HEARTLAND INVESTMENT ASSOCIATES. SEC Rule 606 Quarterly Report for the Quarter Ending December 31, 2007

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1 Note: Broker-dealers are required to disclose any material arrangements with the venues listed in each section below, including, but not limited to, any internalization or payment for order flow arrangements. HEARTLAND INVESTMENT ASSOCIATES Member FINRA & SIPC 2202 Heritage Green Drive Hiawatha, IA Introducing Broker/Dealer for National Financial Services LLC Clearing, custody, or other brokerage services may be provided by National Financial Services LLC, or Fidelity Brokerage Services LLC. Member NYSE, SIPC SEC Rule 606 Quarterly Report for the Quarter Ending December 31, 2007 Summary Statistics : Securities Listed on NYSE Euronext Non-directed orders as percentage of total customer orders % Market orders as percentage of total non-directed orders 60.29% Limit orders as percentage of total non-directed orders 33.98% Other orders as percentage of total non-directed orders 5.73% Venues Receiving Significant Percentage of Total Non-Directed Orders : 1. Knight Capital Markets, L.L.C % 2. Automated Trading Desk Financial Services, L.L.C % 3. Citadel Derivatives Group, L.L.C % 4. National Financial Services Corporation 10.22% 5. Madoff (Bernard L.) Investment Securities, L.L.C. 8.67% 6. NYSE Euronext 7.51% 7. UBS Securities, L.L.C. 5.11% 8. E*Trade Cap MKTS/CHXL Trading 1.47% 9. Melvin Securities, L.L.C. 0.54% 10. NYSE ARCA 0.39% Information Concerning Significant Venues : 1. Knight Capital Markets, L.L.C. Market orders as percentage of total market orders 23.75% Limit orders as percentage of total limit orders 32.12% Other orders as percentage of total other orders 93.24% 2. Automated Trading Desk Financial Services, L.L.C. Market orders as percentage of total market orders 25.03% Limit orders as percentage of total limit orders 12.98% Other orders as percentage of total other orders 4.05% Page 1 of 8

2 3. Citadel Derivatives Group, L.L.C. Market orders as percentage of total market orders 14.76% Limit orders as percentage of total limit orders 20.27% 4. National Financial Services Corporation Market orders as percentage of total market orders 11.94% Limit orders as percentage of total limit orders 8.88% 5. Madoff (Bernard L.) Investment Securities, L.L.C. Market orders as percentage of total market orders 10.91% Limit orders as percentage of total limit orders 6.15% 6. NYSE Euronext Market orders as percentage of total market orders 7.32% Limit orders as percentage of total limit orders 9.11% 7. UBS Securities, L.L.C. Market orders as percentage of total market orders 4.36% Limit orders as percentage of total limit orders 6.83% Other orders as percentage of total other orders 2.70% 8. E*Trade Cap MKTS/CHXL Trading Market orders as percentage of total market orders 1.80% Limit orders as percentage of total limit orders 1.14% 9. Melvin Securities, L.L.C. 10. NYSE ARCA Market orders as percentage of total market orders 0.13% Limit orders as percentage of total limit orders 1.37% Market orders as percentage of total market orders 0.00% Limit orders as percentage of total limit orders 1.14% Page 2 of 8

3 Securities Listed on The Nasdaq Stock Market Summary Statistics : Non-directed orders as percentage of total customer orders % Market orders as percentage of total non-directed orders 75.30% Limit orders as percentage of total non-directed orders 17.87% Other orders as percentage of total non-directed orders 6.83% Venues Receiving Significant Percentage of Total Non-Directed Orders : 1. Knight Equity Markets, L.P % 2. National Financial Services Corporation 22.09% 3. UBS Securities, L.L.C % 4. Automated Trading Desk Financial Services, L.L.C % 5. Citadel Derivatives Group, L.L.C % 6. Madoff (Bernard L.) Investment Securities, L.L.C. 2.01% 7. Lehman Brothers, Inc. 1.81% 8. Citigroup Global Markets, Inc. 1.00% 9. Bear, Stearns & Co. Inc. 0.20% Information Concerning Significant Venues : 1. Knight Equity Markets, L.P. Market orders as percentage of total market orders 29.07% Limit orders as percentage of total limit orders 35.96% Other orders as percentage of total other orders 38.24% 2. National Financial Services Corporation Market orders as percentage of total market orders 23.73% Limit orders as percentage of total limit orders 14.61% Other orders as percentage of total other orders 23.53% 3. UBS Securities, L.L.C. Market orders as percentage of total market orders 17.07% Limit orders as percentage of total limit orders 20.22% Other orders as percentage of total other orders 20.59% 4. Automated Trading Desk Financial Services, L.L.C. Market orders as percentage of total market orders 12.53% Limit orders as percentage of total limit orders 13.48% Other orders as percentage of total other orders 11.76% 5. Citadel Derivatives Group, L.L.C. Market orders as percentage of total market orders 12.80% Limit orders as percentage of total limit orders 7.87% Other orders as percentage of total other orders 5.88% Page 3 of 8

4 6. Madoff (Bernard L.) Investment Securities, L.L.C. Market orders as percentage of total market orders 1.60% Limit orders as percentage of total limit orders 4.49% 7. Lehman Brothers, Inc. Market orders as percentage of total market orders 2.13% Limit orders as percentage of total limit orders 1.12% 8. Citigroup Global Markets, Inc. Market orders as percentage of total market orders 0.80% Limit orders as percentage of total limit orders 2.25% 9. Bear, Stearns & Co. Inc. Market orders as percentage of total market orders 0.27% Limit orders as percentage of total limit orders 0.00% Page 4 of 8

5 Securities Listed on The American Stock Exchange or Regional Exchanges Summary Statistics : Non-directed orders as percentage of total customer orders % Market orders as percentage of total non-directed orders 60.00% Limit orders as percentage of total non-directed orders 34.67% Other orders as percentage of total non-directed orders 5.33% Venues Receiving Significant Percentage of Total Non-Directed Orders : 1. Knight Capital Markets, L.L.C % 2. Citadel Derivatives Group, L.L.C % 3. Archipelago Trading Services, Inc. 2.67% 4. Automated Trading Desk Financial Services, L.L.C. 2.67% 5. E*Trade Cap MKTS/CHXL Trading 1.33% 6. National Financial Services Corporation 1.33% 7. UBS Securities, L.L.C. 1.33% Information Concerning Significant Venues : 1. Knight Capital Markets, L.L.C. Market orders as percentage of total market orders 80.00% Limit orders as percentage of total limit orders 61.54% Other orders as percentage of total other orders % 2. Citadel Derivatives Group, L.L.C. Market orders as percentage of total market orders 13.33% Limit orders as percentage of total limit orders 23.08% 3. Archipelago Trading Services, Inc. Market orders as percentage of total market orders 0.00% Limit orders as percentage of total limit orders 7.69% 4. Automated Trading Desk Financial Services, L.L.C. Market orders as percentage of total market orders 0.00% Limit orders as percentage of total limit orders 7.69% 5. E*Trade Cap MKTS/CHXL Trading Market orders as percentage of total market orders 2.22% Limit orders as percentage of total limit orders 0.00% Page 5 of 8

6 6. National Financial Services Corporation Market orders as percentage of total market orders 2.22% Limit orders as percentage of total limit orders 0.00% 7. UBS Securities, L.L.C. Market orders as percentage of total market orders 2.22% Limit orders as percentage of total limit orders 0.00% Page 6 of 8

7 Exchange - Listed Options Summary Statistics : Non-directed orders as percentage of total customer orders % Market orders as percentage of total non-directed orders 20.91% Limit orders as percentage of total non-directed orders 79.09% Other orders as percentage of total non-directed orders 0.00% Venues Receiving Significant Percentage of Total Non-Directed Orders : 1. The Chicago Board Options Exchange 36.36% 2. The Philadelphia Stock Exchange 26.36% 3. NYSE ARCA 17.27% 4. The International Securities Exchange 14.09% 5. The Boston Option Exchange 4.09% 6. American Stock Exchange 1.82% Information Concerning Significant Venues : 1. The Chicago Board Options Exchange Market orders as percentage of total market orders 47.83% Limit orders as percentage of total limit orders 33.33% 2. The Philadelphia Stock Exchange 3. NYSE ARCA Market orders as percentage of total market orders 17.39% Limit orders as percentage of total limit orders 28.74% Market orders as percentage of total market orders 10.87% Limit orders as percentage of total limit orders 18.97% 4. The International Securities Exchange Market orders as percentage of total market orders 6.52% Limit orders as percentage of total limit orders 16.09% 5. The Boston Option Exchange Market orders as percentage of total market orders 13.04% Limit orders as percentage of total limit orders 1.72% Page 7 of 8

8 6. American Stock Exchange Market orders as percentage of total market orders 4.35% Limit orders as percentage of total limit orders 1.15% Page 8 of 8