© 2004 LifeCycle Returns, Inc. All Rights Reserved Sources: Financial Statements and Price Data – CapitalIQ Calculations – LCRT Platform THE RELATIVE WEALTH CHART STRATEGICALLY COMPARES WEALTH CREATED TO CASH ECONOMIC RETURNS (CER’S) ABOVE THE DISCOUNT RATE AND TO ASSET GROWTH

© 2004 LifeCycle Returns, Inc. All Rights Reserved Sources: Financial Statements and Price Data – CapitalIQ Calculations – LCRT Platform THE INTRINSIC VALUE CHART COMPARES PRICES TO INTRINSIC VALUES TO DETERMINE IF THE FIRM IS UNDER OR OVER VALUED Notice the large high low variation around the intrinsic valuations, providing opportunity for profitable trading The Absolute “Tracking” Error Intrinsic Value vs. Actual Equals the Absolute Geometric Mean Error Between The Intrinsic Value Red Line And Closing Prices at Fiscal Year + 3 Months (hollow circles) Over the Number of Years

© 2004 LifeCycle Returns, Inc. All Rights Reserved Sources: Financial Statements and Price Data – CapitalIQ Calculations – LCRT Platform THE PREDICTIVE INTRINSIC VALUE CHART ESTIMATES CONVERGENCE OF ACTUAL PRICE TOWARD INTRINSIC VALUE

© 2004 LifeCycle Returns, Inc. All Rights Reserved Sources: Financial Statements and Price Data – CapitalIQ Calculations – LCRT Platform THE COMPARATIVE INTRINSIC VALUE CHART COMPARES THE TRACKING ERROR ACCURACY OF TWO MODELS TO DETERMINE WHICH TO RELY ON FOR SELECTING STOCKS LCRT Residual Income

© 2004 LifeCycle Returns, Inc. All Rights Reserved Sources: Financial Statements and Price Data – CapitalIQ Calculations – LCRT Platform THE COMPARATIVE INTRINSIC VALUE CHART ALSO QUANTIFIES VALUE EFFECTS OF NON-RECURRING ITEMS WHICH MAY NOT BE ONE TIME EVENTS

© 2004 LifeCycle Returns, Inc. All Rights Reserved Sources: Financial Statements and Price Data – CapitalIQ Calculations – LCRT Platform ADDING ANALYSTS’ SALES AND EPS ESTIMATES ENABLES COMPARISONS OF PLAN VALUES FROM THE FORECASTS AGAINST SPOT VALUES FROM HISTORY