Mr. Carl E. Berg
Mission West Properties
10050 Bandley Drive
Cupertino, CA 95014

Dear Mr. Berg,

It is my understanding that you are now the largest share-holder of Stratus Properties. Since its inception as FM Properties, Stratus has been developing land in the Barton Springs watershed.

Over the years, Stratus has repeatedly come to heads with our community over water quality protection as well as financial and infrastructure expenditures by the City of Austin pertaining to development of Stratus’ land in the Barton Springs watershed.

Indeed, Stratus has been only a marginally profitable company despite owning prime real estate during Austin’s largest boom.

I feel that you should be aware of the widespread community opposition to Stratus’ on-going development efforts in the Barton Springs watershed. This opposition will continue until Stratus decides to shift its investment and development activity away from the Barton Springs watershed.

As a concerned member of the Austin community, I request that you sell your shares of Stratus immediately or direct the management of the company to alter its business approach to respect the community’s long-held committment to preservation of Barton Springs and the Texas Hill Country.

Thank you for your consideration.

Sincerely,