HYNES & HOWES INSURANCE COUNSELORS, INC.
                          Notes to Financial Statements
                     Years Ended September 30, 1999 and 1998



Note 1 - Summary of Significant Accounting Policies

         Nature of operations:  The Company invests in real estate, primarily
         single family residences, which it then resells on contract.  The
         Company operates exclusively in the Quad City metropolitan area of
         Eastern Iowa and Western Illinois.  The Company has a concentration of
         credit risk, in that all of its creditors live and work in the Quad
         City area.

         Accounting Policies:  The books and records of the Company are
         maintained on the accrual basis of accounting.  The Company uses the
         equity method of accounting for investments in affiliated companies.
         Investments in contracts receivable are stated at the collectible
         balance.  All gains and losses are recognized in the year of sale.
         Earnings per share are computed on the basis of weighted average number
         of common shares outstanding.  Cash and cash equivalents are considered
         to be any investment with maturity of three months or less.

         Use of Estimates:  The preparation of financial statements in
         conformity with generally accepted accounting principles requires
         management to make estimates and assumptions that affect the reported
         amounts of assets and liabilities and disclosure of contingent assets
         and liabilities at the date of the financial statements and the
         reported amounts of revenues and expenses during the reporting period.
         Actual results could differ from those estimates.

Note 2 - Investment in Affiliated Company

         Investment at September 30, 1999 and 1998 consisted of a 3% ownership
         of Triton Investments, Ltd common stock.  Cost of the stock was $1,700.
         The Company uses the equity method of accounting for investment in
         affiliated company, although the investment is below the 20% level of
         ownership.  The level of control exercised by common officers and
         directors warrant this adoption.  These values may be substantially
         affected by the operations of the affiliated.  Future intercompany
         transactions may also affect the value of these investments.