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					SFE Investment Counsel
     Company Overview




                        Inspire Trust. Invest Well.
                      Introducing SFE

• SFE Investment Counsel is an investment advisory firm located
  in downtown Los Angeles

• Founded in 1977, SFE is well regarded among individual
  investors and industry peers in the Southern California region
• The investment team of 9 professionals has over 180 years of
  combined investment experience and 13 years average tenure
  with the firm
• SFE is responsible for $325 million in assets invested on behalf of
  individual, corporate and institutional clients
• SFE investment strategies are managed by a team of experienced
  professionals based on value-oriented, fundamental research




                                  2           Inspire Trust. Invest Well.
        SFE Ownership & Financial Status

• SFE is 100% owned by 7 employee-shareholders

• A formal succession plan is in place through which the 5
  minority shareholders buy-down the founders

• All shareholders have invested cash in exchange for ownership

• SFE has been financially stable for 30 years, currently has no
  debt, and is committed to transparency in all client interactions




                                 3            Inspire Trust. Invest Well.
               SFE Client Concentration

• Total assets are $325M

• Managed assets are $200M

• Managed Institutional assets are $43M

• Top 5 clients account for 27% of assets

• SFE’s largest client represents 10% of assets




                                 4            Inspire Trust. Invest Well.
                 Professional Investment Team

                   Name                             Title                  Industry         Tenure at SFE
                                                                       Experience (Years)      (Years)

                 Earl Fisher                Founder / Chairman                39                 30
Research and
  Portfolio    Charles Bohlen
Management                                Chief Investment Officer            10+                6
                  JD, CFA
   Team
                Jim Moylan
                                           Analyst / Portfolio Mgr            12                 1
                 MBA, CFA

               Fred Edwards                    Vice Chairman                  41                 22

                 Jon Kmett                       President                    20+                18


 Investment    Teri McCasland            VP Operations & Compliance           38                 26
 Committee
  Members        Ed Butorac                  VP, Client Services              11                 11

                 Ed Ternan
                                               VP, Marketing                   3                 3
                   MBA
               David Thomsen
                                           Business Development                5                 1
                   MBA
                               Average                                        20                 13
                                                    5                 Inspire Trust. Invest Well.
                Investment Philosophy

• SFE strives to maximize client returns by adhering to a
  straightforward, consistent approach to investing
    – Value-based
    – Fundamental Analysis
    – Total Returns
    – Risk Management
• Dividends are an important source of total returns
    – Sound, established businesses
    – Disciplined financial management
    – Track record of dividend growth
• While screening companies of all market capitalizations, our
  bottoms-up analysis favors small and mid-cap business
  franchises, ideally selling into global markets
                                 6           Inspire Trust. Invest Well.
            The “Merit Monitor” Buy List
      Sector Allocation

                                               The Merit Monitor:
                Technology
                   16%
                                               A “buy list” of 40-60 companies,
All Other
   34%                            Energy       approved by the Investment
                                   16%
                     Industrial
                                               Committee, from which custom
Consumer
  10%    Financial      14%
                                               portfolios are built
            10%

                                               Selection Criterion:
  Market Capitalization                        1. Market Dominance
                                               2. Rising Free Cash Flow
                                               3. Low-Debt Balance Sheet
  Small Cap                                    4. Strong, Consistent Profit Growth
    24%
                      Large Cap                5. Shareholder-Oriented
                         47%
    Mid Cap                                        Management
     29%
                                               6. Price-to-Book Value

                                           7             Inspire Trust. Invest Well.
                  Investment Process

• Investment ideas are developed individually and championed
  by a member of the Investment Committee

• The Research Team conducts a thorough analysis of the
  candidate:
   – financial condition
   – business strategy
   – industry position
   – intrinsic value

• The Investment Committee meets at least weekly to review the
  Merit Monitor and consider new candidates
   – Process of advocacy and debate
   – 2/3 majority required for inclusion on Merit Monitor

                               8            Inspire Trust. Invest Well.
                  Investment Resources
• SFE’s Merit Monitor buy list is divided into two groups of
  companies
   – The “Outside List:" companies that are widely followed by
     outside analysts
   – The “Inside List:” companies that SFE follows directly
• SFE utilizes outside research from top-tier independent firms
   – Argus Research
   – HG Wellington
   – Bank Credit Analyst
   – Matrix
   – High Tech Strategist
   – Stratfor
• Additional resources are used for in-house research
   –   Bloomberg
   –   Reuters
   –   Value Line
   –   Wall Street Journal, NY Times, The Economist, etc.
                                 9            Inspire Trust. Invest Well.
                 Portfolio Management

• Client Relationship Manager develops Investment Policy
  Guidelines for each client

• Portfolio Management Team designs portfolio according to
  guidelines
   – Carefully selected, closely followed stocks

   – Growth stocks bolster returns

   – Value stocks dampen volatility

   – Sector diversification spreads risk

• CRM and Portfolio Management Team review each portfolio
  regularly to rebalance and manage risk


                                 10         Inspire Trust. Invest Well.
                    Risk Management

• Sell Discipline
   – A position is flagged if it closes 20% below the price when
      added to the Merit Monitor
        • Review by investment committee to determine underlying
          cause
        • Default action is to sell, unless an overwhelming
          investment case can be made to buy or hold
• Portfolio Management
   – Balanced mix of growth and income stocks
   – Diversification across sectors
   – Disciplined approach to taking profits
   – Preemptively realize losses as necessary to minimize future
      risk

                               11          Inspire Trust. Invest Well.
               Composite Development

• SFE currently markets a single composite that includes all
  managed accounts with at least 65% equities (the SFE Balanced
  Portfolio)
• The performance data presented herein shows the risk/return
  profile of the SFE Balanced portfolio versus a custom index
  that blends the S&P 500 and the Lehman Aggregate Bond
  Index
• SFE is currently being audited by Ashland Partners to confirm
  our compliance with GIPS standards
• Two 100% equity composites are currently being audited by
  Ashland; Letters of Verification are expected in Q307



                               12           Inspire Trust. Invest Well.
                                             Performance
                                          SFE Balanced Portfolio v s SFE Blended Index

                                           20-Quarter Moving Windows, Computed Quarterly

                                                                                                             SFE Balanced
            240                                 July 1997 - June 2007                                        Portfolio
            220                                                                                              generates
                                                                                                             significant Alpha
            200                                                                                              v. the benchmark

            180
                                                                                                        SFE Balanced Portfolio
                                                                                                        70% S&P 500 / 30% LABI
            160


            140


            120

            100
           40%
                                                                                                      Cumulative Excess Return
                                                                                                      vs. Market Benchmark
             5%

           -30%
            Jun 1997 Sep 1998 Dec 1999 Mar 2001 Jun 2002 Sep 2003 Dec 2004                 Jun 2007



Past Performance is no indication of future results. See      13
Disclaimers on the last page of this document.
                                                                                           Inspire Trust. Invest Well.
                                          Performance

                 Manager vs Benchmark: Return through June 2007
                                            (not annualized if less than 1 year)


                                   YTD            1 year               3 years 5 years 10 years



    SFE Balanced Portf olio      6.52%           16.46% 13.95% 12.21%                          8.75%




     70% S&P 500 / 30% LABI      6.11%           18.40% 10.50%                      9.73%      6.97%



Past Performance is no indication of future results.
                                                           14                      Inspire Trust. Invest Well.
Returns are shown gross of fees. See Disclaimers on
the last page of this document.
                                            Risk vs. Return

                                                                                                     Alpha indicates SFE’s
                                                         Risk-Return Table                            excess return v. the
                                                                                                         Benchmark
                                            July 1997 - June 2007: Annualized Summary Statistics
     Low Beta
    Means less                                              Beta          Alpha      R-Squared
                                                                                                               Tracking
                                   Return    Std Dev                                                 Sharpe      Error
     volatility                     (% )       (% )
                                                            v s.
                                                           Market
                                                                       v s. Market
                                                                           (% )
                                                                                     v s. Market
                                                                                         (% )
                                                                                                      Ratio   v s. Market
                                                                                                                            Observ s.
                                                                                                                  (% )
     than the
    Benchmark

          SFE Balanced Portfolio   8.75       11.02       0.6949         3.72         79.00         0.4612    6.6315          40


                                                                                                                  SFE’s risk adjusted
                                                                                                                 return is significantly
                                                                                                                    higher than the
                                                                                                                      Benchmark
          70% S&P 500 / 30% LABI   6.97       14.09       1.0000         0.00        100.00         0.2345    0.0000          40




Past Performance is no indication of future results.
                                                                 15                                Inspire Trust. Invest Well.
Returns are shown gross of fees. See Disclaimers on
the last page of this document.
           Research and Portfolio Management

EARL W. FISHER, CHAIRMAN
A graduate of Pomona College who studied in Germany under a Fullbright Scholarship, Earl has over
three decades of investment experience. He was an officer at Stern Frank Meyer & Fox Inc. and is the
Chairman of Stern Fisher Edwards Inc, a firm he helped found in 1977 with the late David Stern. He co-
founded SFE Investment Counsel with Fred Edwards in 1988. A native Californian whose father was an
early partner in Bateman Eichler, Inc., Earl was a professional opera singer in Germany for eight years.
He has served as president of Catholic Big Brothers and is Past President of the Board of Governors of
the Idyllwild Arts Foundation, in addition to serving on the boards of several private companies.
CHARLES E. BOHLEN, JR., J.D., CFA, CHIEF INVESTMENT OFFICER
Charlie graduated magna cum laude from Harvard College, and received his J.D. from Yale Law School. He
is a Chartered Financial Analyst and a member of the Bar in California, Minnesota, and the District of
Columbia. Charlie has worked in a variety of corporate settings including banking, agriculture and
international finance. Since March of 1996, he has managed a fund specializing in high-technology
investing. He is Chairman of the Board of Directors of the Bishop W. Bertrand Stevens Foundation and
Treasurer of the Rose Bowl Water Polo Club.
JAMES T. MOYLAN, CFA, PORTFOLIO MANAGER AND RESEARCH ANALYST
A Chartered Financial Analyst, Jim earned a Bachelor of Science in Mathematics at UCLA, where he
returned to complete an MBA at the Anderson School of Business in 1994. Jim’s career began at Hughes
Electronics as a Project Engineer working on defense electronics programs. In the mid 1990’s, Jim moved
into the investment management business and joined McCullough, Andrews & Cappiello, Inc, in San
Francisco. During his tenure there, Jim honed his skills as an analyst and portfolio manager and
developed expertise in the Telecom, Energy, Utilities, Healthcare, and Technology sectors. At SFE, Jim
covers the capital markets and researches individual equities using both fundamental and technical
analysis. He plays an active role managing SFE’s all-cap value strategies for individual and institutional
clients. Jim has been a member of the CFA Institute since 1997.
                                                  16                  Inspire Trust. Invest Well.
      Administration and General Management

FRED M. EDWARDS, JR., VICE CHAIRMAN
A graduate of the University of Southern California who also attended USC Graduate School of
Business Administration, Fred has more than 40 years of investment experience. He has been president
of Western Capital Management, and a Senior Vice President at Webster Management Corp. He
currently serves as a Director of First Regional Bancorp and First Regional Bank, and as a member of the
Board of Trustees of the Providence Saint Joseph Foundation.

JON M. KMETT, PRESIDENT
Jon is a graduate of the University of Southern California, with a degree in business administration
(accounting). He also attended postgraduate programs in taxation. For eleven years Jon was a Certified
Public Accountant and partner with Edward T. Bergin & Co, CPAs. Prior to joining SFE in 1989, he
established a CPA and tax-consulting business. Jon actively participates in several not-for-profit
organizations including current service on the boards of AbilityFirst, Catholic Big Brothers and
Millennium Housing. Jon is also on the boards of two private companies.

TERI M. MCCASLAND, VICE PRESIDENT OF OPERATIONS, CHIEF COMPLIANCE OFFICER
Teri is a graduate of Pepperdine University with a degree in business management. She began her
career in 1969 with Connecticut General Life Insurance in the Securities Accounting Division. Teri
moved to California in 1972 and worked as assistant to the Vice President of Operations at Diversified
Securities prior to joining SFE in 1981. Teri is a member of the Los Angeles Association of Investment
Women and sings with the Long Beach Chorale.




                                                   17                  Inspire Trust. Invest Well.
          Marketing and Business Development
EDWARD J. BUTORAC, VICE PRESIDENT, CLIENT SERVICES
Ed graduated from St. John's Seminary College with a bachelor’s degree in philosophy and from St. John’s
Seminary with a Master of Divinity. He was ordained into the Roman Catholic ministry as a Deacon for the
Diocese of Orange where he served for three years. After ministry, he attended the University of California at
Los Angeles, graduating with a Master of Architecture. Ed was an architect with David Jay Flood Architects
for ten years prior to joining SFE in 1996. He presently does volunteer work for the Los Angeles Gay and
Lesbian Center, heads the finance committee for St. Camillus Catholic Church and is on the Board of
Advisors for Catholic Charities Metro Division.

EDWARD J. TERNAN, VICE PRESIDENT, MARKETING
Ed holds a BS in Political Science from Santa Clara University and an MBA from Pepperdine University. Ed
began his sales career in the building products industry, eventually overseeing a $50 million product line for
a division of Armstrong World Industries. He subsequently held key positions in the computer software and
government contracting businesses, where he focused on business development and managing strategic
partnerships. Ed serves on the School Board at his local Catholic grammar school and on the Board of
Directors of RoadVision Technologies, Inc.

DAVID J. THOMSEN, DIRECTOR, BUSINESS DEVELOPMENT
Born and raised in Los Angeles, David graduated from La Salle University in Philadelphia, Pennsylvania in
1991 with degrees in Philosophy and Political Science. David founded the La Salle Rugby Club and played
for four years. He received his MBA in Finance and Marketing from the University of Colorado at Boulder.
During graduate school, David taught business courses at Oxford and City University in England, before
returning to California to begin his career in advertising sales with the Los Angeles Dodgers Radio Network.
He moved into financial services in 2001 as a Client Financial Analyst with Citigroup in Century City. David
joined SFE in 2006, where he focuses on institutional sales and business development.

                                                   18                   Inspire Trust. Invest Well.
                                      Disclaimers


These performance numbers are based on all fully discretionary fee-paying accounts managed
by SFE where (1) no less than 65% of assets are invested in equities (the remainder being
invested in fixed income securities), and (2) the equity portion of the portfolio is to be invested
with the goal of achieving both capital appreciation and income. Such accounts represented
$80.07 million in assets in 114 accounts as of 6/30/07, which constitutes 40% of total assets
under management . Results include reinvestment of income and dividends and are net of
commissions but before fees. Asset weighted average fee is approximately 1.0% .Trade date
valuations have been used. No account included in the composite used leverage. The composite
includes fixed income, private equity and private debt investments. Market and economic
conditions will affect future results; past performance is no guarantee of future results. A
complete list of other firm composites, including a composite for all assets under management,
and performance results for those composites are available on request.




                                                19                 Inspire Trust. Invest Well.
SFE Investment Counsel

      Mr. James T. Moylan, CFA
        Mr. Edward J. Ternan
             213.612.0220
       SFE Investment Counsel
  1000 Wilshire Boulevard, Suite 1950
       Los Angeles, CA 90017
            www.sfeic.com

                                Inspire Trust. Invest Well.