BRE (NYSE:BRE) said this morning it has distributed to itsshareholders a majority interest in VelocityHSI, now a separatecompany trading on the Nasdaq Over The Counter Bulletin Board underthe symbol VHSI.

The distribution occurred at a rate of one share of common stockof VHSI for every five shares of common stock of BRE. Thedistribution has no impact on the number of outstanding shares ofBRE, and will not change the number of shares of BRE common stockheld by any BRE shareholder.

BRE shareholders will have a tax basis in the distributed sharesof VHSI equal to the fair market value of the VHSI shares at thetime of distribution, which has been determined to be $1.20. ShouldBRE designate any portion of the distribution as a tax-free returnof capital that would result in a reduction of basis, shareholderswill be notified through distribution of form 1099-DIV at year'send.