NEW COLLEGE OF FLORIDA
                                                                                      RATIO ANALYSIS
Financial Condition Ratios:

        Current Ratio                                                6/30/2006               6/30/2005                6/30/2004      6/30/2003     6/30/2002

                    Current Assets                                $17,683,601              $13,129,677             $12,297,855      $7,084,580    $5,009,573
                    Current Liabilities                            $2,308,991               $3,211,567              $3,911,353      $1,904,157      $772,378

                                Current Ratio                              7.66                    4.09                     3.14          3.72          6.49

                    The current ratio is probably the most widely recognized measure of liquidity. Conventional thinking
                 holds that this ratio should be at least 2:1. Generally, the higher the ratio the better; however, there is a
                 point where one may begin to question the wisdom of holding a significant amount of short term assets
                 when a higher return could be achieved by investing in longer term investments. The current ratio of
                 7.66 indicates New College has over 7 times more in current assets than current liabilities and is
                 indicative of a liquid financial position. Although more than the recommended level, nearly 50% of our
                 current assets are in receivables. Without the receivables our current ratio would be 3.92 for 2005-06.

        Return on Net Assets Ratio

                   Change in Net Assets                            $3,688,581               $1,460,325              $2,819,988      $1,717,587    $1,372,484
                   Beginning Net Assets                           $28,716,076              $27,257,214             $24,437,226     $22,719,639   $21,347,155

                                Return on Net Assets                   12.85%                    5.36%                   11.54%         7.56%         6.43%

                    This ratio determines whether an institution is financially better off than in previous years by measuring
                 economic return. New College has recorded increases to Net Assets for five consecitive years; a positive
                 trend. The increase of 12.85% for fiscal year 2005-06 is growing faster than the rate of inflation as measured
                 by either the Consumer Price Index (CPI) or the Higher Education Price Index (HEPI). A main reason for
                 the increase in Net Assets is due to PECO repair and renovation funds which have not yet been expended.
                                                                 6/30/2006     NEW COLLEGE OF FLORIDA
                                                                                      6/30/2005                     6/30/2004        6/30/2003    6/30/2002
Viability Ratio                                                                    RATIO ANALYSIS

           Unrestricted Net Assets                             $4,803,697                $4,181,566               $3,511,440        $1,986,712   $1,741,229
           Restricted Expendable Net Assets                     3,284,420                 4,807,439                4,689,771         3,340,974    1,822,488
             Sub-total                                         $8,088,117                $8,989,005               $8,201,211        $5,327,686   $3,563,717

           Long-Term Debt                                     $30,035,833                $4,012,440               $4,119,515        $4,219,515   $4,318,053

                         Viability Ratio                               0.27                      2.24                        1.99         1.26         0.83

                The ratio of expendable net assets to long-term debt indicates the relative liquidity of an institution.
           It is an indicator of financial strength and reflects the availability of sufficient cash, or other convertible
           assets, to settle it's obligations as of the date of the Statement of Net Assets. There is no absolute
           threshold that indicates financial viability, since long-term debt will not need to be paid off all at once.
           The ratio declined in 2005-06 due to assuming additional debt related to the construction of five new
           student dorms.

                                                                 6/30/2006                6/30/2005                 6/30/2004        6/30/2003    6/30/2002

Contribution Ratios
                 State Appropriations                          $13,055,306         $11,991,035       $10,929,582                       $9,810,504    $7,998,915
                Total Operating Expenses                       $22,124,766    NEW COLLEGE OF FLORIDA $17,601,366
                                                                                   $20,557,363                                        $16,960,369   $16,090,281
                                                                                  RATIO ANALYSIS

                             Contribution Ratio                     59.01%                 58.33%                  62.10%                 57.84%        49.71%

                Student Tuition & Fees (net)                    $1,166,495             $1,400,834              $2,447,055              $3,005,199    $3,072,286
                Total Operating Expenses                       $22,124,766            $20,557,363             $17,601,366             $16,960,369   $16,090,281

                             Contribution Ratio                      5.27%                  6.81%                  13.90%                 17.72%        19.09%

                Sales & Services-Auxiliary Enterprise           $2,986,547             $2,738,261              $2,658,135              $2,424,461    $2,284,696
                    Total Operating Expenses                   $22,124,766            $20,557,363             $17,601,366             $16,960,369   $16,090,281

                             Contribution Ratio                     13.50%                 13.32%                  15.10%                 14.29%        14.20%

                    Revenues by source, expressed as a percentage of operating expenses, are referred to as contribution
                ratios. By measuring revenue sources as a contribution to total operating expenses, institutions can ensure
                that, over time, revenues are keeping pace with expenses. The contribution ratios above represent three of our
                largest revenue sources. We plan to compare these revenue sources from year to year to determine if the
                growth in these revenues are keeping pace with the growth in operating expenses. If we experience continued
                decline in any of these ratios we may need to (1) develop other sources of operating or non-operating revenues
                to cover the growth in operating expenses; (2) reduce operating expenses; or (3) reduce unrestricted net
                assets. The decrease in Student Tuition & Fees beginning with the 2003-04 fiscal year was the result of a change
                in how we calculated our tuition scholarship allowances. Although Student Tuition & Fees reflects a decreasing
                percentage for two consecitive years, we believe this decrease is due more to the increases in state appropriations
                and Auxiliary enterprise funds rather than a loss of tuition revenues.

Creditworthiness Ratios:

       Debt Burden Ratio                                         6/30/2006               6/30/2005              6/30/2004               6/30/2003     6/30/2002

                     Debt Service                                 $328,243               $328,243                $332,885               $326,215      $326,930
Total Operating Expenses                        $20,103,437              $20,103,437             $17,601,366           $16,960,369   $16,090,281
                                                                NEW COLLEGE OF FLORIDA
              Debt Burden Ratio                        1.63%        RATIO ANALYSIS
                                                                          1.63%                        1.89%                1.92%         2.03%

    This ratio examines New College's dependence on debt as a source of financing its mission and the relative
cost of debt to overall expenses. Debt service includes the required principal and interest payments required
under the indenture. The higher the ratio, the fewer resources available for general operating purposes. A low
ratio, or declining trend in ratios, indicates that debt service has sufficient coverage. New College's debt service
is 1.63% percent of operating expenses. Investment bankers have identified an upper threshold for this
ratio at 7 percent. While 7 percent is a generally accepted threshold, it will not necessarily preclude an
institution from obtaining additional external financing. However, ratios higher than 7 percent will likely face
greater scrutiny from rating agencies and creditors. The planned building of a new student housing dorm will
increase our debt burden ratio in future years.

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