Nicholas Company, Inc.	Small Cap Growth

(Milwaukee, WI)

Personnel:	David O. Nicholas -- Portfolio Manager

Albert O. Nicholas -- President

Investment Philosophy/Characteristics

Nicholas Company is a Wisconsin-based investment firm that was established in 1967. Albert O. Nicholas, the founder and president of the company, has been managing investments since 1955. As the senior investment officer, he has designed a management style and investment philosophy that has remained consistent for many years.

The Nicholas Company currently manages six mutual fund offerings and a number of separately managed accounts. Each of these investments is guided by a single philosophy.

David Nicholas is listed among the top 100 mutual fund managers.

Individual stock selection is the focal point of equity philosophy. Efforts directed toward purchasing stocks that represent good value based on the criteria outlined below. Strong conviction that superior long-term results are achieved through the minimization of capital losses during adverse periods in the general market.

Primarily seek stocks where the price/earnings ratio is very low in relation to earnings growth or where the price is reasonable in relation to book value. Above average secular earnings growth and strong future growth potential are important factors. This combination leads primarily to mid-size companies, but smaller and larger companies that meet criteria are not ruled out. Often take a contrary opinion to the countervailing "wisdom" and buy lesser known or "out of favor" stocks.

Do not attempt to forecast short-term swings in the stock market, but try to preserve gains and minimize losses through long-term fundamental valuation techniques.

Sell disciplines are based primarily on fundamental and valuation considerations, but also use technical analysis and stock price momentum as a cross check on fundamental information.

Portfolio turnover is moderate.