Capitalization range: $113 million to $15 billion
Styles: Core, Quantitative

Inception: July 2005

AUM at inception: $86.8 million
AUM as of September 30, 2008: $255 million
Minimum account size: $5 million

Universe: Russell Midcap^® Index constituents

Restrictions/exclusions: Some portfolios restrict Tobacco stocks and/or REITS (all restrictions are at client's request)
Liquidity Constraints: Liquidity would cause soft close at $2 billion and hard close at $5 billion

Parameters:
Return expectation: 2% over the benchmark per annum
Tracking error expected: <4% versus the benchmark
Cash limits <5%, target <1%
Sector limits +/- 2.5% relative to benchmark
Industry limits +/- 2.0% relative to benchmark
Individual security limits overweight +1.25%, underweight -1.50%, relative to benchmark
Typical number of holdings in Portfolio 100-135
Average annual turnover 70-120%

Current Clients (September 30, 2008):
California Public Employees Retirement System pension plan (CalPERS) $134.4 million
Undisclosed public pension plan through Progress Investments $111.3 million
Undisclosed public pension plan through Progress Investments $9.3 million

Fee Schedule:
0.50% first $25 million
0.40% next $25 million
0.30% next $25 million
0.20% next $75 million
0.15% over $150 million

Sources
Russell Midcap^® Index is a registered trademark of the Russell Investment Group
Plan Sponsor Network (PSN) is a product of Informa Investment Solutions
Global Industry Classification Standards (GICS^®) are a registered trademark of Standard & Poors and MSCI BARRA
Portfolio characteristics compiled from data supplied by The Applied Finance Group, LTD.