THE LYNDE AND HARRY BRADLEY FOUNDATION, INC.

1997 FOUNDATION BUDGET

The board book for the November 25, 1996 meeting includes the proposed 1997 grant operating budget.

From an investment perspective, the projected overall rate of return included in the budget was 10.5%. This rate of return provides for the following:

Operating Expenses	1.41%

Grant Payments	4.96

5.37

Portfolio Growth	4.00

Surplus	.13

10.50%

If the projections for 1996 and 1997 are achieved, total assets would increase to approximately $514,000,000 at December 31, 1997. This amount would be approximately $37,500,000 over total assets calculated at a 4% growth rate. The 1997 minimum investment return needed to maintain the 4% asset growth rate through December 31, 1997 is approximately 3.1%.