WHAT IS GTM'S PRIMARY FOCUS?

GTM's primary focus is helping investors earn a higher rate of return on that portion of their investment portfolio allocated to the stock market without incurring additional market risk.

We recognize that stock markets cycle between over-bought and over-sold positions in response to varying market forces. Thus, GTM determines on a daily basis whether to have investment funds in or out of the stock market. It is crucial that these decisions are reasonably accurate in order to enhance the rate of return and reduce the level of market risk in accounts we manage.

If GTM continues to be accurate in most instances in selecting when to be in and when to be out of the market, investors in the program will participate in significant market increases and many of the lesser market advances. Investors in the Program will also be out of the market during significant market declines and many of the lesser market declines. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities used to produce results reported.

Each day, GTM personnel and computer systems analyze stock market indices data and a series of market indicators. As a result of these monitoring and analyzing activities, our computer systems periodically generate various pre-categorized buy and sell signals. We evaluate each signal, together with other market related information, to make a reasoned, unemotional judgment whether we should invest funds in our clients' and our personal accounts in the market or transfer funds out of the market into a money market fund.

WHAT TYPE INVESTMENTS ARE USED?

A no load (no sales charge) mutual fund family selected by GTM is used in the program. Clients' and personal funds are deposited initially into the money market mutual fund. When a buy signal is executed, funds are transferred into the SP500 index mutual fund. When a reversing sell signal is executed, funds are transferred back to the money market mutual fund. Using a no-load mutual fund reduces account expenses, provides diversification among numerous common stocks when funds are invested in the stock market, and expedites transferring funds between the growth and the money market mutual fund in each account.

DOES GTM USE AN ASSET ALLOCATION MODEL?

The "asset allocation model" used by GTM calls for funds in each account to be either 100 percent invested "in the market" or 100 percent invested "out of the market" in a money market mutual fund. Our research of 1982 through 2000 market data showed that using this simple "asset allocation model" enhanced returns considerably. Therefore, we do not use a more complicated asset allocation model. Also, we manage only a portion of each client's total investment portfolio, so additional diversification is achieved through other types of investments made by each client.

HOW DOES GTM OBTAIN THE DATA
IT MONITORS AND ANALYZES?

Most of the data monitored and analyzed by GTM is fed electronically into our on-line computers. Market data comes from several services on a continuous basis during market hours. Our decision-making processes also include information and data from financial publications.

GTM uses market data from several of the same sources as many other financial advisers. However, the process we use in analyzing the data to determine whether our clients and we should be in or out of the market is proprietary. We can be compared to an accomplished chef who uses the same basic ingredients as other chefs, but is able to produce superior results. Superior results rarely "just happen." Rather, they are produced by using abilities derived from years of study, observation, and hands-on experience in developing, testing, modifying, validating and using "recipes" and analytical processes developed. G.T. Murray Group Inc. cautions that this method of money management is not appropriate for all investors and those investment returns and principal values will fluctuate with market conditions. GTM further warns that past performance is no guarantee of future results.

WHAT ANNUALIZED RATE OF RETURN
IS REASONABLE TO EXPECT?

GTM goal is to achieve an annualized rate of return that will exceed that of the S&P 500 Index over each stock market cycle, typically four to six years. Only one in four professional money managers produces investment results that even equal that of the unmanaged S&P 500 Index.* In addition, funds "invested" in the Index are exposed to market risk 100 percent of the time, including periods such as the market crash of 1987. In contrast, we expect that funds we manage will be out of the market and in a money market mutual fund a significant percentage (25% or more) of the time during most years. During the 10 year-period 1985 through 1994, accounts managed by GTM would have been "in the market" approximately 70 percent of the time and "out of the market" in a money market mutual fund approximately 30 percent of the time.
*Bloomberg 7/21/00