1. The FundStern Alumni Presentation April 25 th 2006 1 Reality Investing at Stern The Michael Price Student Investment Fund April 25, 2006 ________________________________________

2. The FundStern Alumni Presentation April 25 th 2006 2 Tonight’s Program Overview of MPSIF – Richard Levich, Faculty Advisor The MPSIF Funds – Questions & Answers MPSIF Experience – Debbie Jones, President Fixed IncomeGrowthSmall CapValue

3. The FundStern Alumni Presentation April 25 th 2006 3 Overview of MPSIF MPSIF as an Endowment Fund Origin of The Michael Price Student Investment Fund (MPSIF) Organizational Overview MPSIF as an MBA Course Goals for the Future

4. The FundStern Alumni Presentation April 25 th 2006 4 MPSIF Established in 1999 Founded with $2.0 million gift - Michael F. Price Gift enabled establishment of three funds Fund part of the overall NYU endowment Fund has a mandated 5% per annum distribution Michael F. Price - Managing partner of MFP Investors and former chairman of Franklin Mutual Series funds. Three Funds - Red, Green and Blue - Each allocated $600,000. Each Fund had a different investment objective. Note: $200,000 allocated for administrative expenses Distribution provides scholarships to selected students from the Price College of Business at the Univ. of Oklahoma for study at NYU Stern.

5. The FundStern Alumni Presentation April 25 th 2006 5 Organizational Overview Advisory Board for MPSIF Management Advisory Council Board determines general investment guidelines and provides administrative oversight Council receives annual and semi-annual reports and visits class to review operating practices Executive Committee Individual Funds The Faculty Advisor, President, Treasurer and Portfolio Managers - Exec Committee oversees activities of the fund over the semester Student portfolio managers oversee day-to-day operations, other students perform related tasks

6. The FundStern Alumni Presentation April 25 th 2006 6 Organization of MPSIF Advisory Board Fixed Income GrowthSmall CapValue Executive Committee Portfolio Manager (2) Portfolio Manager (1) Portfolio Manager (2) Faculty Advisor, President, Treasurer, Portfolio Managers Portfolio Manager (2)

7. The FundStern Alumni Presentation April 25 th 2006 7 Pedagogical Objectives We operate MPSIF as a Course not a Club Goals Course promotes responsibility for managing significant real assets, and a vehicle for selecting and organizing students To promote continuity, students are required to participate over two semesters. Half register fall-spring, half register spring-fall. “Overlapping generations” setup An 8-11 month immersion course for honing analytical and presentation skills A capstone, interdisciplinary course in which managing diverse tasks relies on teamwork Deeper understanding of governance and fiduciary responsibilities in running an endowment fund

8. The FundStern Alumni Presentation April 25 th 2006 8 MPSIF as an MBA Course Not an ordinary class Students perform all of the key tasks Some outside speakers, but very few lecturers Emphasis is hands-on, experiential, learning-by-doing The deliverables Financial writing, oral presentations, financial decision making in a group setting ~ 45 students populate 3 equity fund teams Economic, sector and company research Stock selection, buys & sells, monitoring Fiduciary duties – Annual and semi-annual reports, minutes of activities, Board presentations

9. The FundStern Alumni Presentation April 25 th 2006 9 Recent MPSIF Initiatives Alumni Panel and Alumni Reunion Management Advisory Council Wilshire analytics portfolio analysis Annual Report upgrade Resume book Web-site upgrade “The Educated Investor” newsletter Proxy voting, litigation filings Re-balancing of MPSIF portfolio Gross flows in excess of $400,000

10. The FundStern Alumni Presentation April 25 th 2006 10 Deliverables

11. The FundStern Alumni Presentation April 25 th 2006 11 MPSIF as an Endowment Fund Student run MPSIF, but within limits “Rules of the Game” MPSIF Operates on an open book policy MPSIF is a long-only endowment fund. Permitted securities include: Stocks, bonds, money market instruments, and limited mutual funds. NYU is a tax exempt institution. Goals include (a) returns in excess of inflation over a 3-5 year period, (b) returns exceeding an appropriate benchmark, (c) focus on long-term opportunities rather than short-term trading gains, (d) an acceptable level of diversification Stands ready to make its results, activities, reports available to anyone within the NYU community with an interest. (Active web site)

12. The FundStern Alumni Presentation April 25 th 2006 12 How has MPSIF Performed? Six year record – Inception March 1, 2000 Since Inception 1.8M to $2.01M 44% Total Return in first six years (~6.18% p.a.) Does not include $461,000 in distributions Well ahead of benchmark 75% Equity, 25% Debt

13. The FundStern Alumni Presentation April 25 th 2006 13 Goals for the Future Enhance MPSIF profile inside and outside Stern Enhance MPSIF as a vehicle for student recruitment and placement, as well as fundraising Attract more funds under management – from NYU endowment or other benefactors

14. The FundStern Alumni Presentation April 25 th 2006 14 MPSIF – Student Experience The Michael Price Student Investment Fund President: Debbie Jones ___________________________________ The Fund

15. Stern Alumni Presentation April 25 th 2006 15 My Story…Why NYU, Why MPSIF Why to get my MBA Where to get my MBA Previously analyzed mutual funds…needed to improve my fundamental stock picking skills Met with alum from my undergraduate school who was also the original MPSIF President How to get a job/internship MPSIF After Stern Stock pitches are standard for MBA internship and full- time job applicants (both buy side and sell side) With six years of history there are numerous MPSIF alum working in the investment management profession Financial Modeling? DCF? CMC & NYU Deutsche Bank First Annual Student Alumni Mixer

16. The FundStern Alumni Presentation April 25 th 2006 16 The MPSIF Experience Placement into Fund (Team) MPSIF Pitch/Update Format Generally 15 students per fund – requests are considered. Management seeks a diversified background. Standard MPSIF written pitch format Presentation to Individual Fund (mon/weds mtgs) Student Feedback Student Responsibilities Question & Answer period – students are required to defend their ideas – Students vote on stock purchase Additionally Students are required to take on an extra role, (e.g. alumni relations, historical analytics) Spent three years at a successful start-up biopharmaceutical company. Spent a year as a post- doctoral fellow at Harvard Medical School, focusing on the research of anti- cancer drugs. He holds a Ph.D. degree in chemistry from Harvard University. Investment Summary Performance Valuation (DCF, multiples, etc. Business Description Industry Outlook Competitor position Earnings Outlook Financial Statements

17. The FundStern Alumni Presentation April 25 th 2006 17 Benefits of Reality Investing You are accountable Fund Simulation just isn’t the same SEACOR is in the business of owning, operating, investing in, marketing and remarketing equipment, primarily in the offshore oil and gas and inland transportation industries. It also provides oil spill response and environmental remediation services. Seacor (CKH) Russell 2000 Index

18. The FundStern Alumni Presentation April 25 th 2006 18 Performance as of February 28 th, 2006 Beating our Benchmark 25% Russell 1000 Value Index 25% Russell 1000 Growth Index 25% Russell 2000 Index 25% Vanguard Total Bond Index Source: Wilshire Analytics * The Quantum growth/value style score is created from a weighted average of a standardized book/price and forward looking earnings/price (standardized against the Dow Jones Wilshire U.S. 2500 Index, 75% book/price and 25% forward earnings/price).

19. The FundStern Alumni Presentation April 25 th 2006 19 The Fixed Income Fund The Michael Price Student Investment Fund Portfolio Managers: Marc Strauss and Michael Flood ___________________________________ Fixed Income

20. The FundStern Alumni Presentation April 25 th 2006 20 Fund Overview Growth Fund Fund Objective The fund aims to outperform its benchmark, the Vanguard Total Return Bond Fund (VBMFX) by taking positions in mutual funds and exchange traded funds (ETFs). Fund Strategy The Fund implements its views through a top-down allocation approach to the main sub sectors of the US Fixed Income [investment grade] market, namely – U.S. Treasuries, Corporates and MBS/ABS, as well as the Foreign investment grade bond market Fund is tax exempt – No municipal bonds Looking forward, we hope to start the next semester with the ability to trade in individual bonds across all sectors Fixed Income

21. The FundStern Alumni Presentation April 25 th 2006 21 Performance as of February 28 th, 2006 Growth Fund For the six months ended February 28, 2006, the fund had a negative net return of 69 basis points, trailing our benchmark by 50 basis points Overexposure to the short end of the Treasury yield curve Failure to capitalize on the continued strength of the MBS market Slight overweighting of the Corporate sector After bottoming out in October 2005, the fund enjoyed four straight months of positive returns, with a YTD return of 98 basis points, 70 basis points above our benchmark Over the past three months, we have focused our attention to being more closely aligned with our benchmark, reducing our exposure to the foreign sector and spreading our exposure to Treasuries across the yield curve Fixed Income

22. The FundStern Alumni Presentation April 25 th 2006 22 Performance as of February 28 th, 2006 Fixed Income

23. The FundStern Alumni Presentation April 25 th 2006 23 Sector Allocations as of February 28 th, 2006 Fixed Income

24. The FundStern Alumni Presentation April 25 th 2006 24 Fund Holdings as of February 28 th, 2006 Fixed Income

25. The FundStern Alumni Presentation April 25 th 2006 25 Sector Update and Outlook Growth Fund U.S. Treasuries Fixed Income The Federal Reserve, reacting to inflationary fears as the economy remains resilient, is likely to continue to raise rates one or two more times in the short term. Future policy is likely to remain data dependent. Should the economy start to sputter, rate cuts are a distinct possibility by Q4 2006. Although the calendar year started with softness in the Treasury market, we are bullish on Treasuries and recommend overweighting the index with longer duration positions. MBS With mortgage rates forecasted to rise to as much as 6.40% by the fourth quarter of 2006, slower growth in the housing market is expected. Higher rates will slow prepayments and curb home price appreciation, creating potential credit challenges ahead. As spreads widen we will continue take a slightly underweight position with respect to the index.

26. The FundStern Alumni Presentation April 25 th 2006 26 Sector Update and Outlook cont. Growth Fund Corporates Fixed Income Foreign In terms of business fundamentals, competition from emerging economies has challenged many U.S. companies and industries. Rising interest rates will likely erode future profitability as borrowing costs rise and consumer spending slows. We recommend avoiding sectors like consumer discretionary, which may be adversely affected by a slowing housing market and high energy prices. A shrinking interest rate differential, coupled with an ever growing current account deficit, could spell trouble for the dollar. With rates in Europe and Japan likely to rise, we will look to further reduce our exposure in the near term, especially as the Fed looks to put the brakes on future rate hikes.

27. The FundStern Alumni Presentation April 25 th 2006 27 Challenges Looking Forward Fixed Income Challenges Switching Platform Future Fed Policy Future of the MBS market Dollar weakness Tight credit spreads Performing our own credit research

28. The FundStern Alumni Presentation April 25 th 2006 28 Fixed Income The Growth Fund The Michael Price Student Investment Fund Portfolio Managers: Nelson Shim and Rafael Tejada ___________________________________ Growth Fund

29. The FundStern Alumni Presentation April 25 th 2006 29 Fund Overview Growth Fund Fund Objective Investment Strategy Achieve returns above Russell 1000 Growth Index benchmark. Achieve positive absolute returns.. Search for stocks with long-term EPS growth expectations exceeding 15% that are attractively priced on a fundamental and relative basis. Search for stocks with a long-term, sustainable competitive advantage. Such companies may be:  pioneering a new product or service that will see dramatic future demand  altering pre-established norms in a static industry and gaining significant market share  applying their business model to new regions or leading in an industry that is experience high levels of growth

30. The FundStern Alumni Presentation April 25 th 2006 30 Fund Performance as of February 28 th, 2006 Growth Fund The fund outperformed its benchmark by 365 bps with an absolute return of 8.75% through the six months ended February 28, 2006

31. The FundStern Alumni Presentation April 25 th 2006 31 Sector Allocation as of February 28 th, 2006 Growth Fund

32. The FundStern Alumni Presentation April 25 th 2006 32 Fund Holdings as of April 23 rd, 2006 Growth Fund

33. The FundStern Alumni Presentation April 25 th 2006 33 Growth Fund The Small Cap Fund The Michael Price Student Investment Fund Portfolio Managers: Shivanker Saxena and Lei Mu ___________________________________ Small Cap

34. The FundStern Alumni Presentation April 25 th 2006 34 Fund Overview Small Cap Strategy Focused upon stock selection and Identifying small-cap companies with strong fundamental prospects, and that are under followed by the market. No explicit bias toward “growth” or “value” investing. Invest exclusively in U.S.-traded equities, (market cap < $2B). Concentrated portfolio of 20 to 25 positions, with a standard position size of $20,000. Security selection driven primarily by bottom-up fundamental research. In conjunction with the team’s overall sector and economic views. Objective Achieve returns above Russell 2000 Index benchmark. Achieve positive absolute returns.

35. The FundStern Alumni Presentation April 25 th 2006 35 Fund Performance as of February 28 th, 2006 Small Cap An absolute return of 28.22% in LTM ended Feb 28, 2006 (Russell 2000 return – 16.59%) An absolute return of 15.70% in 6 months ended Feb 28, 2006 (Russell 2000 return – 10.24%) An absolute return of 9.05% in 3 months ended Feb 28, 2006 (Russell 2000 return – 7.88%) The Fund outperformed its benchmark by an average monthly 100 bps in the last sixth months

36. The FundStern Alumni Presentation April 25 th 2006 36 Sector Allocation as of February 28 th, 2006 Small Cap

37. The FundStern Alumni Presentation April 25 th 2006 37 Winners and Losers Name% ChangeReason WINNERS DIOD59.73% DIOD has completed a significant transition over recent years and constantly brings competitive new products to the market. The company has right mix of revenue, lean operations and predictable demand. We are still holding full position of the stock as we believe the company’s competitive edge could continue to support its price growth. The stock is now 75.07% higher than purchase price. MIPS44.46% Royalty payback on significant number of licenses signed in 2003 together with end users’ strong momentum in consumer electronics have boosted MIPS’s royalty revenue in recent quarters. We had chosen a good entry point for the stock when MIPS announced a disappointing Q4-FY05 result which lowered its P/E ratio down to a quarter of the sector average. Robust royalty revenue in Q1-FY06 made the stock price soar and we reduced to half position in Jan 06, right before it went down with a 52.75% return. RI35.24% RI’s stock price growth has benefited from the improving same stores sales growth, a successful marketing strategy and a business turnaround in FY06. The high margins also grant the stock price higher multiples relative to its peers. We began to hold the stock when it had an adverse run in the last 12 months, with the share price declining quite near to its 52-week low. We sold the stock in Mar 06 when it hit target price. NFP34.05% NFP enjoyed successful expansions in institutional life insurance market via aggressive acquisitions, providing a complementary geographic footprint to NFP. We liquidated the stock in Mar 06 with a 40.30% gain. LOSERS MOGN(34.61%) While its biggest revenue source Aloxi remained strong revenue growth, MOGN suffered from further delay in FDA approval on its widely-expected product Dacogen as well as failures in Phase 3 trials of its next important product. We liquidated the position in Mar 06 for a loss. Small Cap

38. The FundStern Alumni Presentation April 25 th 2006 38 Current Holdings as of April 23 rd, 2006 Small Cap

39. The FundStern Alumni Presentation April 25 th 2006 39 Small Cap The Value Fund The Michael Price Student Investment Fund Portfolio Managers: Benjamin Macdonald and Chao Mui ___________________________________ Value Fund

40. The FundStern Alumni Presentation April 25 th 2006 40 Fund Overview Value Fund Fund Objective Outperform the benchmark on a total return basis by investing in securities that provide superior returns on a risk/return basis through capital appreciation and dividends. Fund Benchmark – Russell 1000 Value Index New Strategic Implementations Stronger Discipline Top-Down Approach ETFs Increased Holdings to 30 Positions Mid-Large Cap Focus (over $2bn) Minimum 20% Total Return Potential Stop-Loss on Every Position Stop-Loss and Sell Limit During Summer and Winter Breaks

41. The FundStern Alumni Presentation April 25 th 2006 41 Fund Performance as of February 28 th, 2006 Value Fund (a) Prices as of 4/21/2006

42. The FundStern Alumni Presentation April 25 th 2006 42 Sector Allocation as of February 28 th, 2006 Value Fund

43. The FundStern Alumni Presentation April 25 th 2006 43 Winners and Losers TickerNameBuy DateSell DateBuy Price Sell/Current Price (a) Return PERFORMERS AWGIAlderwoods Group, Inc.12/13/0402/15/06$12.03$16.7339.1% ECEngelhard Corporation11/08/0401/09/0629.7937.8427.0% FSLFreescale Semiconductor Inc03/30/05NA16.8531.4586.6% RMLRussell Corporation10/05/05NA13.5418.2334.6% STXSeagate Technology11/02/05NA14.8725.1068.8% LOSERS BCGIBoston Communications02/14/0504/04/067.292.90-60.2% BSXBoston Scientific Corp.03/09/05NA29.6522.49-24.1% HELEHelen of Troy11/29/0404/04/0627.0820.51-24.3% SAFMSanderson Farms, Inc.10/13/05NA36.5124.77-32.2% Value Fund (a) Prices as of 4/21/2006

44. The FundStern Alumni Presentation April 25 th 2006 44 Current Holdings as of April 24 th, 2006 Value Fund

45. The FundStern Alumni Presentation April 25 th 2006 45 Reality Investing at Stern Questions & Answers ___________________________________