  We present an approximation scheme for the calculation of the principal
excitation energies and transition moments of finite many-body systems. The
scheme is derived from a first order approximation to the self energy of a
recently proposed extended particle-hole Green's function. A hermitian
eigenvalue problem is encountered of the same size as the well-known Random
Phase Approximation (RPA). We find that it yields a size consistent description
of the excitation properties and removes an inconsistent treatment of the
ground state correlation by the RPA. By presenting a hermitian eigenvalue
problem the new scheme avoids the instabilities of the RPA and should be well
suited for large scale numerical calculations. These and additional properties
of the new approximation scheme are illuminated by a very simple exactly
solvable model.
