A Letter from Mark Salzberg

Mark Salzberg

Dear Numismatist:

In NGC's 19-year history, 2005 has been has been one of our most exciting and successful periods. We have assumed a leadership position in strengthening the numismatic community and have expanded our service offerings to meet the needs of a demanding and ever-changing marketplace. I am very proud to report on these company developments.

Both NGC and NCS are playing an integral role in returning a numismatic exhibit to the Smithsonian Institution. The Smithsonian's National Numismatic Collection is the most important and valuable collection of coins in the world, yet it has been hidden from public display. These coins will again receive a public showcase in a new NGC & NCS sponsored exhibit opening at the Smithsonian on December 7, 2005.

We have provided considerable financial support to the Smithsonian, and we are taking steps to secure that this collection is properly preserved and maintained for future generations. NCS is removing wax and decades of grime from these coins' surfaces, without touching the original patina. This is a long overdue conservation effort that will assure the coins' stability and preservation, and it is a professional service that only NCS can provide. In addition, NGC's experience with imaging, collection management logistics, and long-term storage all come to bear in this important endeavor.

In terms of collector outreach, we have also made substantial improvements to our own Collectors' Society, through which we provide free resources to enhance the enjoyment and participation of our hobby. The goal of the Collectors' Society is to reestablish a sense of community among coin collectors in the internet age. It has recently exceeded 20,000 members, which certainly validates our efforts and assures that we will aggressively continue to bring new features and collecting tools online.

NGC and NCS are the only official grading service and conservation service, respectively, of the ANA and the PNG. Our involvement with these organizations and our responsiveness to the community put us on the pulse of a demanding and diverse marketplace.

Our role in community development clearly translates to the strength of our companies. The numbers tell much of this story: NGC is now grading over 160,000 coins every month, and our dealer network exceeds 2,200 members. To accommodate our growth, we have begun construction on a brand new, state-of-the-art 60,000 square foot office building, which we will occupy in the summer of 2006. This is the source of constant excitement among the company's 150 employees. In my view it is an essential step to guarantee the highest level of service for the future.

Our growth also prompted us to add another grading finalizer to our team. This required a strong recruitment effort to locate the rare individual who possesses the necessary skill set. In January of 2005, Ronald Drzewucki, Jr. assumed this role. He is widely recognized as one of the top grading talents in the industry.

Among our services, one of the areas where we've seen the most marked increase is in World Coins, where NGC has established itself as the market leader. Earlier this year, we certified the Eliasberg Collection of World Gold Coins, which drew bidders from 26 countries and set numerous price records.

Our variety attribution has become the industry standard variety recognition program. This year NGC was chosen to grade the Jules Reiver Collection, the most complete collection of U.S. coinage by die variety, scheduled to be auctioned in January 2006. When considered in tandem with the extensive scope of the Richmond Collection, within a brief two-year period NGC has graded at least one example of virtually every U.S. coin ever released!

NGC also continues to be the prestige holder for important rarities, and in the last few months we have certified three very important U.S. coins: one of the six known Class III 1804 Dollars; a recently discovered 1854-S $2.50; and a 1927-D $20, long held in private collection. These and all NGC-graded coins benefit from residing in the most secure holder in the industry, which offers the best option for the long-term storage of your collectibles.

We are fortunate to have the greatest coins come across our desks everyday. Our responsibility is to adhere to a standard of integrity and to disseminate vital information to collectors and dealers throughout the world. We have furthered this responsibility by developing the most consistent grading in the industry and making the quality and attentiveness of our customer service a source of company pride. The thoroughness of this commitment has been the foundation for our growth and provides the foundation for our future success.

Sincerely,

Mark Salzberg
Chairman