How Stock Portfolios Create Excess Return Market Timing Strategic Themes Security Selection Contributing Factor Modest Low Impact on Portfolio Return Importance to Northlake Large Very Important Modest Low Northlake’s equity investment strategy is focused on strategic themes --- the factor which has the greatest influence on portfolio returns. Most money managers focus on security selection or market timing.

Stock Market Investors Face Many Choices... Active or Passive? Stocks or Funds? Large or Small Cap? Growth or Value?

Northlake Capital Management is a full-service investment management firm featuring ETF Plus, a unique strategy for stock market investing. ETF Plus is designed to meet the challenges of the stock market with a straightforward investment philosophy: simplify, diversify, and control costs. Core Investments for Long-Term Growth + + Satellite Investments for Excess Return A Better Way... Northlake’s ETF Plus Equity Portfolio Core Investments Style Indices Special Situations Special Situations Market Cap Indices Market Cap Indices ETF Plus Portfolio

What ETF Plus Does For Portfolios Northlake Capital Management, LLC Portfolio ComponentContribution to Strategy Core Market Investments Special Situations Market Capitalization Style Customize your portfolio based upon your unique goals and objectives Invest for excess return using a back-tested strategy for selecting Large Cap, Mid Cap, or Small Cap stocks Invest for excess return using a back-tested strategy for selecting growth or value stocks Purchase carefully researched, undervalued stocks creating an opportunity for excess return independent of the major market indices Northlake actively manages ETFs using disciplined strategies to take advantage of developing stock market themes (value vs. growth and small cap vs. large cap). Select Special Situation stocks increase portfolio potential.

Exchange Traded Funds: Differentiating Northlake Capital Management  ETFs are publicly traded securities designed to perfectly mimic the performance of a target index (e.g. the S&P 500, Small Cap stocks, or Value stocks)  ETF’s are a flexible tool enabling new stock market strategies  Over 180 ETFs are available that replicate major market indices, specific market capitalizations, equity styles (growth or value), economic sectors and industries, and international markets  According to the Investment Company Institute more than $150 billion was invested in ETFs at the end of 2003  ETFs provide clear benefits for investors  ETFs provide broad exposure and diversification  A handful of ETFs shares the profile of a portfolio of 40 to 50 stocks  ETFs allow investors to implement strategies more directly and more simply  ETFs offer the same upside as individual stocks without the individual company risk ETFs are “a better way to invest” --- employing a portfolio of actively managed ETFs provides investors with the same upside potential as individual stocks, risk reduction through diversification, and exposure to key segments of the market

Northlake’s ETF Plus Strategy for Fully Diversified Stock Portfolios ETF Plus is a comprehensive solution for managing equity portfolios. ETF Plus is fully integrated and flexible -- follow Northlake’s recommendations, adjust the weightings to best match your goals and objectives, and include Core Investments customized to your tolerance for risk. Selection of Market Index ETFs (e.g. S&P 500, NASDAQ, International) customized for each client’s unique goals, objectives, and tolerance for risk Core Market Indices Investor Specific Exchange Traded Funds Core Investments Long-Term Growth Critically Analyzed Underfollowed Select Trading Positions Risk Management Individual Equities Held To Target Price Rebalance As Needed Special Situations Large Cap Vs. Mid Cap Vs. Small Cap Top Cap Gets Allocation Monthly Model Exchange Traded Funds Market Cap Growth Vs. Value Top Style Gets Allocation Monthly Model Exchange Traded Funds Style Excess Return Excess Return

Northlake’s ETF Plus Strategy for Aggressive Stock Portfolios ETF Plus for Aggressive Portfolios invests only in strategies designed to beat the market --- Northlake’s Back-Tested Models for Market Capitalization and Style and Select Special Situation Stocks off the radar of Wall Street and at odds with conventional wisdom ETF Plus Equity Portfolio Critically Analyzed Underfollowed Select Trading Positions Risk Management Individual Equities Held To Target Price Rebalance As Needed Special Situations Large Cap Vs. Mid Cap Vs. Small Cap Top Cap Gets Allocation Monthly Model Exchange Traded Funds Market Cap Growth Vs. Value Top Style Gets Allocation Monthly Model Exchange Traded Funds Style Rebalanced Quarterly

Creating ETF Plus: Market Capitalization Model Each month, Northlake’s Market Capitalization model selects a favored capitalization based on a model developed by Ned Davis Research and adapted for Northlake. Northlake’s ETF Plus equity portfolios purchase a 20% position in an ETF that tracks the favored capitalization. The position is held until the model favors a new style. The average holding period for the top rated capitalization has been slightly over five months since inception in Each month, Northlake’s Market Capitalization model selects a favored capitalization based on a model developed by Ned Davis Research and adapted for Northlake. Northlake’s ETF Plus equity portfolios purchase a 20% position in an ETF that tracks the favored capitalization. The position is held until the model favors a new style. The average holding period for the top rated capitalization has been slightly over five months since inception in Since 2/28/81, the Northlake’s Capitalization Model has produced a CAGR of 15.6% versus 10.3% for a benchmark equally weighted among the leading large, mid, and small cap indices. Excluding transaction costs, $100 invested in the model at inception would be worth $2,929 as of 6/30/04. A $100 investment in the equally weighted index would be worth $976.

Creating ETF Plus: Style Model – Growth vs. Value Each month, Northlake’s Style model selects either growth or value stocks as a favored class based on a model developed by Ned Davis Research and adapted for Northlake. Northlake’s ETF Plus equity portfolios purchase a 20% position in an ETF that tracks the favored style, holding the position until the model favors a new style. The average holding period for the top rated capitalization has been seven months since inception in Each month, Northlake’s Style model selects either growth or value stocks as a favored class based on a model developed by Ned Davis Research and adapted for Northlake. Northlake’s ETF Plus equity portfolios purchase a 20% position in an ETF that tracks the favored style, holding the position until the model favors a new style. The average holding period for the top rated capitalization has been seven months since inception in Since 2/29/80, Northlake’s Style Model has produced a CAGR of 12.8% versus 7.1% for a benchmark equally weighted between the growth and style indices. Excluding transaction and administrative costs, $100 invested in the model at inception would be worth $1,865 as of 6/30/04. A $100 investment in the equally weighted index would be worth $523.

Why ETF Plus Works  Core Market Investments Allow Investors to Customize their Portfolio to Match their own Tolerance for Risk  Market Capitalization and Style ETFs offer Back-Tested Upside while Eliminating Security Selection Risk  Special Situation Stocks Provide Additional Upside  Only the Manager’s Best Ideas: Carefully Analyzed and Deeply Researched  Stop Loss Orders and Option Hedges Control Downside  Reduced Overhead Costs are Passed Through to Clients  No Big Research Department to Subsidize  Simple Trading Strategies Reduce Custodial and Commission Costs Northlake’s Strategies Offer Potential for High Returns while Reducing Risk and Controlling Costs