SEC-Required Report on Routing of Customer Orders

For Quarter Ending Mon Mar 31 23:59:59 2008

Pennaluna & Company has prepared this report pursuant to a U.S. Securities and Exchange Commission rule requiring most brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on the routing of "non-directed orders" - any order that the customer has not specifically instructed to be routed to a particular venue for execution. For these non-directed orders, Pennaluna has selected the execution venue on behalf of its customers.

The report is divided into three sections: one for securities listed on the New York Stock Exchange; one for securities listed on The Nasdaq Stock Market; one for securities listed on the American Stock Exchange or regional exchanges. A fourth section for exchange-listed options does not appear, because Pennaluna & Company does not trade options.

For each section, this report identifies the venues most often selected by Pennaluna & Company and sets forth the percentage of various types of orders routed to the venues. With respect to all orders, as is common practice within the securities industry, Pennaluna & Company occasionally receives remuneration in the form of rebates for the equity order flow it routes for customer orders and such remuneration is considered compensation to the firm. Such orders are executed at prices equal to or better than the displayed national best bid/offer price. Presently such an arrangement exists with Knight Securities of Jersey City, New Jersey and although not all such orders are so directed nor are rebates available in many instances, Pennaluna & Company occasionally receives rebates from Knight for trades of 2,000 shares or more, such rebates being subject to a number of conditions and never exceeding a maximum of one cent per share. When received, such remuneration is used by Pennaluna & Company to help defray the aggregate cost of executing trades for clients.