Sterling Johnston Capital Management, LP ("SJCM") is a California Limited Partnership, incorporated April 24, 1985, and registered on July 2, 1985 as an independent adviser with the Securities and Exchange Commission under the investment Advisers Act of 1940. The company was originally incorporated and registered as Sterling Financial Group, Inc. by Mr. Johnston, its founder and owner, and operated as an independent RIA from July 1, 1985 through December 31, 1992. The corporation was inactive from January 1, 1993 until September 26, 1996, while Scott S. Johnston, its 100% owner, was Chief Investment Officer of another investment adviser, Apodaca Johnston Capital Management. It was re-activated October 1, 1996.

The Small Cap Emerging Growth Equity Composite (“SJCM Gross”) for the period beginning October 1, 1996 represents a composite of all Small Cap Emerging Growth accounts managed by Sterling Johnston Capital Management during the specified period.

The highest fee charged to any client in the SmallCap composite is 1% on assets annually. The effect of these fees is reflected in the "SJCM Net" column above.  These estimated net returns are based on one quarter of pne percent of assets being billed at the termination of each quarter, in arrears. Advisory fees, particularly on a compounded basis, may have a significant impact on the returns of the portfolio. A representative example shows the effect of a 1% annual fee, payable quarterly on a $1 million account funded October 1, 1996: the account would accrue a compounded gross annual return of 32.2% through September 30, 2000 (4 years), appreciating to $3,101,730. The client would incur $71,730 in fees, thus realizing a cumulative net account balance of $3,030,000.

All returns presented included reinvested dividends and income, are time weighted, geometric averages, and have been weighted by the size of the accounts in the composite. Cash and equivalents are included. The trade date method of accounting has generally been used throughout the performance history. Settlement date accounting has been employed for some periods; Mr. Johnston does not believe that had trade date accounting been used during these periods, the returns presented would be materially different. The 'Gross' returns column presented does not give effect to investment advisory fees. SJCM's fees are set forth in Part II of the firm's Form ADV, which is available upon request.

Historical results do not necessarily indicate future performance. The results presented were generated during a period of generally favorable economic conditions in the U.S. and positive market performance, despite instances of greater than usual volatility. During periods of negative market performance, return figures may vary relative to the Russell 2000 Growth and the S&P 500.

The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher book-to-price ratios and higher forecasted growth values. The S&P 500 Index is the Standard & Poors' composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. The indices depicted have not been selected to represent appropriate benchmarks to compare SJCM's performance, but rather are disclosted to allow for comparison to that of well-known and widely recognized indices. Inherent in any investment is the possibility of loss.

These results are provided for informational purposes only; past performance is no guarantee of future performance.