DesiDentist,
I posted this reply previously to a similar question. Hope it helps:
I don't think they necessarily care about word number. Are there still copies of the paper form of the application available? I had the advantage of typing mine out on that to get an idea for how much they wanted. It's basically about 4/5 the size of a regular sheet of paper, and I did mine single-space (spacing only between paragraphs) and 10-pt font, and I filled the alotted space. What is good about doing it on the comp, is that there is no space limit, so you don't have to cut out things you like if you can't fit them. My advice is to see how much space your statement would take up on regualtr paper. If it is too long, they will get bored reading it! It is better to have a shorter one with stronger content!