THE LYNDE AND HARRY BRADLEY FOUNDATION, INC.

INVESTMENT ACCOUNTING AND REPORTING

December 31, 1995

Investments of the Foundation are managed by various outside investment managers as outlined in the Investment Flashreport W/P C- . The investment managers are monitored by the Investment Committee of the Bradley Foundation. Investment Managers have discretionary authority to invest the funds allocated subject to the investment guidelines and objectives of the Bradley Foundation.

The Firstar Trust Company (Firstar) is the principal custodian for the Bradley Foundation. Chase Manhattan Bank (Chase) is the custodian for the Capital Guardian Non-U.S. Equity fund and Sanford Bernstein Non-U.S. Equity fund. Firstar and Chase are responsible for executing all investment transactions based on the directions of the various investment managers. In addition, all dividends, interest and investment transactions are accounted for by Firstar and Chase.

Firstar and Chase prepare monthly and annual investment reports for all investments owned by the Bradley Foundation. W/P C-1 is a summary of the investment portfolio at December 31, 1995. W/P C-5 is a consolidated statement of activity of the investment custodian accounts for the year ended December 31, 1995.

The Investment Flashreport (W/P C-7) is prepared monthly for review and analysis by the Investment Committee.

Investments are recorded on the trade date and are valued at quoted market value. Realized gains and losses on sales of investments are determined on the high cost specific identification basis.

Cash equivalents for financial statement purposes consist of short- term highly liquid investments purchased with a maturity date of three months or less. Such investments are stated at quoted market value.

RB/ye