On behalf of Gold & Silver Reserve, Inc., who operates the e-gold website,
I'd like to apologize to e-gold Users for the recent degradation in e-gold
website response times.

By way of explanation:

* e-gold usage is undergoing even more rapid growth than we had anticipated,
crossing the million hits/day boundary considerably sooner than estimated.
Traffic this month is approximately *double* that of last month, causing us
to rethink our "conservative" 30% per month growth projections.

* One of the inbound connections upstream of e-gold was witness to a syn
flood denial of service attack starting on Friday night around 6pm. Although
not directed specifically at any e-gold machines, it did slow down all
responses to and from the site until it was dropped Sunday afternoon.
Unfortunately, the alarms G&SR personnel raised did not elicit a prompt
reaction from the engineers responsible to deal with this problem.

But enough excuses, you may be saying, what is being doing about it?

* Capital resources have been authorized for additional network
infrastructure upgrades. Load balancers and SSL accelerators are likely
entries on the shopping list.

* Web server hardware upgrades will be coming online in the near term.

* Bandwidth upgrades have been shifted from high priority to highest
priority.  If e-gold requires bigger pipes to keep up with the new loads,
then it shall be so.

However...

* We will *not* compromise data integrity for a quick fix.

Again, please accept our apologies for the occasional turbulence you may
experience on this journey to where no electronic currency has gone before.
And, as always...

Thank you for using e-gold.

Reid Jackson
Managing Director
Gold & Silver Reserve, Inc.


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