A. Worldwide, Mergers and Acquisition activity in 2004 rose 42% to $1.9 trillion, up
from $1.34 trillion in announced activity recorded for 2003. B. December 2004 was the busiest month in history with 283.7 billion in mergers
and acquisitions worldwide. (Source: New York Times, January 2, 2005)

C. Domestically, 2004 saw a 50% increase in announced transactions from 2003 to
$875 billion. (Source: Bloomberg, January 5, 2005)

D. The level of participation here among minority managers remains negligible
(when compared to the total domestic volume of deals) despite the best efforts of
one very bright spot on the Bloomberg's M&A League Table - #52 Loop Capital.

E. In 2004, Loop executed the $1.82 billion transaction to privatize the Chicago
Skyway, considered the largest privatization ever in a US city.

F. Out of over 300 advisers listed on Bloomberg's M&A League Tables, Loop
Capital was the only African American firm. Its $1.82 billion transaction
represented significantly less than 1% of the total amount of announced
transactions in 2004.

A. Minority participation on Wall Street means business growth, professional
development and increased philanthropy.
B. Other examples of the benefits for doing business with minority managers
include:
Opportunities for those companies to invest in minority-owned companies
with IPO potential (IPOs create significant wealth for invested parties and
beyond) The opportunity for minority-owned private equity firms to invest in minority
businesses (making capital more accessible to those business owners who find
it difficult to gain private equity investment from majority-owned firms)
Increasing the probability that minority business owners can secure the capital
they need grow their businesses, resulting in increased job creation and the
initiation and maintenance of urban renewal.

In short, if given equal access to the financial community our firms will help each other succeed. C. By increasing the opportunity to share the growth of Wall Street, we are able to
support our own communities through philanthropy. Medical-device mogul
Alfred Mann gave $200 million for medical research institutes in Israel and at
Johns Hopkins, and intends to leave his entire $1.4 billion estate to charity. Bill
and Melinda Gates, the world's largest international donors, who made history in
2004 by giving their estimated $3 billion Microsoft Corp. dividend to their
foundation. It's one of the largest donations in history by a living donor. (Source:
Businessweek, November 29, 2004)

• Ariel Capital Management, LLC, the #1 Black-owned Asset Management
firm, takes civic responsibility seriously. Their desire to be involved in
their community led to the founding of the Ariel Education Initiative. This
non-profit endeavor is committed to advancing educational opportunities
in economically disadvantaged areas through innovative programs which
integrate academic excellence, family involvement and community
service.
D. Also, Wall Street plays an active role in the support of political candidates. For
example, major securities firms hold seven of the slots on the Top 10 list of
contributors to President Bush. In August of 2004, Morgan Stanley ranked #1
giving $527,030 in campaign contribution and Merrill Lynch & Co. ranked
second giving $495,604 (source: LA Times, October 21, 2004) The money flowing from Merrill Lynch employees is part of a $12.14 million tidal wave of cash to the
Bush campaign from the finance and insurance sectors. (Source: Washington Post, May 24, 2004) )The more deal flow minority managers gain, the more money they can contribute to these activities.)