Investor Presentaiton

ETF Rolling Reserve Act ■ Effective beginning FY 2013 ■ Caps the annual appropriations from the ETF - Tied to the percentage growth in recurring revenues to the ETF over the last 15 years, dropping the lowest year Limits ETF expenditures to the average of the estimated available revenues when such estimates are less than the ETF appropriations cap ■ Prepaid Affordable College Tuition (PACT) appropriations are added to the cap Prescribes how excess funds are distributed in fiscal years when appropriations equal the cap and actual ETF receipts exceed the cap, including: Budget Stabilization Fund: An additional reserve fund accessible only in - the event of proration or for temporary transfers to public schools/higher education due to natural disasters Advancement and Technology Fund: Funding available for supplemental appropriation to K-12 and higher education for certain allowable expenses No ETF proration since the ETF Rolling Reserve Act became effective 28

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