Update at a Glance

January 5, 2007

Enhancements Cap Year of Expansion for Mellon's Liquidity Management Service

Throughout 2006, Mellon Financial Markets, LLC (MFM)*, Mellon's full-service broker-dealer, significantly expanded the selection of online investment options available through its Liquidity Management Service (LMS), adding 50 new 2a-7 money market funds across seven new fund families.

Mellon LMS is an institutional brokerage portal provided by MFM and accessed through Mellon iTelecash®, the online information reporting and transaction initiation service provided by Mellon Working Capital Solutions (WCS), a department of Mellon Bank, NA.

Mellon LMS currently offers a selection of more than 150 proprietary as well as third-party money market mutual funds from a variety of high quality providers such as Dreyfus, Fidelity, Federated and many others. In addition, the investment menu alternatives include short-term fixed income securities such as commercial paper, agency discount notes and auction rate instruments, with a range of maturities to help investor clients maximize returns within their prescribed investment policy parameters.

Additional investment alternatives were also added to the service in 2006, including funds denominated in foreign currencies, approximately 600 new auction rate issues, as well as enhanced cash funds. Many of these investments are offered pursuant to exemptions from registration under U.S. securities laws, and are therefore restricted to qualifying purchasers.

Multicurrency Options
In addition to the existing wide selection of money funds, USD offshore funds and fixed income securities, LMS now offers new funds denominated in several foreign currencies. Specifically, foreign investors and foreign subsidiaries of U.S firms will have access to Euro, Sterling and Canadian dollar funds across several fund families. This addition to the LMS portal empowers U.S.-headquartered corporations operating internationally to conduct comprehensive investing and reporting functions through one convenient, integrated platform.

Auction Rate Issues
MFM offers auction rate securities through partnerships with several primary dealers. During 2006, Mellon added new functionality to LMS enabling our portal clients to access approximately 800 auction rate issuers daily. The offerings include a vast selection of taxable, tax-exempt, and DRD (Dividend Received Deduction) issues that the investor can sort through and filter to their preferences.

Enhanced Cash Funds
Recently Mellon added enhanced cash funds to the LMS portal. These funds include short-term mutual funds that do not maintain a stable net asset value and unregistered stable value funds. Such funds invest in high-grade securities and are generally designed for corporate treasurers and other short-term investors. However these funds have more flexibility to extend further out on the yield curve and may include a wider variety of instruments in larger concentrations than U.S. registered money market funds. As a result, enhanced cash funds may provide higher yields than traditional money market funds under favorable market conditions.

Mellon currently plans to further expand LMS' selection of investment alternatives throughout 2007.

For more information on how Mellon LMS may expand your organization’s short-term investment possibilities, review a demonstration of LMS, contact our cash management experts at 1 800 424-3004 or e-mail us at wcs@mellon.com.

*MFM is a member of the NASD and SIPC. Investments offered through MFM are not FDIC-insured, not bank-guaranteed and may lose value.