Introducing Your Retirement Plan UNM Hospitals Mutual funds offered through Lincoln Financial Advisors Corp., a broker/dealer. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. CRN Presented by Tina Dobias

An investor should consider the investment objectives, risks, charges and expenses of an investment company carefully before investing. Please obtain a prospectus which includes this and other information by calling or by visiting our web site It should be read carefully before investing or sending money. Mutual funds offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 South Clinton, Fort Wayne, IN Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Information taken from sources deemed reliable, but not meant to take the place of your plan document. Refer to your plan document for complete details. Taxes will be due at the time of distribution; withdrawals prior to age 59½ may be subject to an additional 10% federal tax penalty. An investor should consider the investment objectives, risks, charges and expenses of an investment company carefully before investing. Please obtain a prospectus which includes this and other information by calling or by visiting our web site It should be read carefully before investing or sending money. Mutual funds offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 South Clinton, Fort Wayne, IN Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Information taken from sources deemed reliable, but not meant to take the place of your plan document. Refer to your plan document for complete details. Taxes will be due at the time of distribution; withdrawals prior to age 59½ may be subject to an additional 10% federal tax penalty.

Lincoln Financial Group Flagship company established in 1905 Fortune 500 company, NYSC: LNC Assets under management in excess of $109 billion Retirement plan assets over $65.9 billion Leader in 401(k) retirement plans –Over 10,000 organizations Leader in healthcare retirement plans –Over 3,500 healthcare organizations Flagship company established in 1905 Fortune 500 company, NYSC: LNC Assets under management in excess of $109 billion Retirement plan assets over $65.9 billion Leader in 401(k) retirement plans –Over 10,000 organizations Leader in healthcare retirement plans –Over 3,500 healthcare organizations Data as of 12/31/2004

A customized learning program designed to help individuals build investment knowledge at their own pace in their own way through a powerful combination of people and technology.

Three Most Frequently Asked Questions How much should I invest? Where should I invest my money? How do I enroll? How much should I invest? Where should I invest my money? How do I enroll?

of your current annual income every year of your retirement! To maintain your current lifestyle, it is estimated you will need about

Sources of Income Where does retirement money come from? Americans Age 65 and Older Earnings, Pension Plans, Personal Savings and Investments 82% Social Security 18% Source: Social Security Administration

* Department of Labor; July 2002, Vol. 125, No. 7; Planning ahead: consumer expenditure patterns in retirement Did you know? Today’s adults can expect to live another after reaching age 65?

How Much Should You Save? Assuming: 75% of annual salary for 20 years at 3% inflation. Salary illustrated is at retirement. Need $503,820 Need $705,347 Need $906,875 $25,000 salary $35,000 salary $45,000 salary Note: Does not include other sources of retirement savings/income. Does not factor any interest paid on retirement savings.

The retirement goal:

Discover the Benefits Reduce your current taxes –Taxes are due when you take a distribution. An early withdrawal penalty may apply if taken prior to age 59½ Power of tax deferral Increased contribution limits Reduce your current taxes –Taxes are due when you take a distribution. An early withdrawal penalty may apply if taken prior to age 59½ Power of tax deferral Increased contribution limits

Taxes will be due at the time of distribution; withdrawals prior to age 59½ may be subject to an additional 10% federal income tax penalty. Discover the Benefits Reduce your current taxes Assuming: 25% tax bracket Assuming: 25% tax bracket Your income Tax-deferred contributions Taxable income Estimated federal income taxes After-tax contributions Net income Your income Tax-deferred contributions Taxable income Estimated federal income taxes After-tax contributions Net income $40, ,000 10,000 2,400 $27,600 $40, ,000 10,000 2,400 $27,600 $40,000 2,400 37,600 9,400 0 $28,200 $40,000 2,400 37,600 9,400 0 $28,200 After-tax Plan Before-tax Plan

Discover the Benefits Reduce your current taxes This is a hypothetical example and is not indicative of any product or performance and does not reflect any fees or expenses associated with investing. Investment values will fluctuate with changes in market conditions. Taxes will be due upon distribution of the tax deferred amount, and if taken prior to age 59½ may be subject to an additional 10% federal tax penalty. If taxes were shown the results would be lower. This is a hypothetical example and is not indicative of any product or performance and does not reflect any fees or expenses associated with investing. Investment values will fluctuate with changes in market conditions. Taxes will be due upon distribution of the tax deferred amount, and if taken prior to age 59½ may be subject to an additional 10% federal tax penalty. If taxes were shown the results would be lower. Without tax deferral With tax deferral 10th year 15th year 20th year $22,653 $38,315 $57,833 $32,653 $57,662 $91,129 Assuming: $200 monthly contribution 6% interest 25% tax bracket

Discover the Benefits Reduce your current taxes Credit claimed on individual’s tax return Applies to first $2,000 in contributions Credit based on AGI schedule Credit claimed on individual’s tax return Applies to first $2,000 in contributions Credit based on AGI schedule $0 - $15,000 $15,001 - $16,250 $16,251 - $25,000 $0 - $15,000 $15,001 - $16,250 $16,251 - $25,000 Individual Joint $0 - $30,000 $30,001 - $32,500 $32,501 - $50,000 $0 - $30,000 $30,001 - $32,500 $32,501 - $50,000 50% 20% 10% 50% 20% 10% Credit

Discover the Benefits Contribution limits You may contribute a significant amount each year The limit is increasing You may contribute a significant amount each year The limit is increasing $14,000 $15,000 $14,000 $15,000 Under 50 Over 50 $18,000 $20,000 $18,000 $20, Year

Where Should I Invest My Money? Understand your plan’s investment options –Stock-based mutual funds –Bond-based mutual funds –Cash/stable value investment options Understand LifeSpan SM asset allocation models Determine your investor profile Understand your retirement plans benefits Understand your plan’s investment options –Stock-based mutual funds –Bond-based mutual funds –Cash/stable value investment options Understand LifeSpan SM asset allocation models Determine your investor profile Understand your retirement plans benefits

Risk vs. Return Pyramid Stock-based Options Balanced Options Bond-based Options Cash/Stable Value Investment Options More risk, higher return potential Less risk, lower return potential Be aware that there are significant differences in risk among investment asset classes.

Asset Allocation The way your money is diversified among the major asset classes Helps minimize investment risk Studies show it’s an effective strategy The way your money is diversified among the major asset classes Helps minimize investment risk Studies show it’s an effective strategy Bonds Stocks Cash/stable value Asset allocation/diversification cannot eliminate the risk of investment losses, and there’s no assurance that assuming more risk brings better results.

LifeSpan SM Asset Allocation Models Risk-based asset allocation models –Conservative –Moderate –Aggressive Utilizes program investment options Developed by an independent consultant Serves as a guideline for individuals Risk-based asset allocation models –Conservative –Moderate –Aggressive Utilizes program investment options Developed by an independent consultant Serves as a guideline for individuals

What Type of Investor are You? Take a quick quiz

What Type of Investor are You? Characteristics may be…...or somewhere in between? Conservative Plan to retire soon Wants to try and avoid risk Conservative Plan to retire soon Wants to try and avoid risk Moderate Might retire in 6-15 years Wants to invest cautiously Moderate Might retire in 6-15 years Wants to invest cautiously Aggressive Retirement is far in the future Accepts risk to try and achieve greater growth Aggressive Retirement is far in the future Accepts risk to try and achieve greater growth

LifeSpan SM Asset Allocation Models Risk-based Conservative Moderate Aggressive These model portfolios are illustrations only and are not intended as investment advice or recommendations for any individuals. The models have been developed as general examples for investors risk profiles and utilize program investment options. The final decision on investment choices is the participant's. Stock-based Options Bond-based Options Cash/Stable Value Investment Options

Why invest? “Why bother with stocks and bonds?” “Why not simply save?” “Why can’t I just set money aside in a savings account?”

Discover the Benefits Help fight inflation Impact of inflation at an assumed 3% inflation rate in 20 years Sources: U.S. Postal Service; Financial Fitness Foundation; U.S. Census Bureau's Statistical Abstract of the United States; Kelly Blue Book and; the Wall Street Journal Automobile * * $0.15 $0.37 $0.67 $0.15 $0.37 $0.67 Postage Stamp Movie Ticket * * $2.00 $7.50 $13.55 $2.00 $7.50 $ * * $6,200 $19,175 $34,632 $6,200 $19,175 $34,632

What’s my target retirement date? What’s my financial situation? What’s my risk tolerance? What’s my target retirement date? What’s my financial situation? What’s my risk tolerance? Think it through…

Create Your Portfolio Morningstar ® Guidance Online SM –Access to online investment education, research and guidance Morningstar ® Guidance Online SM –Access to online investment education, research and guidance Morningstar ® Guidance Online SM is offered by and is the property of Morningstar Associates, LLC, a registered investment adviser and a wholly-owned subsidiary of Morningstar, Inc.

Create Your Portfolio Morningstar ® Guidance Online SM is offered by and is the property of Morningstar Associates, LLC, a registered investment adviser and a wholly-owned subsidiary of Morningstar, Inc. Conservative Moderate Aggressive Use as a guideline to allocate your investments. LifeSpan SM risk-based asset allocation models Create your own investment mix More risk, higher return potential Less risk, lower return potential Access to Morningstar ® Guidance Online SM for online investment information. Morningstar ® Guidance Online SM

Understand Your Plan’s Benefits UNM Hospitals Payroll deduction - up to $14,000 in 2005 Employer contributions Choice of investment options No surrender fees Shares purchased at Net Asset Value (NAV) Convenient account access Tax advantages One-on-one guidance for retirement planning assistance No open enrollment dates Payroll deduction - up to $14,000 in 2005 Employer contributions Choice of investment options No surrender fees Shares purchased at Net Asset Value (NAV) Convenient account access Tax advantages One-on-one guidance for retirement planning assistance No open enrollment dates

Understand Your Plan’s Benefits Employer contributions Employer contribution –Hospital contributes 5.5% of gross base pay –Begins after 1 year of benefits-eligible service –The contributions are allocated to the Lincoln Fixed Annuity account until you are 100% vested. –On payroll to payroll basis –Refer to the vesting schedule for employer contributions Refer to your Plan Document/Benefits Handbook for complete information Employer contribution –Hospital contributes 5.5% of gross base pay –Begins after 1 year of benefits-eligible service –The contributions are allocated to the Lincoln Fixed Annuity account until you are 100% vested. –On payroll to payroll basis –Refer to the vesting schedule for employer contributions Refer to your Plan Document/Benefits Handbook for complete information

Understand Your Plan’s Benefits Vesting schedule Refers to your “ownership” of employer contributions to your account if you were to terminate service 1-<3 years of service 3 years of service 4 years of service 5 years of service 1-<3 years of service 3 years of service 4 years of service 5 years of service Years of Service 0% 25% 55% 100% 0% 25% 55% 100% % Vested Refer to your Plan Document/Benefits Handbook for complete information

How Do I Enroll? New participants Determine how much you want to contribute –Meet one-on-one with Retirement consultant to view paycheck comparison, take investor profile quiz, etc. Enrollment form Beneficiary Designation Form Choose investments or LifeSpan SM asset allocation model –ALL new employees must turn in an enrollment form and beneficiary form for employer contributions. Determine how much you want to contribute –Meet one-on-one with Retirement consultant to view paycheck comparison, take investor profile quiz, etc. Enrollment form Beneficiary Designation Form Choose investments or LifeSpan SM asset allocation model –ALL new employees must turn in an enrollment form and beneficiary form for employer contributions.

How Do I Enroll? Current participants PIN number –Personal Identification Number (PIN) mailed to home within one month Account access 24/7 –Website - –Voice Response –Customer service - available 7a.m. - 7p.m. (EST) PIN number –Personal Identification Number (PIN) mailed to home within one month Account access 24/7 –Website - –Voice Response –Customer service - available 7a.m. - 7p.m. (EST)

Points to Remember Consolidate assets Rollovers accepted from previous employers Pre-tax only –401(k) –401(a) –IRA Check with previous provider to determine if any fees apply Rollovers accepted from previous employers Pre-tax only –401(k) –401(a) –IRA Check with previous provider to determine if any fees apply

Now you know! You have the tools and information How much should I invest? Where should I invest my money? How do I enroll? How much should I invest? Where should I invest my money? How do I enroll?

Mutual funds offered through Lincoln Financial Advisors Corp., a broker/dealer. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. CRNXXXX-XXXX Thank you for your time Tina Dobias, Retirement Consultant Office:

An investor should consider the investment objectives, risks, charges and expenses of an investment company carefully before investing. Please obtain a prospectus which includes this and other information by calling or by visiting our web site It should be read carefully before investing or sending money. Mutual funds offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 South Clinton, Fort Wayne, IN Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Information taken from sources deemed reliable, but not meant to take the place of your plan document. Refer to your plan document for complete details. Taxes will be due at the time of distribution; withdrawals prior to age 59½ may be subject to an additional 10% federal tax penalty. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. CRN March 2005 An investor should consider the investment objectives, risks, charges and expenses of an investment company carefully before investing. Please obtain a prospectus which includes this and other information by calling or by visiting our web site It should be read carefully before investing or sending money. Mutual funds offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 South Clinton, Fort Wayne, IN Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Information taken from sources deemed reliable, but not meant to take the place of your plan document. Refer to your plan document for complete details. Taxes will be due at the time of distribution; withdrawals prior to age 59½ may be subject to an additional 10% federal tax penalty. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. CRN March 2005