Wright Quality Ratings on over 46,000 companies worldwide.

Following is a detailed explanation of Wright Investment Quality Ratings, the minimum standards for listing on "The Approved Wright Investment List" and general policies and procedures for listing, review, and delisting. Wright Quality Standards have been published regularly since 1970, are presented here with subsequent refinements and improvements, and are subject to continuous review and, when advisable, appropriate modification, without notice, by the WIS Investment Committee.

THE APPROVED WRIGHT INVESTMENT LIST consists of common stocks, selected by Wright Investors’ Service, which meet high standards of investment QUALITY, and which are suitable for investment consideration.

WRIGHT INVESTMENT QUALITY RATINGS

WRIGHT QUALITY RATINGS measure the overall investment quality of a company’s stock. The rating is based on 32 individual measures of quality grouped into four principal components: (1) Investment Acceptance, (2) Financial Strength, (3) Profitability & Stability, and (4) Growth.

The rating is made up of three letters and a number. The letters indicate: (1) Investment Acceptance (103-103.7), (2) Financial Strength (104-104.7), and (3) Profitability and Stability (105-105.6). Each letter rating reflects a composite qualitative measurement of 8 individual standards which may be summarized "A": indicating Outstanding, "B": Excellent, "C": Good, "D": Fair, "L": Limited, and "N": Not Rated.

The number is a composite of eight individual standards (106-106.7), measures the annual Corporate Growth Rate and may range from 0 to as high as 20.

WIS STANDARDS OF INVESTMENT QUALITY INVESTMENT ACCEPTANCE

103.00 INVESTMENT ACCEPTANCE is a general quality which reflects the acceptability of a security by, and its distribution and marketability among, individual and institutional investors and the adequacy of the floating supply of its common shares for the investment of substantial funds.

103.01 The composite investment acceptance rating is a weighted average which takes into account the following specific sub-components (103.1-103.7) for which AWIL standards are indicated.

103.10 Market Value of all outstanding shares should total at least $1,000 million at the average price during the last 3 years and or the Current Price.

103.11 Publicly owned shares, excluding all shares known to be "closely held" by officers, directors,their families, trusts, foundations, and shareholders owning individually 10% or more, should have a market value of at least $1,000 million at average market price during the last 3 years and or the Current Price.

103.20 The minimum market value of all shares traded,if reported, should preferably have averaged at least $250 million per year during the last 3 years and last 12 months. This requirement may be reduced for stocks whose market values are substantially above the minimum.

103.30 A moderate turnover rate (Minimum: 25%) is desirable since a lower rate would indicate that the stock is not actively traded.

103.40 Listing on one or more established national or regional stock exchangeor The National Association of Securities Dealers Automated Quotation Service (NASDAQ) are preferred. NYSE listing, although still very desirable, is no longer an absolute requirement.

103.50 Significant institutional ownership is desirable but not an absolute requirement.

103.60 Broad public ownership should be evidenced by a preferred minimum of about 1000 shareholders.

103.70 Not more than 30% of outstanding shares may be "closely held"by officers, directors, their families, trusts, foundations, and shareholders owning individually 10% or more. The preferred maximum may, however, be increased by the Investment Committee provided that (1) closely held shareholders are of long standing and (2) there has been reasonable recent assurance that no distribution of closely held shares is contemplated.

WIS STANDARDS OF INVESTMENT QUALITY CORPORATE FINANCIAL STRENGTH

104.00 CORPORATE FINANCIAL STRENGTHrepresents the amount and availability of the corporation’s resources in relation to current and potential requirements and is measured by aggregate common shareholders’ equity and long-term debt capital, the ratio of equity capital to total capital, the adequacy of net working capital, its fixed charges coverage ratio and a minimum of complex, restrictive, or convertible securities. Corporate Financial Strength is made up of a group of elements (104.1-104.7) for each of which AWIL standards are indicated.

104.01The composite financial strength rating is a weighted average which takes into account the following specific sub-components (104.1-104.73) and the trends of each.

104.10 Common shareholders’ equity capital investmentat corporate book value should total at least $150 million.

104.11 Equity should normally be at least 50% (30% for utilities, 25% for financial companies, of total capital (common and preferred stock plus long-term debt). This requirement is modified when an excess of debt is more than balanced by an excess of working capital. A recent or proposed substantial increase in a company’s long-term debt may be acceptable only if the increase may confidently be expected to produce reasonable, constructive growth and will not substantially increase risk. Equity as a percent of total capital should not be below the average for similar companies in the same industry group.

104.12 For insurance companies, Total Debt (Long Term including capitalized leases plus Short Term and current maturities of long term debt) should normally not exceed 60% of Total Capital (common and preferred stock plus long term and short term debt).

104.20 Preferred stock is generally undesirable in large amounts. There is, however, no absolute maximum limitations to preferred stock as a percent of total capital.

104.21 For banks and bank holding companies, equity should preferably be at least 6.0% of total assets.

104.22 For insurance companies, Liquid Assets (Cash, Short Term Investments plus marketable securities) should preferably be at least 75% of Total Investments.

104.23For securities brokerage companies, equity should preferably be at least 10.0% of total assets.

104.30 Long-term debt (currently outstanding including capitalized leases plus any scheduled offerings) including convertible debentures should normally not exceed 50% (60% for utilities, 70% for financial companies, of total capital (common and preferred stock plus long-term debt). This requirement may, however, be modified when the excess of debt is more than balanced by an excess of working capital.

104.31 A company which has a recent or proposed substantial increase in its long-term debt may be acceptable only if the increase will produce reasonable, constructive growth and will not result in substantial speculative risk. Debt as a percent of total capital should not be above the average for similar companies in the same industry group.

104.32 For banks and bank holding companies, Common Equity adjusted for Loan Loss Reserves and Non-performing Loans, should be at least 6% of the Total Assets.

104.33 For insurance companies, investment in Non-Investment Grade Bonds should not exceed 3% of the Total Investments.

104.40 Total Debt (Long Term including capitalized leases plus Short Term and current maturities of long term debt) should normally not exceed 60% (65% for Utilities and Securities Brokerage Companies, 80% for financial companies) of Total Capital (common and preferred stock plus long term debt and capitalized leases plus short term debt including current maturities of long term debt). This requirement may, however, be modified when excess of total debt is more than balanced by an excess of Quick Ratio.

104.41 For banks and bank holding companies, it is preferable that total capital should normally be at least 9% of total deposits.

104.42For insurance companies, investment in Common stocks plus Real Estate plus Mortgages should not normally exceed 100% of the Total Equity for Property & Casualty Insurance Companies, and 150% for Life Insurance Companies.

104.50The average ratio of (1) pretax income plus interest expense to fixed charges and (2) pretax income plus net fixed charges should preferably be at least 3.5 to 1 (2 to 1 for utilities and Securities Brokerage Companies, 2.5-3.5 to 1 for transportation companies). The first ratio indicates the coverage of costs associated with fixed corporate debt obligations (currently outstanding debt and any scheduled offerings) by pretax income and is computed as the ratio of pretax income plus interest expense to fixed charges (total interest expense plus preferred dividends). The second ratio indicates the coverage of cost associated with fixed corporate debt obligations after adjusting for interest income from investment securities by pretax income plus net interest to adjusted fixed charges (net interest plus preferred dividends). Preferred dividends are adjusted to pretax earnings equivalent to place them on a comparable pretax basis.

104.51For banks and bank holding companies, it is desirable that cash and securities including amounts due from banks should normally be 40% of total deposits.

104.52 For insurance companies, Reserves for unpaid losses and loss adjustment expenses should be adequate enough to meet the liabilities payable for current year vs the actual loss experience of average of last six years.

104.53 For commercial finance companies and Personal Loan Companies it is also desirable that net receivables be at least 110% of total debt (long term + short term).

104.54 For securities brokerage companies long term debt should normally not exceed 3% of total assets.

104.60Quick Ratio or Ratio of cash and receivables to current liabilities of 0.5 to 1 for all industrial companies, is preferred.

104.61For banks and bank holding companies, Non-performing Loans (loans that banks foresee difficulty in collecting) as a % of Loan Loss Reserves should not preferably exceed 125%.

104.62 For insurance companies, Benefit and Claim Reserves (representing the present value of future benefits to be paid on behalf of or to policyholders) should not exceed 350% of Common Equity for Property & Casualty Insurance Companies and 700% for Life Insurance Companies.

104.63 For utilities and transportation companies a ratio of Operating Cash (representing funds from operations) to Fix Charges (total interest expense plus preferred dividend adjusted to pretax earnings equivalent to place them on a comparable pretax basis), is desirable to have at least 2.5x for Utilities, 3.0x for Securities Brokerage Companies and 5.0x for Transportation Companies.

104.64 For securities brokerage companies, it is preferable that total capital should normally be at least 15% of total assets.

104.70 Ratio of current assets to current liabilitiesof 2 to 1, or a ratio which is at least equal to the average of the relevant industry group (e.g., 1.2 to 1 for transportation companies) is preferred. This requirement may be reduced for industrial companies provided that equity as a percent of total capital is sufficiently high to balance the ratio of current assets to current liabilities. This requirement does not apply to banks, insurance companies, financial companies, and utilities.

104.71 For banks and bank holding companies, it is also desirable that loan losses net of recoveries should not have exceeded 0.60% of total loans outstanding in the most recent year, the average of the last three years, or the average of the last five years.

104.72 For utilitie and financial companies, the preferred minimum coverage ratio of annual dividends paid to common shareholders to total corporate cash flow before payment of common dividends should be at least 2.5 to 1 and 4.0:1 respectively. This measures the coverage of annual dividends by cash flow. The higher the cash dividend coverage ratio, the greater is the ability to fund capital expenditures internally. Total cash flow consists of after-tax income available to the common stocks plus depreciation, net deferred taxes and other miscellaneous cash flows, if any.

104.73For securities brokerage companies, net capital requirement should preferably be at least 10.0% of the debit balances.

104.74 For insurance companies Net Premium Written should not exceed 250% of total equity capital for Property & Casualty Insurance Companies.

WIS STANDARDS OF INVESTMENT QUALITY CORPORATE PROFITABILITY AND STABILITY

105.00 CORPORATE PROFITABILITY measures the record of a corporation’s management in terms of (1) the rate of (a)net return and (b) cash return on shareholders’ equity capital investment at corporate book value, (2) net return before preferred dividends and interest on assets, (3)pretax and operating return on assets and (4) the profits or losses of the corporation during generally adverse economic periods, and thus its ability to withstand adverse financial developments. This quality is measured by the following components (105.1-105.6) for which AWIL standards are indicated. The average of Profit Rate on net income and cash earnings, Pretax Returns on assets, Operating Return on assets, Net Return on assets and Operating Income as a percentage of Total Capital are time-weighted annual rates adjusted for trends and variation beyond the control of management unless otherwise noted.

105.01 The Profitability Rating is based on extensive mathematical analysis and evaluation of the company’s record. Subjective evaluations are excluded except when specifically noted. The Profitability Rating is a composite based primarily on the rate of several returns on shareholders’ equity capital and assets but modified by (1) nonrecurring adjustments to book value, earnings and pretax profit,(2)operating income as a percentage of capital, and (3) corporate trends.

105.02 The composite profitability rating is a weighted computation which takes into account the following specific sub-components (105.1-105.6) and the trends of each.

105.10 The "normal" profit rate, time-weighted and adjusted for trends and non-recurring charges and credits, should be at least 11%. This may be reduced for companies in temporarily depressed industries provided that the company’s average adjusted profit rate has been at least equal to that of similar companies in its industry. This requirement does not apply to utilities.

105.11 The trend of profit rate should show no significant decline unless there has been an equal or greater decline for comparable companies in its industry. The acceptability of a declining trend takes into account the degree by which the normal profit rate exceeds the AWIL minimum.

105.20 The rate of return of cash earnings on shareholder's equity capital should be at least 20%. This may be reduced for companies in temporarily depressed industries provided that that of similar companies in its industry. For banks, the required rate of return of cash earnings is reduced to 20% of earnings.

105.21 The trend of rate of return of cash earningsshould show no significant decline unless there has been an equal or greater decline for comparable companies in its industry. The acceptability of a decline in trend takes into account the degree by which the rate of return of cash earnings exceeds the AWIL minimum.

105.22 The stability of a company’s annual rate of return of cash earningsshould normally be higher than the average of about 400 industrial companies which make up the S&P Industrial Average (82%), although a minimum of 60% may be acceptable in particular companies with compensating virtues. The stability index is the complement of the standard deviation of the company's rate of cash earnings return for the last 5-6 years, as measured from a linear regression slope line determined by the average rate of growth and expressed as a percentage

105.30 The return on total assets should be at least 5% (4% for insurance companies, and 1.2% for banks). This may be reduced for companies in temporarily depressed industries provided that the company's average adjusted return on assets has been at least equal to that of similar companies in its industry.

105.40 The pretax income return on total assets should be at least 6% (5% for insurance companies, and 1.5% for banks). This may be reduced for companies in temporarily depressed industries provided that the company's average adjusted pretax return on assets has been at least equal to that of similar companies in its industry.

105.41 For insurance companies, Investment Income % of Investment Assetsshould at least be 9.0%, during the last 3-5 years.

105.50 The operating income return on total assets should be at least 8% (4% for insurance companies, 2% for banks, and 6% for oil & gas companies). This may be reduced for companies in temporarily depressed industries provided that the company's average adjusted operating return on assets has been at least equal to that of similar companies in its industry.

105.51 For insurance companies, Earnings before interest and taxes (EBIT)should preferably be at least 15% of the Total Capital at the beginning of the year during the last year.

105.60 Pretax operating incomeduring the last 5-6 years should preferably have averaged at least 15% of total invested capital (common and preferred equity plus minority interest plus long term debt including capitalized leases). This requirement may be reduced proportionately, but not to less than 10% for companies whose corporate tax rates are significantly less than 35% because of continuing tax benefits (as distinguished from loss carry-forward, etc.). This requirement does not apply to banks, insurance companies, and utilities.

106.61 For non-life insurance companies, a Combined Ratio(Claim & Claim expense as a percent of Premium Earned plus Underwriting expenses as a percent of Net Premium Earned) of at least 100%, is desirable, during the last 3-5 years. If this is unavailable, 5 year average loss ratio is used and if it is unavailable, 5 year average loss ratio is used.

106.62 For life insurance companies trend of EBIT as % of Total Capitalbased on last 5-6 years is substituted.

106.63 AWIL standard requirements for rate of return described above may be modified when there has been a nonrecurring loss of profit which was not avoidable by management (or which was a temporary by-product of an acquisition) and which is not considered to be a continuing risk, provided that(1) the company's profitability has been clearly superior to the average of similar companies in an industry which has been cyclically depressed, or (2) both the rate and stability of its cash earnings growth have been clearly superior to those of similar companies in its industry.

WIS STANDARDS OF INVESTMENT QUALITY CORPORATE GROWTH

106.00 CORPORATE GROWTH is the element which distinguishes the return on equity investments from fixed-income on dollar-obligated securities. This is primarily the growth per common share of a corporation’s earnings, cash earnings, dividends, retained earnings, assets and sales - rather than the corporations's overall growth of dollar sales, assets and income. All items are adjusted for corporate trends and variations beyond the control of management including nonrecurring items. The Growth Rating reflects the annual rate of growth during the last 5-6 years. The rating is a composite based on time-weighted averages, adjusted for trends, of the annual rate of growth per share earnings, adjusted for nonrecurring items and modified by the company’s basic profitability, stability and growth rates of per share revenues, assets, cash earnings, dividends and retained earnings. Wright Growth Ratings are based on extensive mathematical analysis and evaluation of the company’s record, as distinguished from subjective investment evaluations which are excluded except when specifically noted.

106.01 The Growth Ratingis measured by the following subcomponents (106.1-106.7) for which AWIL standards are indicated. The AWIL standard minimum requirement for growth rates of earnings per share (106.1), cash earnings per share (106.2), earned equity per share (106.4), and sales or revenues per share(106.7) may be modified when there has been a nonrecurring loss or profit reduction which was not avoidable by management (or which was a temporary byproduct of an acquisition or restructuring or disposal of assets) and which is not considered to be a continuing risk provided that (1) the company’s profitability has been clearly superior to the average of similar companies in its industry which has been cyclically depressed or (2) both the rate and consistency of its earnings growth have been clearly superior to those of similar companies in its industry, and a profit rate of at least 10% is projected for the next 12 months. These requirements may (rarely) also be modified if the company is one of the leading companies in its industry group. The Growth Rating will be shown as "N" (Not Rated) if the data is not available for at least 5 years.

106.02 The composite growth ratingis a weighted average which takes into account the following specific subcomponents (106.1-106.7) adjusted for trends of each.

106.10 Normal earnings growthper common share (a time-weighted, 5-6 year average adjusted for trends and nonrecurring charges and credits) should have averaged at least +6% per year, although a minimum of +4% is acceptable for companies with superior profit and dividend rates.

106.20 Cash earnings growthper common share should have averaged at least +6% per year, although a minimum of +4% is acceptible for companies with superior profit and dividend rates.

106.21 The stability of a company’s cash earnings growthshould be a minimum of 60%.

106.30 Earned equity growth (net earnings retained after dividend payout, expressed as a percentage of shareholders’ equity capital at the beginning of the year) per common share should have averaged at least +6% per year during the last 5-6 years. This requirement for earned equity growth per common share does not, however, apply to banks, financial companies, insurance companies and utilities.

106.40 Dividend growth per common share should have averaged at least +6% per year during the last 5-6 years. This requirement may be modified when a company chooses to reduce the dividend payout rate in order to increase the growth of retained earnings. Dividend growth rate will be shown as "N" (not rated) if annual dividends do not exceed 2% of equity capital.

106.50 Operating income growth per share should have averaged at least +6% per year during the last 5-6 years.

106.60 Asset growth per share should have averaged at least +4% per year during the last 5-6 years.

106.70 Sales or revenue growth per share should have averaged at least +4% per year during the last 5-6 years (excluding divestitures).