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<PAGE> PAGE 2
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SIGNATURE RICHARD KAUFMAN
TITLE EXEC. VICE PRESIDENT
<PAGE>
STAVISKY, KNITTLE, ISAACS & DICHEK, C.P.A., P.C.
CERTIFIED PUBLIC ACCOUNTANTS
342 MADISON AVENUE
NEW YORK, N.Y. 10173-0950
(212) 682-1414
FAX (212) 599-4278
HERBERT STAVISKY, C.P.A. LONG ISLAND OFFICE
NORMAN P. KNITTLE, C.P.A. 266 MERRICK ROAD
BERNARD M. ISAACS, C.P.A. LYNBROOK, N.Y. 11563
MURRAY DICHEK, C.P.A. (1921-1987) (516) 593-5500
The Shareholders and Board of Directors
of Sterling Capital Corporation
We have examined the financial statements of Sterling Capital Corporation (the
"Corporation") for the year ended December 31, 1997, and have issued our report
thereon dated February 24, 1998. As a part of our examination, we made a study
and evaluation of the Corporation's system of internal accounting control (which
includes the procedures for safeguarding securities) to the extent we considered
necessary to evaluate the system as required by generally accepted auditing
standards. The purpose of our study and evaluation was to determine the nature,
timing, and extent of the auditing procedures necessary for expressing an
opinion on the Corporation's financial statements. Our study and evaluation was
more limited than would be necessary to express an opinion on the system of
internal accounting control taken as a whole.
The management of the Corporation is responsible for establishing and
maintaining a system of internal accounting control. In fulfilling this
responsibility, estimates and judgments by management are required to access the
expected benefits and related costs of control procedures. The objectives of a
system are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or disposition
and transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any system of internal accounting control,
errors or irregularities may occur and may not be detected. Also, projection of
any evaluation of the system to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
degree of compliance with the procedures may deteriorate.
Our study and evaluation, made for the limited purpose described in the first
paragraph, would not necesarily disclose all material weaknesses in the system
that may have existed as of December 31, 1997. Accordingly, we do not express an
opinion on the system of internal accounting control of the Corporation taken as
a whole. However, our study and evaluation disclosed no condition that we
believed to be a material weakness as of December 31, 1997.
This report is intended solely for the use of management and the SEC, and should
not be used for any other purpose.
/s/Stavisky, Knittle, Isaacs & Dichek, C.P.A., P.C.
- ---------------------------------------------------
Stavisky, Knittle, Isaacs & Dichek, C.P.A., P.C.
Certified Public Accountants
New York, New York
February 24, 1998
