1. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. Why small cap? Why now? Source: Value and Growth Indices—represented by the Fama-French Growth-Value Indices. Note: This is for illustrative purposes only and not indicative of any investment. The data assumes reinvestment of income and does not account for transaction costs or taxes. The average return represents a compound annual return. Returns and principal invested in stocks are not guaranteed. Large company stocks provide ownership in corporations that intend to provide growth and/or current income. Small company stocks provide ownership in corporations that intend to seek high levels of growth. Small company stocks are more volatile than large company stocks, are subject to significant price fluctuations, business risks, and are thinly traded. Capital gains and dividends received may be taxed in the year received. Growth stocks generally have higher price-to-earnings and lower book-to-market ratios than value stocks, as investors are willing to pay more for higher perceived growth opportunities. Growth stocks are represented here by the bottom 30% of stocks traded on the NYSE ranked by book-to-market ratio, plus stocks traded on the AMEX and NASDAQ with equal or lower book-to-market ratios. Value stocks tend to have lower price-to-earnings and higher book-to- market ratios, as investors will not pay as much for lower growth potential. Value stocks are represented here by the upper 30% of NYSE stocks and comparable stocks on the AMEX and NASDAQ. The median market capitalization of NYSE stocks is used as the breakpoint in classifying stocks as large or small. Index composition is determined in June and rebalanced annually. An investment cannot be made directly in an index. Past performance is not indicative of future results, which may vary. Source: Frank Russell Co. The above information is based on historical benchmark valuation and is not based on any Goldman Sachs Asset Management portfolio. First data date for Russell Style Indices: 1Q79. Chart data as of 9/30/07. Growth of $1 Invested in 1927-2006 Over long periods of time SCV outperforms most other equities, albeit with great risk Valuation of SCV vs. LCV stocks are still within historical range on a P/B basis We think it is increasingly important to be with the right manager Historical Discount: 44% Current Discount: 41% +1 Standard Deviation -1 Standard Deviation +2 Standard Deviation -2 Standard Deviation Historical Price/Book Discount of Russell 2000 Value to S&P 500 (Data as of 9/30/07)

2. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. Source: Reuters. This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Past performance is not indicative of future results, which may vary. Please see additional disclosures. Indices are unmanaged. The figures for the index reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses which would reduce returns. Investors cannot invest directly in indices. Market trends have been challenging for fundamental quality oriented managers CBOE Volatility Index (Daily) – Trailing 10 Years (9/30/97 – 9/30/07) VIX Average = 21 Benign Environment Ample liquidity Low interest rates Low inflation High margins High earnings Low Volatility Steady gains Global spread of capitalism No exogenous shocks += Little Differentiation Low quality = High quality Complacency Momentum Few Home Run Opportunities Annualized Index Returns (1/1/2003 – 12/31/2006)

3. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. Despite recent headwinds, quality in small cap tends to do well during most of the cycle  Low quality/high risk environment of recent years appears to have dissipated  Quality stocks (defined by high ROE and ROA) have outperformed in both upward and downward cycles  While low quality environments have been common in recent years, these periods were transitory over time  High quality trends have occurred with greater frequency and extended duration Source: Frank Russell Company. The above information is based on historical benchmark valuation and is not based on any Goldman Sachs Asset Management portfolio. First data date for Russell Style Indices: 1Q79. Chart data as of 9/30/07. High quality periods are defined as timeframes when the top two quintiles of Return on Equity and Return on Asset stocks outperform the bottom two quintiles. ROE and ROA metrics only available since 1985. Historical style index discount is based on Russell index information since 1979. Indices are unmanaged. The figures for the index reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses which would reduce returns. Investors cannot invest directly in indices. Quality Trends in the Small Cap Value Cycle Relative Performance of the Russell 2000 Value to the S&P 500 Index (as of 9/30/07) Quality OutperformsQuality Lags

4. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. 3Q07 Market trends: reversing course  While most equity markets remain in positive territory YTD, housing/credit concerns and the subsequent liquidity crunch have changed investor perception of risk  A flight to quality occurred across market caps  Large cap stocks outperformed small caps; Growth outperformed Value  Volatility has spiked from multi-year lows  Rich environment for fundamental stock picking Source: Factset, Standard and Poors. This information discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Please see additional disclosures. The figures for the index reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses which would reduce returns. Investors cannot invest directly in indices. Market returns (as of 9/30/07) Performance characteristics for the R2000V Index Returns by Quintiles (%) YTD

5. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. Philosophy based on price and prospects  …that have quality characteristics  Sustainable operating or competitive advantage  Excellent stewardship of capital  Capability to earn above their cost of capital  Strong or improving balance sheets and cash flow We seek to invest in companies…  When uncertainty exists  When their real economic value is not recognized by the market Price Prospects

6. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. A deep team of experienced investment professionals Number in parenthesis represents years of industry experience as of 9/30/07. Eileen Rominger (27) Chief Investment Officer/Portfolio Manager Chip Otness (37) Head, Small Cap Value Dolores Bamford (18) Sector of Responsibility Basic Materials, Industrials, REITs Consumer Cyclicals Energy Non-Bank Financials, Health Care, Insurance Consumer Staples Research Analysts Portfolio Managers Client Portfolio Managers Stacey DeMatteis (14) Donald Gervais (11) Utilities Lisa Parisi (22) Kelly Flynn (16) Scott Carroll (16) Edward Perkin (12) Michael Ho (1) Basic Materials, Energy Robert Crystal (10) Sally Pope Davis (26) Technology, Services Banks, Thrifts Ward Kruse (11) Industrials

7. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. GSAM Small Cap Value Composite Historical Performance -19 bps -172 bps +576 bps +53 bps Gross Returns (as of 9/30/07) Annualized gross returns ** Small Cap Value Inception Date: 9/1/97. 3, 5 and since inception returns are annualized. ***Source eVestment Alliance. As of 6/30/07, there were 282 Small Cap Value managers in the eASE database. Past performance is not indicative of future results which may vary. The Small Cap Value Strategy was closed to new investors as of May 15, 2004. Results are shown gross of fees and do not reflect the deduction of investment advisory fees which would reduce a client’s returns. Due to rounding, excess returns may not net out. The since 2000 numbers for Small Cap Value are considered supplemental. Additional performance data has been presented since 2000 to highlight the management of the portfolios since implementation of the current portfolio management team’s views as there were significant changes to the Value team at the end of 1999. The GSAM Small Cap Value Composite is provided as a supplemental performance measure and does not represent the actual performance of the Penn Mutual Fund. +321 bps percent +483 bps Gross Excess Returns -14 bps +322 bps +793 bps +576 bps Returns and risk statistics (1/1/00 –6/30/07) Small Cap Value Composite Russell 2000 Value Index Small Cap Value Peer Group Median*** Average Annualized Return (%, gross)18.515.616.7 Standard Deviation (%)16.017.617.8 Information Ratio0.6N/A0.2

8. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. Performance consistency in most market environments Small Cap Value Inception Date: 9/1/97. Past performance is not indicative of future results which may vary. The Small Cap Value Strategy was closed to new investors as of May 15, 2004. Results are shown gross of fees and do not reflect the deduction of investment advisory fees which would reduce a client’s returns. Indices are unmanaged. The figures for the index reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses which would reduce returns. Investors cannot invest directly in indices. References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time (each, an “index”) are provided for your information only. Reference to an index does not imply that the portfolio will achieve returns, volatility or other results similar to the index. The composition of the index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change over time. Due to rounding, excess returns may not net out. The since 2000 numbers for Small Cap Value are considered supplemental. Additional performance data has been presented since 2000 to highlight the management of the portfolios since implementation of the current portfolio management team’s views as there were significant changes to the Value team at the end of 1999. Please refer to the performance composite at the end for additional information. *Source eVestment Alliance. As of 6/30/07, there were 282 Small Cap Value products, including commingled vehicles and separate account vehicles, in the eASE database. The GSAM Small Cap Value Composite is provided as a supplemental performance measure and does not represent the actual performance of the Penn Mutual Fund. GSAM Small Cap Value Standard Deviation eVestment Alliance Rankings as of 6/30/07* 3 Yr 5 Yr (80) (73) Average Monthly Gross Returns Analysis of Value Composites (1/1/2000 – 09/30/2007) Benchmark: –4% to 4%Benchmark: over 4% Trading Range Months Down Months Exuberant Months Composite PerformanceBenchmarkGross Excess Return Benchmark: under –4% Small Cap Value

9. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. Penn Series Small Cap Value Fund Performance as of September 30 th, 2007 Portfolio Composition* Equities 96.3% Cash 3.7% Total100.0% Account Value$187.7 MM *Performance and account data is shown for the Penn Series Fund account. Since Inception performance is as of 8/02/2004. Past performance is not indicative of future results which may vary. Performance figures shown are gross and reflect the deduction of investment advisory fees which would reduce returns. Performance figures are rounded. Indices are unmanaged. The figures for the index reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses which would reduce returns. Investors cannot invest directly in indices. References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time (each, an “index”) are provided for your information only. Reference to an index does not imply that the portfolio will achieve returns, volatility or other results similar to the index. The composition of the index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change over time. Due to rounding, excess returns may not net out. The returns presented herein are gross and do not reflect the deduction of investment advisory fees, which would reduce a client’s return. -470 bps+332 bps -35 bps Annualized returns (as of 09/30/07)* +583 bps+491 bps -19 bps -16 bps

10. For Penn Mutual Broker Dealer Use Only. Not for distribution to clients or the general public. Additional information General disclosures General Past performance is not indicative of future results, which may vary. The value of investments and the income derived from investments can go down as well as up. Future returns are not guaranteed, and a loss of principal may occur. The Russell 2000 Value Index is an unmanaged index of common stock prices that measures the performance of those Russell 2000 companies with lower price- to-book ratios and lower forecasted growth values. The Russell 1000 Index is a market-cap weighted index that measures the performance of the 1,000 largest companies in the Russell 3000 Index. The Russell 2000 Index is an unmanaged index of common stock prices that measures the performance of the 2000 smallest companies in the Russell 3000 Index. The Russell Midcap Value Index is an unmanaged index of common stock prices that measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The Index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index. References to indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only and do not imply that the portfolio will achieve similar results. The index composition may not reflect the manner in which a portfolio is constructed. While an adviser seeks to design a portfolio which reflects appropriate risk and return features, portfolio characteristics may deviate from those of the benchmark. Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may, without Goldman Sachs Asset Management’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorised agent of the recipient. This material has been prepared by Goldman Sachs Asset Management and is not a product of the Goldman Sachs Global Investment Research Department. This information is provided to discuss general market activity, industry or sector trends, or other broad-based economic, market or political conditions and also refers to specific securities. This information should not be construed as research or investment advice, and investors are urged to consult with their financial advisors before buying or selling any securities. Any reference to a specific security listed herein does not constitute a recommendation to buy, sell or hold such securities. Such information pertains to past performance or is the basis for previously made discretionary investment decisions and may not be current. Accordingly, such information should not be relied upon in whole or in part in making an investment decision. GSAM has no obligation to provide any updates or changes to such information. The views and opinions expressed herein may differ from the views and opinions expressed by the Global Investment Research Department or other departments or divisions of Goldman Sachs and its affiliates. There is no assurance that any of the securities discussed herein will remain in the strategy’s portfolio or that securities sold have not been repurchased. Any securities discussed may represent only a small percentage of the strategy’s portfolio holdings, and should not be deemed representative of the entire strategy’s portfolio holdings. It should not be assumed that future portfolio holdings will be profitable or will equal the performance of the securities mentioned herein. The information should not be deemed representative of actual or future characteristics for the strategy. A complete list of portfolio recommendations is available upon request. GSAM, LP is the subadvisor to the Fund. This material is provided at your request solely for your use. Copyright © 2007, Goldman, Sachs & Co. All rights reserved. 1815.MF.OTU.