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February 28, 2002

FUSF Alert
Dear Pacific Information Exchange, Inc. Customer:

Effective January 2002, the Federal Universal Service Fund began levying a surcharge on DSL services to help maintain affordable local telephone service for all Americans, and to discount service to schools, public libraries and low-income customers.

Starting in March 2002, the item ‘Federal Universal Service Fund Surcharge’ will appear on your invoice. Verizon, our supplier of the DSL service we provide you, is assessing this charge to Pacific Information Exchange Inc. The amount is determined by multiplying your Verizon DSL service charge by 6.8086%. This amount is billed to us, and remitted by Verizon to the FCC. The charge does not result in any new revenue to either Pacific Information Exchange Inc. or Verizon.

We appreciate your understanding as we comply with this FCC regulation. As always, we do appreciate your business. More information can be found at the following sites:

http://www.speakeasy.net/low/main.php?page=sup_fusf

http://www.fcc.gov/cgb/information_directory.html

Should you have any questions or comments, please feel free to contact us at sales@pixi.com, visit our web site, or call us at 237-6759.

Aloha,

Stan Kubota
President
Pacific Information Exchange, Inc.
skubota@aloha.com