CONSTRUCTION UPDATE

                                      OCTOBER 2011

With the increase of Admission staff, several changes are being made in the office suite to
provide offices for new counselors. This is being accomplished by removing several modular
office set ups and relocating some of the staff to other areas of the building.

The following projects are being studied as part of the ongoing athletics master plan.

       Baseball Field House
       Design is underway for a new baseball field house \ indoor batting facility to be located
       along the first base side of Latham Stadium. The building is planned to be approximately
       10,000 square feet and includes player locker room \ lounge, coaches’ offices, training
       room and a batting cage \ pitching area. The building exterior will be predominately
       brick veneer and will be designed to meet Furman design and construction standards.

       Football Press Box \ Fieldhouse
       The existing press box has significant fire code deficiencies and possible solutions have
       been studied including the addition of new egress stairs to the building. The possible
       solutions are costly and only temporary due to other functional problems with the
       building. The local fire department has given the University a two year deadline to
       remedy the code issues before significant occupancy reductions are imposed. Due to
       these circumstances, the Administration has decided to look at what is needed for a new
       facility rather than complete a temporary solution.

       To this end, a schematic design study has just begun with McMillan Pazdan Smith
       Architects for a new combination building at Paladin Stadium. The new building will
       include a field house for the football team and a press box for stadium use. The field
       house will include coaches’ offices, team meeting rooms, locker rooms, training room,
       equipment room and support spaces (an option for weight training will be studied as
       well). The press box portion of the building will include concessions, ticket sales, a club
       viewing level, a suite viewing level, a press level and other support spaces.

       REK Short Game Practice Facility
       Design development is in process for the future construction of a short game practice area
       (north of the current REK) to be used by the Furman golf teams. Although the facilities
       at the REK are adequate for practicing the long game, short game practice areas are not
       sufficient. To provide facilities commensurate with other NCAA programs, construction
       of dedicated space for short game practice is proposed to include putting greens (both
       bermuda and bent grass), short game target greens, and bunker practice greens built and
       grassed to replicate golf course conditions.
       Soccer Field House
       An updated concept for a field house at Stone Soccer Stadium was produced this summer
       by McMillan Pazdan Smith. This proposed 3,250 square foot building includes public
       rest rooms, home and visitor locker rooms, training room, concessions and an upper level
       viewing deck. The new schematic plan will be used for the ongoing fund raising phase of
       this project and will be the basis for the building to be completed in the future.

       Softball Press Box
       A new press box facility has been designed by McMillan Pazdan Smith for the existing
       Pepsi Softball Stadium. This facility includes public restrooms, concessions, coaches’
       offices, press box and exterior plaza areas and will be located adjacent to the existing
       stands. The building is approximately 2,700 square feet and the exterior will be
       predominately brick veneer designed to meet Furman design and construction standards.
       The project is currently in the bidding stage with construction possibly beginning by the
       end of October pending the completion of the fundraising effort. Occupation is projected
       to occur in early March 2012.

The wireless project is on schedule and on budget. All residence halls were complete before the
start of the fall semester. Nearly all administrative and academic buildings are also complete.
Work remaining should be complete by the end of November and includes the Molinar lab of
Health and Exercise Science, the upper level of the Chapel, the football stadium press box, and a
few other outlying athletic areas.

Our systems and network staff are continuing to learn the new system. We have found some
areas of weak coverage in Manly, Judson, and the Library porch but plans are underway to
address these areas.

The University recently began a study of the need for infant and toddler care on campus. In late
September, the firm, WFD Consulting, was retained to conduct study groups and review the
existing Child Development Center. Their report will provide recommendations about adding
these younger children to the program and any facilities upgrades this may require. To date,
their work is in progress and recommendations are expected in the next several weeks.

Below are the major projects identified for completion this fiscal year with the annual Deferred
Maintenance budget allocation of $1,575,000 plus reserves that has saved from previous years.

       Annual Dorm Renewals
       Over the summer, Haynsworth Dorm and North Village buildings A, B & C were
       renewed as part of our long term housing renewal schedule. Due to the upcoming major
       renovations to South Housing, the annual renewal work in this area has been significantly
       scaled back. Work was completed between May 9th and July 15th and included complete
       carpet replacements, painting of corridors and bedrooms, light fixture replacements, and
       HVAC system repairs/replacements.
       Tennis Court Renewal
       This project included the surface renovation of the Men’s and stadium courts and the re-
       coloring of the Women’s courts. The asphalt on the men’s and stadium courts were
       completely milled, re-graded and 3” of new asphalt was installed. All the outdoor courts
       were sealed and colored with a purple & green scheme with white striping. In keeping
       with national trends, diamond “F” logos were installed between the courts in addition to
       new nets and posts. Project was completed in September.

       Upgrade to Circuits 3 and 7
       The high voltage circuits feeding the PAC, Younts Conference Center, Timmons Arena,
       and Cherrydale will be replaced over the Christmas break. The existing wiring and
       connections are a major source of concern for possible failure and repairs are not a viable
       option. The revamped system will be much more reliable and the risk of a major,
       unplanned outage will be significantly reduced.

       Chilled Water Loop Expansion
       Plans are underway to extend the existing chilled water piping to the Art Building and to
       Chiles and Gambrell in Lakeside Housing. These building currently utilize chillers and
       associated equipment that are well past their useful life and the source of frequent
       maintenance problems. The buildings will be fed chilled water from the Central Plant
       which operates more much efficiently and reliably. This work is scheduled for
       completion in the spring of 2012.

       REK Siding Replacement
       The existing cypress siding on REK will be replaced using Hardy board siding that will
       require significantly less maintenance and care in the long term. This project is
       scheduled for completion in early 2012.

       Daniel Recital Hall Rigging Repairs
       This project will replace all existing overhead lights and the rigging infrastructure
       associated with the movable ceiling and acoustic panels in Daniel Recital Hall.
       Replacement and repair parts are no longer available and this system has been identified
       as a major safety concern. This project is scheduled for completion over the Christmas

This summer a conceptual design and estimate was developed for a new sidewalk connecting the
Vinings Apartments to the entrance at Timmons Arena. A grant application was submitted to the
county C Funds committee for possible funding of a significant portion of the cost. The C Funds
committee is made up of state house representatives from our area and they are tasked with
distributing state highway department funds based on the merits of the applications received.
The committee was fairly supportive of the project but asked that we identify other funding
sources that would reduce the amount required by the state. When other funding sources are
identified, we will again meet with the committee for final approval. This sidewalk will be a
significant safety improvement and benefits to both the community and Furman students. Work
is on hold pending additional funding.

Natural Gas prices have moved even lower with the “forward” month is now in the high $3.00
range. Supplies are still abundant and are near historical highs in terms of availability and
storage. Triggers have been set with SCANA Energy to purchase additional hedges of gas for
the 2011/2012 budget year as those months fall below $4.00per dk. Pricing for approximately
70% of our gas consumption in 2011-2012 have been locked in at rates well below our budget.
This favorable pricing market and the hedging strategies used will lead to significant budget
savings for Natural Gas purchases in FY 2012. We are also engaged in talks with our supplier
about the feasibility of locking in our pricing for three years to take advantage of the current

The following energy reduction projects are currently being studied as part of our long term
strategy to reduce future energy costs. The decision was recently made to not enter into a
performance contract with an energy services provider but rather, complete these and other
projects using internal resources.

       Heat Wheels at Townes
       A project to add heat wheels to four of the air handlers in Townes Science Center has
       been identified that will significantly reduce the natural gas consumed in the building and
       save the university approximately $50,000 per year. The heat wheels will exchange
       ‘free’ energy between the air entering and leaving the building which will reduce the
       amount of energy that has to be purchased.

       Duke Energy Audit
       Furman has entered into an agreement with Duke Energy to complete a comprehensive
       energy audit of McAlister Auditorium and Daniel Music Building. Both buildings are
       very inefficient and this audit will provide valuable information on potential, cost
       effective energy reduction projects that can be completed. Duke Energy is paying for
       50% of the cost of the audit which is estimated at $40,000.

The installation of the Geothermal system for Phase I (North Village Buildings A, B, and C) was
completed between May 9th and August 4th. During this time, sixty (60) 500 foot wells were
drilled and the existing heat pumps were replaced with new water source heat pumps. A small
mechanical room was built on the end of each building that houses the system pumps and control
panels. The system was operational for the start of the fall term. We encountered a couple of
unanticipated issues that had to be worked through. Preparations have begun for the
implementation of Phase II (buildings D, E, and F). The attic piping work will begin in late
November and be completed over the Christmas break. Phase II wells and heat pump
replacements will begin in May 2012. The system is working extremely well and we are
experiencing a 30% reduction thus far in power consumption compared to the existing systems.
Market and field conditions pushed our costs higher than our anticipated budget. We are
developing plans to address the likely scenario that all buildings cannot be retrofitted with
Geothermal within the existing budget. Below is the overall schedule for this project.

       Summer of 2011 – Buildings A, B, and C
       Summer of 2012 – Buildings D, E, and F
       Summer of 2013 – Buildings G, H, and I
       Summer of 2014 – Buildings J and K

Following the completion of the design and permit phase this summer, construction began on the
new facility in mid-September. As part of the review phase by the University, it was decided to
add some additional technology upgrades in the main conference room. This will allow for this
area to have state of the art presentation capabilities including video conferencing which can be
scheduled and used by others on campus. The general program for the rest of the building has
remained unchanged.

Planning of several projects identified in the Master Plan continues while a few construction
projects have been recently completed. The following is a summary of these first few projects:

       Infirmary (Lower Level) Renovation
       To accommodate relocation of the Counseling Center and Disability Services to the Earle
       Infirmary, the lower level has been reconfigured. As a side benefit, this relocation has
       opened up some needed space in the Administration Building for other uses.
       Construction in the Infirmary was completed in time for the students’ return in August
       and the facility is currently in use.

       Bookstore Renovation
       Since late April, the old bookstore has been relocated, the existing space completely
       renovated, and bookstore moved back into the new space for operations. The new
       bookstore operated by Barnes & Noble includes two new entry points, new aesthetics,
       some new exterior hardscape, addition of a Starbucks Café and a new convenience store.
       In addition, some infrastructure work was completed in preparation for renovations in
       other parts of the University Center in the near future. The bookstore reopened on
       August 8th.

       Library Café
       The possibility of adding a café within the Library is currently being studied. The café
       will be operated by Furman’s food service provider, Aramark and will likely be the
       Einsteins Bagel franchise currently located in the lobby of the Dining Hall. The design
       study is being conducted by LS3P Neal Prince Architects (who were the designers of the
       Library renovation) and several location options have been identified. Work will likely
       be conducted over the summer of 2012.

       University Center – Student Life Office and Student Organization Renovation
       A more detailed study is underway to complete a reconfiguration of the University
       Center. A donor has recently come forward with a significant gift that has shifted this
       project forward in terms of both scope and schedule. The preliminary scope includes a
       renovation of the office area and the student organization wing, an addition to house
       Career Planning, a renovation to the Paladen food court, and the development of the
       lower courtyard for programmed indoor/outdoor space. Part of the study will include a
       phasing plan which will outline the schedule of construction in these areas of the
       University Center. At this time, it is assumed that construction in these areas may begin
       in spring 2012 and extend through the summer. LS3P Neal Prince and HEWV are
       collaborating on the planning for this work.

       Housing Renovation - Planning
       Our staff continues to formulate a strategy for the renovation and construction of South
       Housing units per the HEWV Master Plan and our new student growth goals. Currently,
       it appears that the initial construction or renovation work will take place after the
       University Center work planned for the summer of 2012. This schedule would require
       detailed planning to start in mid-2012 with construction commencing in mid-2013.

The addition of three offices in an “alcove” of the southern wing of the Montague Village
building is complete and occupied.

This project was completed in May and included the installation of a 92 KW system that will
generate 118,000 KWH’s of electricity annually.

W.R. Grace Property - The 40.8 acre WR Grace tract was purchased by the Furman University
Foundation on September 29. After years of negotiations with Grace, dealing with bankruptcy
processes and environmental evaluations, the property is now owned by the Foundation. Plans
are currently being developed to improve drainage, increase safety and improve security at the

Construction of the additional Playhouse building is complete and is now being used by the
department. This 5,400 SF building includes a classroom/computer lab combination, restrooms
and storage for props and costumes.

During the summer the Herring VIP Room was up fitted with new paint, carpet, and a new
counter/serving space. The project also includes a wall covered with graphics of athletic events
and new blinds which will have similar graphics.

The feasibility of a new Admissions Welcome Center is currently being studied with the
assistance of Hanbury Evans Architects. The new Welcome Center will include a large lobby
where prospective students/parents can gather to learn about the Furman experience; a
presentation room with a seating capacity of 125 guests; and offices for Admission counselors
that are integrally involved with the daily recruiting and campus tour process.

The existing Welcome Center is a fabulous facility but lacks the size to accommodate the larger
tour groups associated with today’s recruiting process. This project will also include minor
renovations to the existing space to improve the functionality and to better accommodate the
flow of prospective students and parents as they meet with counselors in Admissions and
Financial Aid.

Site building options for the new Welcome Center include an addition to the Administration
Building and a stand-alone facility located just north of the existing building. This is a
strategically important project to meet the long term enrollment goals of the University. A
project budget has not been set and fundraising efforts have not been initiated.

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