Susan Thompson Buffett Foundation

WARREN E. BUFFETT
1440 KIEWIT PLAZA
OMAHA, NEBRASKA 68131
TELEPHONE (402) 346-1400





June 26, 2006



The Board of Directors
Susan Thompson Buffett Foundation

Dear Directors:

I am delighted by the way in which Allen and you have carried out Susie’s wishes for the foundation. She and I established the Susan Thompson Buffett Foundation (“STB”) to focus intensely on important societal problems that had very limited funding constituencies. Under Allen’s leadership, the foundation has succeeded beyond our high expectations – delivering enormous results per dollar spent.

It is time to increase the flow of these dollars. By this letter, I am making a lifetime commitment to annually give shares of Berkshire Hathaway to STB that should more than double its spending capabilities. The initial gift will allow you to increase your annual expenditures by about $150 million. The only condition to this commitment is that STB must continue to satisfy legal requirements qualifying my gifts as charitable and not subject to gift or other taxes.

Here are the mechanics of my pledge: One million B shares will be earmarked by me for STB contributions. (I currently own only A shares but will soon convert a number of these to B.) In July of every year, beginning next month, 5% of the balance of the earmarked shares will be contributed to STB. To illustrate, in 2006, 50,000 shares will be contributed. In 2007, 47,500 shares (5% of the 950,000 remaining after the 2006 contribution) will be contributed and thereafter 5% fewer shares will be contributed each year.

The value of Berkshire shares will, of course, vary from year to year. And, as noted, the number of shares STB receives will diminish by 5% per year. Nevertheless, I believe that you can reasonably expect the value of the Berkshire shares you will receive to increase, in an irregular manner, by an amount that more than compensates for the decline in the number of shares you will be receiving. Over time, the increase may be substantial.


The Board of Directors
Susan Thompson Buffett Foundation
June 26, 2006
Page 2


STB can rely on this pledge and immediately expand its activities. My doctor tells me that I am in excellent health, and I certainly feel that I am. If I should become incapacitated, however, and be unable to administer my affairs, I direct whoever is handling my affairs to honor the commitment I am making in this letter. Additionally, I will soon write a new will that will provide for a continuance of this commitment – by distribution of the remaining earmarked shares or in some other manner – after my death.

I regard Berkshire as an ideal asset to underpin the long-term well-being of a foundation. The company has a multitude of diversified and powerful streams of earnings, Gibraltar-like financial strength, and a deeply-imbedded culture of acting in the best interests of shareholders. Outstanding managers are available to succeed me. I expect Berkshire to become ever-stronger and more profitable as it makes new acquisitions and expands present businesses.

I hope STB maintains its strong focus on just one or two important issues, though I expect also that it will make some smaller contributions from time to time in a variety of areas, including a few that are local in nature. The foundation’s policy of concentration has produced extraordinary results in the past and offers the best prospect for that performance being repeated in the future.

I am enormously proud of what STB has accomplished. And you can be sure that Susie would be as well.

Sincerely,



Warren E. Buffett

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