Penn State Investment Association Weekly Update July 14

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Penn State Investment Association Weekly Update: July 14, 2008 Board of Directors Summary Highlights The Nittany Lion Fund LLC. returned a loss of -1. 50% for the week ending July 11, 2008, while the S&P 500 returned a loss of -1. 81%. Year to date, the Fund has returned a loss of -9. 29% versus the S&P 500 which has returned a loss of -14. 92%. Sinception the Fund has returned 5. 80% on an annualized basis while the S&P 500 has returned 2. 31%. Performance this week was driven by the Healthcare, Consumer Staples, and Utilities sectors There was 1 presentation last week. The Information Technology sector presented a buy for Research In Motion Ltd. (RIMM) for the bench, and it was approved There are 4 presentations this week. The Consumer Discretionary sector is presenting a sell for Carnival Corp. (CCL), while the Financials sector is presenting a hold for Met. Life Inc. (MET). The Telecommunications sector is presenting holds for Cisco Systems, Inc. (CSCO) and AT&T (T) President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Economic Outlook: forward on Tuesday, the producer price index could jump about 1. 5% for June, with the "core" rate up about 0. 3%, while the Commerce Department tallies June retail data, with stimulus checks providing a lift. Fed releases minutes from its June 25 meeting, when it left rates unchanged but noted that uncertainty about the inflation outlook "remains high. " CPI will also be out with regards to the economy’s inflation worries. On Thursday, there will be earnings reports from Microsoft, Google, Nokia and IBM, as well as J. P. Morgan, Merrill Lynch, United Technologies, Coca-Cola and Continental Airlines ► Looking

Penn State Investment Association Weekly Update: July 14, 2008 Board of Directors Director of PAG Tom Waters tjw 5061@psu. edu Associate Director of PAG Stratton Matthews ssm 5013@psu. edu Summer Director of PAG Brad Lightner bcl 5023@psu. edu President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick

Penn State Investment Association Weekly Update: July 14, 2008 Technical Analysis Group Market Overview Commentary: ► The market is currently below the 1300 level. TAG is expecting the market to swing up slightly this week. The downward trend should continue after this week. Last week we had a break in the previous lows. After the short term rise for this week, we should continue to see the market fall to new lows. While the market is currently up a percent, it may gap fill on Monday and close down. However, from there it should rise for the most part of this week. Once we see a break in the new lows in the next few weeks, we should see a substantial downward move, as we do not have too much support to push the market up Director of TAG Justin Di. Pietro jzd 131@psu. edu S&P 500 Daily Chart S&P 500 30 Min Chart President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Consumer Discretionary Director of Equity Research Jack Z. Sun jacksun@psu. edu Consumer Discretionary Lead Analyst Adam Brown apb 5039@psu. edu Associate Analyst Brad Lightner bcl 5023@psu. edu Nike (NKE) ►Sub-sector: Footwear ►Status: Purchased on 4/6/05 at $41. 46 ►Current Price: $56. 26 ►Target Price: $78. 83 ►Trailing P/E: 15. 06 ►Forward P/E: 12. 56 ►LT EPS Growth Rate: 13. 90% ►Market Cap: $27. 65 Billion ►% of Total Portfolio: 2. 84% Commentary ►Nike is trading down more than 25. 00% from its 52 -week high of $70. 60 after reporting slow domestic growth in its fourth quarter Walt Disney (DIS) ►Sub-sector: Entertainment Purchased on 11/28/07 at $32. 07 ►Current Price: $29. 20 ►Target Price: $43. 11 ►Trailing P/E: 13. 17 ►Forward P/E: 11. 82 ►LT EPS Growth Rate: 13. 78% ►Market Cap: $55. 63 Billion ►% of Total Portfolio: 1. 88% ►Status: Commentary ►A President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Lehman Brothers analyst downgraded Disney to “underweight” from “equal-weight, ” and cut his price target to $29. 00 from $40. 00, claiming the company is threatened by the growth of digital content distribution and potential weakness at its theme parks ►Lehman also downgraded several of Disney’s competitors, such as Time Warner and News Corp, on overall concern with the media and entertainment sector

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Consumer Discretionary Director of Equity Research Jack Z. Sun jacksun@psu. edu Consumer Discretionary Lead Analyst Adam Brown apb 5039@psu. edu Associate Analyst Brad Lightner bcl 5023@psu. edu VF Corp (VFC) ►Sub-sector: Apparel Purchased on 4/2/08 at $78. 99 ►Current Price: $70. 64 ►Target Price: $86. 45 ►Trailing P/E: 13. 21 ►Forward P/E: 10. 67 ►LT EPS Growth Rate: 10. 00% ►Market Cap: $7. 71 Billion ►% of Total Portfolio: 1. 01% ►Status: Commentary ►VF Corp will report second quarter earnings on July 15. Analysts are expecting an EPS of $0. 88 a share, while they reported earnings of $0. 93 a share for the second quarter of 2007 ►VF Corp raised its second quarter earnings outlook recently, saying earnings would rise by 10. 00% to 12. 00% over its previously-issued view of $0. 80 per share "due to stronger earnings from operations and a net favorable benefit from the resolution of various tax matters” Carnival (CCL) ►Sub-sector: Cruise-lines ►Status: Purchased on 5/7/08 at $40. 96 ►Current Price: $30. 29 ►Target Price: $48. 03 ►Trailing P/E: 10. 41 ►Forward P/E: 10. 91 ►LT EPS Growth Rate: 14. 13% ►Market Cap: $23. 81 Billion ►% of Total Portfolio: 1. 25% Commentary President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick ►Carnival is trading close to its 52 -week low of $29. 67 due to market concerns over the effect of high oil prices on the cruise liner's bottom line and weak discretionary spending

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Consumer Discretionary Bench Stocks: Status: 1. Macy’s, Inc. (M) Approved for bench 2. Mc. Donald’s Corp. (MCD) Approved for bench 3. Omnicom (OMC) Approved for bench Focus List: 1. Boyd Gaming Corp. (BYD) Initiated coverage 2. American Eagle Outfitters, Inc. (AEO) Initiated coverage 3. TJX Companies, Inc. (TJX) 4. MGM Mirage (MGM) Initiated coverage 5. Game. Stop (GME) Initiated coverage 6. Chipotle Mexican Grill (CMG) Initiated coverage 7. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Dollar Tree (DLTR) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Consumer Staples Director of Equity Research Jack Z. Sun jacksun@psu. edu Consumer Staples Lead Analyst Bill Schultz wcs 146@psu. edu Associate Analyst Y. Dan Ha ydh 101@psu. edu CVS/Caremark Corp. (CVS) ►Sub-sector: Pharmacy Services Purchased on 12/27/05 at $28. 48 ►Current Price: $38. 64 ►Target Price: $47. 00 ►Trailing P/E: 19. 54 ►Forward P/E: 13. 37 ►LT EPS Growth Rate: 15. 90% ►Market Cap: $55. 23 Billion ►% of Total Portfolio: 3. 32% ►Status: Commentary ►A Jefferies analyst initiated coverage on CVS with a “buy” rating and a $50. 00 price target ►CVS increased its quarterly dividend to $0. 069 per share, which represents a 15. 00% increase ►CVS agreed to make Depomed, Inc. drug Glumetza available to its customers as a Tier 2, brandpreferred Metformin for the treatment of diabetes Fomento Economico Mexicano (FMX) ►Sub-sector: Beverages ►Status: Purchased on 6/26/08 at $42. 73 ►Current Price: $43. 58 ►Target Price: $56. 00 ►Trailing P/E: 18. 54 ►Forward P/E: 16. 57 ►LT EPS Growth Rate: 19. 20% ►Market Cap: $15. 59 Billion ►% of Total Portfolio: 2. 42% Commentary President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick ►Femsa announced that it will release its Q 2 results on Monday, July 28 before market opens. Analysts are expecting earnings of $0. 62 a share ►The Motley Fool gave FMX a 5 -Star rating, citing the company’s “diversification and growth prospects” as well as it positioning to take advantage “of the rise of Mexican consumerism. ” Historical data shows that Motley Fool 5 -star stocks outperform the market by a significant margin

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Consumer Staples Director of Equity Research Jack Z. Sun jacksun@psu. edu Consumer Staples Lead Analyst Bill Schultz wcs 146@psu. edu Associate Analyst Y. Dan Ha ydh 101@psu. edu Coca-Cola (KO) ►Sub-sector: Soft Drinks ►Status: Purchased on 7/7/08 at $51. 46 ►Current Price: $50. 27 ►Target Price: $67. 21 ►Trailing P/E: 18. 91 ►Forward P/E: 15. 01 ►LT EPS Growth Rate: 8. 67% ►Market Cap: $116. 77 Billion ►% of Total Portfolio: 2. 77% Commentary ►Coca-Cola imposed a hiring freeze for the rest of the year in the United States. A company spokesman stated that “this action allows the company to focus all of their attention on their plans to continue to build their business. ” The freeze does not include jobs in Mexico, Canada, or its Glaceau Vitamin Water ►Coca-Cola along with Cargill released ‘Truvia’, a calorie-free sweetener on July 9. The product is derived from an herb called stevia, which represents approximately 40% of the low and no calorie sweetener market in Japan Philip Morris Int’l (PM) ►Sub-sector: Tobacco ►Status: Purchased on 3/28/08 at $47. 66 ►Current Price: $53. 37 ►Target Price: $58. 00 ►Trailing P/E: 1. 24 ►Forward P/E: 14. 70 ►LT EPS Growth Rate: 12. 00% ►Market Cap: $112. 57 Billion ►% of Total Portfolio: 3. 26% President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►Philip Morris International was up 3. 69% over the week ending on July 11. This reflects investor confidence in tobacco and its strength in recessionary markets

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Consumer Staples Bench Stocks: Status: 1. William Wrigley Jr. Co. (WWY) Approved for bench 2. Target Corporation (TGT) Approved for bench 3. Bare Escentuals, Inc. (BARE) Approved for bench Focus List: 1. Wal-Mart Stores Inc. (WMT) Initiated coverage 2. Colgate-Palmolive (CL) Initiated coverage 3. H. J. Heinz Co. (HNZ) Initiated coverage 4. Sadia S. A. (SDA) Initiated coverage 5. Perdigao S. A. (PDA) Initiated coverage 6. Tupperware Brands CP (TUP) Initiated coverage 7. Unilever PLC (UL) Initiated coverage 8. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Companhia de Bebidas Das Americas (ABV) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Energy Director of Equity Research Jack Z. Sun jacksun@psu. edu Energy Lead Analyst Charles Petredis cwp 5019@psu. edu Associate Analyst Rishin Banker rrb 5042@psu. edu Helix Energy Solutions Group (HLX) ►Sub-sector: Equipment and Services ►Status: Purchased on 2/4/08 at $36. 92 ►Current Price: $38. 39 ►Target Price: $42. 89 ►Trailing P/E: 10. 89 ►Forward P/E: 8. 76 ►LT EPS Growth Rate: 25. 00% ►Market Cap: $3. 52 Billion ►% of Total Portfolio: 1. 23% Commentary ►Standard & Poor's announced that Helix Energy Solutions Group Inc. will replace Activision Inc. in the S&P Midcap 400 ►Helix Energy Solutions will conduct a conference call regarding its financial and operational results for the second quarter of 2008 on Thursday, July 31, 2008 before the market opens. Analysts are expecting earnings of $0. 85 per share, while they reported earnings of $0. 70 per share one year ago Apache Corp. (APA) ►Sub-sector: Exploration and Production ►Status: Purchased on 4/15/08 at $136. 51 ►Current Price: $124. 59 ►Target Price: $167. 94 ►Trailing P/E: 12. 53 ►Forward P/E: 7. 58 ►LT EPS Growth Rate: 9. 81% ►Market Cap: $41. 56 Billion ►% of Total Portfolio: 2. 16% President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►Apache will announce its second quarter earnings on July 31, 2008 before the market opens. Analysts are expecting them to report earnings of $3. 67 per share, while they reported earnings of $1. 89 per share a year ago ►Natural gas in New York declined to the lowest in six weeks amid speculation that supplies are adequate to meet demand lowered by milder weather conditions. Natural gas for August delivery fell $0. 396, or 3. 2%, to settle at $11. 904 per million BTUs

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Energy Director of Equity Research Jack Z. Sun jacksun@psu. edu Energy Lead Analyst Charles Petredis cwp 5019@psu. edu Associate Analyst Rishin Banker rrb 5042@psu. edu Noble Corporation (NE) ►Sub-sector: Drilling and Exploration ►Status: Purchased 12/21/06 at $43. 50 ►Current Price: $58. 91 ►Target Price: $73. 96 ►Trailing P/E: 11. 83 ►Forward P/E: 8. 15 ►LT EPS Growth Rate: 27. 50% ►Market Cap: $15. 83 Billion ►% of Total Portfolio: 3. 19% Commentary ►Noble Corporation announced that its second quarter 2008 earnings press release has been scheduled for Wednesday, July 23 after the market closes. Analysts are expecting earnings of $1. 37 per share, while they reported earnings of $2. 16 per share last year Chesapeake Energy Corporation (CHK) ►Sub-sector: Exploration and Production ►Status: Purchased 02/02/07 at $34. 11 ►Current Price: $63. 52 ►Target Price: $69. 80 ►Trailing P/E: 34. 94 ►Forward P/E: 14. 74 ►LT EPS Growth Rate: 15. 60% ►Market Cap: $34. 33 Billion ►% of Total Portfolio: 4. 20% Commentary ►Chesapeake President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Energy Corporation announced on July 8 it would publicly offer 25 million shares of its common stock with pricing set at $57. 25 per share ►Chesapeake Energy Corp said on Wednesday it expects a net loss for the second quarter due to its hedging strategy

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Energy Director of Equity Research Jack Z. Sun jacksun@psu. edu Energy Lead Analyst Charles Petredis cwp 5019@psu. edu Associate Analyst Rishin Banker rrb 5042@psu. edu Schlumberger Limited (SLB) ►Sub-sector: Equipment and Services Purchased 2/2/07 at $78. 32 ►Current Price: $99. 16 ►Target Price: $121. 16 ►Trailing P/E: 22. 92 ►Forward P/E: 16. 84 ►LT EPS Growth Rate: 22. 80% ►Market Cap: $118. 31 Billion ►% of Total Portfolio: 2. 56% ►Status: Commentary ►Schlumberger Limited will hold a conference call on July 18 before market opens to discuss the results for the second quarter ending on June 30, 2008. Analysts are expecting them to report EPS of $1. 15, while they reported EPS of $1. 02 a year ago Southwestern Energy (SWN) ►Sub-sector: Exploration and Production ►Status: Purchased 10/11/07 at $23. 12 ►Current Price: $42. 64 ►Target Price: $49. 74 ►Trailing P/E: 53. 23 ►Forward P/E: 24. 51 ►LT EPS Growth Rate: 25. 00% ►Market Cap: $14. 58 Billion ►% of Total Portfolio: 3. 42% Commentary ►Southwestern President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Energy Company announced that it has closed the previously announced sale of its utility, Arkansas Western Gas Company, to Source. Gas, LLC. Source. Gas paid the company approximately $230. 00 million

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Energy Bench Stocks: Status: 1. Royal Dutch Shell (RDS/A) Approved for bench 2. Global Industries Limited (GLBL) Approved for bench 3. Peabody Energy Corp. (BTU) Approved for bench 4. National Oilwell Varco, Incorporated (NOV) Approved for bench 5. Occidental Petroleum (OXY)Approved for bench 6. Transocean Inc. (RIG) Approved for bench 7. Exxon Mobile Corporation (XOM) Approved for bench 8. Arch Coal, Inc (ACI) Approved for bench Focus List: 1. Oceaneering International, Inc. (OII) Initiated coverage 2. Petroleo Brasileiro (PBR) Initiated coverage 3. Suncor Energy Inc. (SU) Initiated coverage 4. Diamond Offshore (DO) Initiated coverage 5. EOG Resources, Inc. (EOG)Initiated coverage 6. Petrohawk Energy Corp. (HK) Initiated coverage 7. XTO Energy Inc. (XTO) Initiated coverage 8. Valero Energy Corp. (VLO) Initiated coverage 9. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Conoco Philips (COP) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Financials Director of Equity Research Jack Z. Sun jacksun@psu. edu Financials Lead Analyst Steven Murray spm 5058@psu. edu Associate Analyst Taylor Destefano tld 5061@psu. edu Analysts Patrick Capone Jacob Harley Anthony Greco Chao Ma Paul Seitz Alan Zhou President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Goldman Sachs Group Inc. (GS) ►Sub-sector: Investment Brokerage ►Status: Purchased on 4/20/05 at $134. 58 ►Current Price: $162. 48 ►Target Price: $230. 00 ►Trailing P/E: 7. 75 ►Forward P/E: 8. 18 ►LT EPS Growth Rate: 15. 53% ►Market Cap: $69. 53 Billion ►% of Total Portfolio: 3. 49% Commentary ►On Wednesday, July 9, Goldman Sachs Inc. announced it had withdrawn from the leading international banking lobby, called the IFF. The firm voiced disagreement with the lobby’s attempt to alter current fair value accounting practices Federated Investors Inc (FII) ►Sub-sector: Asset Management ►Status: Purchased on 2/12/07 at $35. 15 ►Current Price: $31. 57 ►Target Price: $48. 50 ►Trailing P/E: 14. 56 ►Forward P/E: 11. 74 ►LT EPS Growth Rate: 13. 50% ►Market Cap: $3. 22 Billion ►% of Total Portfolio: 1. 86% Commentary ►Federated Investors Inc. traded down 4. 33% for the week ended July 13. Since purchase the stock is down 10. 17%

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Financials Director of Equity Research Jack Z. Sun jacksun@psu. edu Financials Lead Analyst Steven Murray spm 5058@psu. edu Associate Analyst Taylor Destefano tld 5061@psu. edu Analysts Patrick Capone Jacob Harley Anthony Greco Chao Ma Paul Seitz Alan Zhou Wells Fargo & Co. (WFC) ►Sub-sector: Money Center Banks Purchased on 9/12/07 at $35. 79 ►Current Price: $23. 00 ►Target Price: $42. 00 ►Trailing P/E: 9. 89 ►Forward P/E: 9. 58 ►LT EPS Growth Rate: 10. 96% ►Market Cap: $75. 96 ►% of Total Portfolio: 0. 00% ►Status: Commentary ►The NLF closed our position in Wells Fargo & Co. on Monday, July 7, selling 4, 200 shares for $23. 77 Black. Rock, Inc. (BLK) ►Sub-sector: Asset Management ►Status: Purchased on 2/22/08 at $183. 96 ►Current Price: $174. 71 ►Target Price: $218. 37 ►Trailing P/E: 22. 20 ►Forward P/E: 16. 62 ►LT EPS Growth Rate: 17. 50% ►Market Cap: $22. 54 Billion ►% of Total Portfolio: 1. 58% Commentary ►Merrill President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Lynch & Co. Inc. continues to consider selling its stake in both Bloomberg Lp. and Black. Rock Inc. , as the firm attempts to raise capital after second quarter losses ►On Friday July 11, Black. Rock Inc. won approval to launch an asset management business in South Korea, becoming the 17 th foreign money manager to enter the country’s $335. 00 billion market ►Black. Rock Inc. announces second quarter earnings on July 17. Analysts are expecting earnings of $2. 01 per share, while Black. Rock earned $1. 69 a year ago

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Financials Director of Equity Research Jack Z. Sun jacksun@psu. edu Financials Lead Analyst Steven Murray spm 5058@psu. edu Associate Analyst Taylor Destefano tld 5061@psu. edu Analysts Patrick Capone Jacob Harley Anthony Greco Chao Ma Paul Seitz Alan Zhou Aflac, Inc. (AFL) ►Sub-sector: Accident and Health Insurance Purchased on 2/27/08 at $65. 07 ►Current Price: $60. 72 ►Target Price: $75. 00 ►Trailing P/E: 17. 62 ►Forward P/E: 13. 26 ►LT EPS Growth Rate: 13. 86% ►Market Cap: $28. 86 Billion ►% of Total Portfolio: 2. 75% ►Status: Commentary ►Aflac, Inc. traded down 2. 71% for the week ended July 11. Since purchase the stock is down 6. 68% Met. Life Inc. (MET) ►Sub-sector: Life Insurance Purchased on 4/8/08 at $62. 40 ►Current Price: $51. 06 ►Target Price: $68. 00 ►Trailing P/E: 10. 09 ►Forward P/E: 7. 45 ►LT EPS Growth Rate: 10. 33% ►Market Cap: $36. 27 Billion ►% of Total Portfolio: 2. 11% ►Status: Commentary ►On Monday, June 30, Met. Life Inc. CEO Robert C. Henrikson exercised options for 3, 100 shares of stock at $29. 95 President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Financials Director of Equity Research Jack Z. Sun jacksun@psu. edu Financials Lead Analyst Steven Murray spm 5058@psu. edu Visa Inc. (V) ►Sub-sector: Business Services ►Status: Purchased on 5/8/08 at $85. 70 ►Current Price: $74. 55 ►Target Price: $94. 50 ►Trailing P/E: N/A ►Forward P/E: 29. 35 ►LT EPS Growth Rate: 13. 86% ►Market Cap: $58. 00 Billion ►% of Total Portfolio: 2. 90% Associate Analyst Taylor Destefano tld 5061@psu. edu Commentary Analysts Patrick Capone Jacob Harley Anthony Greco Chao Ma Paul Seitz Alan Zhou Bank of NY Mellon Corp. (BK) ►On Tuesday, July 1, Visa Inc. rescinded its policy that treats debit cards differently than credit cards, including requiring customers to enter a PIN during transactions. The move was prompted by an antitrust case filed by the Justice Department, which was subsequently dropped after Visa Inc. changed the policy ►Sub-sector: Money Center Banks ►Status: Purchased on 7/7/08 at $36. 31 ►Current Price: $35. 66 ►Target Price: $44. 24 ►Trailing P/E: 15. 08 ►Forward P/E: 10. 49 ►LT EPS Growth Rate: 10. 25% ►Market Cap: $40. 79 Billion ►% of Total Portfolio: 2. 07% Commentary ►Bank President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick of NY Mellon Corp. announces second quarter earnings on Thursday, July 17. Analysts are expecting earnings of $0. 76 per share, while BK reported $0. 63 in the second quarter of 2007 ►The Moscow Arbitration Court is hearing testimony in the Russian Federal Customs Service Claim of $22. 54 billion against Bank of NY Mellon Corp. over the use of Racketeer Influenced and Corrupt Organizations Act (RICO) statutes in a case involving money laundering activities

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Financials Bench Stocks: Status: 1. Hartford Financial Services Group Inc. (HIG) Approved for bench 2. PNC Financial Services Group Inc. (PNC) Approved for bench 3. Arch Capital Group Ltd. (ACGL) Approved for bench 4. Shinhan Financial (SHG) Approved for bench Focus List: 1. Uniao de Bancos Brasileiros (UBB) Initiated coverage 2. Banco Bradesco S. A. (BBD) Initiated coverage 3. Janus Capital Group (JNS) Initiated coverage 4. Fortress Investment Group (FIG) Initiated coverage 5. Allstate Corp. (ALL) Initiated coverage 6. JP Morgan Chase & Co. (JPM) Initiated coverage 7. US Bancorp (USB) Initiated coverage 8. Bank of America Corp. (BAC) Initiated coverage 9. Franklin Resources Inc. (BEN) Initiated coverage 10. Eaton Vance Corp. (EV) Initiated coverage 11. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Banco Santander (STD) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Healthcare Director of Equity Research Jack Z. Sun jacksun@psu. edu Healthcare Lead Analyst Ryan Savitz ris 5034@psu. edu Associate Analyst Chris Fritzen clf 200@psu. edu Gilead Sciences (GILD) ►Sub-sector: Biotechnology Purchased on 6/14/07 at $40. 34 ►Current Price: $53. 70 ►Target Price: $59. 64 ►Trailing P/E: 30. 42 ►Forward P/E: 23. 35 ►LT EPS Growth Rate: 27. 90% ►Market Cap: $49. 54 Billion ►% of Total Portfolio: 3. 89% ►Status: Commentary ►The French National Agency for Research on AIDS and Viral Hepatitis announced the initiation of a combination study of Gilead’s Viread and Pharmasset’s Clevudine. The study will last 96 weeks and allow doctors to see how the two drugs work separately as well as when used together ►Analysts continue to forecast growth in the HIV treatment market for Gilead and said the company will have a leading position in the sector. Deutsche Bank analyst Mark Schoenebaum initiated a “buy" rating on the stock in a note to investors Mylan Laboratories (MYL) ►Sub-sector: Generic Products ►Status: Purchased on 2/26/07 at $21. 88 ►Current Price: $11. 99 ►Target Price: $17. 55 ►Trailing P/E: N/A ►Forward P/E: 11. 64 ►LT EPS Growth Rate: 8. 20% ►Market Cap: $3. 65 Billion ►% of Total Portfolio: 1. 76% President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►Mylan received tentative FDA approval last week for Linezolid tablets, the generic antibiotic version of Pharmacia and Upjohn's Zynvox tablets, which had sales of about $422 million over the past 12 months ►Mylan, along with Barr Pharmaceuticals, convinced a judge to invalidate a Parkinson’s disease patent owned by Boehringer Ingelheim Gmb. H. Boehringer sued the two companies in 2005 for infringement, but the ruling suggested the claims were invalid because Boehringer engaged in “double patenting”. The news sent Mylan’s shares up 5. 19%

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Healthcare Director of Equity Research Jack Z. Sun jacksun@psu. edu Healthcare Lead Analyst Ryan Savitz ris 5034@psu. edu Associate Analyst Chris Fritzen clf 200@psu. edu Stryker Corp. (SYK) ►Sub-sector: Medical Equipment ►Status: Purchased on 4/30/07 at $65. 19 ►Current Price: $65. 64 ►Target Price: $76. 38 ►Trailing P/E: 25. 76 ►Forward P/E: 19. 08 ►LT EPS Growth Rate: 18. 90% ►Market Cap: $27. 03 Billion ►% of Total Portfolio: 2. 97% Commentary ►According to the Food and Drug Administration, off-label use of Stryker’s OP-1 Implant and OP-1 Putty have been linked to potentially fatal complications. The FDA has received 38 reports over the past four years about problems when these products were used in neck fusion surgeries, an unapproved use of these products ►Stryker will showcase its Patriot Bed during an invite-only event at its Medical Division in Portage. The Patriot bed is part of a new line of hospital beds which will alert the nursing station if a patient falls out of bed. The beds are targeted toward Veterans Administration hospitals Becton, Dickinson & Company (BDX) ►Sub-sector: Medical Instruments & Supplies ►Status: Purchased on 3/12/08 at $85. 81 ►Current Price: $81. 17 ►Target Price: $105. 48 ►Trailing P/E: 19. 58 ►Forward P/E: 16. 63 ►LT EPS Growth Rate: 14. 00% ►Market Cap: $19. 81 Billion ►% of Total Portfolio: 2. 36% President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►Standard and Poor’s Rating Services raised Becton Dickinson’s long term corporate credit rating and senior unsecured debt rating from AA- to A+ citing their strength in their medical, diagnostic and bioscience segments ►Shares of Becton Dickinson have slid recently over concerns of rising prices of oil-based resin, which accounts for about 9. 00% of the company’s cost of goods sold, or $250. 00 million. Becton Dickinson said during their April 23 conference call that the benefit of the weak dollar will more than offset the increase in resin prices, as more than half of the firm’s revenues come from outside the United States

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Healthcare Bench Stocks: Status: 1. Genentech Inc. (DNA) Approved for bench 2. Abbott Laboratories (ABT) Approved for bench 3. Medtronic (MDT) Approved for bench 4. Novartis A. G. (NVS) Approved for bench 5. Davita (DVA) Approved for bench 6. Well. Point Inc. (WLP) Approved for bench 7. Covance Inc. (CVD) Approved for bench 8. Medco Health Solutions (MHS) Approved for bench Focus List: 1. Novo Nordisk A/S (ADR) (NVO) Initiated coverage 2. Icon plc (ADR) (ICLR) Initiated coverage 3. Intuitive Surgical (ISRG) Initiated coverage 4. Glaxo. Smith. Kline plc (ADR) (GSK) Initiated coverage 5. Allscripts Healthcare Solutions (MDRX) Initiated coverage 6. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Allergan, Inc (AGN) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Industrials Director of Equity Research Jack Z. Sun jacksun@psu. edu Industrials Lead Analyst David Motemaden dkm 5015@psu. edu Associate Analyst Jim Regan jrr 5154@psu. edu Summer Analyst Mahir Desai mjd 5107@psu. edu General Dynamics (GD) ►Sub-sector: Aerospace & Defense ►Status: Purchased on 2/2/05 at $53. 64 ►Current Price: $81. 05 ►Target Price: $100. 34 ►Trailing P/E: 14. 92 ►Forward P/E: 12. 39 ►LT EPS Growth Rate: 10. 10% ►Market Cap: $32. 30 Billion ►% of Total Portfolio: 3. 94% Commentary ►General Dynamics received a $23. 60 million contract for 41 digital modular radios and other hardware from the Navy ►General Dynamics was awarded a $367. 00 million contract from Canadian Forces for support and maintenance services fro a fleet of wheeled light armored vehicles ABB Ltd (ABB) ►Sub-sector: Heavy Electrical Equipment ►Status: Purchased on 10/25/2007 at $28. 65 ►Current Price: $26. 62 ►Target Price: $34. 35 ►Trailing P/E: 14. 55 ►Forward P/E: 13. 65 ►LT EPS Growth Rate: 30. 50% ►Market Cap: $61. 09 Billion ►% of Total Portfolio: 2. 23% President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►ABB is expected to report earnings on Thursday, July 24, 2008. Analyst are expecting an EPS of $0. 42 a share for the second quarter, while they reported $0. 32 a share a year ago

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Industrials Director of Equity Research Jack Z. Sun jacksun@psu. edu Industrials Lead Analyst David Motemaden dkm 5015@psu. edu Associate Analyst Jim Regan jrr 5154@psu. edu Summer Analyst Mahir Desai mjd 5107@psu. edu Ametek (AME) ►Sub-sector: Electrical Components and Equipment ►Status: Purchased on 8/10/07 at $38. 51 ►Current Price: $47. 16 ►Target Price: $54. 77 ►Trailing P/E: 20. 88 ►Forward P/E: 16. 43 ►LT EPS Growth Rate: 14. 00% ►Market Cap: $5. 03 Billion ►% of Total Portfolio: 1. 69% Commentary ►Ametek is expected to release earnings on Monday, July 21. Analysts are expecting an EPS of $0. 57 a share for the second quarter, while they reported an EPS of $0. 54 a year ago Harsco Corp. (HSC) ►Sub-sector: Industrial Machinery ►Status: Purchased on 4/15/08 at $58. 67 ►Current Price: $52. 49 ►Target Price: $69. 76 ►Trailing P/E: 14. 41 ►Forward P/E: 13. 06 ►LT EPS Growth Rate: 13. 50% ►Market Cap: $4. 42 Billion ►% of Total Portfolio: 1. 66% Commentary President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick ►Harsco is expected to release second quarter earnings on Tuesday, July 22, 2008. Analysts are expecting an EPS of $1. 02 a share, while they reported $0. 91 a share in the second quarter of 2007 ►Harsco was upgraded up Keybanc Capital Markets to “buy” from “hold”. They also assigned a $62. 00 price target and stated that the stock was “cheap”

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Industrials Bench Stocks: Status: 1. Danaher Corp. (DHR) Approved for bench 2. Manitowoc Co. Inc (MTW) Approved for bench 3. United Technologies Corp. (UTX) Approved for bench 4. Canadian National Railway (CNI) Approved for bench Focus List: 1. Deere & Co. (DE) Initiated coverage 2. Caterpillar Inc. (CAT) Initiated coverage 3. Textron Inc. (TXT) Initiated coverage 4. Boeing Co. (BA) Initiated coverage 5. Bucyrus International Inc. (BUCY) Initiated coverage 6. Joy Global Inc. (JOYG) Initiated coverage 7. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Illinois Tool Works (ITW) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Information Technology Director of Equity Research Jack Z. Sun jacksun@psu. edu Information Technology Lead Analyst John Brozick jab 5256@psu. edu Associate Analyst Brian Clionsky bac 5099@psu. edu Microsoft (MSFT) ►Sub-sector: Software Purchased on 2/2/05 at $26. 50 ►Current Price: $25. 25 ►Target Price: $37. 00 ►Trailing P/E: 14. 67 ►Forward P/E: 11. 69 ►LT EPS Growth Rate: 12. 30% ►Market Cap: $235. 16 Billion ►% of Total Portfolio: 2. 29% ►Status: Commentary ►Microsoft, Mobile Tele. Systems OJSC, and Fujitsu Siemens announced the launch of the first integrated 3 G notebook solution in the CIS ►On Monday, July 7, Microsoft said it would be willing to reopen talks to buy all or part of Yahoo Inc, but only if a new Yahoo board is elected, backing investor Carl Icahn’s proxy battle Automatic Data Processing (ADP) ►Sub-sector: Business Software & Services Purchased on 4/21/08 at $43. 59 ►Current Price: $41. 47 ►Target Price: $53. 00 ►Trailing P/E: 18. 59 ►Forward P/E: 17. 21 ►LT EPS Growth Rate: 12. 70% ►Market Cap: $21. 50 Billion ►% of Total Portfolio: 3. 85% ►Status: President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►Automatic Data Processing, in collaboration with other industry-leading Fortune 500 companies, launched Alliance. Q, an organization created to build a free, exclusive, and perpetually growing pool of job candidates to drive down its members’ cost of recruiting ►Automatic Data Processing returned -1. 45% this week, trading down with the overall market

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Information Technology Director of Equity Research Jack Z. Sun jacksun@psu. edu Information Technology Lead Analyst John Brozick jab 5256@psu. edu Associate Analyst Brian Clionsky bac 5099@psu. edu Google Inc. (GOOG) ►Sub-sector: Internet Information Provider Purchased on 2/15/07 at $456. 46 ►Current Price: $533. 80 ►Target Price: $641. 00 ►Trailing P/E: 36. 91 ►Forward P/E: 21. 50 ►LT EPS Growth Rate: 30. 40% ►Market Cap: $167. 66 Billion ►% of Total Portfolio: 3. 38% ►Status: Commentary ►Google reports earnings this week on Thursday, July 17 after the close of the market. Analysts are expecting earnings of $4. 00 per share, while they reported earnings of $2. 93 a year ago ►A federal judge denied a request by Viacom Inc. that Google Inc. and its You. Tube subsidiary be forced to turn over code relating to their search functions ►Google launched a three-dimensional virtual experience Web site, called Lively, to enable effective competition with the popular virtual world of Second Life Cerner Corp (CERN) ►Sub-sector: Healthcare Information Services Purchased on 10/20/06 at $44. 53 ►Current Price: $44. 46 ►Target Price: $64. 00 ►Trailing P/E: 27. 23 ►Forward P/E: 17. 17 ►LT EPS Growth Rate: 27. 20% ►Market Cap: $3. 58 Billion ►% of Total Portfolio: 3. 20% ►Status: President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►Cerner will release second quarter 2008 earnings results after the market closes on Tuesday, July 22. Analysts are expecting earnings of $0. 47 per share, while they report earnings of $0. 41 a year ago ►Cerner returned 0. 54% this week, as the street patiently waits for their earnings call next week

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Information Technology Bench Stocks: Status: 1. Ansys Inc. (ANSS) Approved for bench 2. International Business Machines Corp. (IBM) Approved for bench 3. Oracle Corp. (ORCL) Approved for bench 4. Cisco Systems, Inc. (CSCO) Approved for bench Focus List: 1. Nvidia Corporation (NVDA) Initiated coverage 2. Cognizant Technology Solutions (CTSH) Initiated coverage 3. EMC Corporation (EMC) Initiated coverage 4. MEMC Electronics (WFR) Initiated coverage 5. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Research in Motion Ltd. (RIMM) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Materials Director of Equity Research Jack Z. Sun jacksun@psu. edu Materials Lead Analyst Diego Granillo djg 5032@psu. edu Associate Analyst Darrell Reid dzr 120@psu. edu Freeport-Mc. Mo. Ran (FCX) ►Sub-sector: Copper Purchased on 2/6/06 at $64. 88 ►Current Price: $107. 74 ►Target Price: $148. 93 ►Trailing P/E: 13. 16 ►Forward P/E: 8. 39 ►LT EPS Growth Rate: 44. 50% ►Market Cap: $41. 29 Billion ►% of Total Portfolio: 1. 31% ►Status: Commentary ►Freeport-Mc. Mo. Ran will announce earnings on Tuesday, July 22. Analysts are expecting earnings of $2. 54 a share, while FCX reports earnings of $2. 62 a year earlier ►Freeport-Mc. Mo. Ran said it doesn’t expect the ongoing strike at the Peruvian base metals miner to hurt copper production FMC Corp (FMC) ►Sub-sector: Diversified Chemicals Purchased on 3/5/07 at $36. 00 ►Current Price: $69. 45 ►Target Price: $89. 14 ►Trailing P/E: 29. 70 ►Forward P/E: 14. 17 ►LT EPS Growth Rate: 9. 75% ►Market Cap: $5. 20 Billion ►% of Total Portfolio: 1. 26% ►Status: President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►FMC Corp will announce earnings on Tuesday, July 29. Analysts are expecting earnings of $1. 20 a share, while they reported earnings of $1. 79 a year earlier ►FMC Corp’s spent $390, 000 in the first quarter on chemical plant security and other issues

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Materials Bench Stocks: Status: 1. Stillwater Mining (SWC) Approved for bench 2. Rio Tinto (RTP) Approved for bench 3. Cameco (CCJ) Approved for bench 4. Sherwin-Williams Co. (SHW) Approved for bench 5. Potash Corp. of Saskatchewan (POT) Approved for bench Focus List: 1. Monsanto Co. (MON) Initiated coverage 2. Syngenta AG (SYT) Initiated coverage 3. Nucor (NUE) Initiated coverage 4. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Arcelor Mittal (MT) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Telecommunications Splits: 21 Director of Equity Research Jack Z. Sun jacksun@psu. edu Telecom Lead Analyst Dan Jenson daj 5039@psu. edu Associate Analyst Paul Russ par 187@psu. edu L-3 Communications (LLL) ►Sub-sector: Communication Equipment Purchased on 2/9/05 at $73. 54 ►Current Price: $90. 89 ►Target Price: $124. 11 ►Trailing P/E: 14. 58 ►Forward P/E: 12. 17 ►LT EPS Growth Rate: 16. 55% ►Market Cap: $11. 15 Billion ►% of Total Portfolio: 0. 80% ►Status: Commentary ►Zacks investment research said that LLL is “one of the best-positioned pure defense plays by virtue of its non-platform focus, broad diversification of programs, and exposure to both the investment account and expanding order booking. ” They also went on to say that L-3 is well-positioned to become a “significant market leader in providing technology for rail security” ►Aerospace and Defense stocks traded down midweek due to soaring oil prices and recent analyst downgrades to the sector. LLL maintained most of its gains from earlier in the week and traded up 1. 76% for the week ending on July 11 America Movil (AMX) ►Sub-sector: Wireless Communications ►Status: Purchased on 9/23/05 at $28. 11 ►Current Price: $50. 20 ►Target Price: $71. 24 ►Trailing P/E: 15. 67 ►Forward P/E: 11. 90 ►LT EPS Growth Rate: 30. 53% ►Market Cap: $87. 32 Billion ►% of Total Portfolio: 0. 77% President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►AMX reports second quarter earnings on Friday, July 25. Analysts are expecting earnings of $0. 82 a share and are saying that the results for the second-quarter should reveal whether the weakness in the first-quarter was isolated of “a sign of changing growth trends” ►AMX traded down 2. 75% for the week, showing that many investors are waiting to see its Q 2 results

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Telecommunications Director of Equity Research Jack Z. Sun jacksun@psu. edu Telecom Lead Analyst Dan Jenson daj 5039@psu. edu Associate Analyst Paul Russ par 187@psu. edu AT&T (T) ►Sub-sector: Telecommunications Services Purchased on 4/8/08 at $38. 44 ►Current Price: $32. 58 ►Target Price: $45. 53 ►Trailing P/E: 15. 84 ►Forward P/E: 9. 67 ►LT EPS Growth Rate: 8. 50% ►Market Cap: $193. 56 Billion ►% of Total Portfolio: 1. 03% ►Status: Commentary ►AT&T released the new i. Phone 3 G on July 11, 2008 in 22 countries, including the U. S. Bloomberg reported that AT&T Inc. stores have “mostly emptied out of inventory” just two days after its release. AT&T spokesman stated that “obviously, there’s been overwhelming demand” and that AT&T was “thrilled with the results” Cisco Systems (CSCO) ►Sub-sector: Communications Equipment Purchased on 6/11/08 at $26. 00 ►Current Price: $21. 82 ►Target Price: $28. 96 ►Trailing P/E: 17. 05 ►Forward P/E: 12. 84 ►LT EPS Growth Rate: 8. 50% ►Market Cap: $128. 89 Billion ►% of Total Portfolio: 0. 64% ►Status: President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Commentary ►RBC cut its target for CSCO from $29. 00 to $27. 00, while UBS also cut their price target to $25. 50 from $27. 00. A UBS analyst stated that enterprise spending for Cisco remains challenging and that there has been further slowing in the U. S. ►CEO John Chambers said that many of his customers see the economy picking up early 2009 rather than second half of 2008 as originally thought. Cisco traded down 5. 62% for the week

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Telecommunications Bench Stocks: Status: 1. China Mobile Limited (CHL) Approved for bench 2. Rogers Communications (RCI) Approved for bench 3. Comtech Telecommunications (CMTL) Approved for bench 4. Corning (GLW) Approved for bench 7. Commscope (CTV) Approved for bench 8. Vimpel Communications (VIP) Approved for bench Focus List: 1. Brocade Communication Systems (BRCD) Initiated coverage 2. Verizon Communications (VZ) Initiated coverage 3. Sprint Nextel (S) Initiated coverage 4. Netgear (NTGR) Initiated coverage 5. BT group (BT) Initiated coverage 6. Cogeco Cable (CCA. TO) Initiated coverage 7. Embarq (EQ) Initiated coverage 8. Arris Group Inc. (ARRS) Initiated coverage 9. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Harris Corp. (HRS) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Utilities Director of Equity Research Jack Z. Sun jacksun@psu. edu Utilities Lead Analyst Steven Yost spy 5002@psu. edu Constellation Energy Group Inc. (CEG) ►Sub-sector: Electric Utility ►Status: Purchased on 11/05/07 at $95. 33 ►Current Price: $79. 53 ►Target Price: $107. 68 ►Trailing P/E: 18. 74 ►Forward P/E: 12. 43 ►LT EPS Growth Rate: 18. 00% ►Market Cap: $14. 19 Billion ►% of Total Portfolio: 0. 84% Associate Analyst Commentary Blaine Hauser ►Constellation’s subsidiary, Constellation Energy Commodities Group Limited, acquired Nufcor buh 129@psu. edu International Limited, a uranium market advisor, on June 30 ►Constellation returned -3. 04% for the week ended July 11 Trans. Canada Corp. (TRP) ►Sub-sector: Gas Utility ►Status: Purchased on 5/7/08 at $38. 01 ►Current Price: $36. 73 ►Target Price: $44. 16 ►Trailing P/E: 14. 25 ►Forward P/E: 15. 63 ►LT EPS Growth Rate: 5. 00% ►Market Cap: $19. 91 Billion ►% of Total Portfolio: 0. 96% Commentary ►Alaska’s President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick House Speaker, John Harris, announced on July 13 that he intends to have the vote on Trans. Canada’s proposed state license for the company’s Alaska-Alberta natural gas pipeline, which entails a $500. 00 million subsidy, by Wednesday, July 16 ►Trans. Canada’s proposed expansion on the Keystone Pipeline, running from Alberta to Texas, will cost an estimated $7. 00 billion, while enabling the pipeline to move an additional 700, 000 barrels of oil per day

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Utilities Director of Equity Research Jack Z. Sun jacksun@psu. edu Utilities Lead Analyst Steven Yost spy 5002@psu. edu Associate Analyst Blaine Hauser buh 129@psu. edu Exelon Corp. (EXC) ►Sub-sector: Diversified Electric Utility Purchased on 12/19/07 at $85. 66 ►Current Price: $90. 55 ►Target Price: $96. 52 ►Trailing P/E: 23. 20 ►Forward P/E: 18. 79 ►LT EPS Growth Rate: 10. 20% ►Market Cap: $59. 40 Billion ►% of Total Portfolio: 0. 94% ►Status: Commentary ►S&P equities analyst Justin Mc. Cann downgraded Exelon from “buy” to “hold” due to their 10. 00% appreciation from mid-January to late June CPFL Energia SA (CPL) Sub-sector: Foreign Electric Utility Status: Purchased on 6/17/08 at $66. 11 Current Price: $68. 74 Target Price: $84. 27 Trailing P/E: 12. 23 Forward P/E: 31. 82 LT EPS Growth Rate: N/A Market Cap: $11. 00 Billion % of Total Portfolio: 0. 59% Commentary ►CPL President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick invested in four small hydro plants in southern Brazil. The total cost of the investment is $175. 00 million and will expand CPL’s total installed capacity by 76 MW ►Jack Dzierwa, co-manager of the Global Mega. Trends fund, recommended CPL at a “buy” rating on July 9, citing CPL’s infrastructure exposure and high dividend yield

Penn State Investment Association Weekly Update: July 14, 2008 Equity Research: Focus on Utilities Bench Stocks: Status: 1. Questar Corp. (STR) Approved for bench 2. Sempra Energy Corp. (SRE) Approved for bench 3. Allegheny Energy (AYE) Approved for bench Focus List: 1. PNM Resources Inc. (PNM) Initiated coverage 2. Power. Shares Water Resources (PHO) Initiated coverage 3. Edison International (EIX) Initiated coverage 4. Atmos Energy Corp. (ATO) Initiated coverage 5. Southern Co. (SO) Initiated coverage 6. FPL Group Inc. (FPL) Initiated coverage 7. Duke Energy Corp. (DUK) Initiated coverage 8. Consolidated Edison (ED) Initiated coverage 9. President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick Status: Firstenergy Corp. (FE) Initiated coverage

Penn State Investment Association Weekly Update: July 14, 2008 Weekly Compliance Report Overall Portfolio Compliance ► 92. 91% Director of Compliance Kevin Balthaser kjb 5047@psu. edu Director of Compliance – Summer Session Brandon Browne bwb 5016@psu. edu of the Fund’s net assets are currently in common stocks The Fund Managers will pursue the objective of investing between 75%-100% of the Fund’s net assets in common stocks of U. S. issuers. ► 46 different securities are currently being held in the portfolio At any one time, the Fund Managers expect to hold the securities of between 30 -50 different issues. ► 0% of companies in the portfolio have a market capitalization under $800 million A portfolio security is generally expected to have a minimum market capitalization of $800 million. ► 0. 918 is the portfolio’s current beta The target equity portfolio beta for the Fund will be between 0. 75 and 1. 25, but no assurances can be given that this will be accomplished. ► 0% of the portfolio is leveraged The Fund will not use leveraging or short sales. ► 7. 09% of the Fund is invested in cash, cash equivalents, money-market funds, and ETFs For short temporary defensive purposes during periods of adverse market conditions the Fund may invest up to 100% of the Fund’s net assets in cash, cash equivalents, money-market funds, and ETFs. ► 2 sectors are currently marketweight compared to the S&P 500 Index ► 3 sectors are currently overweight compared to the S&P 500 Index ► 5 sectors are currently underweight compared to the S&P 500 Index Equity Presentations ►There will be 4 equity presentations this week: Current Holdings ►Fifteen President Ryan Limor Vice President Jake Ettore Secretary Lee Mooney Treasurer John Brozick stocks have appreciated over 20% above their base value and will be held.