, words such as &#147;may,&#148; &#147;will,&#148; &#147;should,&#148; &#147;could,&#148; &#147;anticipate,&#148; &#147;project,&#148; &#147;expect,&#148;
&#147;intend,&#148; &#147;estimate,&#148; &#147;plan,&#148; &#147;goal,&#148; &#147;continue,&#148; and &#147;believe,&#148; or the negative of or other
variations on these and other similar expressions identify forward-looking statements.
Forward-looking statements are based on our current expectations and projections about future
events and involve risks and uncertainties that could cause our actual results to differ materially
from those expressed or implied by our forward-looking statements. These risks and uncertainties
include, without limitation, those described under &#147;Risk Factors&#148; and those detailed from time to
time in our filings with the SEC which are incorporated by reference into this prospectus. In
addition, other risks and uncertainties not presently known to us or that we currently consider
less significant could affect the accuracy of our forward-looking statements. Although we believe
our estimates and assumptions to be reasonable, such estimates and assumptions may prove to be
inaccurate. Our forward-looking statements are made only as of the date of this prospectus and are
not guarantees of our future performance or future events. We do not undertake to update or revise
the forward-looking statements contained in or incorporated by reference into this prospectus,
whether as a result of new information, future events or otherwise.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following is a summary and therefore it does not contain all of the information that is
important to you or that you should consider before investing. You should read this entire
prospectus carefully, including the section entitled &#147;Risk Factors&#148; and our financial statements
and the other documents included in or incorporated by reference into this prospectus, and any
prospectus supplement before making an investment decision.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Business</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our company, through its subsidiaries, is primarily engaged in three business segments: real
estate development, fulfillment services and newsstand distribution services. Through our
subsidiary AMREP Southwest Inc., we are a major landholder and a leading developer of real estate
in New Mexico and we are the founder of Rio Rancho, which is the third largest city in New Mexico.
Our current activities in Rio Rancho are focused primarily on the entitlement, development and sale
of land for residential, commercial and industrial uses. Through our subsidiary, Kable Media
Services, Inc. and its subsidiaries, we provide fulfillment and related services to publishers,
including magazine subscription fulfillment services, lettershop and graphic arts services,
customer telephone support and list services. We also provide product fulfillment services for
publishers and others. Our newsstand distribution services business provides marketing services
for publishers and distributes magazines to wholesalers, direct distributors and specialty
retailers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMREP Corporation was organized in Oklahoma in 1961 and has been listed on the New York Stock
Exchange, symbol &#147;AXR,&#148; since 1972. Our principal executive office is located at 300 Alexander
Park, Suite&nbsp;204, Princeton, NJ 08540, and our telephone number is (609)&nbsp;716-8200. We maintain a
website with the address <I>www.amrepcorp.com</I>. We are not including the information contained on our
website as a part of, or incorporating it by reference into, this prospectus.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investing in our securities involves risks. Before making an investment decision, you should
carefully consider the risks described below and all other information in this prospectus,
including the financial statements and other documents summarized in or incorporated by reference
into this prospectus. The risks and uncertainties described below are not the only risks we face.
If any of the following risks, or other risks and uncertainties that we have not yet identified
occur, our business, prospects, financial condition, results of operations or cash flows could be
materially and adversely affected. In that event, the trading price of our securities could
decline, and you could lose part or all of your investment.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Risks Related to Our Real Estate Operations</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our real estate assets are concentrated in one market, Rio Rancho, New Mexico, meaning our results
of operations and future growth may be limited or affected by economic changes in that market</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substantially all of our real estate assets are located in Rio Rancho, New Mexico, which is
adjacent to Albuquerque, New Mexico. As a result of this geographic concentration, we could be
affected by changes in economic conditions in this region from time to time, including economic
contraction due to, among other things, the failure of key industries and employers. Our results
of operations, our future growth or both may be adversely affected if the demand for residential or
commercial real estate declines in the Rio Rancho area as a result of changes in economic
conditions.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>A downturn in the business of Rio Rancho&#146;s largest employer could adversely affect our real estate
development business there.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intel Corporation, the largest employer in Rio Rancho with approximately 5,600 full-time
employees at January&nbsp;31, 2007, operates a large semiconductor manufacturing facility there and is
in the process of significantly expanding this facility. If Intel Corporation&#146;s presence in Rio
Rancho were to diminish for any reason, such as in response to a downturn in its semiconductor
manufacturing business, the Rio Rancho real estate market and consequently our land development
business located there could be adversely affected.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>As Rio Rancho continues to grow, our land development activities in that market may be subject to
greater limitations than they have been historically.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When we acquired our core real estate inventory in Rio Rancho, New Mexico over 40&nbsp;years ago,
the area was not developed and had a low population. As of January&nbsp;31, 2007, Rio Rancho was the
third largest city in New Mexico and had a population of approximately 74,000. As Rio Rancho
continues to grow, we may be unable to engage in development activities comparable to those we have
engaged in historically. Local community or political groups may oppose our development plans or
require modification of those plans, which could cause delays or increase the cost of our
development projects. In addition, zoning density limitations, &#147;slow growth&#148; provisions or other
land use regulations implemented by state, city or local governments could further restrict our
development activities or adversely affect financial returns from a given project, which could
adversely affect our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our real estate assets are diminishing over time, meaning long-term growth in the real estate
business will require the acquisition of additional real estate assets, possibly by expanding into
new markets</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substantially all of our real estate revenues are derived from sales of our core inventory in
Rio Rancho, New Mexico. This property was acquired more than 40&nbsp;years ago, and each time we
develop and sell real estate to customers in Rio Rancho, our real estate assets diminish. As of
January&nbsp;31, 2007, we owned approximately 17,700 acres in Rio Rancho out of an original purchase of
approximately 91,000 acres. The continuity and future growth of our real estate business will
require that we acquire new properties in or near Rio Rancho or expand to other markets to provide
sufficient assets to maintain our current level of operations and revenue. While we hold two
properties in Colorado, we have not for many years made any significant attempt to identify a
development opportunity similar to the one we have undertaken in Rio Rancho, and there can be no
assurance that we will be able to identify such an opportunity in another market. If we do not
acquire new real estate assets, our real estate holdings will continue to diminish, which will
adversely affect our ability to continue our real estate operations at their current level.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Our remaining Rio Rancho real estate is not all in contiguous blocks, which may adversely affect
our ability to sell lots at levels comparable with the recent past.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Of the 17,700 acres in Rio Rancho we owned at January&nbsp;31, 2007, approximately 4,700 acres were
in contiguous blocks that are being developed or are suitable for development, and approximately
2,000 acres were in areas with a high concentration of ownership, where we own more than 50% of the
lots in the area, suitable for special assessment districts or city redevelopment areas that may
allow for future development under the auspices of local government. The balance is in scattered
lots, where we own less than 50% of the lots in the area, that may require the purchase of a
sufficient number of adjoining lots to create tracts suitable for development or that we may
attempt to sell individually or in small groups. As our land sales continue and the amount of our
contiguous and highly concentrated lots diminishes, our ability to continue to sell lots and
generate land sale revenues at the levels of the recent past may be adversely affected, which would
have an adverse effect on our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may not be able to acquire properties or develop them successfully</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we are able to identify a development opportunity similar to the one we have undertaken in
Rio Rancho, the success of our real estate segment will still depend in large part upon our ability
to acquire additional properties on satisfactory terms and to develop them successfully. If we are
unable to do so, our results of operations could be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The acquisition, ownership and development of real estate is subject to many risks that may
adversely affect our results of operations, including the risks that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may not be able to acquire a desired property because of competition from other real
estate investors with greater capital than we have;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may not be able to obtain financing on acceptable terms, or at all;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an adverse change in market conditions during the interval between acquisition and sale
of a property may result in a lower than originally anticipated profit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may underestimate the cost of development required to bring an acquired property up
to standards established for the market position intended for that property;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acquired properties may be located in new markets where we may face risks associated
with a lack of market knowledge or understanding of the local economy, lack of business
relationships in the area and unfamiliarity with local governmental and permitting
procedures; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may be unable to quickly and efficiently integrate new acquisitions, particularly
acquisitions of portfolios of properties, into our existing operations, and this could have
an adverse effect on our results of operations.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our real estate development activities have been primarily limited to a single market and we may
face substantially more experienced competition in acquiring and developing real estate in new
markets</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since our real estate acquisition and development activities have been primarily limited to
the Rio Rancho market, we do not have extensive experience in acquiring real estate in other
markets or engaging in development activities in multiple markets simultaneously. Should we seek
to acquire additional real estate in new markets, competition from other potential purchasers of
real estate could adversely affect our operations. Many of these entities may have substantially
greater experience than we do in identifying, acquiring and developing real estate opportunities in
other markets and in managing real estate developments in multiple markets. The entities may also
have greater financial resources than we do and may be able to pay more than we can or accept more
risk than we are willing to accept to acquire real estate. These entities also may be less
sensitive to risks with respect to the costs or the geographic concentration of their investments.
This competition therefore may prevent us from acquiring the real estate assets we seek, or
increase the cost of properties that we do acquire. Competition may also reduce the number of
suitable investment opportunities available to us or may increase the bargaining power of property
owners seeking to sell.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will likely compete for real estate investment opportunities with, among others, insurance
companies, pension and investment funds, partnerships, real estate or housing developers,
investment companies, real estate investment trusts (REITs), and owner/occupants.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Properties that we acquire may have defects that are unknown to us</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we generally perform due diligence on prospective properties before they are
acquired, and on a periodic basis after acquisition, any of the properties we may acquire may have
characteristics or deficiencies unknown to us that could adversely affect the property&#146;s value or
revenue potential.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We are subject to substantial legal, regulatory and other requirements regarding the development of
land and require government approvals that may be denied, and thus we may encounter difficulties in
obtaining entitlements on a timely basis, which could limit our ability to sell land at levels
comparable with the recent past.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are many legal, regulatory and other requirements regarding the development of land that
may delay the start of planned development activities, increase our expenses or limit our
customers&#146; development activities. Development activities performed in connection with real estate
sales include obtaining necessary governmental approvals, acquiring access to water supplies,
installing utilities and necessary storm drains and building or improving roads. These tasks are
regulated by numerous local, state and federal statutes, ordinances and rules and regulations,
including those concerning zoning, resource protection and environmental laws. These regulations
often provide broad discretion to the governmental authorities that regulate these matters and from
whom we must obtain necessary approvals. The approval process can be lengthy and delays can
increase our costs, as well as the costs for the primary customers of our real estate business
(residential and commercial developers). Failure to obtain necessary approvals could significantly
adversely affect our real estate development activities and our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Unless the City of Rio Rancho supplements its current water supply, development of our remaining
Rio Rancho land may be adversely affected.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of our future Rio Rancho land development will require water service from the City of Rio
Rancho or other comparable source. While the city has not denied any development in the past due
to a shortage of water supply, it has recently expressed concerns that its current water supply
cannot support growth indefinitely. Although the city is currently pursuing various methods to
supplement its water supply, if it is unsuccessful, development of our remaining Rio Rancho land
could be adversely affected.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may be subject to environmental liability</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Various laws and regulations impose liability on real property owners and operators for the
cost of investigating, cleaning up or removing contamination caused by hazardous or toxic
substances at the property. In our role as a property owner or developer, we could be held liable
for such costs. This liability may be imposed without regard to the legality of the original
actions and without regard to whether we knew of, or were responsible for, the presence of the
hazardous or toxic substances. If we fail to disclose environmental issues, we could also be
liable to a buyer or lessee of the property. In addition, some environmental laws create a lien on
the contaminated site in favor of the government for damages and costs incurred in connection with
the contamination. If we incur any such liability that is material, our results of operations
would be adversely affected.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Real estate is a cyclical industry, and our results of operations could be adversely affected
during cyclical downturns in the industry</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During periods of economic expansion, the real estate industry typically benefits from an
increased demand for developable land. In contrast, during periods of economic contraction, the
real estate industry is typically adversely affected by a decline in demand. For example, in early
2007 increased defaults under subprime mortgages led to significant losses for the companies
offering such mortgages and contributed to a downturn in the residential housing market. Further,
real estate development projects typically begin, and financial and other resources are committed,
long before the real estate project comes to market, which could be during a time when the real
estate market is depressed. There can be no assurance that an increase in demand or an economic
expansion will be sustained in the Rio Rancho market, where our core real estate business is based
and operates, or in any other new market into which we expand our real estate operations. Any of
the following could cause a general decline in the demand for residential or commercial real estate
which, in turn, could contribute to a cyclical downturn in the real estate development industry
that could have a material adverse effect on our results of operations:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in government regulation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>periods of general economic slowdown or recession;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>rising interest rates and a decline in the general availability of mortgage financing;</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse changes in local or regional economic conditions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shifts in population away from the markets that we serve;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax law changes, including potential limits on, or elimination of, the deductibility of
certain mortgage interest expense, real property taxes and employee relocation expenses;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acts of God, including hurricanes, earthquakes and other natural disasters.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Changing market conditions may adversely affect companies in the real estate industry who rely upon
credit in order to finance their purchases of land from us</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in interest rates and other economic factors can dramatically affect the availability
of capital for our developer customers. Residential and commercial developers to whom we sell land
frequently rely upon third party financing to provide the capital necessary for their acquisition
of land. Changes in economic and other external market conditions may result in their inability to
obtain suitable financing, which could adversely impact our ability to sell land, or force us to
sell land at lower prices, which would adversely affect our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Changes in general economic, real estate development or other business conditions could adversely
affect our business and its financial results</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant percentage of our real estate revenues are derived from customers in the
residential homebuilding business, which is particularly sensitive to changes in economic
conditions and factors such as the level of employment, consumer confidence, consumer income,
availability of mortgage financing and interest rates. Adverse changes in any of these conditions,
such as the collapse of the subprime mortgage industry in early 2007, could decrease demand for
homes generally and therefore affect the pricing of homes and in turn the price of land sold to
developers, which could adversely affect our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>A number of contracts for individual lot sales made prior to 1977 require us to exchange land in
areas where utilities are not installed for land in an area that is serviced by utilities.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with certain individual homesite sales made prior to 1977 at Rio Rancho, if
water, electric and telephone utilities have not reached the lot site when a purchaser is ready to
build a home, we are obligated to exchange a lot in an area then serviced by such utilities for the
lot of the purchaser, without cost to the purchaser. Although this has not been the case in the
past, if we were to experience a large number of requests for such exchanges in the future, our
results of operations could be adversely impacted.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>If subcontractors are not available to assist in completing our land development projects, we may
not be able to complete those projects on a timely basis</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The development of land on a timely basis is critical to our ability to complete development
projects in accordance with our contractual obligations. The availability of subcontractors in the
markets in which we operate can be affected by factors beyond our control, including the general
demand for these subcontractors by other developers. If subcontractors are not available when we
require their services, we may experience delays or be forced to seek alternative suppliers, which
may increase costs or adversely affect our ability to sell land on a timely basis.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Land investments are generally illiquid, and we may not be able to sell our properties when it is
economically or strategically advantageous to do so</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Land investments generally cannot be sold quickly, and our ability to sell properties may be
affected by market conditions. We may not be able to diversify or vary our portfolio promptly in
accordance with our strategies or in response to economic or other conditions. Our ability to pay
down debt, reduce interest costs and acquire properties is dependent upon our ability to sell the
properties we have selected for disposition at the prices and within the deadlines we have
established for each respective property.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Risks Related to Our Media Service Operations</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our media operations could face increased costs and business disruption from instability in the
newsstand distribution channel</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We extend credit to various companies that may be affected by changes in economic or other
external conditions. Financial instruments that may potentially subject us to a significant
concentration of risk primarily consist of trade accounts receivable from wholesalers in the
magazine distribution industry. Due to industry consolidation, four wholesalers represent
approximately 80% of the wholesale magazine distribution business, and the insolvency of any of
them could have a material adverse impact on our results of operations. In addition, due to the
significant concentration, should there be a disruption in the wholesale channel, it could impede
our ability to distribute magazines to the retail marketplace.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Almost all of our revenues in our newsstand distribution services business are derived from sales
made on a fully returnable basis, and an error in estimating expected returns could cause a
misstatement of revenues for the period affected</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As is customary in the magazine distribution industry, almost all of our revenues in our
newsstand distribution services business segment are derived from sales made on a fully returnable
basis, meaning that customers may return unsold copies of magazines for credit. During our fiscal
year ended April&nbsp;30, 2006, approximately 75% of the magazines initially distributed by us were
ultimately returned for credit by customers. We recognize revenues from the distribution of
magazines at the time of delivery to the wholesalers, less a reserve for estimated returns that is
based on historical experience and recent sales data on an issue-by-issue basis. Although we have
the contractual right to return these magazines for offsetting credits from the publishers from
whom the magazines are purchased, an error in estimating the percentage of returns at the end of an
accounting period would have the effect of understating or overstating revenues in the period
affected, which misstatement would have to be adjusted in the subsequent period when the actual
information became known.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The introduction and increased popularity of alternative technologies for the distribution of news,
entertainment and other information and the resulting shift in consumer habits and advertising
expenditures from print to other media could adversely affect our media services businesses</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues in our media services business segments are principally derived from services we
perform for publishers. Historically, a reduction in the demand for our newsstand distribution
services due to lower sales of magazines at newsstands has often been at least partially offset by
an increase in demand for our fulfillment services as customers affected by the reduction in
newsstand distribution sought publications through subscription. However, the distribution of
news, entertainment and other information via the Internet has become increasingly popular over the
past several years, and viewing news, entertainment and other content on a personal computer,
cellular phone or other electronic device has also become increasingly popular. The resulting
shift of advertising dollars from traditional print media to online media could adversely affect
the publishing industry in general and have a negative impact on both our fulfillment and newsstand
distribution segments due to the shift in consumer demand away from print media and toward digital
downloading and other delivery methods.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our publisher customers face increased costs for paper and postal rates and, as a result, may be
unable or unwilling to absorb cost increases from us</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our publisher customers&#146; principal raw material is paper. Paper prices have fluctuated over
the past several years, and significant unanticipated increases in paper prices could adversely
affect a publisher customer&#146;s operating income. Postage for magazine distribution and direct
solicitation is another significant operating expense of our publisher customers, which primarily
use the U.S. Postal Service to distribute their products. The U.S. Postal Service implemented a
postal rate increase of 5.4% effective January&nbsp;8, 2006, and a further rate increase for magazines
is to take effect on July&nbsp;15, 2007. Any significant increases in paper costs and/or postal rates
that publishers are not able to offset could have a negative affect on their operating income and
this in turn could negatively affect our media services operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Competitive pressures may result in a decrease in our revenues and profitability</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fulfillment and newsstand distribution services businesses are highly competitive, and
some of our competitors have financial resources that are substantially greater than ours. Over
the past several years, we have experienced significant price competition in the markets in which
we compete. Competition in our media services businesses may come not only from other service
providers, but also from our customers, who may choose to develop their internal fulfillment or
distribution
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">operations, thereby reducing demand for our services. Competitive pressures could cause our
media services businesses to lose market share or result in significant price erosion that could
have an adverse effect on our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our operating results depend in part on successful research, development and marketing of new or
improved services and data processing capabilities and could suffer if we are not able to continue
to successfully implement new technologies</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We operate in highly competitive markets that are subject to rapid change, and we must
therefore continue to invest in developing technologies and to improve various existing systems in
order to remain competitive. There are substantial uncertainties associated with our efforts to
develop new technologies and services for the magazine fulfillment and distribution markets we
serve. We make significant investments in new information processing technologies and services
that may or may not prove to be profitable. Even if these developments are profitable, the
operating margins resulting from their application would not necessarily result in an improvement
over our historical margins.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may not be able to successfully introduce new services and data processing capabilities on a
timely and cost-effective basis.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The success of new and improved services depends on their initial and continued acceptance by
the publishers and other customers with whom we conduct business. Our media services businesses
are affected, to varying degrees, by technological change and shifts in customer demand. These
changes result in the transition of services provided and increase the importance of being &#147;first
to market&#148; with new services and information processing innovations. Difficulties or delays in the
development, production or marketing of new services and information processing capabilities may be
experienced, and may adversely affect our results of operations. These difficulties and delays
could also prevent us from realizing a return on the investment required to bring new services and
information processing capabilities to market on a timely and cost effective basis.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our operations could be disrupted if our information systems fail, causing increased expenses and
loss of sales</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business depends on the efficient and uninterrupted operation of our computer and
communications capabilities, including the maintenance of customer databases for billing and label
processing, and our magazine distribution order regulation system. If a key system were to fail or
experience unscheduled down-time for any reason, even if only for a short period, our operations
and financial results could be adversely affected. Our systems could be damaged or interrupted by
a security breach, fire, flood, power loss, telecommunications failure, break-ins or similar
events. We have a formal disaster recovery plan in place, but this plan may not entirely prevent
delays or other complications that could arise from an information systems failure. Our business
interruption insurance may not adequately compensate us for losses that may occur.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We depend on the Internet to deliver some services, which may expose us to various risks</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of our operations and services, including order taking on behalf of customers and
communications with customers and suppliers, involve the use of the Internet. We are therefore
subject to factors that adversely affect Internet usage, including the reliability of Internet
service providers that, from time to time, have operational problems and experience service
outages. Additionally, as we continue to increase the services we provide using the Internet, we
are increasingly subject to risks related to the secure transmission of confidential information
over public networks. Failure to prevent security breaches of our networks or those of our
customers, or a security breach affecting the Internet in general could adversely affect our
results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>A failure to successfully migrate our customers to our new data processing system may burden us
with continued additional costs.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the 2003 acquisition of our Colorado fulfillment services business from Electronic Data
Systems Corporation (&#147;EDS&#148;) we have outsourced to EDS a substantial portion of the data processing
required to service that business while we developed an expanded internal data processing platform
that is suitable for servicing that business along with our existing fulfillment business. We are
currently in the early stages of migrating our customers from the acquired business to the new data
processing platform. The migration process is technically complex and we may encounter
unanticipated problems in the course of this process. If we are unable to successfully complete
the migration process within an acceptable time period we will continue to be burdened with
additional outsourcing costs, thereby substantially reducing the value to us of the acquired
business as well as the value of our investment in the new data processing platform.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>If our recently acquired subsidiary, Palm Coast Data, is not efficiently integrated with our
existing fulfillment business, we may not realize the expected benefits of the acquisition, and the
resources and attention required for successful integration may interrupt the business activities
of Palm Coast Data and our existing business</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;16, 2007, we acquired Palm Coast Data Holdco, Inc. (&#147;Palm Coast Data&#148;), which,
through its subsidiary, is, like us, a leading United States provider of fulfillment services to
the magazine publishing industry. There is a significant degree of difficulty and management
involved in the process of integrating Palm Coast Data&#146;s business and systems with our existing
fulfillment business, while maintaining the ongoing operations of each business, coordinating
geographically separate organizations and developing new customers and products. Successful
integration will also depend in part on our ability to retain key officers and personnel in each of
our business units. The integration process will require significant expansion of our operational
and financial systems, which will increase the operating complexity of our information technology
systems. Implementation of controls, systems and procedures may be costly and time-consuming and
may not be effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Other Business Risks</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may be unable to obtain financing on acceptable terms, which could preclude us from continuing
our operations at their current levels</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations depend on our ability to obtain financing for the development of land in the
real estate business and for working capital and capital expenditure requirements in the media
services business. If we are not able to obtain suitable financing, our costs could increase and
our revenues could decrease, or we could be precluded from continuing our operations at current
levels. Increases in interest rates can make it more difficult and expensive to obtain the funds
needed to operate our businesses. The applicable interest rates on the revolving bank credit
facilities that we have in place fluctuate based on changes in short-term interest rates. Increases
in interest rates would increase our interest expense and adversely affect our results of
operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We may engage in future acquisitions and may encounter difficulties in integrating the acquired
businesses, and, therefore, may not realize the anticipated benefits of the acquisitions in the
time frames anticipated, or at all</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, we may seek to grow through strategic acquisitions intended to complement
or expand one or more of our business segments, such as our acquisition of Palm Coast Data in
January&nbsp;2007, or to enable us to enter a new business. The success of these transactions will
depend in part on our ability to integrate the systems and personnel acquired in these transactions
into our existing business without substantial costs, delays or other operational or financial
problems. We may encounter difficulties in integrating acquisitions with our operations or in
separately managing a new business. Furthermore, we may not realize the degree of benefits that
we anticipate when first entering into a transaction, or we may realize benefits more slowly than
we anticipate. Any of these problems or delays could adversely affect our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our current management and internal systems may not be adequate to handle our growth</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To manage our future growth, our management must continue to improve operational and financial
systems and to expand, train, retain and manage our employee base. As we continue to grow, we will
also likely need to recruit and retain additional qualified management personnel, and our ability
to do so will depend upon a number of factors, including our results of operations and prospects
and the level of competition then prevailing in the market for qualified personnel. At the same
time, we will likely be required to manage an increasing number of relationships with various
customers and other parties. If our management personnel, systems, procedures and controls are
inadequate to support our operations, expansion could be slowed or halted and the opportunity to
gain significant additional market share could be impaired or lost. Any inability on the part of
our management to manage our growth effectively may adversely affect our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our business could be seriously harmed if our accounting controls and procedures are circumvented
or otherwise fail to achieve their intended purposes</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we evaluate our internal controls over financial reporting and our disclosure
controls and procedures at the end of each quarter, any system of controls, however well designed
and operated, is based in part on certain assumptions and can provide only reasonable, not
absolute, assurances that the objectives of the system are met. Any failure or circumvention of
the controls and procedures or failure to comply with regulations related to controls and
procedures could have a material adverse effect on our results of operations.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, there can be no assurance that our internal control systems and procedures, or
the integration of Palm Coast Data or any other future acquisitions and their respective internal
control systems and procedures, will not result in or lead to a future material weakness in our
internal controls, or that we or our independent registered public accounting firm will not
identify a material weakness in our internal controls in the future. If our internal controls over
financial reporting are not considered adequate, we may experience a loss of public confidence,
which could have an adverse effect on our business and the price of our securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further, deficiencies or weaknesses that are not yet identified by us could emerge and the
identification and correction of these deficiencies or weaknesses could have a material adverse
effect on our results of operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our pension plan, which we froze in 2004, is currently underfunded and may require additional cash
contributions</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our pension plan was underfunded by approximately $3.2&nbsp;million at April&nbsp;30, 2006, the end of
our last fiscal year. We froze our pension plan effective March&nbsp;1, 2004 so that from that date
there would be no new participants in the plan and the existing participants&#146; future compensation
would not affect their pension benefits. A key assumption underlying the actuarial calculations
upon which our accounting and reporting obligations for the pension plan are based is an assumed
investment rate of return of eight percent. If the pension plan assets do not realize the expected
rate of return, or if any other assumptions are incorrect or are modified, we could be required to
make contributions to the pension plan until the plan is fully funded, which could limit our
financial flexibility.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Our quarterly operating results can fluctuate significantly</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have experienced, and are likely to continue to experience, significant fluctuations in our
quarterly operating results, which may adversely affect our stock price. Future quarterly
operating results may not align with past trends as a result of numerous factors, including many
factors that result from the unpredictability of the nature and timing of real estate land sales,
the variability in gross profit margins and competitive pressures.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>The price of our common stock over the past year has been volatile. This volatility may make it
difficult for you to sell our common stock, and the sale of substantial amounts of our common stock
could adversely affect the price of our common stock</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market price for our common stock has varied between a high of $149.99 and a low of $27.25
per share in the twelve months ended January&nbsp;31, 2007. This volatility may make it difficult for
you to sell our common stock, and the sale of substantial amounts of our common stock could
adversely affect the price of our common stock. Our stock price is likely to continue to be
volatile and subject to significant price fluctuations in response to market and other factors,
including the other factors discussed in &#147;Risk Factors,&#148; and:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>variations in our quarterly operating results;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>downward revisions in securities analysts&#146; estimates;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>material announcements by us or our competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>public sales of a substantial number of shares of our common stock following an offering; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse changes in general market conditions or economic trends.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the factors discussed above, our common stock is relatively thinly traded, which means that large
transactions in our common stock may be difficult to conduct in a short time frame and may cause
significant fluctuations in the price of our common stock. The average daily trading volume in our
common stock on the New York Stock Exchange over the ten-day trading period ending on February&nbsp;28,
2007 was approximately 110,000 shares per day. Further, there have been, from time to time,
significant &#147;short&#148; positions in our common stock, consisting of borrowed shares sold, or shares
sold for future delivery which may not have been borrowed. We do not know whether any of these
short positions are covered by &#147;long&#148; positions owned by the short sellers. For example, the short
interest in our common stock, as reported by the New York Stock Exchange on March&nbsp;15, 2007 was
2,061,982 shares, or approximately 31% of our outstanding shares. Any attempt by the short sellers
to liquidate their positions over a short period of time could cause significant volatility in the
price of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the past, following periods of volatility in the market price of their stock, many
companies have been the subject of securities class action litigation. If we become involved in
securities class action litigation in the future, it could result in substantial costs and
diversion of our management&#146;s attention and resources and could harm our stock price, business,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prospects, results of operations and financial condition. In addition, the broader stock market
has experienced significant price and volume fluctuations in recent years. This volatility has
affected the market prices of securities issued by many companies for reasons unrelated to their
operating performance and may adversely affect the price of our common stock.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We have a principal shareholder whose interests may conflict with other investors.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a principal shareholder, Nicholas G. Karabots, who, together with certain of his
affiliates, currently owns approximately 55% of our outstanding common stock, and who is expected
to continue to own a substantial percentage of our outstanding common stock following the offering
of securities contemplated by this prospectus. As a result, this principal shareholder exercises
significant influence over our major decisions, including through his ability to vote for the
members of our board of directors. Because of this voting power, the principal shareholder could
influence us to make decisions that might run counter to the wishes of our other investors
generally. In addition, publishing companies owned or controlled by our principal shareholder are
also significant customers of our distribution business, and, as a result, the shareholder may have
business interests with respect to us that differ from or conflict with those of other holders of
our securities.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We do not pay regular dividends and do not anticipate paying regular dividends on our common stock
in the future, so any short-term return on your investment will depend on the market price of our
common stock</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have previously paid special dividends on our common stock of $0.85, $0.55, $0.40 and $0.25
per share following the close of our fiscal years ending April&nbsp;30, 2006, 2005, 2004 and 2003. In
addition to the forgoing four special annual dividends, our Board of Directors declared a special
cash dividend of $3.50 per share in December&nbsp;2005. We may consider special dividends from
time-to-time in the future in light of conditions then existing, including our earnings, financial
condition, cash position and capital requirements and other needs. No assurance, however, may be
given that there will be any such future dividends declared or that future dividend declarations,
if any, will be commensurate in amount or frequency with past dividends.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>We are currently a &#147;controlled company&#148; within the meaning of the New York Stock Exchange rules.
As a result, we are exempt from certain corporate governance requirements and will not need to
fully comply with those requirements until one year after we are no longer a &#147;controlled company.&#148;</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because Nicholas G. Karabots and certain of his affiliates together currently owns more than
50% of the voting power of our common stock, we are considered a &#147;controlled company&#148; for the
purposes of the rules and regulations of the New York Stock Exchange. As such, we are permitted,
and have elected, to opt out of the New York Stock Exchange requirements that would otherwise
require our compensation and human resources committee to consist entirely of independent
directors. We have also opted not to have a nominating/corporate governance committee as required
by the New York Stock Exchange for non-controlled companies. If, by reason of the sale of our
common stock contemplated hereby or otherwise, we are no longer considered a &#147;controlled company&#148;
for purposes of the rules and regulations of the New York Stock Exchange, those rules and
regulations provide for a 12&nbsp;month transition period during which we will not need to fully comply
with the otherwise applicable requirements. We will not be required to have entirely independent
compensation and human resources committee and nominating/corporate governance committees until 12
months following the date on which we cease to be a controlled company, although we will need to
phase in independent members for each of these committees starting on the date that we cease to be
a controlled company. While we remain a controlled company and during any transition period
following our ceasing to be a controlled company, you may not have the same protections afforded to
stockholders of companies that are subject to all of the New York Stock Exchange corporate
governance requirements.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Oklahoma law and our charter documents may impede or discourage a takeover, which could cause the
market price of our common stock to decline</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are an Oklahoma corporation, and the anti-takeover provisions of Oklahoma law impose
various impediments to the ability of a third party to acquire control of us, even if a change in
control would be beneficial to our existing shareholders. Our by-laws generally prohibit us from
engaging in business combinations and other transactions with an &#147;interested shareholder&#148; unless
the transaction is approved by the holders of at least two-thirds of our then outstanding common
stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to these by-law restrictions, some provisions of our amended certificate of
incorporation and by-laws may discourage certain acts involving a fundamental change of our
company. For example, our amended certificate of incorporation and our by-laws contain certain
provisions that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>classify our board of directors into three classes, each of which serves for a term of
three years, with one class being elected each year; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prohibit shareholders from calling a special meeting of shareholders.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 10 - <!-- /Folio -->
</DIV>

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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Because our board of directors is classified and our certificate of incorporation and by-laws do
not otherwise provide, Section&nbsp;1027 of the Oklahoma General Corporation Act permits the removal of
any member of the board of directors only for cause. These provisions could impede a merger,
takeover or other business combination involving us or discourage a potential acquirer from making
a tender offer for our common stock, which, under certain circumstances, could reduce the market
price of our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Terrorist attacks and threats may disrupt our operations and negatively impact our revenues, costs
and stock price</I></B><B>.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terrorist attacks of September&nbsp;11, 2001 in the U.S., the U.S. response to those attacks
and the resulting decline in consumer confidence had a substantial adverse effect on the U.S.
economy. Any similar future events may disrupt our operations directly or indirectly by affecting
the operations of our customers. In addition, these events have had and may continue to have an
adverse impact on the U.S. economy in general and on consumer confidence and spending in
particular, which could harm our revenues. Any new terrorist events or threats could have a
negative effect on the U.S. and world financial markets generally, which could reduce the price of
our common stock and may limit the capital resources available to us and the developers, publishers
and others with whom we conduct business. If any of these events occur, they could have a
significant adverse effect on our results of operations and could result in increased volatility in
the market price of our common stock.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the applicable prospectus supplement for a particular issuance of securities states
otherwise, we will use the net proceeds from our sales of securities covered by this prospectus for
general corporate purposes, which may include debt repayment, future acquisitions, capital
expenditures and additions to working capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any proceeds from the sale of shares of our common stock by the selling
securityholder.
</DIV>
<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RATIO OF EARNINGS TO FIXED CHARGES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ratio of our earnings to our fixed charges for each of the periods indicated is as
follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Nine Months</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>Fiscal Year Ended April 30,</B></TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>January 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2002</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2005</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2006</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2007</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="23" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of earnings to fixed charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.92</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ratio of earnings to fixed charges has been computed by dividing total earnings available
to cover fixed charges by total fixed charges. Earnings available to cover fixed charges were
calculated by adding income from continuing operations before income taxes and fixed charges less
capitalized interest. Fixed charges consist of interest expense, net, capitalized interest and an
estimate of rent expense as representative of the interest portion of rentals.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 12 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SELLING SECURITYHOLDER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The selling securityholder referred to in this prospectus is The Karabots Foundation (the
&#147;Foundation&#148;), a tax-exempt, non-profit corporation that currently holds an aggregate of 580,165
shares of our common stock, which represented approximately 8.7% of our outstanding common stock as
of January&nbsp;31, 2007. The Foundation acquired 322,100 of its shares on December&nbsp;31, 2001 and
183,065 of its shares on December&nbsp;31, 2002 in two separate gift transactions from one of its
founders, Nicholas G. Karabots, who is also a member of our board of directors and a holder of a
significant portion of our outstanding common stock. The Foundation received the remainder of its
shares on December&nbsp;31, 2002 as a gift from Glendi Publications, Inc., a company owned by Mr.
Karabots. The Foundation&#146;s acquisition of our shares gave rise to an &#147;excess business holding&#148; for
the Foundation, within the meaning of Section&nbsp;4943 of the Internal Revenue Code of 1986, as amended
(the &#147;Code&#148;), which imposes prohibitively expensive excise taxes on private foundations, such as
the Foundation, that fail to dispose of any such excess business holdings within a specified
period. It is anticipated that the Foundation will sell approximately 450,000 of its shares of our
common stock, the minimum number required by the Code for the Foundation to avoid liability for
those excise taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prospectus supplement for any offering of the common stock by the Foundation will include
the amount and percentage of the common stock held by the Foundation before and after the offering
and the number of shares of our common stock offered by the Foundation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 13 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>GENERAL DESCRIPTION OF SECURITIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus, including any information incorporated by reference into this prospectus,
together with the additional information included in any applicable prospectus supplement, contains
a summary of the material terms and provisions of the securities that we or the selling
securityholder may offer under this prospectus. When we or the selling securityholder offer to
sell a particular class or series of securities other than our common stock, which is described
below, we will describe the specific terms of the securities in a supplement to this prospectus.
Accordingly, for a description of the terms of any class or series of securities other than our
common stock, you must refer to both the prospectus supplement relating to that class or series and
the description of the securities described in this prospectus. We will also include in the
prospectus supplement information, where applicable, about material United States federal income
tax considerations relating to the securities. To the extent the information contained in a
prospectus supplement differs from this summary description, you should rely on the information in
the prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The securities offered by this prospectus may be offered in amounts, at prices and on terms to
be determined at the time of the offering. The aggregate initial offering price of securities
offered by us under this prospectus will not exceed $150,000,000. The selling securityholder may
also offer and sell up to an additional 450,000 shares of our common stock under this prospectus.
These summaries are not meant to be a complete description of each security.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF CAPITAL STOCK</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general description of our capital stock. For a more detailed description
and the complete terms of these securities, you should read our certificate of incorporation, as
amended from time to time, and our by-laws, as amended from time to time. The Oklahoma General
Corporation Act (&#147;OGCA&#148;) may also affect the terms of these securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Authorized Capital Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are authorized to issue a total of 20,000,000 shares of capital stock, consisting entirely
of common stock, par value $0.10 per share. As of April&nbsp;2, 2007, there were 6,653,612 shares of
common stock issued and outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General. </I>Each share of our common stock has the same rights and privileges. Holders of our
common stock do not have any preferences or any preemptive, conversion or exchange rights. All of
our outstanding shares of common stock are fully paid and nonassessable. Our common stock is
listed on the New York Stock Exchange under the symbol &#147;AXR.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting Rights. </I>The holders of our common stock are entitled to vote upon all matters
submitted to a vote of our shareholders and are entitled to one vote for each share of common stock
held. Our amended certificate of incorporation and by-laws do not provide for cumulative voting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividends. </I>The holders of our common stock are entitled to participate ratably in dividends
payable in cash, stock or otherwise, as may be declared by our board of directors out of any funds
legally available for the payment of dividends.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Liquidation and Distribution. </I>If we voluntarily or involuntarily liquidate, dissolve or
wind-up, or upon any distribution of our assets, the holders of our common stock will be entitled
to receive all of the assets remaining after payment of liabilities and amounts owed to creditors,
equally and ratably in proportion to the number of shares of common stock held by them.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certain Charter and By-law Provisions; Oklahoma Law</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some sections of our amended certificate of incorporation and amended by-laws and provisions
of Oklahoma law may discourage certain transactions involving a change in control of our company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Special Meetings</I>. Our amended by-laws provide that special meetings of our shareholders may
be called only by the chairman of the board, the president or a majority of the members of the
board of directors. This provision may make it more difficult for shareholders to take actions
opposed by the board of directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Classified Board of Directors</I>. Our amended certificate of incorporation and amended by-laws
contain provisions that classify our board of directors into three classes, with one class being
elected each year. Because our amended certificate of incorporation and amended by-laws do not
otherwise provide, Section&nbsp;1027 of the OGCA permits the removal of any member
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 14 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of our board of directors only for cause. These provisions could impede a merger, takeover or
other business combination involving us or discourage a potential acquirer from making a tender
offer for our common stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No Cumulative Voting</I>. The OGCA provides that shareholders are not entitled to cumulate votes
in the election of directors unless our certificate of incorporation provides otherwise. Our
amended certificate of incorporation does not expressly provide for cumulative voting. Under
cumulative voting, minority shareholders holding a sufficient percentage of a class of shares may
be able to ensure the election of one or more directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amendment of By-laws</I>. Our amended certificate of incorporation permits our board of directors
to adopt, amend and repeal our by-laws. Our amended by-laws do not permit shareholders to amend
the bylaws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Certain Business Combinations and Transactions with &#147;interested shareholders.&#148; </I>Our amended
certificate of incorporation prohibits us from:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>engaging in a merger or consolidation with an &#147;interested shareholder&#148;
or affiliate of an interested shareholder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>selling, leasing, exchanging, mortgaging, pledging or transferring
assets valued in excess of $5&nbsp;million to, or with, an interested shareholder or
affiliate;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>issuing to an interested shareholder or affiliate our shares or shares
of our subsidiaries with a value in excess of $5&nbsp;million;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adopting a plan or proposal for liquidation or dissolution advanced by
an interested shareholder or affiliate of an interested shareholder, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reclassifying, recapitalizing, entering into a merger or consolidation
of our subsidiaries, or entering into any other transaction that has the effect,
directly or indirectly, of increasing the proportionate share of outstanding shares
held by an interested shareholder or affiliate of an interested shareholder</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">unless, in each case, such transaction is approved by the holders of at least two-thirds of the
then outstanding shares of our common stock. This provision, however, does not apply to any of the
above transactions if:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the shareholders would not receive cash or any other consideration
(including retaining their common stock in a transaction in which we survive) in
their capacities as shareholders and, before the transaction, at least 75% of the
board of directors has approved the transaction, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(i)&nbsp;the shareholders would receive cash or other consideration, (ii)
before the transaction, at least 75% of the board of directors approved the
transaction and (iii)&nbsp;all of the conditions set forth in the following subclauses
(A)&nbsp;through (F)&nbsp;shall have been met:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(A)&nbsp;the price per share of our common stock meets certain minimums as specified
in our by-laws;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(B)&nbsp;the consideration is cash or whatever form of consideration that the
interested shareholder used to acquire our common stock (or the largest block of
our common stock if acquired in a series of transactions);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(C)&nbsp;since becoming an interested shareholder and until the consummation of the
proposed transaction there have been (1)&nbsp;no reduction in dividends and (2)
appropriate increases to dividends to reflect any reclassifications,
recapitalizations, reorganizations or any similar transactions, unless in the
case of (1)&nbsp;or (2)&nbsp;the alternative has been approved by at least 75% of our
board of directors;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(D)&nbsp;since becoming an interested shareholder and until the consummation of the
proposed transaction the interested shareholder has not acquired beneficial
ownership of additional shares, except as the result of a dividend or stock
split;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(E)&nbsp;since becoming an interested shareholder and until the proposed transaction
the interested shareholder has not received benefit, directly or indirectly, of
any loans, advances, guarantees pledges or other financial assistance or any tax
credits or other tax advantages from us; and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 15 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(F)&nbsp;a proxy or information statement describing the proposed transaction is
mailed to our other shareholders, regardless of whether such proxy or information
statement is required under the Exchange Act.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under our amended certificate of incorporation, an &#147;interested shareholder&#148; is defined, generally,
as any person who or which (i)&nbsp;is the beneficial owner, directly or indirectly, of 10% or more of
our outstanding common stock; (ii)&nbsp;is an affiliate of our company, and at any time within the
two-year period immediately prior to the date of determination of &#147;interested shareholder&#148; status,
was the beneficial owner, directly or indirectly, of 10% or more of our then outstanding common
stock or (iii)&nbsp;is an assignee of or has otherwise succeeded to any shares of our common stock which
were at any time within the two-year period immediately prior to the date of determination of
&#147;interested shareholder&#148; status beneficially owned by an interested shareholder, if such assignment
or succession occurred in the course of a transaction or series of transactions not involving a
public offering within the meaning of the Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transfer Agent and Registrar</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer agent and registrar for any shares of our common stock will be set forth in the
applicable prospectus supplement.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF DEBT SECURITIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a general description of the debt securities which we may issue from time to
time. The particular terms relating to each debt security will be described in the applicable
prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The debt securities will be our direct obligations and will either be senior debt securities
or subordinated debt securities. The senior debt securities will rank equally with all of our
other senior and unsubordinated debt. The subordinated debt securities will have a junior position
to all of our senior debt. The senior debt securities will be issued under a senior indenture and
the subordinated debt securities will be issued under a subordinated indenture, each between us and
the trustee named in the applicable prospectus supplement This prospectus sometimes refers to the
senior indenture and the subordinated indenture collectively as the &#147;Indentures.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The statements and descriptions in this prospectus or in any prospectus supplement regarding
provisions of the Indentures and debt securities are summaries thereof, do not purport to be
complete and are subject to and qualified in their entirety by reference to, all of the provisions
of the Indentures (and any amendments or supplements thereto entered into from time to time which
are permitted under each Indenture) and the debt securities, including the definitions of certain
terms contained therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Terms Applicable to Debt Securities</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No Limit on Debt Amounts. </I>The Indentures do not limit the aggregate principal amount of debt
securities which can be issued under the Indentures. These amounts are set from time to time by
our Board of Directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Prospectus Supplements. </I>The applicable prospectus supplement will summarize the specific
terms for the debt securities and the related offering including, with respect to each series of
debt securities, some or all of the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the title and form of the securities including whether the debt securities are senior
debt securities or subordinated debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the offering price;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any limit on the aggregate principal amount of the debt securities that may be issued;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the maturity date or dates of the debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the rate or rates of interest, if any, which may be fixed or variable, at which the
debt securities will bear interest or the method of determining such rate or rates, if
any;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date or dates on which interest will accrue, or how the dates will be determined,
the interest payment dates and any related record dates;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 16 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the place or places where debt securities may be surrendered for registration of
transfer or for exchange, where notices and demands to or upon us in respect of the debt
securities and the Indentures may be served and where notices to holders will be
published;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms and conditions on which the debt securities may be redeemed, in whole or in
part, at our option;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our obligation, if any, to redeem, repay or purchase debt securities by making
periodic payments to a sinking fund or through an analogous provision or at the option of
holders of the debt securities, and the period or periods within which and the price or
prices at which we will redeem, repay or purchase the debt securities, in whole or in
part, pursuant to such obligation and the other terms and conditions of such obligation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the currency or currencies in which the debt securities will be denominated or
payable, if other than U.S. dollars;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any index, formula or other method by which payments on the debt securities will be
determined, and any special voting or defeasance provisions in connection with a
determination, if the amount of payments are to be determined with reference to an index,
formula or other method;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the persons to whom payments of interest will be made;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any provisions granting special rights to holders when a specified event occurs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any changes to or additional events of defaults or covenants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any special tax implications of the debt securities, including under what
circumstances, if any, and with what procedures and documentation we will pay additional
amounts on the debt securities held by a non-U.S. person in respect of taxes, assessments
or similar charges withheld or deducted and, if so, the terms related to any option we
will have to redeem those debt securities rather than pay those additional amounts;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether or not the debt securities will be issued in global form and who the depository will be;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any restrictions on the registration, transfer or exchange of the debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms, if any, on which a series of debt securities may be convertible into or
exchangeable for our common stock or other debt securities, including provisions as to
whether conversion or exchange is mandatory, at the option of the holder or at our
option;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the debt securities are convertible or exchangeable, the events or circumstances
which will result in adjustments to the conversion or exchange price and the formulae for
determining the adjusted price;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the debt securities are secured or unsecured, and if secured, the amount and
form of the security and related terms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any trustees, authenticating or paying agents, transfer agents or registrars, or other
agents with respect to the debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any limitation on our ability to incur debt, redeem stock, sell our assets or other restrictions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the subordination terms of any subordinated debt securities; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the portion, or methods of determining the portion, of the principal amount of the
debt securities which we must pay upon the acceleration of the maturity of the debt
securities in connection with an Event of Default (as described below), if other than the
full principal amount.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A series of debt securities may be issued under the relevant Indenture as original issue
discount securities, which are securities that are offered and sold at a substantial discount from
their stated principal amount. In addition, debt securities offered and sold at their stated
principal amount may under some circumstances, pursuant to applicable Treasury Regulations, be
treated as issued at an original issue discount for federal income tax purposes. Federal income
tax consequences and other special considerations applicable to any such original issue discount
securities (or other debt securities treated as issued at an original issue discount) will be
described in the prospectus supplement relating to those securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified in the applicable prospectus supplement, debt securities will not
be listed on any securities exchange and will be issued in fully-registered form without coupons.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Covenants. </I>We will agree in the Indentures to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pay the principal, interest and any premium on the debt securities when due;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 17 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>maintain an office or agency, where debt securities may be surrendered for
registration of transfer or for exchange and where notices and demands to or upon us in
respect of the debt securities and the relevant Indenture(s) may be served;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prepare and file or deliver certain reports, as more fully specified in the relevant
Indenture, with the trustee under the relevant Indenture, the SEC, and/or registered
holders of debt securities, as the case may be;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>deliver to the trustee under the relevant Indenture, as more fully specified in that
Indenture, officers&#146; certificates relating to our compliance under the relevant Indenture
and the occurrence of any default or event of default under that Indenture;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>file with the trustee under the relevant Indenture and the SEC, in accordance with,
and as may be required by, the rules and regulations prescribed from time to time by the
SEC, the additional information, documents and reports with respect to compliance by our
company with the conditions and covenants provided for in the relevant Indenture;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unless our board of directors determines that it is no longer desirable in the conduct
of our business and our subsidiaries, taken as a whole, and that there will be no adverse
impact in any material respect to the holders of debt securities, subject to those
exceptions as more fully specified in the relevant Indenture, do or cause to be done all
things necessary to preserve and keep in full force and effect our corporate existence,
and the corporate, partnership or other existence of each of our significant
subsidiaries, in accordance with their respective organizational documents; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not at any time to seek application of any applicable stay, extension or usury law
that may affect the covenants or the performance under the Indentures.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Subordination. </I>The prospectus supplement relating to any offering of subordinated debt
securities will describe the specific subordination provisions applicable to those securities.
However, unless otherwise noted in the prospectus supplement, subordinated debt securities will be
subordinate and junior in right of payment to any existing Senior Indebtedness. Under the
subordinated Indenture, &#147;Senior Indebtedness&#148; may mean all amounts due on obligations in connection
with any of the following, whether outstanding at the date of execution of the subordinated
Indenture, or thereafter incurred or created:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the principal of (and premium, if any) and interest due on our indebtedness for
borrowed money and indebtedness evidenced by securities, debentures, bonds or other
similar instruments issued by us;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all of our capital lease obligations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any of our obligations as lessee under leases required to be capitalized on the
balance sheet of the lessee under generally accepted accounting principles;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all of our obligations for the reimbursement of any letter of credit, banker&#146;s
acceptance, security purchase facility or similar credit transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all of our obligations in respect of interest rate swap, cap or other agreements,
interest rate future or options contracts, currency swap agreements, currency future or
option contracts and other similar agreements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations of the types referred to above of other persons for the payment of
which we are responsible or liable as obligor, guarantor or otherwise; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations of the types referred to above of other persons secured by any lien on
any property or asset of ours (whether or not such obligation is assumed by us).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>However, Senior Indebtedness will not include:</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any indebtedness which expressly provides that such indebtedness shall not be senior
in right of payment to the subordinated debt securities, or that such indebtedness shall
be subordinated to any other of our indebtedness, unless such indebtedness expressly
provides that such indebtedness shall be senior in right of payment to the subordinated
debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any of our indebtedness in respect of the subordinated debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any indebtedness or liability for compensation to employees, for goods or materials
purchased in the ordinary course of business or for services;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any of our indebtedness to any of our subsidiaries or other affiliates; and</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 18 - <!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any liability for federal, state, local or other taxes owed or owing by us.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Indebtedness shall continue to be Senior Indebtedness and be entitled to the benefits
of the subordination provisions irrespective of any amendment, modification or waiver of any term
of such Senior Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise provided in the applicable prospectus supplement, if we default in the
payment of any principal of (or premium, if any) or interest on any Senior Indebtedness when it
becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or
otherwise, then, unless and until such default is cured or waived or ceases to exist, we will make
no direct or indirect payment (in cash, property, securities, by set-off or otherwise) in respect
of the principal of or interest on the subordinated debt securities or in respect of any
redemption, retirement, purchase or other requisition of any of the subordinated debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of the acceleration of the maturity of any subordinated debt securities, the
holders of all senior debt securities outstanding at the time of such acceleration, subject to any
security interest, will first be entitled to receive payment in full of all amounts due on the
senior debt securities before the holders of the subordinated debt securities will be entitled to
receive any payment of principal (and premium, if any) or interest on the subordinated debt
securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the following events occurs, we will pay in full all Senior Indebtedness before we
make any payment or distribution under the subordinated debt securities, whether in cash,
securities or other property, to any holder of subordinated debt securities:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any dissolution or winding-up or liquidation or reorganization of our company, whether
voluntary or involuntary or in bankruptcy, insolvency or receivership;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any general assignment by us for the benefit of creditors; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other marshaling of our assets or liabilities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In such event, any payment or distribution under the subordinated debt securities, whether in
cash, securities or other property, which would otherwise (but for the subordination provisions) be
payable or deliverable in respect of the subordinated debt securities, will be paid or delivered
directly to the holders of Senior Indebtedness in accordance with the priorities then existing
among such holders until all Senior Indebtedness has been paid in full. If any payment or
distribution under the subordinated debt securities is received by the trustee or holder of any
subordinated debt securities in contravention of any of the terms of the subordinated Indenture,
and such trustee or holder has actual knowledge that such payment or distribution is prohibited,
and before all the Senior Indebtedness has been paid in full, such payment or distribution or
security will be received in trust for the benefit of, and paid over or delivered and transferred
to, the holders of the Senior Indebtedness at the time outstanding in accordance with the
priorities then existing among such holders for application to the payment of all Senior
Indebtedness remaining unpaid to the extent necessary to pay all such Senior Indebtedness in full.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The subordinated Indenture does not limit the issuance of additional Senior Indebtedness.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Events of Default. </I>Unless the applicable prospectus supplement specifies otherwise, the
following are events of default under the Indentures with respect to each series of debt
securities:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our failure to pay the principal or premium (if any) on any debt security of such
series when due, regardless of whether such payment became due because of maturity,
redemption, acceleration or otherwise, or is required by any sinking fund established
with respect to such series;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our failure to pay any interest on any debt security of such series within 30&nbsp;days
following the due date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our failure to observe or perform any other covenant, representation, warranty or
other agreement in the Indenture applicable to such debt securities series and that
failure continues for 90&nbsp;days after we receive notice of such failure; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain events of bankruptcy, insolvency or reorganization occur, whether voluntary or
not.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The prospectus supplement for a particular series may describe additional or different events
of default that apply to that series. An event of default with respect to one series of debt
securities does not necessarily constitute an event of default with respect to any other series of
debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a default or an event of default occurs and is continuing, and if a responsible officer of
the trustee under the applicable Indenture has actual knowledge thereof, the trustee will mail to
the holders of debt securities of the affected series a notice to
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 19 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">that effect within 90&nbsp;days after it occurs. Except in the case of a default in the payment of
principal or interest, the trustee under the applicable Indenture may withhold notice if and so
long as a committee of the trustee&#146;s responsible officers in good faith determines that withholding
the notice is in the interests of the holders of debt securities of the affected series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any past default under the applicable Indenture with respect to debt securities of any series,
and any event of default arising therefrom, may be waived by the holders of a majority in principal
amount of all debt securities of such series outstanding under such Indenture, except in the case
of (i)&nbsp;default in the payment of the principal of (or premium, if any) or interest on any debt
securities of such series or (ii)&nbsp;default in respect of a covenant or provision which may not be
amended or modified without the consent of the holder of each outstanding debt security of such
series affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trustee, subject to its duties during default to act with the required standard of care,
may require indemnification by the holders of the debt securities of any series with respect to
which a default has occurred before proceeding to exercise any right or power under the Indentures
at the request of the holders of the debt securities of such series. Subject to such right of
indemnification and to certain other limitations, the holders of a majority in principal amount of
the outstanding debt securities of any series under the applicable Indenture may direct the time,
method and place of conducting any proceeding for any remedy available to the trustee, or
exercising any trust or power conferred on the trustee with respect to the debt securities of such
series, provided that such direction shall not be in conflict with any rule of law or with the
applicable Indenture and the trustee may take any other action deemed proper by the trustee which
is not inconsistent with such direction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No holder of a debt security of any series may institute any action against us under any
Indenture (except actions for payment of overdue principal of (and premium, if any) or interest on
such debt security or for the conversion or exchange of such debt security in accordance with its
terms) unless (i)&nbsp;the holder has given to the trustee written notice of an event of default and of
the continuance thereof with respect to the debt securities of such series specifying an event of
default, as required under the applicable Indenture; (ii)&nbsp;the holders of at least 25% in aggregate
principal amount of the debt securities of that series then outstanding under such Indenture shall
have requested the trustee to institute such action and offered to the trustee indemnity reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with
such request; (iii)&nbsp;the trustee shall not have instituted such action within 60&nbsp;days of such
request and (iv)&nbsp;no direction inconsistent with such written request has been given to the trustee
during such 60-day period by the holders of a majority in principal amount of the debt securities
of that series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will periodically file statements with the trustees regarding our compliance with the
covenants in the Indentures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Consolidation, Merger and Sale of Assets. </I>We will not consolidate or merge into any other
corporation, or sell to any other corporation other than a direct or indirect wholly-owned
subsidiary of ours, and no corporation may merge or consolidate into us or, except for any direct
or indirect wholly-owned subsidiary of ours, sell, assign, transfer, lease or convey all or
substantially all of its properties and assets to us, unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we are the surviving entity; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the successor or surviving entity expressly assumes all of our obligations under the
debt securities and the Indentures pursuant to supplemental indentures in forms
reasonably satisfactory to the trustee(s) under the relevant Indentures and either (A)&nbsp;is
organized or existing under the laws of the United States of America, any state thereof
or the District of Columbia or (B)&nbsp;if not organized in any such jurisdiction, then (1)
the successor or surviving entity agrees to be subject to the service of process laws of
the State of New York, and (2)&nbsp;under the laws of its jurisdiction of organization,
payments on the securities would not be subject to withholding tax; and, in any case,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>immediately after giving effect to such transaction, no event of default and no event
which, after notice or lapse of time, or both, would become an event of default, will
have occurred and be continuing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon any consolidation, merger or transfer, the successor will be substituted for us under the
Indentures. In the case of a sale of all of our assets that meets the requirements stated in the
immediately preceding paragraph, we will be relieved of all obligations and covenants under the
Indenture and the debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Legal Defeasance and Covenant Defeasance. </I>Unless otherwise indicated in the applicable
prospectus supplement, we may discharge or defease our obligations under the Indentures as set
forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may discharge certain obligations to holders of any series of debt securities issued under
the Indentures that have not already been delivered to the trustee for cancellation and that have
either become due and payable or are by their terms due and payable within one year (or scheduled
for redemption within one year) by irrevocably depositing with the trustee cash in U.S. dollars
sufficient to pay and discharge the entire indebtedness on such debt securities not previously
delivered to the trustee for cancellation, for principal and any premium and interest to the date
of such deposit (in the case of debt securities
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 20 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">which have become due and payable) or to the stated maturity or redemption date, as the case
may be, and we have paid all other sums payable under the applicable Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If indicated in the applicable prospectus supplement, we may elect with respect to a series of
debt securities at our option and subject to the satisfaction of the conditions described below,
either (i)&nbsp;to be deemed to have paid and discharged the entire indebtedness represented by the
outstanding debt securities of the applicable series and to have satisfied all of our other
obligations under the debt securities of the applicable series and under the provisions of the
relevant Indenture (except as otherwise provided in the relevant Indenture) (&#147;legal defeasance&#148;) or
(ii)&nbsp;to be released from our obligations under the relevant Indenture with respect to certain
covenants applicable to the debt securities of or within any series (&#147;covenant defeasance&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We can exercise legal or covenant defeasance if we satisfy the following conditions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we must irrevocably deposit with the applicable Indenture trustee (or another
trustee meeting certain eligibility requirements and agreeing to be bound by the
applicable provisions of the relevant Indenture), in trust, for the benefit of the
holders of the applicable series of debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>cash in United States dollars,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>non-callable and non-redeemable direct obligations of the United States of America
or of an agency or instrumentality controlled or supervised by the United States of
America, in each instance, the payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a combination of the foregoing,</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">sufficient, in the opinion of a nationally recognized firm of independent public accountants, to
pay the principal of, and the interest and premium, if any, on the outstanding debt securities of
the applicable series on their stated maturity or applicable redemption date, as the case may be,
and any mandatory sinking fund payments applicable to that particular series of the debt securities
on the days on which the payments are due;
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we must deliver to the applicable trustee an opinion of counsel confirming that the
holders of the outstanding securities of the applicable series will not recognize
income, gain or loss for federal income tax purposes as a result of the defeasance;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no default or event of default shall have occurred and be continuing on the date of
the deposit of the amounts to be held in trust for the benefit of the holders (other
than a default or event of default resulting from the borrowing of funds to be applied
to the deposit) or in the case of any insolvency-related defaults, at any time in the
period ending on the 91st day after the date of the deposit (or greater period of time
in which any such deposit of trust funds may remain subject to bankruptcy or insolvency
laws which apply to the deposit by us); and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we must deliver to the trustee an officers&#146; certificate and an opinion of counsel,
each stating that all conditions precedent provided for or relating to legal defeasance
or covenant defeasance, as the case may be, have been complied with.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After satisfying the conditions for legal defeasance, the applicable debt securities will be
deemed outstanding only for limited purposes as more fully set forth in the relevant Indenture.
After legal defeasance, the holders of outstanding debt securities will have to rely solely on the
deposits we make to the trust for repayment on the debt securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After satisfying the conditions for covenant defeasance, the debt securities of the applicable
series will be deemed not outstanding for the purposes of the covenants from which we have been
released, but will continue to be deemed outstanding for all other purposes under the relevant
Indenture.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The applicable prospectus supplement may further describe additional provisions, if any,
permitting legal defeasance or covenant defeasance, including any modifications to the provisions
described above, with respect to the debt securities of or within a particular series.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Modifications and Amendments. </I>Under the Indentures, we and the applicable trustee may
supplement the Indentures for certain purposes that would not materially adversely affect the
interests or rights of the holders of debt securities of a series without the consent of those
holders, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to evidence the succession of another person to us, or successive successions, and
the assumption by the successor of our covenants, agreements and obligations under the
Indentures;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 21 - <!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to add such further covenants, restrictions or conditions or to add guarantees or
security for the protection or for the benefit of the holders of debt securities as our
board of directors and the trustee under the Indentures shall consider to be for the
protection of the holders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to provide for the issuance under the Indentures of securities in coupon form and to
provide for exchangeability of such securities with the securities issued under the
Indentures in fully registered form and to make all appropriate changes for such
purpose;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to provide for the issuance of uncertificated securities in addition to or in place
of certificated securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to cure any ambiguity or error or to correct or supplement any provision contained
in the Indentures or in any supplemental indenture that may be defective or
inconsistent with any other provision contained in the Indentures or in any
supplemental indenture;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to evidence and provide for the acceptance of appointment under the Indentures by a
successor trustee with respect to the securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to provide for the issuance of and establish the form and terms and conditions of
the securities of any series, to establish the form of any certifications required to
be furnished pursuant to the terms of the Indentures or any series of debt securities,
or to add to the rights of the holders of any series of debt securities; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to comply with the requirements of the SEC or to effect or maintain the
qualification of the Indentures under the Trust Indenture Act of 1939, as amended.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and the applicable trustee may also modify the Indentures or any supplemental indenture in
a manner that affects the interests or rights of the holders of debt securities with the consent of
the holders of at least a majority in aggregate principal amount of the outstanding debt securities
of each affected series issued under the Indenture. However, the Indentures require the consent of
each holder of debt securities that would be affected by any modification that would:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the principal or change the fixed maturity of the principal of, premium, if
any, or mandatory sinking fund obligation, if any, of any debt securities of any series
or alter the provisions with respect to the redemption of the debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the rate, or change the time for payment, of interest, including default
interest, on any debt security of any series;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>waive a default or event of default in the payment of principal of, or interest or
premium on, the debt securities of any series, except a rescission of acceleration of
the debt securities by the holders of a majority in aggregate principal amount of the
debt securities of any series and a waiver of the payment default that resulted from
that acceleration;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any debt security of any series payable in currency other than that stated in
the debt securities of that series;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any change in the provisions of the Indenture relating to waivers of past
defaults or the rights of the holders of debt securities to receive payments of
principal of or interest or premium on the debt securities;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>waive a redemption payment with respect to any debt security of any series;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any change in the right of any holders of debt securities of any series
regarding waivers of defaults or impair or affect the right of any holder of a debt
security to receive payment of principal, premium, if any, and interest on that
security on or after the due date expressed in that security or to bring suit for the
enforcement of any payment on or after the due date; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any change in the above amendment and waiver provisions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Information Concerning the Trustee. </I>The prospectus supplement with respect to particular debt
securities will describe any relationship that we may have with the trustee for the debt securities
offered. We may also maintain bank accounts, borrow money and have other customary banking or
investment banking relationships with the trustee, or its affiliates, in the ordinary course of
business.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 22 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Form, Exchange, Transfer. </I>Unless otherwise specified in the prospectus supplement, debt
securities will be issued in registered form without coupons, in denominations of $1,000 or any
integral multiple thereof. They may also be issued in global form with accompanying book-entry
procedures as outlined below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A holder of debt securities of any series can exchange the debt securities for other debt
securities of the same series, in any authorized denomination and with the same terms and aggregate
principal amount. They are transferable at the corporate trust office of the trustee or at any
transfer agent designated by us for that purpose. No charge will be made for any such exchange or
transfer except for any tax or governmental charge related to such exchange or transfer, other than
exchanges not involving any transfer such as the issuance of definitive securities in replacement
of temporary securities or the issuance of new securities upon surrender of a security that is
redeemed or purchased in part.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Global Securities. </I>The registered debt securities may be issued in the form of one or more
fully registered global securities that will be deposited with and registered in the name of a
depositary or with a nominee for a depositary identified in the prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The specific terms of the depositary arrangement with respect to any debt securities to be
represented by a registered global security will be described in the prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ownership of beneficial interests in a registered global security will be limited to persons
that have accounts with the depositary for such registered global security (&#147;participants&#148;) or
persons that may hold interests through participants. Upon the issuance of a registered global
security, the depositary will credit, on its book-entry registration and transfer system, the
participants&#146; accounts with the principal amounts of the debt securities represented by the
registered global security beneficially owned by such participants. Ownership of beneficial
interests in such registered global security will be shown on, and the transfer of such ownership
interests will be effected only through, records maintained by the depositary for such registered
global security or on the records of participants for interests of persons holding through
participants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as the depositary for a registered global security, or its nominee, is the registered
owner of a registered global security, the depositary or the nominee will be considered the sole
owner or holder of the debt securities represented by the registered global security for all
purposes. Except as set forth below, owners of beneficial interests in a registered global
security will not:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be entitled to have the debt securities represented by such registered global security registered in their names;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>receive or be entitled to receive physical delivery of such debt securities in definitive forms; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be considered the owners or holders of the debt securities.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, each person owning a beneficial interest in a registered global security must
rely on the procedures of the depositary for such registered global security and, if such person is
not a participant, on the procedures of the participant through which such person owns its
interest, to exercise any rights of a holder under the applicable Indenture. We understand that
under existing industry practices, if we request any action of holders, or if an owner of a
beneficial interest in a registered global security desires to take any action that a holder is
entitled to take under the applicable Indenture, the depositary would authorize the participants
holding the relevant beneficial interests to take such action, and such participants would
authorize beneficial owners owning through such participants to take such action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal, premium, if any, and interest payments on debt securities represented by a
registered global security registered in the name of a depositary or its nominee will be made to
such depositary or its nominee, as the case may be, as the registered owner of such registered
global security. Neither we nor the trustee will have any responsibility or liability for any
aspect of the records relating to or payment made on account of beneficial ownership interests in
such registered global security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect that the depositary for any debt securities represented by a registered global
security, upon receipt of any payment of principal, premium or interest will immediately credit
participants&#146; accounts with payments in amounts proportionate to their respective beneficial
interests in such registered global security as shown on the records of such depositary. We also
expect that payments by participants to owners of beneficial interests in such a registered global
security held by the participants will be governed by standing customer instructions and customary
practices, as is now the case with securities held for the accounts of customers in bearer form or
registered in &#147;street name.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may at any time determine not to have any of the debt securities of a series represented by
one or more registered global securities and, in such event, will issue debt securities of such
series in definitive form in exchange for all of the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 23 - <!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">registered global security or securities representing such debt securities. Any debt
securities issued in definitive form in exchange for a registered global security will be
registered in such name or names as the depositary shall instruct the relevant trustee. We expect
that such instructions will be based upon directions received by the depositary from participants
with respect to ownership of beneficial interests in such registered global security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If provided in a prospectus supplement relating to a series of debt securities, the debt
securities of that series may also be issued in the form of one or more global securities that will
be deposited with a common depositary identified in the prospectus supplement. The specific terms
and procedures, including the specific terms of the depositary arrangement, with respect to any
portion of a series of debt securities to be represented by a global security will be described in
the prospectus supplement.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF WARRANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description describes the general terms and provisions of the warrants to which
any prospectus supplement may relate. The prospectus supplement relating to the warrants will
describe the particular term of the warrants and the extent, if any, to which these general
provisions may apply to the warrants offered.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may issue warrants to purchase debt securities, common stock or any combination thereof.
The warrants may be issued independently or together with any other securities and may be attached
or separate from the other securities. Each series of warrants will be issued under a separate
warrant agreement to be entered into between a warrant agent and us. The warrant agent will act
solely as our agent in connection with the warrants of any series and will not assume any
obligation or relationship of agency for or with holders or beneficial owners of warrants.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The applicable prospectus supplement will describe the terms of any warrants and the related
offering in respect of which this prospectus is being delivered, including the following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the title of the warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the aggregate number of the warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the price or prices at which the warrants will be issued;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the designation and terms of the underlying securities purchasable upon exercise of
the warrants and the number of such underlying securities issuable upon exercise of the
warrants;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the price or prices at which the warrants may be exercised to purchase the securities underlying them;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date on which the right to exercise the warrants shall commence and the date on which the right shall expire;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether the warrants will be issued in registered form or bearer form;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, the minimum or maximum amount of the warrants that may be exercised at any one time;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, the designation and terms of the other securities with which the
warrants are issued and the number of such warrants issued with each such other security;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, the date on and after which the warrants and other securities will be separately transferable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>information with respect to book-entry procedures, if any;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if applicable, a discussion of certain United States federal income tax considerations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the procedures and conditions relating to the exercise of the warrants; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other terms of the warrants, including terms, procedures and limitations relating
to the exchange and exercise of the warrants.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> - 24 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF UNITS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may issue units consisting of common stock, warrants, debt securities or any combination
thereof. The applicable prospectus supplement will describe the terms of any units including the
following:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms of the units and each of the securities included in the units, including
whether and under what circumstances the securities included in the units may or may not
be traded separately;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the terms of any unit agreement governing the units; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the provisions for the payment, settlement, transfer or exchange of the units.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and the selling securityholder may sell the securities being offered hereby in any of, or
any combination of, the following ways: directly to one or more purchasers; through agents; through
underwriters; and/or through dealers. The prospectus supplement will include the names of
underwriters, dealers or agents that we or the selling securityholder retain; the purchase price of
the securities; our and/or the selling securityholder&#146;s proceeds from the sale; any underwriting
discounts or commissions and other items constituting underwriters&#146; compensation and any securities
exchanges on which the securities may be listed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The securities may be sold at varying fixed prices, at market prices prevailing at the time of
sale, at prices related to prevailing market prices or at negotiated prices. The securities may be
sold in one or more of, or a combination of, the following transactions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>underwritten offerings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a block trade in which a broker-dealer may attempt to sell the shares as agent, but
may position or resell all or a portion of the block, as principal, in order to
facilitate the transaction;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purchases by a broker-dealer, as principal and resale by the broker-dealer for its
account;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sales &#147;at the market&#148; to or through a market maker or into an existing trading
market, on an exchange or otherwise;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>put or call transactions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ordinary brokerage transactions in which a broker solicits purchases;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>privately negotiated transactions; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other methods permitted under applicable law.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is quoted on the New York Stock Exchange. Unless otherwise specified in the
related prospectus supplement, all securities we offer, other than common stock, will be new issues
of securities with no established trading market. Any underwriter may make a market in a series of
the securities, but will not be obligated to do so and may discontinue any market making at any
time without notice. We may elect to list any of the securities on an exchange, but are not
obligated to do so. Therefore, no assurance can be given as to the liquidity of the trading market
for the securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we or the selling securityholder use a dealer in the sale of the securities in respect of
which this prospectus is delivered, we or the selling securityholder will sell the securities to
the dealer as principal. The dealer may then resell such securities to the public at varying
prices to be determined by such dealer at the time of resale. Any such dealer may be deemed to be
an underwriter, as such term is defined in the Securities Act, of the securities so offered and
sold. The name of the dealer and the terms of the transaction will be set forth in the prospectus
supplement relating to those offers and sales.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Offers to purchase the securities may be solicited by agents designated by us from time to
time. Any agent involved in the offer or sale of the securities under this prospectus will be
named, and any commissions payable by us to these agents will be described, in a related prospectus
supplement. Unless otherwise indicated in a prospectus supplement, any agent will be acting on a
reasonable best efforts basis for the period of its appointment. Any agent may be deemed to be an
underwriter, as that term is defined in the Securities Act, of the securities so offered and sold.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 25 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities may be offered to the public either through underwriting syndicates represented by
managing underwriters or directly by one or more underwriter. If any underwriter or underwriters
are used in the sale of securities, unless otherwise indicated in a related prospectus supplement,
the underwriting agreement will provide that the obligations of the underwriters are subject to
certain conditions precedent and that the underwriters with respect to a sale of the securities
will be obligated to purchase all such securities if any are purchased.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may grant to the underwriters options to purchase additional securities to cover
over-allotments, if any, at the public offering price, with additional underwriting commissions or
discounts, as may be described in a related prospectus supplement. If we grant any over-allotment
option, its terms will be described in the related prospectus supplement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the securities are sold by means of an underwritten offering, we or the selling
securityholder, as applicable, will execute an underwriting agreement with an underwriter or
underwriters at the time an agreement for such sale is reached, and the names of the specific
managing underwriter or underwriters, as well as any other underwriters, the respective amounts
underwritten and the terms of the transaction, including commissions, discounts and any other
compensation of the underwriters and dealers, if any, will be described in the related prospectus
supplement. That prospectus supplement and this prospectus will be used by the underwriters to
make resales of the securities. Participants in the offering may be entitled under relevant
agreements with us or the selling securityholder to indemnification by us against some liabilities,
including liabilities under the Securities Act, or to contributions with respect to payments which
those persons may be required to make in respect thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the offering of securities, persons participating in the offering may make
short sales of the securities and purchase these securities on the open market to cover positions
created by short sales. Such sales involve the sale by such persons of securities that they are
required to purchase in an offering. Short sales may be either covered or naked. Covered short
sales are sales made in an amount not greater than the participant&#146;s over-allotment option to
purchase additional securities in the offering; naked short sales are sales in excess of any
over-allotment option. Offering participants may close out a covered short position either by
exercising their over-allotment option, if any, or purchasing securities; naked short positions
must be closed by purchasing securities. Naked short positions are more likely to be created if
the offering participants are concerned that there may be downward pressure on the price of the
securities in the open market after pricing that could adversely affect investors who purchase in
the offering. Purchases to cover syndicate short sales may raise or maintain the market price of
the securities or prevent or retard a decline in the market price of the securities. As a result,
the price of the securities may be higher as a result of syndicate short sales than it would
otherwise be in an open market. Persons participating in the offering may engage in other
transactions that stabilize, maintain or otherwise affect the price of the securities being offered,
including over-allotment and stabilizing transactions in such securities, or the imposition of a
penalty bid, in connection with the offering.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants in the offering may be customers of, engage in transactions with, or perform
services for, us in the ordinary course of our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and the selling securityholder may also directly solicit offers to purchase securities and
those sales may be made by us or the selling securityholder directly to institutional investors or
others, who may be deemed to be underwriters within the meaning of the Securities Act with respect
to any resale of those securities. The terms of any sales of this type will be described in the
applicable prospectus supplement.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain legal matters in connection with the legality of any common stock, debt securities,
warrants and units offered hereby will be passed upon for us by Drinker Biddle &#038; Reath LLP.
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements of AMREP Corporation appearing in its Annual Report on
Form 10-K for the year ended April&nbsp;30, 2006 have been audited by McGladrey &#038; Pullen, LLP, an
independent registered public accounting firm, as set forth in their report thereon and
incorporated by reference into this prospectus. Such consolidated financial statements are
incorporated by reference into this prospectus in reliance upon such report, incorporated herein by
reference, and upon the authority of such firm as experts in auditing and accounting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated balance sheet of Palm Coast Data Holdco, Inc. and its subsidiary as of June
30, 2006, and the related consolidated statement of operations, shareholders&#146; equity and cash flows
for the period from August&nbsp;10, 2005 (date of inception) to June&nbsp;30, 2006, and the consolidated
balance sheets of Palm Coast Data Holdings L.L.C. and its subsidiary as of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 26 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">August&nbsp;9, 2005 and December&nbsp;31, 2004, and the related consolidated statements of income and
comprehensive income, members&#146; equity and cash flows for the period from January&nbsp;1, 2005 to August
9, 2005 and the years ended December&nbsp;31, 2004 and 2003, have been incorporated by reference herein
and in the registration statement in reliance upon the reports of KPMG LLP, independent registered
public accounting firm, incorporated herein by reference, and upon the authority of such firm as
experts in auditing and accounting. The audit report on the consolidated financial statements of
Palm Coast Data Holdings L.L.C. contains an explanatory paragraph that states that the members&#146;
units of Palm Coast Data Holdings L.L.C. were acquired by Palm Coast Data Holdco, Inc. on August&nbsp;9,
2005.
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have filed with the SEC a registration statement (including the exhibits, schedules and
amendments to the registration statement) on Form S-3 under the Securities Act for the offering of
the securities offered by this prospectus. This prospectus does not contain all of the information
included in the registration statement, portions of which are omitted as permitted by the rules and
regulations of the SEC. For further information about us and the securities offered by this
prospectus, please refer to the registration statement. Statements contained in this prospectus as
to the contents of any contract, agreement or other document referred to are not necessarily
complete and, where the contract, agreement or other document is an exhibit to the registration
statement, each statement is qualified in all respects by the provisions of the exhibit, to which
reference is now made.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We file annual, quarterly and current reports, proxy statements and other information with the
SEC. These reports, proxy statements and other information concerning us can be read and copied at
the SEC&#146;s Public Reference Room at 100 F. Street, N.E., Washington, D.C. 20549. Please call the
SEC at 1-800-SEC-0330 for further information on the Public Reference Room. The SEC maintains an
internet site at http://www.sec.gov that contains reports, proxy and information statements, and
other information regarding issuers that file electronically with the SEC, including us. Our
common stock is listed on the New York Stock Exchange under the symbol &#147;AXR.&#148; We maintain a website
with the address <I>www.amrepcorp.com. </I>We are not including the information contained on our website
as part of, or incorporating it by reference into, this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents are incorporated by reference into this prospectus and considered part
of this prospectus:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Annual Report on Form 10-K for our fiscal year ended April&nbsp;30, 2006, filed on
July&nbsp;27, 2006;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Quarterly Reports on Form 10-Q for our fiscal quarters ended July&nbsp;31, 2006,
October&nbsp;31, 2006 and January&nbsp;31, 2007 filed on September&nbsp;14, 2006, December&nbsp;14, 2006 and
March&nbsp;19, 2007, respectively;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our Current Reports on Form 8-K filed on May&nbsp;24, 2006, September&nbsp;21, 2006 (both
filings), September&nbsp;25, 2006, October&nbsp;24, 2006, October&nbsp;31, 2006, November&nbsp;9, 2006,
November&nbsp;21, 2006, January&nbsp;12, 2007, January&nbsp;19, 2007 (and Amendment No.&nbsp;1 thereto on Form
8-K/A filed on March&nbsp;15, 2007) and March&nbsp;21, 2007.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents filed by us pursuant to Sections&nbsp;13(a), 13(c), 14 or 15(d) of the Exchange Act
(excluding any information furnished pursuant to Item&nbsp;2.02 or Item&nbsp;7.01 in any Current Report on
Form 8-K) after the date of this prospectus and before the termination of this offering shall be
deemed to be incorporated by reference into this prospectus, and to be a part hereof. Any
statement contained in this prospectus or in a document incorporated by reference into this
prospectus will be modified or superseded for purposes of this prospectus to the extent that a
statement contained in this prospectus or in any subsequently filed document that is incorporated
by reference modifies or supersedes such statement. Any statement that is modified or superseded
shall not, except as so modified or superseded, constitute a part of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will provide to you without charge, upon receipt of your written or oral request, a copy of
any or all of the documents which are incorporated by reference into this prospectus, other than
exhibits which are not specifically incorporated by reference into such documents. You should
direct written or telephone requests to Irving Needleman, General Counsel, AMREP Corporation, 300
Alexander Park, Suite&nbsp;204, Princeton, New Jersey 08540, telephone (609)&nbsp;716-8200.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> - 27 - <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AMREP CORPORATION</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;LOGO&#093;</B>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth an estimate of the fees and expenses expected to be incurred by
AMREP Corporation in connection with the issuance and distribution of the securities registered
hereby, other than underwriting fees and discounts. All of these expenses, except for the
registration fee, are estimates:
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities and Exchange Commission Registration Fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,685.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing and Engraving Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounting Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trustee&#146;s Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,500.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,000.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">76,185.75</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1006(B)(7) of the Oklahoma General Corporation Act allows a corporation to eliminate
or limit the personal liability of directors to a corporation or its shareholders for monetary
damages for a breach of a fiduciary duty as a director, except where the director breached his duty
of loyalty to the corporation or its shareholders, failed to act in good faith, engaged in
intentional misconduct or knowingly violated a law, authorized the payment of a dividend or
approved a stock repurchase or redemption in violation of Oklahoma corporate law or obtained an
improper personal benefit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1031 of the Oklahoma General Corporation Act allows an Oklahoma corporation to
indemnify any person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative, or
investigative (other than an action by or in the right of such corporation) by reason of the fact
that such person is or was a director, officer, employee or agent of such corporation, or is or was
serving at the request of such corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise. The indemnity may include
expenses (including attorneys&#146; fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by such person in connection with such action, suit or proceeding, provided
that such person acted in good faith and in a manner such person reasonably believed to be in or
not opposed to the best interests of the corporation and, with respect to any criminal action or
proceeding, had no reasonable cause to believe such person&#146;s conduct was unlawful. An Oklahoma
corporation may indemnify directors, officers, employees and other agents of such corporation in an
action by or in the right of a corporation under the same conditions as described above against
expenses (including attorneys&#146; fees) actually and reasonably incurred by the person in connection
with the defense and settlement of such action or suit, except that no indemnification is permitted
without judicial approval if the person to be indemnified has been adjudged to be liable to the
corporation. Where a present or former director or officer of the corporation is successful on the
merits or otherwise in the defense of any action, suit or proceeding referred to above or in
defense of any claim, issue or matter therein, the corporation must indemnify such person against
the expenses (including attorneys&#146; fees) that he or she actually and reasonably incurred in
connection therewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our amended certificate of incorporation provides that no director shall have personal
liability to us or to our shareholders for monetary damages for breach of fiduciary duty as a
director except to the extent that Section&nbsp;1006(B)(7) (or any successor provision) of the Oklahoma
General Corporation Act, as amended from time to time, expressly provides that the liability of a
director may not be eliminated or limited. Our amended certificate of incorporation also provides
for the
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">indemnification of each of our directors and senior officers for third party actions and
actions by or on our behalf that mirror Section&nbsp;1031 of the Oklahoma General Corporation Act. Our
amended certificate of incorporation also provides that we may also provide indemnification for our
officers, employees and agents consistent with Section&nbsp;1031 of the Oklahoma General Corporation
Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We maintain directors&#146; and officers&#146; liability insurance to insure our directors and officers
against certain liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 16. EXHIBITS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>EXHIBIT</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>NUMBER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>ITEM</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Underwriting Agreement.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement and Plan of Merger by and among AMREP Corporation, Kable Media Services, Inc., Glen Garry
Acquisition, Inc., Palm Coast Data Holdco, Inc., Palm Coast Data LLC and the Sellers set forth on the
signature page thereto, dated as of November&nbsp;7, 2006 (incorporated by reference to Exhibit&nbsp;2.1 to
registrant&#146;s Current Report on Form&nbsp;8-K filed on January&nbsp;19, 2007).</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Incorporation, as amended.</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.4<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By-laws, as amended (incorporated by reference to Exhibit&nbsp;3(b) to registrant&#146;s Quarterly Report on
Form&nbsp;10-Q filed on December&nbsp;14, 2006).</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen common stock certificate.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of senior debt securities indenture.</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of subordinated debt securities indenture.</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of senior debt securities (included in Exhibit&nbsp;4.2).</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of subordinated debt securities (included in Exhibit&nbsp;4.3).</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of debt warrant agreement, including form of warrant.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of equity warrant agreement, including form of warrant.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Drinker Biddle &#038; Reath LLP.</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.1<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Computation of Ratio of Earnings to Fixed Charges.</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of McGladrey &#038; Pullen, LLP (Independent Registered Public Accounting Firm).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG LLP (Independent Auditors).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.3<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Drinker Biddle &#038; Reath LLP.</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney.</TD>
</TR>

<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">25.1<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form&nbsp;T-1 Statement of Eligibility of Trustee for Indenture under the Trust Indenture Act of 1939.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>To the extent applicable, to be filed by amendment or as an exhibit to a document filed
under the Securities Exchange Act of 1934, as amended, and incorporated by reference herein.</TD>
</TR>


<Tr><td>&nbsp;</td></tr>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Previously Filed. </td></tr>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 17. UNDERTAKINGS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The undersigned registrant hereby undertakes:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by section 10(a)(3) of the Securities Act of
1933;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the information
set forth in the registration statement. Notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar of securities offered would
not exceed that which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price
represent no more than a 20% change in the maximum aggregate offering price set forth in
the &#147;Calculation of Registration Fee&#148; table in the effective registration statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change to such
information in the registration statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">provided, however, that paragraphs (a)(1)(i) and (a)(1)(iii) do not apply if the information
required to be included in a post-effective amendment by those paragraphs is contained in
reports filed with or furnished to the Securities and Exchange Commission by the registrant
pursuant to Section&nbsp;13 or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the registration statement, or is contained in a form of
prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act of 1933,
each such post-effective amendment shall be deemed to be a new registration statement relating
to the securities offered therein, and the offering of such securities at that time shall be
deemed to be the initial <I>bona fide </I>offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That, for the purpose of determining liability under the Securities Act of 1933 to any
purchaser:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Each prospectus filed by the registrant pursuant to Rule&nbsp;424(b)(3) shall be deemed to
be part of the registration statement as of the date the filed prospectus was deemed part of
and included in the registration statement; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each prospectus required to be filed pursuant to Rule&nbsp;424(b)(2), (b)(5), or (b)(7) as
part of a registration statement in reliance on Rule&nbsp;430B relating to an offering made pursuant
to Rule&nbsp;415(a)(1)(i), (vii), or (x)&nbsp;for the purpose of providing the information required by
section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the
registration statement as of the earlier of the date such form of prospectus is first used
after effectiveness or the date of the first contract of sale of securities in the offering
described in the prospectus. As provided in Rule&nbsp;430B, for liability purposes of the issuer
and any person that is at that date an underwriter, such date shall be deemed to be a new
effective date of the registration statement relating to the securities in the registration
statement to which that prospectus relates, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof. Provided, however, that no
statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is a part of the registration statement will, as to a
purchaser with a time of contract of sale prior to such effective date, supersede or modify any
statement that was made in the registration statement or prospectus that was a part of the
registration statement or made in any such document immediately prior to such effective date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) That, for the purpose of determining liability of the registrant under the Securities
Act of 1933 to any purchaser in the initial distribution of the securities: the undersigned
registrant undertakes that in a primary offering of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">securities of the undersigned registrant pursuant to this registration statement,
regardless of the underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be
considered to offer or sell such securities to such purchaser:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the
offering required to be filed pursuant to Rule&nbsp;424(b);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the
undersigned registrant or used or referred to by the undersigned registrant;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing prospectus relating to the offering containing
material information about the undersigned registrant or its securities provided by or on
behalf of the undersigned registrant; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the offering made by the undersigned
registrant to the purchaser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The undersigned registrant hereby undertakes that, for the purposes of determining any
liability under the Securities Act of 1933, each filing of the registrant&#146;s annual report pursuant
to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each
filing of an employee benefit plan&#146;s annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in this registration statement shall be
deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial <I>bona fide </I>offering
thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a
director, officer or controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The undersigned registrant hereby undertakes that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;For purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance upon Rule&nbsp;430A and contained in a form of prospectus filed by the registrant pursuant to
Rule&nbsp;424(b)(1) or (4)&nbsp;or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;For the purpose of determining any liability under the Securities Act of 1933, each
post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The undersigned registrant hereby undertakes to file an application for the purpose of
determining the eligibility of the trustee to act under subsection (a)&nbsp;of Section&nbsp;310 of the Trust
Indenture Act in accordance with the rules and regulations prescribed by the Commission under
Section&nbsp;305(b)(2) of the Trust Indenture Act.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and
has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the borough of Princeton, State of New
Jersey, on April&nbsp;27, 2007.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>AMREP CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Peter M. Pizza
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Peter M. Pizza&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Vice President and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>NAME</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>CAPACITY</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>DATE</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Peter M. Pizza
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Peter M. Pizza
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Chief Financial
Officer of the Company**
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
James Wall
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director and Senior Vice President of
the Company**
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Michael P. Duloc
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">President, Kable Media Services, Inc.**
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Edward B. Cloues, II
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Jonathan B. Weller
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Nicholas G. Karabots
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Albert V. Russo
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Samuel N. Seidman
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Lonnie A. Coombs
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Peter M. Pizza
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;27, 2007</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Peter M. Pizza,
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attorney-in-fact</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left"><FONT size="1">

</FONT></DIV>

<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>The registrant is a holding company which does substantially all of its business
through two wholly-owned subsidiaries (and their subsidiaries). Those wholly-owned subsidiaries
are AMREP Southwest Inc. (&#147;ASW&#148;) and Kable Media Services, Inc. (&#147;Kable&#148;). James Wall is the
principal executive officer of ASW, and Michael P. Duloc is the principal executive officer</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>of Kable. The registrant has no chief executive officer. Its executive officers include James
Wall, Senior Vice President and Peter M. Pizza, Vice President and Chief Financial Officer and
Michael P. Duloc, who may be deemed an executive officer by reason of his position with Kable.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>EXHIBIT</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>NUMBER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>ITEM</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Underwriting Agreement.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement and Plan of Merger by and among AMREP Corporation, Kable Media Services, Inc., Glen Garry
Acquisition, Inc., Palm Coast Data Holdco, Inc., Palm Coast Data LLC and the Sellers set forth on the
signature page thereto, dated as of November&nbsp;7, 2006 (incorporated by reference to Exhibit&nbsp;2.1 to
registrant&#146;s Current Report on Form&nbsp;8-K filed on January&nbsp;19, 2007).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Incorporation, as amended.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.4<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By-laws, as amended (incorporated by reference to Exhibit&nbsp;3(b) to registrant&#146;s Quarterly Report on
Form&nbsp;10-Q filed on December&nbsp;14, 2006).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen common stock certificate.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of senior debt securities indenture.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of subordinated debt securities indenture.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of senior debt securities (included in Exhibit&nbsp;4.2).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of subordinated debt securities (included in Exhibit&nbsp;4.3).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of debt warrant agreement, including form of warrant.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of equity warrant agreement, including form of warrant.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Drinker Biddle &#038; Reath LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.1<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Computation of Ratio of Earnings to Fixed Charges.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of McGladrey &#038; Pullen, LLP (Independent Registered Public Accounting Firm).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of KPMG LLP (Independent Auditors).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.3<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Drinker Biddle &#038; Reath LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">25.1<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form&nbsp;T-1 Statement of Eligibility of Trustee for Indenture under the Trust Indenture Act of 1939.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
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    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>To the extent applicable, to be filed by amendment or as an exhibit to a document filed
under the Securities Exchange Act of 1934, as amended, and incorporated by reference herein.</TD>
</TR>
<Tr><td>&nbsp;</td></tr>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Previously filed.</td></tr>
<TR><TD><DIV align="left"><FONT size="1">

</FONT></DIV></TD></TR>
</TABLE>





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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>2
<FILENAME>w32814aexv5w1.htm
<DESCRIPTION>OPINION OF DRINKER BIDDLE & REATH LLP
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 5.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Drinker Biddle &#038; Reath LLP<BR>
One Logan Square<BR>
18<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> &#038; Cherry Streets<BR>
Philadelphia, Pennsylvania 19103-6996
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">April&nbsp;27, 2007</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AMREP Corporation<BR>
300 Alexander Park<BR>
Suite&nbsp;204<BR>
Princeton, NJ 08540

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as special counsel to AMREP Corporation, an Oklahoma corporation (the
&#147;Company&#148;), in connection with the preparation and filing with the Securities and Exchange
Commission (the &#147;Commission&#148;) of the Company&#146;s registration statement on Form S-3 (SEC File No.
333-141861) (the &#147;Registration Statement&#148;) under the Securities Act of 1933, as amended (the
&#147;Act&#148;). The Registration Statement relates to the registration by the Company of the offer and
sale (a)&nbsp;by the Company of up to $150,000,000 aggregate public offering price of (i)&nbsp;shares of
common stock, par value $0.10 per share, of the Company (the &#147;Common Stock&#148;), (ii)&nbsp;senior debt
securities of the Company (the &#147;Senior Debt Securities&#148;), (iii)&nbsp;subordinated debt securities of the
Company (the &#147;Subordinated Debt Securities&#148; and, together with the Senior Debt Securities, the
&#147;Debt Securities&#148; ), (iv)&nbsp;warrants to purchase Common Stock or Debt Securities of the Company (the
&#147;Warrants&#148;) and (v)&nbsp;units, consisting of a combination of Common Stock, Debt Securities and/or
Warrants (the &#147;Units&#148;) (the foregoing, collectively referred to as the &#147;Company Securities&#148;) and
(b)&nbsp;by The Karabots Foundation of up to 450,000 shares of Common Stock (the &#147;Securityholder
Securities&#148; and, together with the Company Securities, the &#147;Securities&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Senior Debt Securities are to be issued pursuant to a senior indenture and the
Subordinated Debt Securities are to issued pursuant to a subordinated indenture (together, the
&#147;Indentures&#148;) each between the Company and an indenture trustee, forms of which have been filed as
exhibits to the Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of rendering this opinion, we have examined originals or copies, certified or
otherwise identified to our satisfaction, of the Certificate of Incorporation and By-laws of the
Company, each as amended through the date hereof, resolutions of the Company&#146;s Board of Directors
(the &#147;Board&#148;), the Registration Statement, the form of each of the Indentures (including the forms
of debt securities included therein) and such other documents and corporate records of the Company
and such certificates or comparable documents of public officials and officers and representatives
of the Company, and have made such inquiries of such officers and representatives and have
considered such matters of law as we have deemed appropriate as the basis for the opinions
hereinafter set forth.
</DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
opinion is limited to (i)&nbsp;the federal laws of the United States
of America, (ii)&nbsp;the laws of
the State of Oklahoma and (iii)&nbsp;in the case of our opinion in
paragraph&nbsp;1 below relating to the validity and binding nature of
the Debt Securities, the laws of the State of New York. We express no opinion as to the laws of any other jurisdiction or as to
the applicable choice of law rules that may affect the interpretation or enforcement of the
Securities. As to any opinion based on the laws of the State of Oklahoma, we have relied, without
any independent investigation of the opinions stated therein, exclusively on the opinion of Crowe &#038;
Dunlevy, dated as of April&nbsp;26, 2007.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In all cases, we have assumed the legal capacity of each natural person signing any of the
documents, corporate records and certificates examined by us, the genuineness of signatures, the
authenticity of documents submitted to us as originals, the conformity to authentic original
documents of documents submitted to us as copies and the accuracy and completeness of all corporate
records and other information made available to us by the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have also assumed that (i)&nbsp;the Registration Statement, and any amendments thereto
(including post-effective amendments), will have become effective in accordance with the Act; (ii)
a prospectus supplement to the prospectus included in the Registration Statement will have been
prepared in accordance with the Act and filed with the Commission describing the Securities offered
thereby and the manner of their offer and sale; (iii)&nbsp;all Securities will be issued and sold in
compliance with the applicable provisions of the Act, the Trust Indenture Act of 1939, as amended,
and the securities or blue sky laws of various states and in the manner stated in the Registration
Statement and the applicable prospectus supplement; (iv)&nbsp;the Company will have taken all necessary
corporate action to authorize and approve the issuance and terms of the Company Securities; (v)&nbsp;at
the time of any offering of any shares of Common Stock, the Company will have such number of shares
of Common Stock proposed to be so offered and sold, authorized or created and available for
issuance; (vi)&nbsp;all Securities being offered will have been duly authorized and created and, in the
case of Securities convertible into, or exercisable or exchangeable for, other Securities, such
other Securities will have been reserved for issuance upon such conversion, exchange or exercise;
(vii)&nbsp;definitive Indentures or agreements with respect to the Securities as described in the
Registration Statement and the applicable prospectus supplement will have been duly authorized,
executed and delivered by the parties thereto and (viii)&nbsp;as appropriate, the Securities will have
been duly executed and authenticated in accordance with the applicable Indenture or agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the foregoing, and subject to the assumptions, qualifications, limitations and
exceptions set forth herein, we are of the opinion that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. When (a)&nbsp;the applicable Indenture relating either to Senior Debt Securities or Subordinated
Debt Securities has been duly qualified under the Trust Indenture Act of 1939, as amended, (b)&nbsp;the
Board has taken all necessary corporate action to approve the issuance and terms of any such Debt
Securities, (c)&nbsp;the terms of such Debt Securities and of their issuance and sale have been duly
established in conformity with the applicable Indenture so as not to violate any applicable law or
result in a default under or breach of any agreement or instrument binding upon the Company and so
as to comply with any requirements or restrictions imposed by any court or governmental body having
jurisdiction over the Company, (d)&nbsp;any shares of Common Stock issuable upon the conversion of such
Debt Securities, if applicable, have been duly and validly authorized for issuance and (e)&nbsp;such
Debt Securities have been duly executed and authenticated in accordance with the applicable
Indenture and issued and sold as contemplated in the Registration Statement and any applicable
prospectus supplement and upon payment of the consideration for such Debt Securities as provided
for in the applicable definitive purchase, underwriting or similar agreement, such Debt Securities
will be legally issued and the Debt Securities will constitute valid and legally binding
obligations of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. With respect to shares of Common Stock offered by the Company, when (a)&nbsp;the Board has taken
all necessary corporate action to approve the issuance and terms of the offering thereof and
related matters and (b)&nbsp;certificates representing the shares of Common Stock have been duly
executed, registered and delivered either (i)&nbsp;in accordance with the applicable definitive
purchase, underwriting or similar agreement approved by the Board, then upon payment of the
consideration therefor provided for therein or (ii)&nbsp;upon conversion, exchange or exercise of any
other Security in accordance with the terms of the Security or the instrument governing the
Security providing for the conversion, exchange or exercise as approved by the Board, for the consideration approved by the
Board, in each case such shares of Common Stock will be validly issued, fully paid and
non-assessable.
</DIV>


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<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
When (a)&nbsp;the Board has taken all necessary corporate action to
approve the issuance and terms of the offering thereof and related
matters, (b)&nbsp;a warrant agreement relating to the Warrants has been duly executed and delivered
by the respective parties thereto, (c)&nbsp;the terms of any Warrants and of their issuance and sale
have been duly established in conformity with the applicable warrant agreement so as not to violate
any applicable law or result in a default under or breach of any agreement or instrument binding
upon the Company and so as to comply with any requirements or restrictions imposed by any court or
governmental body having jurisdiction over the Company and (d)&nbsp;the Warrants have been duly executed
and, if required, authenticated in accordance with the applicable warrant agreement and issued and
sold as contemplated in the Registration Statement and any applicable prospectus supplement, the
Warrants will be legally issued.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left"><FONT size="1">

</FONT></DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. When (a)&nbsp;the Board has taken all necessary corporate action to
approve the issuance and terms of the offering thereof and related
matters, (b)&nbsp;a unit agreement relating to the Units has been duly executed and delivered by the
respective parties thereto, (c)&nbsp;the terms of any Units and of their issuance and sale have been
duly established in conformity with the applicable unit agreement so as not to violate any
applicable law or result in a default under or breach of any agreement or instrument binding upon
the Company and so as to comply with any requirements or restrictions imposed by any court or
governmental body having jurisdiction over the Company and (d)&nbsp;the Units have been duly executed
and, if required, authenticated in accordance with the applicable unit agreement and issued and
sold as contemplated in the Registration Statement and any applicable prospectus supplement, the
Units will be legally issued.
</DIV>
<DIV align="left"><FONT size="1">

</FONT></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. With respect to Securityholder Securities, such Securityholder Securities have been validly
issued, fully paid and are non-assessable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We express no opinions concerning (a)&nbsp;the validity or enforceability of any provisions
contained in the Indentures that purport to waive or not give effect to rights to notices,
defenses, subrogation or other rights or benefits that cannot be effectively waived under
applicable law, (b)&nbsp;the enforceability of indemnification provisions to the extent they purport to
relate to liabilities resulting from or based on negligence or any violation of federal or state
securities laws, (c)&nbsp;the effect of bankruptcy, insolvency, reorganization, fraudulent transfer,
moratorium or other laws now or hereafter in effect affecting creditors&#146; rights generally or (d)
the effect of general principles of equity (including, without limitation, standards of
materiality, good faith, fair dealing and reasonableness), whether considered in a proceeding in
equity or at law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the filing of this opinion as an exhibit to the Registration Statement.
In giving this consent, we do not admit that we come within the categories of persons whose consent
is required under Section&nbsp;7 of the Act or under the rules and regulations of the Commission issued
thereunder.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Drinker Biddle &#038; Reath LLP
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">DRINKER BIDDLE &#038; REATH LLP&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>w32814aexv23w1.htm
<DESCRIPTION>CONSENT OF MCGLADREY & PULLEN, LLP
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;23.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Consent of Independent Registered Public Accounting Firm
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the incorporation by reference in this Registration Statement (No.&nbsp;333-141861) filed
on or about April&nbsp;27, 2007 on Pre-Effective Amendment No.&nbsp;1 to Form S-3 of AMREP Corporation of our
report dated June&nbsp;13, 2006 relating to our audit of the consolidated financial statements and the
financial statement schedule which appear in the Annual Report on Form 10-K of AMREP Corporation
for the year ended April&nbsp;30, 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We also consent to the reference to our firm under the caption &#147;Experts&#148; in the Prospectus, which
is part of this Registration Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/S/ McGladrey &#038; Pullen, LLP
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Davenport, Iowa<BR>
April&nbsp;26, 2007
</DIV>



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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>4
<FILENAME>w32814aexv23w2.htm
<DESCRIPTION>CONSENT OF KPMG LLP
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 23.2
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Consent of Independent Auditors</U>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We consent to the use of our report dated November&nbsp;29, 2006, with respect to the consolidated
balance sheet of Palm Coast Data Holdco, Inc. and its subsidiary as of June&nbsp;30, 2006, and the
related consolidated statement of operations, shareholders&#146; equity, and cash flows for the period
from August&nbsp;10, 2005 (date of inception) to June&nbsp;30, 2006, and our report dated November&nbsp;15, 2006
with respect to the consolidated balance sheets of Palm Coast Data Holdings L.L.C. and its
subsidiary as of August&nbsp;9, 2005 and December&nbsp;31, 2004, and the related consolidated statements of
income and comprehensive income, members&#146; equity, and cash flows for the period from January&nbsp;1,
2005 to August&nbsp;9, 2005 and the years ended December&nbsp;31, 2004 and 2003, incorporated herein by
reference and to the reference to our firm under the heading &#147;Experts&#148; in the registration
statement of AMREP Corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our report dated November&nbsp;15, 2006 on the consolidated financial statements of Palm Coast Data
Holdings L.L.C. contains an explanatory paragraph that states that the members&#146; units of Palm Coast
Data Holdings L.L.C. were acquired by Palm Coast Data Holdco, Inc. on August&nbsp;9, 2005.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">/s/ KPMG LLP
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">St. Louis, Missouri<BR>
April&nbsp;26, 2007
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<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
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