Total Quality Management Investment Process

Investments are selected from those companies scoring well, creating a distinctive, quality-advantaged way of investing in large-cap stocks. The highest scoring 100 companies relative to their peers, chosen from a cross section of economic sectors represented in the S&P 500, are placed in the Q-100^® universe. The Q-100^® was launched in October 1998 and has been published since September 2000 in the American Society for Quality's Quality Progress Magazine (www.asq.org/pub/qualityprogress).

The Kopp TQM strategy starts with the Q-100^® universe. TQM personal accounts hold approximately 35-40 stocks, selected from the Q-100^®, with high Composite Quality Scores relative to their peers. The companies are selected from a cross section of S&P 500 economic sectors.

03/20/06