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LIST SERVICE DIRECT, INC.'S

ETHNIC AND RELIGIOUS ENCODING SYSTEM

(ERES)

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(201) 585-1447 (800) 371-5487 FAX:

In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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(201) 585-1447 (800) 371-5487 FAX:

In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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List Service Direct, Inc. is a full range list services firm specializing in ethnic and religious target marketing. With over twenty-five years of experience and advanced expertise, our proprietary ethnic encoding system identifies 175 different ethnic and religious categories and 80 languages, all of which can be coded and appended to any database within as little as 24 hours.

ETHNIC AND RELIGIOUS ENCODING SYSTEM (ERES) Humans are social animals. Individuals form groups; groups form cultures, and cultures evolve into civilizations. Names have created a unique means of identifying and categorizing individuals. List Service Direct, Inc.�s Ethnic and Religious Encoding System (ERES) utilizes this historical concept as one component of its process. The process has created a rule and exception based expert learning program that incorporates the idea that each group has last and first names that will be unique to that group. By applying specific criteria in a specific order, the ethnic, religious, and minority identity of the individual can be ascertained. The accuracy of this identification is further enhanced by applying a geographical analysis, based on census tract data, of the name within the ethnic, religious or minority group. ERES is NOT A SURNAME BASED SYSTEM. Rather, it is a new process that allows the marketer or researcher to select over 190 ethnic, religious, and minority groups from any list. It analyzes both an individuals first and last name and applies, in a specific order, ethno-linguistic and geocentric rules to both the surname prefix and suffix and identifies the specific ethnic, religious, and minority status of individuals, even an individual with a multi-ethnic surname. The ethnic encoding system consists of a set of interfacing computer programs and 17 data files some of which are:

A unique first name file by ethnicity A non-unique surname file by ethnicity A series of two to five character prefix rules by ethnicity A series of two to five character suffix rules by ethnicity A series of codes to identify the ethnic, religious and minority status of an individual A geocentric reference table A series of computer programs that analyze an individual�s names using the systems data.

In addition ERES is exclusive in its ability to recognize hyphenated and misspelled names, which the system correctly codes based on the prefix and suffix rules. Hyphenated names are captured using ERES� first name and surname tables in conjunction with the prefix and suffix rules that apply to them.

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One of the building blocks of the system is its ability to trace the onomastic over 1,190 variables which include Ethnic Heritage Descriptions, Locational Identifiers, and Ethnic Life Form & Individual Trait Describers.

Ethnic Heritage Descriptors: An ethnic heritage descriptor is a link to the parentage of the individual. Each ethnicity and language has a different way of expressing this within the first or the last name. ERES uses these descriptors (either suffixes or prefixes appended to first or last name) to accurately identify particular names unique to particular ethnic groups. Below are several examples that will illustrate the way ethnic heritage describers may be used. In Finnish, suffix �NEN� means the �offspring of�. In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. The suffix �UCCI� means �descendant of� in Italian while the Turks use the suffix �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is implied in the prefix �O�, while the prefix �MC� means �son of�. To designate �Uncle�, the Burmese use the prefix �U�. Ethnic Locational Identifiers: During the Dark and Middle Ages it was essential that an individual could be traced to his country of origin or his geographic location within a country. This information immediately identified the individual as friend or foe. One method that was adapted was to add an identifier to his name in the form of a prefix or suffix. Geographic locators are important to the ethnic identifier process as well. In addition to the suffixes and prefixes and the rules derived therein, ERES incorporates actual U.S. geographic coordinates to determine ethnic, religious and minority group clusters enhancing the accuracy of our system. Below are some examples of ethnic locational identifiers and the popular name �myths� they refute. In the Finnish ethnicity, the surname suffixes �OLA� �YLA� and �KOSKI� mean upper, lower, and middle respectively. �KOSKI� refutes the popular notion that all names ending in SKI are Polish and �OLA� proves that not all names ending in a vowel are Italian. The French use the prefixes �DU, DE, DELAS, and DES� to designate �from�; while the Romanians use �AN-U� and �EANU� to convey the same meaning. Italian names ending in �DDA� and �DDO� denote Sardinia heritage.

Ethnic locational identifiers help ERES to correctly determine the ethnic origin of all groups including Italian and Polish. (see above Finnish). Other systems currently in use do not have this ability and are far less accurate.

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(201) 585-1447 (800) 371-5487 FAX:

In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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Ethnic Life Form & Individual Trait Descriptors: Early naming conventions were also created as a means of classifying individuals by their physical attributes and likeness to animals (sometimes not flattering). These life form and trait descriptors offer an unusual method of identifying individuals by ethnic group. The Italians provide us with many examples of both life form and individual trait descriptors: �FUZZO�(�curly), �MANCINI�(�left handed�), �LAGO�(�tall�) and �FASANO� (�pheasant�). Less flattering is �BOCCACIO� (�ugly mouth�) �IZZO� (�snail�), and �MUSSOLINI� (�gnats�).

ERES uses them in combination with the ethnic heritage descriptor ethnic locational identifiers to help build its rule and exception based system. These rules enable ERES to correctly identify ethnicity of names that might be eliminated or inaccurately identified using surname systems, and other programs and assign them to their correct ethnic group. Religious Affiliation: ERES has a code that determines religious affiliation. The process cannot, however, distinguish denominations, sects and the like within individual religions. For example, it cannot accurately determine who is Baptist or Calvinist within the Protestant group. Nor can it select Hasidic Jewish groups from the Jewish population at large. Religious affiliations are determined by geographic locators and ethnic group identifiers.

ETHNIC CLOSE UP: African-American ERES goes well beyond knowing which areas have high concentrations of African-Americans. It identifies Africans based African-American names with its unique first name and surname tables. Individuals identified in this manner may reside anywhere in the United States, not just in African-American clusters. In addition, our system identifies African-Americans with non African based but unique first names anywhere in the United States. Sheneka Brinter living in Fort Lee, NJ is African American. So is Amarta Azubuike. As a further safeguard, ERES looks within the African-American clusters and eliminates all non-black ethnicities, qualifying only those individuals with commonly borrowed ethnic names and certain Islamic names. ERES continually refines the selection criteria to ensure that the name identified as African-American will be African-American; not just a �could be� but an �is�.

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ETHNIC CLOSE UP: Hispanic ERES identifies Hispanic individuals by unique last and first names using rules and exceptions that apply. Geographic mapping confirms the locations of this population and will identify Hispanics in non-Hispanic areas. There are many multi-ethnic names (e.g. Delgado), which could be Hispanic but could also be Italian. ERES can separate the multiethnic name into its proper component ethnicities by using first names where possible. The remainder is stored with the multiethnic uncoded class until they are verified as being Hispanic using first name indicators. Our system�s unique first name table identifies Hispanic women who marry individuals with non-Hispanic surnames. Quite often, Hispanics marrying Hispanics lead to hyphenated names. ERES identifies these and some misspelled names with its ethno-linguistic rules. Further ERES can accurately identify and differentiate Mexican, Puerto Rican, Cuban, Portuguese, and Brazilian � a List Service Direct exclusive. ETHNIC CLOSE UP: Japanese Almost all Japanese names are combinations of descriptive components. Although the Japanese surname is the easiest Oriental name to distinguish, (especially since they were not influenced by the Chinese) most surname based systems have included all Asians in a category known as �Oriental�. Therefore, the Koreans, who not only share certain surnames with the Chinese but often introduce Chinese qualifiers to their names, are mixed with the Japanese and other Asian ethnic groups. ERES has separate and unique prefix and suffix rules and exceptions for all ethnic groups including those representing the continent of Asia. Also, we have an extensive Japanese surname and first name table. These features allow us to identify Japanese in traditionally non-Japanese areas such as Mark Tanaka and Junko Takahashi in Omaha, Nebraska and to also identify Japanese women who have non-Japanese surnames. ERES views each ASIAN ethnic group as a separate and identifiable selection by creating rules and exceptions based on the study of the history and development of surnames and first names with the culture of each country. This allows the user of our system to target and select a particular ethnic group, such as Japanese.

(201) 585-1447 (800) 371-5487 FAX:

(201) 585-1447 (800) 371-5487 FAX:

In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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ERES UPDATE

With the availability of the latest Census information the ERES geo-coding protocol was updated to contain the new geographic tables, which include African-American, American Indians and Hispanic Origin of every census tract in the United States, down to the block group level.

From the latest Census data we have incorporated Ethnic Origin and Hispanic Origin data for every Census Track Block Group in the United States.

# of unique Block Groups: 214,412 # of unique Tracks: 65,994 # of Block Groups with an African American Percentage greater than 90%: 10,569 # of Block Groups with an African American Percentage greater than 80%: 14,719 # of Block Groups with an African American Percentage greater than 70%: 18,336 # of Block Groups with an Hispanic Origin Percentage greater than 90%: 5,755 # of Block Groups with an Hispanic Origin Percentage greater than 80%: 8,346 # of Block Groups with an Hispanic Origin Percentage greater than 70%: 11,372

# of Block Groups with an American Indian Percentage greater than 90%: 390

This data allows us to identify the smallest possible pockets of a given ethnicity. This pinpoint accuracy improves ERES� ability to find Ethnic pockets in non-ethnic zip codes. We use geographic data as a component when determining African-American, American Indian, and Spanish Speaking households.

The updated geo table improves ERES� accuracy and identifies additional African American and Spanish Speaking Households, by locating and recognizing these households outside of high African American and Spanish Speaking zip codes.

For example, Thomas Smith living in zip code 11361, can now be correctly identified as African American because he lives in a census block that is predominantly African American. The zip code 11361 is not identified as a high population African American zip code, but the census tract block group that Thomas Smith lives in is identified as a high population African American census tract block group.

This new version of the Ethnic System utilizes population percentages of each Ethnic Group/Hispanic Origin for every census tract in the United States down to the block group level. The latest census data has been applied to every census tract in the United States.

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Completeness and Accuracy: In order to correctly determine the accuracy of our data and the algorithms contained within, we contracted with a national market research company to conduct a telephone study. Sample size was determined by the research company to ensure that the resulting data would be at the 95th level of confidence. We set up quotas by major ethnicity (Hispanic, African American, Asian and "Other") in an effort to make sure each was properly represented in the study. A total of 1,566 telephone interviews were conducted. A telephone methodology was chosen for its ability to reach a larger number of respondents quicker and at less cost than a mail study.

The sample for the study was pulled from LSDI�s national database using a random nth selection. Each piece of sample was assigned a sample number. This number was used after the data was tabulated to cross match the data from each individual completed interview with the data for that record contained in our database. In other words, if a respondent indicated that they are Hispanic in the survey, we would look at that respondent's data record in our database to see if the data matched as a way of checking accuracy. This extra step was done in addition to the standard data tabulations that were completed for the study. Our findings indicated that different ethnicities produced different levels of cooperation and accuracy. Please see the chart below, which reflects cooperation and accuracy by major ethnicity.

ETHNICITY COOPERATION ACCURACY HISPANIC 48% 94% ASIAN 39% 86% AFRICAN AMERICAN 47% 90% OTHER 46% 92%

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In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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SOFTWARE LICENSING: Site licenses are available and include.

The software package that performs a detailed analysis of each name on either a residential or business database.

A coding structure that is added to your file that ascertains the ethnic, religious, and minority status of each individual, as well as a code to define the likelihood that the individual thinks in and speaks their native language.

Documentation for both system implementation and usage. Assistance with system implementation and usage training, both for data processors and

marketers. Membership in ERES Users Support.

System Delivers List Service Direct Inc. System is rule based Yes

Rules include first name Yes Number of first names 70,121 Rules include surname Yes Number of surnames 469,731 Rules include suffixes Yes Rules include prefixes Yes

Latest census data Yes Use Zip + 4 prior to encoding Yes

Encodes on either residential or bus files Yes Can identify ethnicities in any U.S. geo location Yes

Accuracy levels 96% Encoding rates 82% to 95%

Deliverability Rates 94% Number of ethnicities 163 Number of religions 12

Number of language groups 80 Can reach specific groups within Asian

population Yes Examples of Asian ethnicities Chinese, Korean, Thai,

Vietnamese, Filipino, Japanese Differentiates within Hispanic ethnicities Yes

Examples of other ethnicities Greek, African American Types of access to ethnic coding Rental, append, license

Ongoing support Dedicated customer service &

technology service team.

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Descriptions and Explanation of Usage On the following pages are summary level counts by ethnicity, which depict the actual record counts that ERES stores and utilizes when analyzing an individuals full name and address. For each ethnicity there are columns for the number of onomastic rules that apply to that ethnicity, the number of unique first names applicable to that ethnicity, and the number of surnames stored for that ethnicity. ONOMASTIC RULES (Prefix & Suffix Rules) There are 1,192 onomastic rules currently implemented in our ethnic system. Each rule reaching implementation level was hypothesized and tested to ensure validity. Implemented rules apply to the examination of the prefix and suffix of a surname. When an individuals ethnicity cannot be determined by looking at the whole name, its component parts, the prefix and suffix are analyzed and matched against the rule files in a specific order. The order is governed by length of argument, i.e., search five character suffix before four character, the three character etc. Misspelled names, hyphenated names, and names new to this country are a few. Our Onomastic rules allow our process to outperform other surname based systems in all three above cases. UNIQUE FIRST NAME FILE ERES currently recognizes 70,121 unique first names that can be linked to a specific ethnicity. While there are no absolutes, the chance that a person with a first name �Fumihiko� is other than Japanese is statistically insignificant. Likewise, a person with the Igbo first name �Ogochukwu� is statistically unlikely to be other than from Africa or is an African American, even if their last name is �Smith�. SURNAME FILE ERES currently has 469,731 surnames on its surname file. Where surnames are useful due to numerous variations in prefix and suffix spellings, such as in Italian, there are a correspondingly large number of surnames compiled for that ethnicity. There are over 18,000 on file for Italian. Where a large proportion of individuals can be determined by either unique first names or onomastic rules, there are fewer names needed. For instance, in Japanese there are only about 2500 surnames on file, but there are 182 onomastic rules and another 500 plus unique first names.

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Vietnamese, Filipino, Japanese D

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In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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Ethnic, Religious, Minority (Group Classification) and Language Speaking Codes: ERES appends the following codes to every record.

Ethnic Code 2 bytes Religion Code 1 bytes Language Code 2 bytes Minority Grouping 1 bytes Hispanic Country of Origin 2 bytes African American Confidence Code 1 bytes Assimilation Code 1 byte

Religious Identity Code:

RELIGION RELIGION CODE Buddhist B Catholic C Greek Orthodox G Hindu H Islamic I Jewish J Siku K Lutheran L Mormon M Eastern Orthodox O Protestant P Shinto S Not Known or Unmatched

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Minority Classification Code:

GROUPS GROUP

CODE All African American Ethnic Groups F Hispanic Y Far Eastern O Southeast Asian A Central & Southwest Asian C Mediterranean M Native American N Scandinavian S Polynesian P Middle Eastern I Jewish J Western European W Eastern European E Other T Uncoded (No group)

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Unmatched

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In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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LANGUAGE CODE A Latvian L2 A Lithuanian L3 A Macedonian M1 A

N Portuguese P Romanian R1

C Russian R2 D Samoan S1 D S

Sinhalese S3 E

Spanish S8

G Swahili S9 G

Tajik T2

H Thai T3 H

Tongan T5 I

Turkmeni T7 I

Unknown K Urdu U1 K

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Hispanic Country of Origin Codes:

Country LSDI Country

Code Argentina HA Bolivia HB Brazil HZ Chile HQ Colombia HJ Costa Rica HR Cuba HC Dominican Republic HD Ecuador HL El Salvador HE Guatemala HG Honduras HH Mexico HM Nicaragua HN Panama HK Paraguay HY Peru HX Puerto Rico HP Spain HS Uruguay HU Venezuela HV Unknown

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Language Speaking Codes:

LANGUAGE CODE LANGUAGE CODE Afrikaans A1 Latvian L2 Albanian A2 Lithuanian L3 Amharic A3 Macedonian M1 Arabic A4 Malagasy M2

Armenian A5 Malay M3 Ashanti A6 Moldavian M4 Azeri A7 Mongolian M5 Bantu B1 Nepali N1

Basque B2 Norwegian N2 Bengali B3 Oromo O1

Bulgarian B4 Pashto P1 Burmese B5 Polish P2 Chinese C1 Portuguese P3

Comorian C2 Romanian R1 Czech C3 Russian R2 Danish D1 Samoan S1 Dutch D2 Serbo-Croatian S2

Dzongha D3 Sinhalese S3 English E1 Slovakian S4

Estonian E2 Slovenian S5 Farsi F1 Somali S6

Finnish F2 Sotho S7 French F3 Spanish S8

Georgian G1 Swahili S9 German G2 Swazi SA

Ga G3 Swedish SB Greek G4 Tagalog T1 Hausa H1 Tajik T2 Hebrew H2 Thai T3

Hindi H3 Tibetan T4 Hungarian H4 Tongan T5 Icelandic I1 Turkish T6

Indonesian I2 Turkmeni T7 Italian I3 Tswana T8

Japanese J1 Unknown Kazakh K1 Urdu U1 Khmer K2 Uzbeki U2 Kirghiz K3 Vietnamese V1 Korean K4 Xhosa X1 Laotian L1 Zulu Z1

(201) 585-1447 (800) 371-5487 FAX:

(201) 585-1447 (800) 371-5487 FAX:

In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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Nigerian MT F

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Syrian DK I N

T Tanzanian W4 F

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Ethnic Codes:

ETHNIC DESC ETHNIC CODE

GROUP CODE ETHNIC DESC

ETHNIC CODE

GROUP CODE

Afghani C1 A Danish N1 S African American 1 M0 F Djibouti WE F African American 2 WL F Dutch N2 W Albanian U0 E Egyptian D3 I Aleut R1 N English T3 W Algerian D0 I Equat Guinea MD F Angolan M1 F Estonian UA E Arab D1 I Ethiopian ME F Armenian U1 C Fiji R4 P Ashanti M2 F Filipino/Philippines RE P Australian RP T Finnish N3 S Austrian U2 W French T4 W Azerb U3 C Gabon MF F Bahrain D2 I Gambia MG F Bangladesh C2 A Georgian UB C Basotho M3 F German T5 W Basque T2 Y Ghana MH F Belgian T1 W Greek D4 M Benin M4 F Guinea-Bissau MJ F Bhutanese M5 A Guinean WF F Bosnian U4 E Guyana MK T Botswanian WM F Hausa WN F Bulgarian U5 E Hawaiian R5 P Burkina Faso M6 F Hispanic T9 Y Burundi M7 F Hungarian UC E Byelorussian/Belorussian U6 E Icelandic N4 S Cameroon M8 F Indian C3 A Caribbean African American WP F Indonesian R6 O Cent Afric Rep M9 F Iraqi D5 I Chad MA F Irish T6 W Chechnian U7 C Italian T7 M Chinese R3 O Ivory Coast ML F Comoros MB F Japanese R7 O Congo MC F Jewish D7 J Croatian U8 E Kazakh UD C Czech U9 E Kenya MM F

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Ethnic Codes (Cont.):

ETHNIC DESC ETHNIC CODE

GROUP CODE ETHNIC DESC

ETHNIC CODE

GROUP CODE

Khmer/Cambodia/Kampuchea R8 O Nigerian MT F Kirghiz UE C Norwegian N5 S Korean R9 O Other Asian RD A Kurdish D6 W Pakistani C4 A Kuwaiti D8 I Papua New Guinea MV P Kyrgyzstani UF C Persian DH I Laotian RA O Pili RS P Latvian UG E Polish UJ E Lesotho MN F Portuguese T8 Y Liberian MO F Qatar DG I Libyan D9 I Romanian UK E Liechtenstein TE W Ruandan MW F Lithuanian UH E Russian UL E Luxembourgian TF W Saudi DJ I Macedonian DE E Scottish N6 W Madagascar MP F Senegalese MX F Malawi MQ F Serbian UM E Malay RB O Seychelles WJ F Maldivian RJ T Sierre Leone MY F Mali MR F Slovakian UN E Maltese DS M Slovenian UP E Manx TJ W Somalia MZ F Mauritania WG F South African W0 F Moldavian UI E Sri Lankan C5 A Mongolian RC O Sudanese W2 F Moroccan DF I Surinam W1 T Mozambique MU F Swahili WS F Multi-Ethnic ZZ Z Swaziland W3 F Myanmar R2 O Swedish N7 S Namibian MS F Swiss TH W Native American KS N Syrian DK I Nauruan RK P Tajik UR C Nepal C6 A Tajikistan UQ C New Zealand RM T Tanzanian W4 F Niger WH F Telugan C7 A

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D Djibouti WE F

A Dutch N2 W A

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Hispanic T9 Y

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Iraqi D5 I C

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In Welsh, the original prefix �AP� (since shortened to �P� when combined with a first name) means �offspring of�. Thus, PROBERT is Welsh for �offspring of Robert�. �BASHI� to mean �father of�. Prefixes play an important role in identifying some Irish names. �Grandson of� is �Uncle�, the Burmese use the prefix �U�.

vowel are Italian.

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Within each level of assimilation the individual's spending

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Ethnic Codes (Cont.):

ETHNIC DESC ETHNIC CODE

GROUP CODE

Thai RF O Tibetan RG O Togo W5 F Tonga W6 P

Tunisian DL I Turkish DM W

Turkmenistan UT C Ugandan W7 F Ukrainian UV E Unknown 00 Z

Uzbekistani UW C Vanuatuan RQ P Vietnamese RH O

Welsh N8 W Western Samoa WK P

Xhosa W8 F Yemeni DN I

Zaire W9 F Zambian WA F

Zimbabwe WB F Zulu WC F

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Assimilation Codes :

Assimilation is the process whereby an individual new to the country adopts the customs and attitudes of the prevailing culture. Within each level of assimilation the individual's spending habits, socioeconomic status, language and lifestyle preferences differ. ERES also applies Assimilation codes to Hispanic and many other minority groups.

ASSIMILATION DESCRIPTION CODE Assimilated - English Speaking A

Bilingual - English Primary B Bilingual - Native Language Primary C

Unassimilated - Native Language Only D

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