1. The RFP Process Panel Discussion Carl Hagberg – Carl Hagberg and Associates Kathy Huston – Group Five, Inc.

2. Best Practices for Evaluating Options for Shareholder Services Identify key issues Identify key contractual terms you have and want Develop a profile of your account Request pricing proposals in a standard form Consult with an industry expert

3. Things to Avoid Auction bidding on services RFP’s with more than 10 questions Doing your evaluation in a vacuum Doing the evaluation alone

4. Small Shareholder Buyback and Direct Stock Purchase Plan Analysis

5. Shareowner Composition 1.3 Million Shareowners –1.2 million beneficial owners –310,000 registered shareowners 75% held less than 100 shares –Average shares per odd-lot account - 17.3 2.3 Billion Shares Outstanding –1% of the outstanding shares were held by the odd-lot accounts.

6. Odd-Lot Considerations Odd-lot accounts represent a significant and recurring expense. One-third of the odd-lot accounts were not reinvesting Company’s last odd-lot was in 1988 Stock price

7. Program Highlights Program managed by Georgeson Shareowners received notification by mail –Correspondence clearly indicated a voluntary program Thirty day program with a 30 day extension period Option to sell or round up –50 shares or 100 shares round up –Sales matched with purchases Follow up with automated phone calls

8. Concerns and Results Board of Directors concerns –Shareowner alienation Program estimates vs. actual participation –Conservative estimate of 8% on sales, 4% on purchases –Actual participation was 10% on sales, 2% on purchases –More than 70% that sold were in DRP

9. Costs and Savings No costs to the Company Estimated savings of 10% annually in shareowner servicing fees and expenses

10. Direct Stock Purchase Plan Considerations Public interest for DSPP Dated Dividend Reinvestment Plan Registered Plan vs. Bank Plan Date of Implementation Cost Savings

11. Program Highlights Purchases –Weekly –Initial investment minimum - $500 –Optional cash investments Minimum - $50 Maximum - $250,000 annually –Automatic deductions 1 st or 15 th of the month Sales –Batch order sales $15.00 plus $0.12/share –Market order sales $25.00 plus $0.12/share Fees –Initial investment $10.00 plus $0.03/share –Optional Cash investments $3.00 plus $0.03/share $2.00 plus $0.03/share (ACH) –Reinvestment of Dividend 5% of the amount reinvested up to a maximum of $2 plus $0.03/share

12. Concerns and Results Presentation to shareowners Shareowner complaints Estimated savings of 12% annually in shareowner servicing fees and expenses

13. Questions?

14. Results of Survey of Cost Savings Ideas Belinda Massafra Shareholder Services Consulting LLC

15. Thank You to Responders! Ken Kaminski – BPKarl Wagner – Merck Patricia Tai – ChevronBette Jo Rozsa – AEP Dru Cessac – AT&TDianne Perry – Xcel Energy Mark Gereb – VerizonBernadette Maffei – Comcast Kim McKiernan – The Walt Disney Company

16. Transfer Agent Account Fees Perform database clean up to reduce number of accounts*: – Sweep fractional shares monthly. – Perform account consolidations on some regular basis. * May also reduce printing and mailing costs. Negotiate a reduced fee for “inactive” accounts with the fee adjusted monthly. Reduce number of small accounts with an odd lot program.

17. Out-of-Pocket Costs Envelopes Eliminate return envelopes in mailings. Use back of envelopes to promote your shareholder website. Certificates Eliminate certificates or use print on demand. Consider charging for certificates.

18. Out-of-Pocket Costs Documents/Brochures/Forms Use print on demand instead of keeping an inventory. Be sure copies are available on your website.

19. Out-of-Pocket Costs Postage and Printing Be sure you are receiving all available postal discounts. Promote use of TA website to shareholder for self help and statement/document delivery. Provide incentive for shareholder to use Internet delivery. Combine mailings when possible (e.g., last dividend w/1099).

20. Out-of-Pocket Costs Postage and Printing Use top and back of check or statement to communicate and educate shareholders on services available online. Promote ACH deposit of dividends – safer and possibly faster. Don’t mail ACH advices. They can check their bank accounts. Go to an annual dividend.

21. Dividend Reinvestment and Direct Stock Purchase Plans Calculate the cost/benefit of your dividend reinvestment plan. Does upper management still support it? Change Plan terms so participants cover some or all of the costs.

22. Dividend Cash Negotiate with TA to receive interest on cash balance related to un-cashed dividend checks. Alternatively, use a zero balance account that pays as checks are presented.

23. Shareholder Communications -- Newsletters Eliminate print quarterly newsletter. Put electronic version online if management thinks one is still necessary. Mail print version with the dividend check(s) to save postage.

24. Proxy Process Use Notice and Access to reduce print and postage costs. Consider stratified mailing if concerned about vote. Promote e-delivery of documents. Use householding to reduce number of packages.

25. Annual Meeting Make it a business meeting without elaborate food and give aways. Hold meeting in corporate headquarters or town to reduce travel expenses. Hold a “virtual meeting” – Example: Intel

26. Other Ideas?