These days, it's understandable to be concerned about the financial strength and longevity of the organization that's going to be managing your transactions. You may wonder, Who am I going to be doing business with? Are they going to be around next year? In ten years? What will I read in tomorrow's papers? It's not easy to forget the names of once-august firms, household words a few years ago, that have ceased to exist. Merged, absorbed, victims of the recession and their own excesses.

PaineWebber not only survived the shakeups of the '90s, we led the way in the securities industry as a whole and in the municipal marketplace in particular. We never let up in providing the flow of capital, the professionals, the experience, and the sales and distribution capabilities that served our clients through good times and lean.

With the administration in Washington pledged to rebuild the nation's infrastructure, we enter the year 2000 poised to help you do so.

Full service is the key. Quite simply, from the moment an issuer becomes a PaineWebber client, the best creative minds in the business get to work. We are known for doing the tough ones; for developing innovative solutions when others said it couldn't be done. Whether it is regulatory or cash-flow problems or an impossibly tight timeframe, we find the way. In fact, we've developed many new and derivative products, such as Detachable Call Options, that quickly became state-of-the-art on Wall Street.

PaineWebber Municipal Securities Group clients are not only served by the banking group that's working on the transaction; the resources of the entire firm are put to work. Once a client relationship is set in motion, our investment bankers work in concert with the syndicate desk, the traders, the researchers, the institutional sales force, the retail brokers -- all among the best and most experienced people in the business -- to ensure that the issue is structured in the most favorable way, and that it is priced and sold in the most favorable way. We debunk the myth that a firm can't be a major player on both the retail and institutional sides.

PaineWebber knows the market better than anyone else. We know the issuers -- the utilities, the hospitals, the turnpike and housing and bridge authorities, the universities, the municipalities. We know the rating agencies and the buyers. For example, our legendary relationships with the top mutual funds ensure that securities we underwrite will be aggressively sold to the biggest bond buyers in the marketplace. And of course, we always take an active role in the aftermarket.

We hope this booklet will help you get to know us better. It is intended to provide you with a brief overview of PaineWebber Incorporated and the Municipal Securities Group and its seven specialty areas: Health Care, Higher Education, Housing, Infrastructure, Public Utilities, Student Loan, and Transportation. We have highlighted our regional presence across the country, as well as recent transactions that illustrate specific capabilities that may be applicable to your needs.

Let us put our expertise to work for you. Please contact the Managing Director, Municipal Securities Group, at 212 555-5555.