THE LYNDE AND HARRY BRADLEY FOUNDATION, INC.

Proposed 1999 Budget

Investment Income

The proposed 1999 budget reflects a commitment to achieving approximately a 3.5% investment portfolio growth rate. To achieve this objective, the 1999 budget projects a 10.75% investment return compared to an estimated return of 6.0% in 1998 and actual returns of 19.02% in 1997 and 16.37% in 1996.

The investment portfolio, excluding PRI investments, at December 31, 1999 is projected to be approximately $560,000,000. This amount exceeds the 4% target growth amount by approximately $44,900,000. This is a significant achievement given this amount is after funding the $20,000,000 Stadium District Program Related Investment. The excess was generated in the 1995-1997 period due to the above average investment returns and provides a cushion to absorb future unfavorable investment performance if it occurs.