December 31, 2006 Adjustments to Endowment Spending Bases

Paul A. Robell, Vice President for Development and Alumni Affairs

As you are aware, the Foundation recalculates the spendable base of each endowment quarterly. We are pleased to share with you that as of December 31, 2006 virtually all endowment funds have received a modest increase in their spendable bases. The average increase was 0.343%; you can confirm the adjustment to a particular fund by checking on FAS where these adjustments are now posted. The spending transfer for each endowment will continue to be 4% of the growing spendable base.

We are pleased to report that the endowment had a total investment return of 6.25% (net of investment management fees) for the quarter ending December 31, 2006. Fiscal year-to-date returns are 8.56%. This is reflected in the adjustment to spendable base described above.