(MONEY Magazine) – MARKET MEASURES % total return 3 1 3 Level months year years[1]

S&P 500 1190.6 5.8 -17.3 2.2 Nasdaq 2004.2 16.5 -49.4 1.6 Russell 2000 483.3 11.7 -6.2 3.2 Morgan Stanley EAFE[2] 1215.5 -6.6 -27.7 -4.5 Dow Jones industrial average 10252.7 5.1 -0.6 5.8 Lehman Bros. aggregate bond index 867.4 0.5 11.4 6.2

HOTTEST AND COLDEST SECTORS

THREE-MONTH PRICE CHANGE

Retail (comp./electron.) 28.9% Computer networking 22.8% Computer software & services 21.6% Auto parts & equipment 21.2% Iron & steel 20.5% Oil & gas -6.2% Health care (drugs/major pharm.) -6.2% Communications equipment -7.5% Natural gas -7.7% Oil & gas (drilling & equipment) -10.3%

S&P 500 RATIOS

Current A year ago

P/E 26.2 29.6 % Yield 1.3 1.1

STOCK FUND AVERAGES % total return 3 1 3 months year years[1]

U.S. diversified equity 8.1 -12.9 4.1 Large company 5.2 -17.3 2.0 Mid-size company 10.0 -12.8 6.8 Small company 15.2 -1.0 8.2 Hybrid 2.7 -3.8 3.4 Overseas -1.5 -26.7 -0.5

BOND FUND AVERAGES

U.S. Government 0.1 9.3 5.3 Investment-grade corporate 0.5 8.5 4.7 High-yield corporate -0.1 -4.9 -2.5 Tax-exempt 0.9 8.2 3.9

% 3-mo. WIDELY HELD STOCKS return P/E Price

Cisco Systems (CSCO) 23.2 N.A. $16.79 General Electric (GE) 14.2 36.9 46.89 Microsoft (MSFT) 17.6 38.0 66.06 Lucent Technologies (LU) -12.2 N.A. 6.10 Intel (INTC) 20.4 23.7 28.43 Avaya (AV) 17.5 N.A. 13.04 AOL Time Warner (AOL) 27.5 111.4 50.11 Pfizer (PFE) -2.3 43.5 40.05 Verizon Communications (VZ) 8.5 12.3 53.27 ExxonMobil (XOM) 6.3 15.8 86.80

BEST-PERFORMING STOCKS

Rank/last month % return P/E Price

THREE-MONTHS

1 5 Serena Software (SRNA) 308.0 N.A. $28.56 2 22 Genesis Microchip (GNSS) 274.3 260.0 33.80 3 89 XM Satellite Radio Holdings (XMSR) 241.1 N.A. 14.09 4 82 Saba Software (SABA) 226.8 N.A. 12.46 5 7 Microtune (TUNE) 217.5 N.A. 18.06 6 9 Pixelworks (PXLW) 192.3 N.A. 30.15 7 1 Priceline.com (PCLN) 191.3 N.A. 7.82 8 3 Expedia (EXPE) 183.8 N.A. 42.04 9 59 Foundry Networks (FDRY) 180.1 30.5 17.68 10 58 Xoma (XOMA) 178.5 N.A. 15.58

ONE YEAR

1 2 Taro Pharmaceutical Industries (TARO) 587.6 88.8 81.65 2 12 Pharmaceutical Resources (PRX) 427.1 N.A. 30.31 3 9 Metro One Telecommunications (MTON) 405.2 55.0 38.10 4 1 Activision (ATVI) 404.2 46.7 36.40 5 19 Manor Care (HCR) 328.3 49.3 31.05 6 14 American Eagle Outfitters (AEOS) 312.2 25.8 35.90 7 10 Inverness Medical Tech. (IMA) 309.1 99.5 36.82 8 6 THQ (THQI) 307.6 89.8 56.55 9 57 Xoma (XOMA) 286.5 N.A. 15.58 10 33 Ventas (VTR) 253.6 90.8 10.90

THREE YEARS[1]

1 1 Emulex (EMLX) 231.6 43.4 29.06 2 4 Cima Labs (CIMA) 182.4 250.8 80.25 3 5 Calpine (CPN) 164.4 32.1 42.62 4 -- Abgenix (ABGX) 155.0 N.A. 37.31 5 7 IDEC Pharmaceuticals (IDPH) 152.1 154.4 61.77 6 12 Taro Pharmaceutical Industries (TARO) 149.6 88.8 81.65 7 6 RF Micro Devices (RFMD) 144.3 102.6 20.52 8 3 Netegrity (NETE) 141.1 136.2 28.60 9 14 Qlogic (QLGC) 131.9 68.4 49.91 10 18 Immunogen (IMGN) 131.0 N.A. 18.50

HIGHEST-YIELDING DOW STOCKS % yield P/E Price

Philip Morris (MO) 4.6 12.2 $45.71 Eastman Kodak (EK) 3.9 10.8 45.07 General Motors (GM) 3.2 14.0 61.84 Du Pont (DD) 3.0 24.3 46.19 International Paper (IP) 2.8 N.A. 35.62 Caterpillar (CAT) 2.7 18.0 49.60 SBC Communications (SBC) 2.6 17.2 40.00 Procter & Gamble (PG) 2.2 26.1 65.00 Merck (MRK) 2.1 21.3 63.44 Honeywell International (HON) 2.1 23.9 35.19

Notes and sources: Unless otherwise noted, data are as of July 6 from Morningstar, Chicago; 312-424-4288. Bond index data are from Lehman Bros. Dow Jones and Russell 2000 Market Measures and July Performance Update data are from Bloomberg. Hottest and Coldest Sectors and S&P 500 Ratios are from Standard & Poor's; ranking is limited to sectors with at least three companies. List of Widely Held Stocks is ranked by largest number of accounts at Merrill Lynch as of June 29. Best-Performing Stocks are limited to companies with market capitalization of at least $500 million. P/Es are based on trailing 12 months' earnings. Stock prices are from Baseline. [1]Annualized. [2]Price change only. N.A.: Not available.