Return of Private Foundation - Form 990-PF ~

Form 990-P F ~ ~ Return of Private Foundation or Section 4947(axl) Nonexempt Charitable Trust

Treated as a Private Foundation oec=~~men' of one Treasury Note- The organization may be able to use a copy o/ this return to satisfy state InieiruI Revenue service repOrhnp requirements

OMB No 7565 0057

2002

For Names i number Use the

IRS label Otherwise,

print or type

See Specific Instructions

H C

3 Seventh or town If exemption application is pending, check here ~ I

1 Foreign organizations, check here 2Foreign organizations meeting the 85% test, check a here and attach computation II private foundation status was terminated under section SW(bxlxA), check here If the foundation is in a 60 month germination under section 507(b)(IHB), check here

(c) Adjusted net (d) Disbursements income for charitable

purposes (cash basis only)

NY 10106-0057 D (c)(3 exempt private foundation ust Other taxable private foundation ounting method Cash X Accrual E Other (spenfy) column d must be on cash basis)

(a) Revenue and (b) Net investment I expenses per books income

heck type of organization Section 4947(a)(1) nor

Fair r mar market of all assets at (from Part 11 column t, line 16)

11 11 r') rip 1-.

-163 .7 -397 .842

79 Compensation of ollsers dnd1W4 trustees etc 14 Other employee salaries and wages

n 15 Pension plans, employee benefits CTm 16aLegal fees (attachschedule) L-16d5till k

N b Accounting tees (attach sch) L - 16 b 5 tin x 1 eOther proffees (attachsch) L-16CStmt

e T 17 Interest A 18 Taxes (attach schedule) See Line 18 Stmt

T r 19 Depreciation (attach schedule) and depletion x y 20 Occupancy

E 27 Travel, conferences, and meetings s 22 Printing and publications

o v 23 Other expenses (attach schedule) N See Line 2; Stmt 5 24 Total operating and administrative S expenses Add lines 73 through 23

25 Contributions, gifts, grants paid 26 Total expenses and disbursements

Add lines 24 and 25

924 . 92 'u

a Excess of revenue over expenses and disbursements -39, 031 2

b Net investment income (if negative enter 0 )

C Ad7usled net income (1 regal,ve erle, 0

BAA For Paperwork Reduction Act Notice, see the instructions

9 .540 .711

TEEA0301 1022/02

I?

Expenses (The total 07 amounts in columns b, c, and d may not neces sarily equal the amounts in column a ) (see instructions) 1 Contriputions gifts grants etc received (all scn)

OK ~ D it the loundn is not req to all $ch B 2 Distributions from split interest trusts 3 Interest on savings and temporary

cash investments 4 Dividends and interest from securities Sa Gross rents b (Net rental income a (loss) )

6d Net gain/(loss) from sate of assets not on Lne 10 b Grass sates paces ion all asses on line 6a

7 Ca O~~ et income (from Park IV Lne T

4 8 Net hors ~ capital gain 9 In ,~ 1 1 10a n ~les~le l.<C`~'I

nt~'Or' L s Cosl~b

ZME f

goo old Sl o s) (aft

tic 11 Oilh h sch Paro/oss)

return I I Amended return

iii to st

13-6019226 Telephone number (see

l,;' 1J) SRF-r

Form sso-vF 2002) William Raridol h Hearst Foundation Attached schedules and amounts in the description

Pan II Balance Sheets column slauld be for end of year amounts only (see instructions

1 Cash - non interest bearing 2 Savings and temporary cash investments 3 Accounts receivable

Less allowance for doubtful accounts 4 Pledges receivable ~ ----_ _ ---

Less allowance for doubtful accounts ~ 5 Grants receivable 6 Recervables due from officers, directors, trustees, and other

disqualified persons (attach schedule) (see instructions) 7 Other notes and loans receivable (attach sch)

Less allowance for doubtful accounts ~ 5 8 Inventories for sale or use

9 Prepaid expenses and deferred charges 7 S 10a Investments - U S and stale government

obligations (attach schedule) L-l0a Stmt bInvestments -corporate stock (attach schedule) L-10b $Yfilt c Investments - corporate bonds (attach schedule) L - 1 0 C S im i

11 Investments - land, buildings, and equipment basis Less accumulated depreciation (attach schedule)

12 Investments - mortgage loans 13 Investments - other (attach schedule) L-13 5 tmt 14 Land, buildings, and equipment basis ~_ _ _ 1 , 090 , 961

Less accumulated depreciation (attach schedule) L-14 Stmt ~ 840 . 815

75 Other assets (describe~See Other Assets Stmt-) 16 Total assets (to be completed by alI tiers -

see instructions Also, see page 1, item I L 77 Accounts payable and accrued expenses

18 Grants payable A B 19 Deferred revenue

20 Loans from officers, directors, trustees, 8 other disqualified persons L I 21 Mortgages and other notes payable (attach schedule)

22 Other liabilities (describes See Oth2f L1 ab -S-tmt )

E 5 23 Total liabilities (add lines 17 through 22

Organizations that follow SFAS 717, check here and complete lines 24 through 26 and lines 30 and 31

N F 24 Unrestricted E U T N 25 Temporarily restricted D 26 Permanently restricted

Organizations that do not follow SFAS 717, check here ~ S B S A and complete lines 27 through 31 E L 27 Capital stock, trust principal, or current funds T A S N 28 Paid in or capital surplus, or land, building, and equipment fund

29 Retained earnings, accumulated income, endowment, or other funds O E R S 30 Total net assets or fund balances (see instructions)

31 Total liabilities and net assets/fund balances

199 .691 .707 1 199 .691 .7

520 .618 .134

520 618 .134 456 279

6 Total net assets or fund balances at end of year (line 4 minus line 5) - Part II, column (b), line 30

Bli(\ TEEA0302 10123102

498,685,670 Form 990-PF (2002)

r

nning of yea Book Value

10 .61

14 .371 .752

611

193 .612

777

327 .871

24,456,279 33 .618 . 146

35 .364 .731

091

13-6019226 Pace 2

(b) Book Value (c) Fair Market Value 28,786 28,786

21,222,151 21,222,151

7,420,110 7,420,110

1,339,145 1,339,145

72,459 894 72,459,894 121,601,664 121 601,664 96,599,733 96,599,733

250,146 4,798

20,618, 134 20 . 105 .223

21 .932 .464

6

2

Part III Analysis of Changes in Net Assets or Fund Balances

1 Total net assets or fund balances at beginning of year - Part II, column (a) line 30 (must agree with end-of-year figure reported on prior year s return) 1

2 Enter amount from Part I, line 27a 2 3 Other increases not included inline 2(itemize) ~Unreal7Z2d LO55____--_________-__ 3 4 Add lines 7, 2, and 3 4 5 Decreases not included in line 2 (itemize) 5

48

51 .374 .59

TEEA0303 1023/02

s50PF(2oo2) William Randolph Hearst Foundation 13-6019226

` (a) List and describe the kind(s) of property sold (e g ,real estate, (b ) How acquired c oaie aca~~~ea ( ) oaio sole 2-story brick warehouse, or common stock, 200 shares MLC Company) P - Purcnase ~mo~in aa, ,ea~> ~mo~m cay year) 0 - Donation

is See attached schedule for Realized Gains/Losses

d

(e) Gross sales price (Q Deprenation allowed (g) Cost or other basis (h) Gain or (loss) (or allowable) I plus expense of sale I (e) plus (Q minus (g)

a 488,312,428 505,572,698 -17 .260 .270 b

e )m lele onl y for assets showing gain in column h and owned b the foundation on 12/31/69 (I) Gains (Column (h) (i) Fair Market Value Q) Adjusted basis (k) Excess of column (i) gain minus column k), but not less

as of 12/31/69 as of 12/31/69 over column Q), if any than 0 ) or Losses (S rom column (h))

c d e

2 Capital gain net income or (net capital loss) If gain also enter in Part I, line 7 {It (loss), enter 0 .n Part I, line 7 ~" p -17, 260, 270

3 Net short term capital gain or (loss) as defined in sections 1222(5) and (6)

II gain, also enter in Part I, line 8, column (c) (see instructions) If (loss), enter 0 ,r in Part I, line 8 ! 3

Pan V Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income (For optional use by domestic private foundations subject to the section 4940(a) tax on net investment income )

If section 4940(d)(2) applies, leave this part blank

Was the organization liable for the section 4942 tax on the dislribulable amount of any year in the base periods n Yes nX No If 'Yes,' the organization does not qualify under section 4940(e) Do not complete this part

1 Enter the appropriate amount in each column for each year, see instructions before making any entries

a b c Base period years Adjusted qualifying distributions Net valu utio e of Distribution ratio

Calendar year (or tax year noncharilable use assets (column (b) divided by column (c)) beginning in)

2001 32,934,504 610,058,135 0 053986 2000 27,287, 114 674,769,223 0 040439 1999 27,976,675 628,113,700 0 044541 1998 26,684,222 580,420,964 0 045974 1997 ~ 20,342,634 ~ 529 .404 .681 0 038425

2 Total of line I, column (d) 2 0 22336

3 Average distribution ratio for the 5 year base period - divide the total on line 2 by 5, or by the number of years the foundation has been in existence if less than 5 years 3 0 04467

4 Enter the net value of noncharitable use assets for 2002 from Part X . line 5

5 Multiply line 4 by line 3 1 5 1 23,866, 173

6 Enter 1 % of net investment income (I% of Part I, line 27b)

7 Add lines 5 and 6 1 7 1 23 .961

8 Enter qualifying distributions from Part XII, line 4 1 8 1 31,430,593

If line S is equal to or greater than line 7, check the box in Part VI, line 1b, and complete that part using a 1% tax rate See the Part VI instructions

BAA Form 990-PF (2002)

7EEA03oa 70/7102

Form 99o-PF(zoo2 William Raridol h Hearst Foundation 1 . Part VI Excise Tax Based on Investment Income (Section 4940(a) . 494(1(b) . 4940(e) . or 4948 - is

1 a Exempt operating foundations described in section 4940(dx2), check here ~ U and enter VA' on line 1 Date of ruling letter -- _ _ -- _ (attach copy of ruling letter if necessary - see instructions)

b Domestic organizations that meet the section 4940(e) requirements in Par( V, 1 95,407 check here ii~ IX-1 and enter 1 °/, of Part I, line 27b

c All other domestic organizations enter 2 % of line 27b Exempt foreign organizations enter 4% of Pan I, line 12, column (6) 2 Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only Others enter 0 ) 2 3 Add fines 1 and 2 3 95 .407 4 Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only Others enter 0 ) 4 5 Tax based on investment income Subtract line 4 from line 3 It zero or less, enter 0 5 95 .407 6 Credits/Payments a 2001 estimated tax pmts and 2001 overpayment credited to 2002 6a 398,032 b Exempt foreign organizations - tax withheld at source 6b c Tax paid with application for extension of fame to file (Form 8868) 6c d Backup withholding erroneously withheld 6d

7 Total credits and payments Add lines 6a through 6d 7 398,032 8 Enter any penalty for underpayment of estimated tax Check here [] if Form 2220 is attached 8 9 Tax due If the total of lines 5 and 8 is mare than line 1, enter amount owed ~ 9 10 Overpayment If line 7 is more khan the total of lines 5 and 8, enter the amount overpaid ~ 10 302 . 6T5- 11 Enter the amount on line IO to be Credited to 2003 estimated lax 11~ 202,625 I Refunded ~ 17 100, 000

7 a During the tax year, did the organization attempt to influence any national, slate, or focal legislation or did it Yes No participate or intervene in any political campaigns 1 a X

b Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see instructions far definition)7 7 b X

I/ the answer is 'Yes to 1a or 16, attach a detailed description of the activities and copies o! any materials published or distributed by the organization in connection with the activities

c Did the organization file Form 1120-POL for this years 1 c X d Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year

(1) On the organization W $ (2) On organization managers ~ $ e Enter the reimbursement (if any) paid by the organization during the year for political expenditure tax imposed on organization managers 11~ $

2 Has the organization engaged in any activities that have not previously been reported to the IRS k2 X II 'Yes,' attach a detailed description of the activities

3 Has the organization made any changes, not previously reported to the IRS, in its governing instrument, articles of incorporation, or bylaws, or other similar instruments? 11 Yes,' attach a conformed copy o/ the changes 3 X

4a Did the organization have unrelated business gross income of $1,000 or more during the years 4a X b If 'Yes,' has it fled a tax return on Form 990-T for this years 4b X

5 Was there a liquidation, termination, dissolution, or substantial contraction during the years 5 X If 'Yes,' attach the statement required by General Instruction T

6 Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either 0 By language in the governing instrument or

" By state legislation that effectively amends the governing instrument so that no mandatory directions that conflict with the state law remain in the governing inslrument7 6 X

7 Did the organization have at least $5,000 in assets at any time during the years If 'Yet,' complete Part II, column (c), and Part XV 7 X Ba Enter the states to which the foundation reports or with which it is registered (see instructions)

California New York b If the answer is Yes' to line 7, has the organization furnished a copy of Form 990 PF to the Attorney General

(or designate) of each state as required by General Instruction G7 Il'NO,' attach explanation 81a X

9 Is the organization claiming status as a private operating foundation within the meaning of section 49E2(7x3) or 49420(5) for calendar year 2002 ar the taxable year beginning in 2(q2 (see instructions for Part %1V)? If 'Yes,' complete Part XIV 9 I X

70 Did any persons become substantial contributors during the lax years 10 X I7 'Yes,' attach a schedule listing their names and addresses

11 Did the organization comply with the public inspection requirements for its annual returns and exemption application7 11 X Web site address

72 The books are in care of " John P Spi sak _----------------_ Telephone no - (212) 586-5404 L-ocatedat " 888 7th Ave--New-York N Y ZIP +a ~ 10106-0057

73 Section 4947(a)(1) nonexempt charitable trusts filing Form 990 PF in lieu of Form 1041 - Check here - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -and enter the amount of tax exempt interest received or accrued during the year " I 13


No

(4) Provide a grant to an organization other than a charitable, etc, organization described in section 509(a)(1), (2), or (3), or section 4940(d)(2)? X Yes F~ No

(5) Provide for any purpose other than religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals ~ Yes E] No

b If any answer is 'Yes' to 5a(l) (5), did any of the transactions (ail to qualify under the exceptions described in Regulations section 53 4945 or in a current notice regarding disaster assistance (See iiubuCLuin)''

Organizations relying on a current notice regarding disaster assistance check here

c II the answer is 'Yes' to question 5a(4), does the organization claim exemption from the tax because it maintained expenditure responsibility for the grants E Yes Q No

11 'Yes,' attach the statement required by Regulations section 53 4945 5(d)

6a Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract' F]Yes RX No

b Did the organization during the year, pay premiums, directly or indirectly, on a personal benefit contract

I! you answered 'Yes' to 66, also file 8870

Form 990-PF (2002) BAA iEEA0305 10/23/02

990-PF(2002) William Raridoloh Hearst Foun

File Form 4720 if any item is checked m the 'Yes' column, unless an exception applies 1 a During the year did the organization (either directly or indirectly)

(1) Engage in the sale or exchange, or leasing of property with a disqualified persons ElYes X No

(2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from) a disqualified persons Yes X No

(3) Furnish goods, services, or facilities to (or accept them from) a disqualified persons ~ Yes

M No (4) Pay compensation to, or pay or reimburse the expenses of, a disqualified persons X Yes No

(5) Transfer any income or assets to a disqualified person (or make any of either available for the benefit or use of a disqualified person) FlYes Z] No

(6) Agree to pay money or property to a government officials (Exception Check 'No' if the organization agreed to make a grant to or to employ the official for a period after termination of government service, if terminating within 90 days ) E] Yes XO No

b It any answer is 'Yes to la(1) (6), did any of the acts tail to qualify under the exceptions described in Regulations section 53 4941 (d) 3 or in a current notice regarding disaster assistance (see instructions)? Organizations relying on a current notice regarding disaster assistance check here

c Did the organization engage in a prior yeas in any of the acts described in 1a, other than excepted acts, that were not corrected before the first day of the tax year beginning in 2002

2 Taxes on failure to distribute income (section 4942) (does not apply for years the organization was a private operating foundation defined in section 49420(3) or 49420(5))

a At the end of tax year 2002, did the organization have any undistributed income (lines 6d and 6e, Part XIII) for tax year(s) beginning before 2002 F] Yes Q No If 'Yes .' list the years i" 20 , 20 , 19 , 19

b Are there any years listed in 2a for which the organization is not applying the provisions of section 4942(a)(2) (relating to incorrect valuation of assets) to the year s undistributed incomes (It applying section 4942(a)(2) to all years listed, answer 'NO' and attach statement - see instructions )

c If the provisions of section 4942(a)(2) are bung applied to any of the years listed in 2a, list the years here X20 ,20 ,19 ,19

3a Did the organization hold more than a 2% direct or indirect interest in any business enterprise at any time during the years FlYes X No

b If Yes,' did it have excess business holdings in 2002 as a result of (1) any purchase by the organization or disqualified persons after May 26, 1969, (2) the lapse of the 5 year period (or longer period approved by the Commissioner under section 4943(c)(7)) to dispose of holdings acquired by g ift or bequest, or (3) the lapse of the 10 , 15 , or 20 year first phase holding periods (Use Schedule C, Form 4720, to determine if the organization had excess business holdings in 2002)

4a Did the organization invest during the year any amount in a manner that would jeopardize its charitable purposes?

b Did the organization make any investment in a prior year (but after December 31, 1969) that could jeopardize its charitable purpose that had not been removed from jeopardy before the first day of the tax year beginning in 2002

5a During the year did the organization pay or incur any amount to (1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? ~ Yes X No

(2) Influence the outcome of any specific public election (see section 4955), or to carry on, directly of indirectly, any voter registration drive? Yes X No

(3) Provide a grant to an individual for travel, study or other similar purposes XB Yes e No

-601922 H

Capital. Guardian Trust Co 135 South State College Blvd Brea, Ca 92821 Investment Mana ger 145,464 Numeric Investors One Memorial Drive, Cambrid e,Ma 02142 215,047 Alliance C~Pj tal_Mgt _Corp_-____--__-_---___ 1345 Ave of the Americas, New York N Y 10105 110,661 Dode_& Cox One Sansome St San Francisco, Ca 94104 130 , 358 Sit Investment Associates 90 South Seventh St Minneapolis, Mn 55402 148,751 Total number of others receiving over $50,000 for professional services

Pan IX-A Summary of Direct Charitable Activities

List the foundations tour largest direct charitable activities during the tai year Include relevant statistical information such as the number of Expenses organizations and other beneficiaries served, conferences convened, research papers produced, etc i United -States-Senate- Youth Program_(See Attached)___

------------------------------------------------------ 1,a78,580

2 JournaiisinAwards Program_(See Attached)-__

------------------------------------------------------ 856,362

3

------------------------------------------------------

4

------------------------------------------------------

BAA reeno7o6 iaz7io2 Form 990-PF (2002)

and Contractors

(b) Title and average (c) Compensation (d) Contributions to (e) Expense account, (a) Name and address hours per week (If not paid, enter -0-) employee benefit other allowances

devoted to position plans and deterred compensation

Robert -11 Frehse Jr VP, Ex Dir 888 7th Ave New York N Y 2/3 of 40 hrs 220,460 29,685 206 Thomas Eastham VP, West Dir 90 New Mont gomer y St S F Ca 2/3 of 40 hrs 163,183 27,337 206 John P Spisak___-_-__-_--- Asst Treas 888 7th Ave New York N Y 2/3 of 40 hrs 56,934 5,049 387

2 Compensation of five highest-paid em to ees (other than those included on line 1- see instructions If none, enter'None' (a) Name and address of each employee (b) Title and average (c) Compensation (d) Contributions to (e) Expense account,

paid more than $50,000 hours per week employee benefit other allowances devoted to position plans and deferred

compensation Rita Almon SYP Dtr 90 New _11-on t omer St S F CA 40 hrs 98,534 6,600 1,800 Jan Watten JAP Dir 90 New Mont gomer y St S F Ca 40 hrs 74,803 10,885 5,300 Ilene Mack ___-___ Sr Pgm Officer M-7-0-Ave New York N Y 40 firs 68,246 9,305 0 L nn De Smet ----_ Program Associate 90 New Mont

o__-___-_F Ca 40 firs 50,107 6 , 393 0

-------------------------

Total number of other employees aid over $50,000 ~ None 3 Five highest-paid mdeoendent contractors for professional services - (see instructions) If none . enter'None'

Form sso-PF(2ooz) William Raridolph Hearst Foundation 13-6019226 Page 7 Part IX-B Summary of Program-Related Investments (see instructions)

f investments made by the Describe the two lar

------------------------------------------------------

------------------------------------------------------

------------------------------------------------------

Total Add lines 1 through 3

Pal't X Minimum Investment Return (All domestic foundations mush complete this part Foreign foundations, see instructions )

1 Fair market value of assets not used (or held for use) directly in carrying out charitable, etc, purposes a Average monthly fair market value of securities b Average of monthly cash balances c Fair market value of all other assets (see instructions) d Total (add lines I a, b and c) e Reduction claimed for blockage or other factors reported on lines 1a and lc (attach detailed explanation) le i

2 Acquisition indebtedness applicable to line 1 assets 3 Subtract line 2 from line 1 d 4 Cash deemed held (or charitable activities Enter 1 1/2%, of line 3 (for greater amount, see instructions) 5 Net value of noncharitable-use assets Subtract line 4 from line 3 Enter here and on Part V, line 4

538,341,687 4,030,724

4,798 542,377,209

0 542 .377 .209

TEEA0307 1012102

1 NONE

2

All other program related investments See instructions 3 ------------------------------------------------------

6 Minimum investment return Enter 5% of line 5 6 26,712,078 Pal't XI DIStfIbutablE Amount (see instructions) (Section 4942Q)(3) and Q)(5) private operating foundations and certain

foreign organizations check here ~ and do not complete this art 1 Minimum investment return from Park X, line 6 1 26, 712, 078 2a Tax on investment income for 2002 from Part VI, line 5 2a 95,407 b Income tax for 2002 (This does not include the tax from Part VI ) 2b c Add lines 2a and 2b 2c 95 , 407

3 Distributable amount before adjustments Subtract line 2c from line 1 3 26, 616, 671 4a Recoveries of amounts treated as qualifying distributions 4a l b Income distributions from section 4947(a)(2) trusts 4b c Add lines 4a and 4b 4c5 Add dines 3 and ac 5 26, 616, 671

6 Deduction from distributable amount (see instructions) 6 7 Distributabie amount as adjusted Subtract line 6 from line 5 Enter here and on Part XIII, line 1 7 26,6167-71

Part XII Qualifying Distributions (see instructions)

1 Amounts paid (including administrative expenses) to accomplish charitable, etc, purposes a Expenses, contributions, gifts, etc - total from Part I, column (d) line 26 1 a 31,430, 593 b Program related investments - Total from Part IX 8 1 b

2 Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc, purposes 2

3 Amounts set aside for specific charitable projects that satisfy the a Suitability test (prior IRS approval required) 3a 6 Cash ds;rib, :tic^ test (attach the requires scnedwe) 3b

4 Qualifying distributions Add lines la through 3b Enter here and on Part V, line 8, and Part XIII, line 4 4 31 .430, 593

5 Organizations that qualify under section 4940(e) for the reduced rate of tax on net investment income Enter I°,6 of Part I, line 27b (see instructions) 5 95,407

6 Adjusted qualifying distributions Subtract line 5 from line 4 6 31,335, 186

Note The amount on line 6 will be used in Part V, column (b), ,n subsequent years when calculating whether the foundation qualities for the section 4940(e) reduction of tax in those years

9AA Form 990-PF (2002)

TEEA0308 11/12/02

Form 990-PF(2002) William RarSdolph Hearst Foundation 13-6019226 Pagee

Pan XIII Undistributed income see instructions)

(a) (b) ~~~ (d Corpus Years prior l0 2001 2 I 2002

1 Distributable amount for 2002 from Part XI, line 7 26, 616, 671

2 Undistributed income, it any, as of the end of 2001 a Enter amount for 2001 only 28,491,586 b Total for prior years 20 , 19 , 19

3 Excess distributions carryover, d any, to 2002 a From 1997 0 b From 7998 0 c From 1999 0 d From 2000 0 e From 2001 0 f Total of lines 3a through e 0

4 Qualifying distributions for 2002 from Part xll, pine 4 ii~ $ 31,430,593

a Applied to 2001, but not more than line 2a 28,491,586

b Applied to undistributed income of prior yeas (Election required - see instructions)

c Treated as distributions out of corpus (Election required - see instructions)

d Applied l0 2002 disiributable amount 3, 125 ,923 e Remaining amount distributed out of corpus 0

5 Excess distributions carryover applied to 1002 0 0 (if an amount appears in column (d), the same amount must be shown in column (a) )

6 Enter the net total of each column as indicated below

a Corpus Add lines 31, 4c, and 4e Subtract line 5 0

b Prior years' undistributed income Subtract line 4b from line 2b 0

c Enter the amount of prior years' undistribut ed income for which a notice of deficiency has been issued, or on which the section 4942(a) tax has been previously assessed

d Subtract line 6c from line 6b Taxable amount - see instructions 0

e Undistributed income for 2(101 Subtract line 4a from line 2a Taxable amount - see instructions 0

f Undistributed income for 2002 Subtract lines 4d and 5 from line 1 This amount must be distributed in 2003 23,490,748

7 Amounts treated as distributions out of corpus to satisf y requirements imposed by section 170(b)(I)(E) or 4942(9)(3) (see instructions)

8 Excess distributions carry over from 1997 not applied on line 5 or line 7 (see instructions) 0

9 Excess distributions carryover l0 2003 ~ ' Suulraci: lines 7 and tt from line 6a 0

10 Analysis of line 9 a Excess from 1998 0 b Excess from 1999 0 c Excess from 2000 0 d Excess from 2001 0 e Excess from 2002


13-60192 instructions and Part VII N/A

d Any restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other factors Guidelines Attached

BAA TEEA030A 1023/02 Form 990-PF (2002)

1 a If the foundation has received a ruling or determination letter that it is a private operating foundation, and the ruling is effective for 2002, enter the date of the ruling

b Check box to indicate whether the organization is a private o erating foundation described in section 49420)(3 ) or 4942 5 2a Enter the lesser of the adjusted net Tax ear Prior 3 ears

income from Part I or the minimum a 2002 b 2001 c 2000 d 1999 e Total investment return from Part X for each year listed

b 85% of line 2a c Qualifying distributions from Part XII,

line 4 for each year listed d Amounts included in line 2c not used directly

far active conduct of exempt activities e Qualifying distributions made directly

(or active conduct of exempt activities Subtract line 2d from line 2c

3 Complete 3a, b, or c for the alternative lest relied upon

a 'Assets' alternative test - enter (1) Value of all assets (2) Value of assets qualifying under

section 4942Q)(3)(B)(Q b'Endowmenl' alternative test - Enter 2/3 of minimum investment return shown in Part X, line 6 for each year listed

c 'Support alternative test - enter (1) Total support other than gross

investment income (interest, dividends, rents, payments on securities loans (section 512(a)(5)), or royalties)

(2) Support from general public and 5 or more exempt organizations as provided in section 4942(Ix3xBHii)

(3) Largest amount of support from an exempt organization

this part onlv d the oraanizalion had 55.000 or more in 1 Information Regarding Foundation Managers

a List any managers of the foundation who have contributed more than 2°/, of the total contributions received by the foundation before the close of any tax year (but only if they have contributed more than $5,000) (See section 507(d)(2) )

b List any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the ownership of a partnership or other entity) of which the foundation has a 10% or greater interest

2 Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc, Programs Check here ' 1-1 if the organization only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds If the organization makes gills, grants, etc, (see instructions) to individuals or organizations under other conditions, complete items 2a . b . c . and d

a The name, address, and telephone number of the person to whom applications should be addressed

Guidelines Attached

b The foam ~n wliimi appiicauons mould be submitted and information and materials they should include Guidelines Attached

c Any submission deadlines Guidelines Attached

Total ~ 3b] 1,824,000 BAA TEEA0310 10123/02 Form 990-PF (2002)

WiLLiam RandoLph Hearst Foundation 13-6019226 Page 10 ementary Information (corninueo) rtributions Paid During the Year or Approved for Future Payment

Recipient II recipient is an individual, show any relationship 1o any Foundation Purpose of grant or

foundation manager or status of contnbution Amount

a Paid during the yeas See attached schedule I I " PC

26 .832 .700

" PC- All Grants are to Public Charities

Total ~ 3a 26, 832, 700 b Approved for future payment

See attached Contribution " PC Schedule - 2002 1,000,000 Contributions made prior " PC

to - 2002 750,000 United States Senate Youth None Scholarships Program Scholarship Grants Toward College 74,000

Form 9soPF(zoo2) William Randolph Hearst Foundation 13-6019226 Page 11 Part XVI-A Analysis of Income-Producing Activities

Unrelated business income Excluded b section 512, 513 or 514 (a) (b) (~) (d) (e) Business Amount E . (~21 Amount Related or exempt code sion function income

a b c d e 1 g Fees and contracts from government agencies

2 Membership dues and assessments 3 Interest on savings and temporary cash investments 4 Dividends and interest from securities 5 Net rental income or (loss) from real estate a Debt financed properly

b Not debt financed property 6 Net rental income or (loss) from personal property 7 Other investment income 8 Gain or (lass) from sales of assets other than inventory 9 Net income or (loss) from special events 10 Gross profit or (loss) from sales of inventory 11 Other revenue

181 -17

Line No I Explain below how each activity for which income is reported in column (e) of Part XVI A contributed importantly to the t accomplishment of the organization's exempt purposes (other than by providing funds for such purposes) (See instructions )

BAA Form 990-PF (2002) TEEA0501 0123103

Enter gross amounts unless otherwise indicated

Program service revenue

a Partnershi p Income (Loss) -163,780 b c

e 12 Subtotal Add columns (b), (d), and (e) ~ ~ -6,057,612 -163 , 780 13 Total Add line 12, columns (b), (d), and (e) 13 -6,221,392 (See worksheet in the instructions for line 13 to verify calculations )

Part XVI-B Relationship of Activities to the Accomplishment of Exempt Purposes

X

d If the answer to any of the above is 'Yes,' complete the following schedule Column (b) should always show the fair market value of the goods, other assets, or services given by the reporting organization If the organization received less than fair market value in an transaction or sharin arran ement, show in column d the value of the goods other assets, or services received

Line no (b) Amount involved (c) Name of nonchantable exempt organization (d) DescnoUOn of transfers. transactions . and shanno arramem~

11 Yes E] No

TEEA0502

Form990-PF 2002) WiLtiam Randol h Hearst Foundation 13-6019226 Part XVII Information Regarding Transfers To and Transactions and Relationships With Noncharita

Exempt Organizations

1 Did the organization directly or indirectly engage in any of the following with any other organization described in section 501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations

a Transfers from the reporting organization to a noncharilable exempt organization of (1) Cash 1a (2) Other assets la

b Other Transactions (1) Sales of assets to a noncharitable exempt organization 7 b (2) Purchases of assets from a noncharilable exempt organization 1 b (3) Rental of facilities, equipment, or other assets 1 b (4) Reimbursement arrangements 1 b (5) Loans or loan guarantees 7 b (6) Performance of services or membership or fundraising solicitations 1 b

c Sharing of facilities, equipment, mailing lists, other assets, or paid employees 1 c

No

X

2a Is the organization directly or indirectly affiliated with, or related to, one or more tax exempt organizations described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527

b If Yes .' complete the follovinna schedule

Under penalties of perjury I declare Nab I have examined this return including act correct and comple ration of preparer (other than taxpayer or fiduciary) is

S.gruit ylgiff-utf iver ., trustee

519 PiePara s Here Paid signature

Pre- Pdlfl'S HEARST FOUNDATION Me Firms name (or your .

,f self employeE ) t $$$ 7t11 AVE 45th F Only address and ZiP code New York

BAA

Annual Report of Private Foundation As of December 31, 2002

Officers 8 Directors

Millicent H Boudjakji - President, - 253 South Rockingham Ave Director Los Angeles, California 90049

Robert M Frehse, Jr - Vice President 8 - 888 Seventh Avenue Executive Director New York, New York 10106-0057

Thomas Easlham - Vice-President & - 90 New Montgomery Street Western Director San Francisco, Calif 94150

Frank A Bennack, Jr - Vice President, - 959 Eighth Avenue Director New York, New York 10019

Virginia H Randl - Vice President, - 959 Eighth Avenue Director New York, New York 10019

John G Conomikes - Vice President, - 959 Eighth Avenue Director New York, New York 10019

Richard E Deems - Vice President, - 959 Eighth Avenue Director New York, New York 10019

George R Hearst Jr - Vice President, " ESTRELLA RANCH - 5165 Esireila Rd Director Paso Robles, California 93446

John R Hearst, Jr - Vice President, - 959 Eighth Avenue Director New York, New York 10019

William R Hearst, III - Vice President, - C/O Kleiner, Perkins, Caufield and Byers Director 2750 Sand Hill Road

Menlo Park, California 94025 Harvey L Lipton - Vice President, - 959 Eighth Avenue

Director New York . New York 10019 Gilbert C Maurer - Vice President, - 959 Eighth Avenue

Director New York, New York 10079 Raymond J Petersen - Vice President, - 959 Eighth Avenue

Director New York, New York 10019 Mark F Mailer - Vice President, - 959 Eighth Avenue

Director New York, New York 10019 Victor F Ganzi - Vice President, - 959 Eighth Avenue

Director & Secretary New York, New York 10019 James M Asher - Secretary - 959 Eighth Avenue

New York, New York 10019 Jodfe W King - Assistant Secretary - 959 Eighth Avenue

New York, New York 10019 Ralph Cuomo - Treasurer - 959 Eighth Avenue

New York, New York 10019 John P Spisak - Assistant Treasurer - 888 Seventh Avenue

New York, New York 10106-0057 Jon D Smith Jr - Assistant Treasurer 959 Eighth Avenue

New York, New York 10019 Ronald J Doefler - Assistant Treasurer 959 Eighth Avenue

New York, New York 10019

WILLIAM R,4NDOLPH HEARST FOUNDATION

1

Taxes (see instructions) Rev/Exp Book Net Inv Inc Adl Net Inc Charity Disb Federal Excise Tax 62,888 State lax/fees 8,771 8,771 Foreign Tax 16,666 16,666

88,325 16,666 Total

Form 990 PF, Page 1, Part I, Line 23 Line 23 Stmt

Other expenses Rev/Exp Book Payroll Preparation 4,760 Foundation Dues 60,434 General Insurance 71,795

Temporary Help 3,012 Staff Exp-Officer 7,477 Staff Exp- Empl 9,021 Office Supplies 72,107 Telephone 30,620 Postage and Delivery 44,983 Computer Repair&Supply 155,269 Outside Services 119,847 Rental Equipment 29,506 Dues and Subscriptions 9,338 Computer-communication 73,639 Consultant - SYP 1,500 School Exp -lAP/SYP 72,900 Medals/Cert - JAP/SYP 26,103 Accruals +O1 -02

Total 792,311

Line 16a - Legal Fees : Name of Provider Type of Service Provided Amount Paid

63 .811 Total

William Randolph Hearst Foundation 13-6019226

Form 990-PF, Page 1, Part I, Line 18 Line 18 Stmt

Form 990-PF, Page 1, Part I, Line 16a L-16a Stmt

Net Inv

8,771

Inc Chant Disb 4,760

60,434 70,195

3,012 7,477 9,021

72,107 30,620 44,983 155,269 119,847 29,506 9,338

73,639 1,500

72,900 26,103

134,215

924,926

Simpson, Thatcher & Bartlett l General Counsel

Total

corm 990 Fr, Page I, Fart I, Line l bb L-1 6b Stmt

Line 16b - Accounting Fees' Name of Provider Type of Service Provided

Delaitte & Touche LLP IAuditi

23 .413

23,413

Amount Paid

63,811

End of Year Line 10b - Investments - Corporate Stock : Book Fair Market

Value Value

End of Year Book Fair Market Value I Value

Line 10c - Investments - Corporate Bonds

96,599,733 Total

William Randolph Hearsl Foundation 13-6019226 2

Form 990 PF, Page 1, Part I, Line 16c L-16c Stmt

Line 16c - Other Professional Fees :

Name of Provider Type of Service Provided Amount Paid

Dodge & Cox, Inc Investment Manager 130,358 T Rowe Price 251 Alliance Capital Mgt Corp 110,661 Capital Guardian Trust Co 145,464 Loomis, Sayles & Co 89,736 Lincoln Income Group 65,647 Numeric Investors 215,047 State Street Bank & Trust Co Custodian 140,548 Frank Burr Consultant 17,135 State St Global Advisors Investment Manager 16,555 SIT Investment Assoc Inc 148,751 Frank Russel Company Consultant 71,820

Total 1, 151,973

Form 990 PF, Page 2, Part II, Line l 0a L-l0a Stmt

End of Year Line 10a -Investments - Book Fair Market

US and State Government Obligations: Value Value

US Treasury Notes 1 1 72,459,894

Total 72,459,894

Form 990-PF, Page 2, Part II, Line lOb L-1 Ob Stmt

Publicly Traded Common Stock

Total

Form 990-PF, Page 2, Part II, Line l Oc L- 10c Stmt

121,601,664

121,601,664

Corporate Bonds

3

End of Year Book Fair Market Value Value

184,450,153 15,241,554

199,691,707

Line 13 - Investments - Other :

Form 990 PF, Page 2, Part II, Line 14 L-14 Stmt

Form 990 PF, Page 2, Part II, Line 15 Other Assets Stmt

Line 15 - Other Assets,

Ending Book Value

3,241

3,241 Total

William Randolph Hearst Foundation 13-6019226

Form 990-PF, Page 2, Part II, Line 13 L-13 Stmt

Mutual Funds

Total

(a) (b) (y Line 14b - Description of CosUOther Accumulated Book Value

Land, Buildings, and Equipment Basis Depreciation

1,090,961 840,815 250,146

Total 1,090,961 840,815 250,146

Total

Form 990 PF, Page 2, Part II, Line 22 Other Liab Stmt

Line 22 - Other Liabilities-

End of Year Book Fair Market Value Value

4,798

4,798

WILLIAM RANDOLPH HEARST FOUNDATION Form 990-PF,page 3 13-6019226 Part IV, Line 1(h) 5' Gain or (loss)

$ 3,586,137 (12,356,038) (1,144,497) 1,602,550 155,397

(2,653,158) (2,905,860) (1,526,014)

0 0 0

(180,638) (571,259) (898,789) (46,162) (66,560)

(136,953) (118,426)

Total $ (17,260,270)

Dodge & Cox Alliance Capital Management Loomis Sayles & Co Lincoln Income Group Lincoln Income-Short Term Fund Numeric Investors SIT New Beginnings SIT New Beginnings T Rowe Associates, Inc MAS Small Cap MAS Mid Cap TCV III Bachow Silver Lake California Community VS&A Communications Credit Suisse Newbury Ventures

FINE ARTS MUSEUMS OF SAN FRANCISCO NEW YORK-PRESBYTERIAN HOSPITAL

$ 27,011,900 $ 26,832,700

WILLIAM RANDOLPH HEARST FOUNDATION E I~N 13~6019226

SCHEDULE OF INFORMATION FOR FORM 990-PF

PART I . LINE 25 . CONTRIBUTIONS

CASH DONATIONS AWARDED AND PAID

CASH DONATIONS AWARDED FOR FUTURE PAYMENT

JOURNALISM AWARDS APPROVED/PAID DURING THE YEAR

2002 SENATE YOUTH PROGRAM SCHOLARSHIPS AWARDED

CASH DONATIONS PAID DURING THE YEAR, APPROVED IN PRIOR YEARS ARE AS FOLLOWS

SENATE YOUTH PROGRAM

COLUMN A COLUMN D

$ 25,470,000 $ 25,470,000

1,000,000 0

333,900 400,700

208,000 0

$ 27,011,900 $ 25,870,700

0 212,000

0 500,000 0 250,000

PART XV, Line 3b Grants & Contributions Approved for Future Payment

New York Presbyterian Hospital Find Arts Museums of San Francisco

Sub-Total Memorial Sloan-Kettering Cancer Center

Total

250,000 500,000 750,000

1,000,000 1,750,000

WILLIAM RANDOLPH HEARST FOUNDATION E I N . 13-6019226

SCHEDULE OF INFORMATION FOR FORM 990-PF

(vii) The Foundation has not conducted any independent verification of the report, pursuant to Treas Reg § 53 4945-5(c), because the Foundation has had no reason to doubt the report's accuracy or reliability

WILLIAM RANDOLPH HEARST FOUNDATION

EIN 13-6019226

Expenditure Responsibility Report - FY 2002

STATEMENTS Part VII-B, Question Sc

(i) Grant to The Piton Foundation 370 l7'h Street, Suite 5300 Denver, Colorado 80202

(ii) Date March 28, 2000 Amount $75,000

(w) Purpose Funding to strengthen the emerging statewide network of youth conservation corps in Colorado through support of the Colorado Youth Corps Association, a project of the grantee

(iv) Amount Expended $75,000 expended between 3/28/2000 and 12/31/2001 ($41,625 expended between 3/28/2000 and 12/l8/2000, and $33,375 expended between 12/l8/2000 and 12/31/2001)

(v) To the knowledge of the Foundation, the grantee has not diverted any portion of the grant or any income therefrom from the purpose of the grant

(vi) The Foundation has received from the grantee reports regarding the grant dated December 18, 2000 and March 25, 2002

Fam 926 Return by a U .S . Transferor of Property OMB No 7545 0026 ,Rev December 2002) to a Foreign Corporation oepanmeni of me ireasvy " Attach to your Income tax return Attachment Internal Revenue service Sequence No 128

U S Transferor Information see instructions ) Name of transferor Identdying nwnber (see instructlons)

WILLIAM RANDOLPH HEARST FOUNDATION 13 - 60192?6

1 If the transferor was a corporation, complete questions la, 11o, and 1c a If the transfer was a section 361(a) or (b) transfer, was the transferor controlled (under section 368(0)) by

5 or fewer domestic corporations? 11 Yes 0 No b Did the transferor remain in existence otter the transfers Cl Yes 0 No

If not, list the controlling shareholder(s) and their identifying number(s)

Controlling shareholder Identifying number

c If the transferor was a member of an affiliated group filing a consolidated return was ii the parent corporation? F-1 Yes 0 No If not, list the name and employer identification number (EIN) of the parent corporation

Name of parent corporation EIN of parent corporation

2 If the transferor was a partner in a partnership that was the actual transferor (but is not treated as such under section 367), list the name and EIN of the transferor's partnership

Name of partnership EIN of partnership

. Transferee Foreign Corporation Information see instructions

3 Name of transferee (foreign corporation) 4 Identifying number, d any ANDOR DIVERSIFIED GROWTH OFFSHORE FUND INC .

5 Address (including country) 9 CHURCH STREET, P 0 130X HM951, HAMILTON HM DX , BERMUDA

6 Country of incorporation or organization

BERMUDA 7 Foreign law characterization (see instructions)

BERMUDA 8 Is the transferee foreign corporation a controlled foreign corporations ~ Yes No

For Paperwork Reduction Act Notice, see page 4 Co ; NO 1G982C ram yLb (Rev 12 2002)

Under pertalUes of pujuy 1 declare that I haw examined this renum including accompariyng schedules and statements and to the best of my knowledge

Sign aid belief it is we correct and complete Declaraban of preparer father than taxpayer) is based on all information of which prepares has airy knowledge

Here srule . ~4

oa // 3 /~5S ,,- Te4eASo.0.E2 Cps

' S ure II a joint relur anU both pouses Date tr sfer~omtly owned property bath muse sign

Preparer 5 Date check d Reparer 5 social security no Paid -signature em' to ed li~ Pre arer's Firm s name (a your EIN ~

Use Only ,rt~7ro ~employed) and ,

ZIPmrie t

FAG

Form 926 (Rev 72 7002) Page 2 FTMM Information Regarding Transfer of Property see instructions 9 Date of transfer 10 Type of nonrecognmon transaction (see instructions)

JULY 1st, 2002 IRS SECTION 351 11 Description of property transferred

CASH $ 5,140,650

72 Did this transfer result from a change in the classification of the transferee to [hat of a foreign corporalion9 E3 Yes X No 13 Was the transferor required to recognize income under Temporary Regulations sections 7 367(a)-4T

through 1 367(a)-6T (e g ,for tainted property, depreciation recapture, branch loss recapture, etc )? 0 Yes ~ No 14a Was intangible property (within the meaning of section 936(h)(3)(B)) transferred as a result of the

transaction? Yes No b If yes, describe the nature of the rights to the intangible property that was transferred in the transfer

Form 926 Return by a U.S . Transferor of Property (Rev December200n I to a Foreign Corporation Oeparonent of me Treasury internal Revenue Service 1 poach to your income tax letum. Auachmem

Sequence No 128

'.rtymg number (see msWCeons) 13 - 6019226

Name of transferor WILLIAM RANDOLPH HEARST FOUNDATION

If not, list the controlling shareholders) and their identifying number(s)

Identifying number Controlling shareholder

c If the transferor was a member of an affiliated group filing a consolidated return, was it the parent corporation? El Yes El No If not, list the name and employer identification number (EIN) of the parent corporation

Name of parent corporation

2 If [he transferor was a partner in a partnership that was the actual list the name and EIN of the transferor's partnership

Name of partnership

EIN of parent corporation 21

EIN of partnership

7 Foreign law characterization (see instructions) BERMUDA

8 Is the transferee foreign corporation a controlled foreign corporations 0 Yes No

For Paperwork Reduction Act Nonce, see page 4 Cap No isanin ��-� 926 ;Rev 12 iwq

OMB No 1515 0026

1 I( the transferor was a corporation, complete questions 1a, 1b, and lc a If the transfer was a section 361(a) or (b) transfer, was [he transferor controlled (under section 368(c)) by

5 or fewer domestic corporations? Yes 1:1 No b Did [he transferor remain in existence after the transfers ~ Yes El No

is not treated as such under section 367),

FgTMM Transferee Foreign Corporation Information see instructions 3 Name of transferee (foreign corporation) 4 Identdymg number, d any

PEQUOT INTERNATIONAL FUND INC 5 Address (including country

9 CHURCH STREET , P O . BOX HM951 . HAMILTON HM DX . BERMUDA 6 Country of incorporation or organization

70 Type of nonrecognmon transaction (see instructions) IRS SECTION 351

CASH $ 5,140,650

12 Did [his transfer result from a change in the classification of [he transferee to that of a foreign corporations a Yes 13 Was the transferor required to recognize income under Temporary Regulations sections 1 367(a)-4T

through 1 367(a)-67 (e g , for tainted property, depreciation recapture, branch loss recapture, etc )? 0 Yes 14a Was intangible property (within the meaning of section 936(h)(3)(B)) transferred as a result of the

transaction? p Yes b It yes, describe the nature of the rights to the intangible properly that was transferred in the transfer

No

No

Under penalties of perjury I declare that I have examined this return Including accompanying schedules and statements and [o the best of my knowledge

Sign and belie) It

"

Vue cc and complete Declaration of preperer (other than taxpayer) Is based on all Information of which prepares has any knowledge

Here gnat P ~- Date Title

' A PASO s signature II a faint return and bath spouses Data nsler jointly owned properly both must sign

Prepare s' Dale Check d Prepare s social secunty no

Paid ygnzture em' to ed Pre arer's Firm s name

(nr yours EIN d Use Only selfemployed) and, aAnre~v ZIP code

Form 926 (Rev 12

9 Date of transfer AUGUST 1st, 2002

11 Description of property transferred

2

No

Return by a U.S . Transferor of Property to a Foreign Corporation t Attach to your Income tax return

Fa�, 926 (Rev December2002)

Department of the Treasury No 128

1 If the transferor was a corporation, complete questions 1a, 7b, and 1c a If the transfer was a section 361(a) or (b) transfer, was the transferor controlled (under section 368(c)) by 5 or fewer domestic corporations . . . . . . . . . . . . . Yes No

b Did the transferor remain in existence after the transfer? . . . . . . . . . . . . . . , , `J Yes 8No

If not, list the controlling shareholder(s) and their identifying number(s)

Identifying number Controlling shareholder

c If the transferor was a member corporation? . I( not . list the name and employ

an artmaiea group hung a consouaaiea return, was it ine parent

~ , . � , ayes ~No

identification number (EIN) of the parent corporation

EIN of parent corporation Name of parent corporation

C260B 2 000

OMB No 1545 0026

2 II [rte transferor was a partner in a pannersnip Trial was one actual iransteror (but is not trealea as such under section 367), list the name and EIN of the transferor's partnership

Name of partnership EIN of partnership

T56A COMMI7NI TI NS PARTNERS III LP 13-4032659 Transferee Foreign Corporation Information see instructions )

3 Name of transferee (foreign corporation) 4 Identifying number, if any

45 FOUHERT'S PLACE LONDON , UK WIE 709 6 Country of incorporation or organization

UK 7 Foreign law characterization (see instructions) UK

For Paperwork Reduction Act Notice, see page 4 Penn 926 (Rev 12 2002)

JSn

i Form 926

Under penalties of pepury I declare that I have erammM this return including accompanying schedules and statements and to the best U my knowledge aid belief It Is True, cartect and complete Declaratim of prepaer(olher than taxpayer) Is based m a0 information olwhrh prepares has any knowledge

$I9 f1

Here ,~ e Tug /T Ss~r ~,q.i- i~L~fcU.~C sign ~ Dal

1 ~. `S l//~ 03 Cow i Lr,e S e f sgnafu2 II a janf return a ndl Win spouses Date 1 sler jointly owned property bold must spn

10-

JSA

2G4609 2 ODD

o Type of nonrecognilion transaction (see IRC SECTION 351

CASH $148 , 953

f 9 Did this transfer result from a change in the classification of the transferee to that of a foreign corporation? LJ Yes UNo 7 a Was the transferor required to recognize income under Temporary Regulations sections 1 367(a}47

through 1 367(a)-6T (e g , for tainted property, depreciation recapture, branch loss recapture, etc )7 , , , ~ Yes XNo 74a Was intangible property (within the meaning of section 936(h)(3)(8)) Transferred as a result of the

transaction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes DNo l. it yes, describe the nature of the rights to the intangible properly that was transferred in the transfer

Paid vrevarcrs 5grialure

Preparer's ~.~s Use Ofl~Y itself-emp

Gneck it ~-~ PreparcYs

mGloed ~ I I

Mdhcene Heum 9audpkdp Program Choir Jan C War,,. Pvagum Ocvcwe Willnm RandoIpF Heart. Fo-d>uen Bard Millicent Haun BoWpkdp Prnadem 0 Frank A &niuh p - John G Cmom6n 0 Richard E 0.ertn 0 Virginia Hnm 0..M Victor E Gmu 0 Geode R Hnnt Jr 0 John P Hom )r 0 W,Ilum N .ndoIpF He .,,, 111 0 HmeY L Lp,on . Glbm C Matter * Mph F Miller 0 Raymond J Petition


JOURNALISM AWARDS PROGRAM

HEARST JOURNALISM AWARDS PROGRAM

2001- 2002

The 42°d annual Hearst Journalism Awards Program began with the first competition of the academic year, the October Feature Writing Competition Over 700 students from across the nation participated in the thirteen monthly competitions during the 2001-2002 program year

The 2001-02 Program had a total of 105 undergraduate schools participating, all are members of the Association of Schools of Journalism and Mass Communication, the organization of accredited schools of journalism in the United States

Judges for the writing competitions were Robert F Brandt, former VP and Managing Editor, Nezvsdny, NY, Christopher Lavin, Senior Editor, San Diego Union Tribune, San Diego, CA, and Sherry Howard, Executive Editor, Inquirer On-Line, 77e Philadelphia Inquirer, PA

Judges for the photojournalism competition were Jodie Steck, Florida Photo Editor, Tire Associated Press, Miami, FL, Cornelius Keyes, photographer, The Los Angeles Times, CA, and Clem Murray, Director of Photography, 77w Philadelphia Inquirer, PA

Judges for the broadcast news competition were John Hultman, retired senior correspondent and morning anchor, CBS-WBBM-AM, Chicago, IL, Linda Levy, News Director, KTVT-TV, Fort Worth, Texas, and Terry Connelly, Senior Vice President, The Wentlier Channel, Atlanta, GA

###

90 New Montgomery Street # Suite 1212 e San Francisco, California 94105 + 415/>43-6033

Note Detail available upon request

WILLIAM RANDOLPH HEARST FOUNDATION JOURNALISM AWARDS PROGRAM

DECEMBER 31, 2002

WRITING PHOTOJOURNALISM BROADCAST NEWS TELEVISION COMPETITION COMPETITION COMPETITON COMPETITION TOTAL$

JANUARY 16,700 16,700 33,400 FEBRUARY 16,700 16,700 16,700 50,100 MARCH 16,700 16,700 33,400 APRIL 16,700 16,700 MAY 17,500 17,500 17,500 52,500 JUNE 19,000 23,000 20,000 19,000 81,000 JULY 0 AUGUST 0 SEPTEMBER 0 OCTOBER 0 NOVEMBER 16,700 16,700 33,400 DECEMBER 16,700 16,700 33,400

TOTALS $86,600 $90,600 $104,300 $52,400 $333,900

Students' Scholarships

Abrams-MOrley, Jesse (ED) Allen Jr, Willie (PH 2) (CH) Anderson, Derek (PH 3) Atchison,Adam (TV l)/TV Badger, Emily (SP) Bagg, Julia (CH) Bahl, Ankur (CH) Balestrieri, Kim (TV 2) (CH) Bastion, Boyd (TV 1) Bishop, Greg (PP) Bitton, David (PH 1)

$2,000 $2,750 $500

$1,250 $1,500 $1,000 $1,000 $3,600 $500 $500

$2,000 $1,200 $500 $500

$1,000 $1,000 $500

$5,000 $1,000 $2,500 $1,000 $3,000 $500 $500

$1,000 $500

$1,500 $5,000 $500

$2,500 $500

$1,000 $600 $500

2) Colorado State Northwestern Florida Northwestern Florida Utah Syracuse San Jose State Florida Western Kentucky Florida A&M Kent State Pennsylvania State North Carolina Syracuse Pennsylvania State Western Kentucky Syracuse Florida

Carrithers, Cameron (ph 3) Chodak, Adam (CH) (RD 2) Cipolloni, Gina Marie (CH) Clark, Ryan /FW) JSP) Coleman, Megan (CH) Cone, David KPH 2) (CH) Connolly, Regan (SP) Cruickshank, Amanda {TV Danforth, Glenn (CH) Davis, Joshua Paul (RD 1) Dillingham, Jared (TV 1) Doty, Cote (CH) De Poix, Erin ATV 1)

North Carolina 1) Northwestern

Florida Arizona State Syracuse North Carolina North Carolina Northwestern Fanseiow, Ed (SN) [CH)

Ferinden, Lee (PH 3) Field, Hannah (CH) Flickinger, Christopher Freeman, Chris ATV 2)

Florida Florida Ohio Western Kentucky

(TV 1)

Hearst Journalism Awards Program Statistics

Scholarships, Grants, & Stipend Report 2002

The scholarship portion of this report includes the following competitions FW (Feature Oct 2002), ED (Editorial Nov 2002, PH 1 (Photojournalism Nov 2002), RD I (Radio Nov 2002), TV 1 (Television Nov 2002), PH 2 (Photojournalism Jan 2002), SP (Sports Jan 2002), RD 2 (Radio Feb 2002), TV 2 (Television Feb 2002) . PP (Personality/ Profile Feb 2002), SN Spot News March 2002), PH 3 (Photojournalism March 2002) & CH 12002 Championship) Also included is the stipends list from the second half of the 2001-2002 program (SP), (PH2), (PH3), (RD2), (TV2), (SN) 8. Intercollegiate Awards

Northwestern San Francisco State Southern Illinois, Carbondale

Booker, Meggan (PH 1) (PH 3) Brandenburg, James (RD 1) Branford, Jamal (ED) Bugansky, Tim (SN) Carey, Joe (ED)

Fuhrmann, Andreas (PH 3) (CH) Western Kentucky $2,500 Groves, Lincoln (CH) Utah $1,000 Guterman, Lydia (RD 1) North Carolina $600 Hagedorn, Emily (FW) Kentucky $1,500 Hansen, Matt (SP) (CH) Nebraska $3,000 Harris, Dartinya (TV 2) Texas, Austin $500 Harsho, Keagan (RD 1) Montana $500 Healy, Patrick (CH) Missouri $6,000 Heckert, Justin (PP) Missouri $1,500 Hilliard, Hilary (ED) Georgia $500 Hirsch, Evan (RD 1) Syracuse $1,000 Hogan, Patrick (ED) North Carolina $500 Horowitz, Etan (SN) Maryland $600 Hughes, Lisa (RD 2) (CH) Western Kentucky $1,750 Hunter, Jason (ED) Texas, Austin $1,500 Inbody, Kristen (FW) Montana $500 Jackson, Erin (FW) Missouri $750 James, Alexa (PP) (CH) Pennsylvania State $2,000 Jensen, Carrie (PH 1) San Jose State $750 Johnson, Erin (FW) Brigham Young $500 Jones, Adam (ED) Auburn $500 Juozapavicus, Justin (PP) Oklahoma State $500 Kaplun, Alex (SN) North Carolina $500 Kaufman, Zachary (ph 1) San Francisco State $1,000 Kepner, Alison (ED) Pennsylvania State $750 Kershaw, Tracy (PP) Kentucky $750 King, Jeremy (CH) Alabama $5,000 Knebel, Shannon (SN) Arkansas State $500 Koch, Gail (PP) Ball State $600 Kumar, Suchir (RD 1) (RD 2) (CH) North Carolina $4,000 Lamborn, Eve (FW) Kansas $600 Leventis, Angie (FW) Illinois $500 Liming, Josie (PH 1) (PH 2) Ball State $1,000 Limjoco, Victor (ED) Northwestern $600 Lok, John (PH 1) Western Kentucky $500 Loomis, John (PH 3) (CH) Missouri $3,000 Lowe, Matt (PP) Abilene Christian $500 Lyverse, Jeremy (PH 2) Western Kentucky $500 MacDonald, Sally (CH) Arizona State $1,000 Maloney, Kerry (PH 2) (CH) Southern Illinois, Carbondale $2,500 McGill, Amanda (TV 2) Nebraska $750 McKinney, Peter (PH 2) Montana $500 Michels, Patrick (FW) Northwestern $1,000

~t roo Miller, Lindsay (PH 2) San Francisco State Minnick, Beau (RD 2) (C H) Syracuse $4,000 Mock-Bunting, Logan (PH 2)(CH) North Carolina $5,000 Moore, Brian (SN) Western Kentucky $500 Naylor, Holly (TV 1) Arizona State $1,000 Nelson, Timothy (TV 2) (C H) North Carolina $7,000 O'Connell, Bartley (RD 2) Florida $500

Scholarship Totals . $181,200

Paynter, Ben (PP) (CH) Missouri $3,000 Pellett, Christina (CH) Northwestern $3,000 Pierrotti, Andrew (TV 1) South Carolina $500 Pierson, Erica (TV 1) Marshall $500 Pitts, William (RD 2) Arizona State $500 Poole, Mason (PH 1) Southern California $500 Ramsey, R Cory (CH) Western Kentucky $1,000 Roo, Amy (TV 2) Northwestern $500 Read, Lucian (CH) San Francisco State $1,000 Rice, Jeff (SP) Pennsylvania $600 Riecke, Michael (TV 2) (CH) Syracuse $6,000 Rodes, Christione (RD 1) Illinois $500 Rodriguez, Syleste (TV 2) (CH) Arizona Stale $2,500 Roush, David Lee (RD 1) Pennsylvania State $2,000 Sabol, Bryon (PP) West Virginia $500 Saewifz, Mike (SN) (CH) Northwestern $3,000 Schoenbaechler, Katie (SP) Indiana $750 Schouten, Cory (SN) Indiana $500 Schultz, Marisa [FW) Michigan State $500 Semon, Evan Paul (PH 3) Kansas State $500 Sexton, Adam (TV 1) Syracuse $2,000 Shroff, Anish (RD 1) Syracuse $750 Slater, Darryl (SP) Syracuse $500 Snow, Christopher (SP) Syracuse $500 Srader, Brandi (RD 2) (CH) Alabama $3,600 Siamey, Matt (PH 2) Kansas State $500 Stanley, Matthew (PH 3) Pennsylvania State $500 Stickney, Dane (SP) Nebraska $500 Stinnett, Brandon [PP) Kansas $500 Swartz, Didi (RD 2) Northwestern $500 Thorson, Sara (ED) Arizona State $500 Tietz, Brian (PH 2) Florida $600 Van Cleave, Kris (CH) Southern California $1,000 Verbos, Elizabeth (RD 2) Pennsylvania State $500 Viscount, Robert (RD 1) (RD 2) Pennsylvania $1,000 Wagner, Brian (PH 3) (PH 1) (CH) Western Kentucky $4,500 Weininger, Alex (SN) Pennsylvania State $750 Whitworth, Coke (PH 1) (CH) North Carolina $3,500 Wiseman, Amy (PH 1) North Texas $500 Witzel, Rob (CH) Florida $5,000 Wristen, Chris (SP) Kansas $1,000 Xiong, Chao (FW) Iowa $500 Yurkanin, Justin (PH 3) (CH) Syracuse $1,750 Zorra, Enca (SN) Pennsylvania State 1500 Zimmer, Thomas (TV 2) Florida $500

Grants Total $100,200

4

2002 Grants

Abilene Chnstion $500 Alabama $600 Arizona State $4,000 Arkansas State $500 Auburn $500 Ball State $1,600 Brigham Young $500 Colorado State $1,250 Florida $5,900 Florida A&M $500 Georgia $500 Illinois $1,000 Indiana $1,250 Iowa $500 Kansas $2,100 Kansas State $1,000 Kent State $1,000 Kentucky $2,250 Marshall $500 Maryland $600 Michigan State $500 Missouri $6,250 Montano $1,500 Nebraska $3,250 North Carolina $9,600 North Texas $500 Northwestern $10,100 Ohio $600 Oklahoma State $500 Pennsylvania State $8,600 Son Francisco State $2,250 San Jose State $2,750 South Carolina $500 Southern California $500 Southern Illinois, Carbondale $2,000 Syracuse $11,500 Texas, Austin $2,000 Utah $500 West Virginia $500 Western Kentucky $9,7rr) 1~v

Scholarships Total: $181,200 Grants Total: $100,200 Intercollegiate Total: $52,500 GRAND TOTAL: $333,900

2002 Intercollegiate Awards

Florida $12,500 Syracuse $10,000 Northwestern $10,000 Western Kentucky $5,000 Pennsylvania $5,000 Arizona State $5,000 North Carolina $2,500 Kansas $2,500

Intercollegiate Total, $52,500

The 2002 United States Senate Youth Program was authorized by a United States Senate Resolution 324, which passed unanimously The Senate's Resolution authorized a program of citizenship training in the operation of the United States Senate and the Federal Government generally, among selected high school students from the 50 states and the District of Columbia, provided that the program could be carried out without expense to the Federal Government The William Randolph Hearst Foundation agreed with the Senate Committee on Rules and Administration to supply funds, as well as directional assistance for the operation of the program

In 1982, Resolution 146 was passed by the United States Senate to amend Resolution 324 to include the Department of Defense Dependents Schools overseas (presently named Department of Defense Education Activity)

Pursuant to the Senate's resolution, two elected high school student body officers from each of the 50 states, the District of Columbia and the Department of Defense Education Activity were selected by the Chief State School Officers and were made part of this education program These 104 students were brought to Washington on March 2-9, 2002 The students were guests of the Senators from their respective states, with the students from the District of Columbia assigned as the guests of the Senators where their parents/guardians are registered voters For the ensuing week the students were given an intensive exposure to the operations of the Federal Government, with particular emphasis on the role of the Senate They attended meetings with Senators, a Supreme Court Justice, top officials of the Departments of State and Defense, as well as the Canadian Ambassador to the U S They also toured the White House and various museums of the Smithsonian Institution On their return to their homes, the students shared their experiences with the student bodies of their schools, before local service clubs and to their Student Leadership Councils

Scholarships awarded totaled $208,000 00 - each of the two students from each state, the District of Columbia and the Department of Defense Education Activity was awarded a $2,000 00 scholarship for college undergraduate studies


'Nniteb $tateo $enate'!jjout§ Wrogram 90 NEW MONTGOMERY STREET - SUITE 1212 - SAN FRANCISCO, CALIFORNIA 94105-4UM

TELEPHONE (415) 543-4057 - 8DO-841-7048 - FAX (415) 243-0760 www ussenateyouth org


Statement Relating to the 40th Anniversary UNITED STATES SENATE YOUTH PROGRAM

(Calendar Year Ended December 31, 2002)

ALABAMA Deborah Ann Crabtree Socul . Korea Seoul American High School Dennis R=i Joseph D Tafoya Brim Formal Kirk Birmingham Alabama School of Fine Arts High School John Northrop Edward R Richardson Davey Brent Richerson Daphne Daphne High School Barry K Pennington

ALASKA Sienna Alwyn Houtle Palmer Palmer High School Wolfgang Winten; Shirley J Holloway Michelle Trevilron Steffens Anchorage Bartlett High School Charles Fannin

ARIZONA Jacob Jay Reuben Phoenix Central High School Nancy Kim Jarme A Motors Spencer Garrett Scharff Phoenix Chaparral High School John Knekard

ARKANSAS Frederick McKindra Little Rock Little Fleck Central High School Rudolf Howard Raymond J Simon Wesley Michael Pendergrass Mountain Home Mountain Home High School Dana Brown

CALIFORNIA Sonia Preet Kaur Samagh San Diego Rancho Bernardo High School Paul Gentle Delaine A Eastin Nathaniel Alan Smith San Dimas Claremont High SchW Carrie Mien

COLORADO Elise Aileen Hiza Rocky Ford Swink High School Dianne Milonski William J Moloney Anent Amrish Thalker Greeley Greeley Central High School Mary C Lauer

CONNECTICUT Jennifer Elizabeth Chudy Tolland Tolland High School Arthur Sajock, Theodore S Sergi Erik Michael Telford Riverton Northwestern Regional High School E Patricia Llodro

DELAWARE John Charles Cordrey Georgetown Sussex Central High School Donna K Hall Valene Woodruff Mara Susan Seidel Wilmington Mount Pleasant High School Dennis A Runyan

DISTRICT OF Terrence Winchester James Washington Benjamin Barmaker High School Patricia Tucker Paul Vance COLUMBIA David Michael McCabe Washington St Anselm's Abbey School Peter Weigand

FLORIDA Melissa Heather Farber Miami Corel Reef Senior High School Greg Zawyer Charlie Crist Richard Aloc Krrumholz Palm Beach The Benjamin School Jay SeMg Jillum Jane Rennie Suffolk UK Lakenheath High School William Drosselhorst Joseph D Tafoya

GEORGIA Gabriel Adam Justus Oxford Newton High School J W Rutledge Linda C Schrenko William Carroll McDonald Brunswick Glynn Academy High School Joseph Barrow

HAWAII Camille Noral Coates Hana Home High School Melanie Coates Patncla Hamamoto Wilson Angelito Unga Kahuku Kahuku High School Lisa DeLong

IDAHO John Bruce Leonard Bliss Bliss High School Robert Sauer Manlyn Howard Christopher David Shaman Bolse Centennial High School Greg Drake

ILLINOIS Cezary Paul Podkul Franklin Park East Leyden High School Robed Johnson Ernest R Wish Chnslopher Alan Suarez Chicago Whitney M Young Magnet High School Joyce Kenner

INDIANA Vivek Anand Chandraselkhar Kokomo Taylor High School Breit Davis Suellen K Reed William Coxen Grover Now Albany Now AJbany High School Stephen Sipes

IOWA Troy Robert Fadiga Centerville Centerville High School Ray Miller Ted SI .Iw .II Laura Ann Pollard Sioux City Hinton Community School Sue Martens

KANSAS Jason Dale Croucher Osage City Osage City High School Kendall Steffensen Andy Tompkins Ty Preston Walrod Elkhart Elkhart High School Dan Faulkner

KENTUCKY Meaghan Dail Jeffcoat Glasgow Barren County High School Stacey Owen Gone Wilhoil Donnie Keith Starnes Pikeville Pikeville High School Hillard Howard

LOUISIANA Ashley Elizabeth Fletcher Leesville Leesville High School lnmpq Willi,me Cecil i Picard M.illiew Enc Vandenberg Bossier City Airline High School Kim Gaspard

MAINE Amy Patricia Rogers Bangor Bangor Christian High School Richard Bach J Duke Albanese Christopher Paul Sightnolf, Brower Brewer High School Jerry W Goss

MARYLAND Erica Lee Schlaikler Germantown Watkins Mill High School Mary Ann Jobe Nancy S Grasmick Samantha Mane Waters Catonsville Catonsville High School Robert Tomback

MASSACHUSETTS Brody Stephen Hale Tyringham Lee High School Richard T Salinetri David P Driscoll Michael Daniel Scher Wayland Wayland High School Charles Ruopp

MICHIGAN Noorain Fatima Khan Grand Rapids Forest Hills Central High School Kathy Westdorp Thomas D Watkins Hordi Reynolds Stenson Rockford Rockford High School Ryan Kelley

'Nniteb $tatecl $enatellloutO "ZtIfroqram WILLIAM RANDOLPH HEARST FOUNDATION

MARCH 2-9, 2002 WASHINGTON, D C

STATE STUDENT CITY HIGH SCHOOL PRINCIPAL CHIEF STATE SCHOOL OFFICER

MINNESOTA Taylor Kathleen Heyon Eden Prarle Eden Plains High School Jeffrey Ireland Christina Jax Christine Thomas Long Lake Orono High School Cad R Shults

MISSISSIPPI Eric Eugene Barnes Tyfertown Tylertown High School Richard Willoughby Richard Thompson Jonathart David Cole Brandon Northwest Rankin High School Jew Massey

MISSOURI John Daniel Laskowitz Ballwin Marquette High School Paige Muench D Kent King Heath Marlin Silvey Kissee Mills Forsyth High School Bruce Simpson

MONTANA Travis Richard Kavulta Great Falls Great Falls High School Gary Davis Linda McCulloch Kathryn Anne Tiskus Poison Polson High School Rjxon Rafter

NEBRASKA Amanda Made Bennett Waterloo Waterloo, High Scltool Michael Lynch Douglas D Christensen Heather Anne Dowell Tryon McPherson County High School Franoo Blanchard

NEVADA Daniel John Carew Reno Galena High School Sandra Walter Jack McLaughlin Enc Stamen Fleekop Las Vegas Durango High School Elizabeth Fraser

NEW HAMPSHIRE Caillut Lincisay Allen Milford Milford High School Brad Craven Nicholas- C Donohue Kerry Landry Donahue North Hamptw Wirmacurmet High School Judeann Langlols

NEW JERSEY Madeline Himmel Gdomer Flemington Hunterdon Central Regional High School Lisa Brady Vito A Gagliardi Steven Retire Khadarn Hit Madboro Marlboro High School James Mullevey

NEW MEXICO Katie Beth Gwartney Rosmall Goddard High School Ray Sumola Michael J Davis Roy Bob Nichols La Luz Alamogordo High School John T Janions

NEWYORK David Ethan Letberman Great Nock Great Neck North High School Bernard Kaplart Richard P Mills Ross Daniel Mankuta Dix Hills Half Hollow Hills High School West James LoFrese

NORTH CAROLINA Thomas Filopoulce Matthews David W Buffer High School Joel Ritchie Mx;haol E Ward Ashley Lauren Jones Tabor City South Columbus High School Maudle Davis

NORTH DAKOTA Jessica Anne Lichlor Grand Forks Red River High School Jim Stenahjarn Wayne G Sanstead Scot Michael Miller Fargo Fargo South High School Richard B Warrior

OHIO Brian Garver Gorrell Mark Center Fairview High School Dan E Feasel Susan T Zelman Rachel Lauren Moskowitz Wooster Wooster High School James Jackson

OKLAHOMA Curtis Game Atkins Pocola Pocola High School Larry Brooks Sandy L Garrett Marin Boykov Nitzov Norman Norman High School Lynne Chesley

OREGON Noes, Michelle Cemazanu John Day Grant Union High School Mark Witty Stan Bunn Danielle Nicole Newell Colton Colton High School Beth Lund

PENNSYLVANIA Andrew Dietrich Gilbert Elliotalourg West Perry High School Jeff Lorenz Charles B Zogby Mary Margaret Mooney Broomall Academy of Notre Dame Made Valentino Marine

RHODE ISLAND Sara Elizabeth Row Lonardo East Greenwich East Greenwich High School Robert McCarthy Palo, McWallars Michael Patrick Philbin Wakefield South Kingstown High School Kevin Sheehan

SOUTH CAROLINA Daniel James Fleming Anderson T L Hanna High School Michael Sams Inez M Tenenbaum Trevor Thomas Ivey Wedgefield Lakewood High School D Fares Mathews

SOUTH DAKOTA Mollie Bridget Gabrys Clear Lake Deuel High School Steve Benson Ray Christensen Ryan James Henderson Box Elder Douglas High School Thomas Tlmmons

TENNESSEE Thomas Franklin Elkins Bybee Cocke County High School R Gary Williams Faye Taylor Whitney Clark Henry Pulaski Giles County High School Debbie Braden

TEXAS Brooke Ashlee-Teague Brandon Fort Worth itake Country Christian School Michael Bah James E Nelson Morgan Shea Hasse Fort Worth Boswell High School Susan Sutherland

UTAH Chan L, Brigham City Box Elder High School Darnell Eddington Steven D Laing Michelle Yee Salt Lake City Skyline High School Kathy Clark

VERMONT Emily Sarah Halnon Lincoln Mount Abraham Union High School David Royce Raymond J McNulty Amanda Mary Prentice Montpelier Montpelier High School Charles Phillips

VIRGINIA Wesley JudkIns Campbell Blacksburg Blacksburg High School Alfred A Smith Jo Lynne DeMary Noah Patrick Sullivan Lynchburg E C Glass High School Susan Morrison

WASHINGTON Lauren Elizabeth Crawford Woodinville Woodinville High School Vicki Puckett Teresa Bergeson Tyler Colin Kinder Yakima Dwight D Eisenhower High School Robert L Ames

WEST VIRGINIA Jennifer Lynn Barker Charesion George Washington High School James Vickers David Stewart William Aaron Cross Belington Philip Barbour High School Garry Tenney

WISCONSIN Ann Mane Armbrust Marinette Marinette Senior High School David Johnson Elizabeth Burmaster Emily Mane Chin Milwaukee Whitefish Bay High School William Henkle

WYOMING Chelsea Peterson Gillette Campbell County High School Boyd Brown Judy Catchpole Ashley Erm Roberts Sheridan Sheridan High School Diflene Wheeler

STATE STUDENT CITY HIGH SCHOOL PRINCIPAL CHIEF STATE SCHOOL OFFICER

6

WRHF - 1


SCHEDULE OF CASH DONATIONS FOR THE YEAR ENDED DECEMBER 31, 2002

CASH DONATIONS AWARDED AND PAID:

CULTUR-E : The Adirondack Museum, Blue Mountain Lake, NY $50,00000 Albany Institute of History and Art, Albany, NY $200,00000 American Craft Museum, New York, NY $100,00000 American Folk Art Museum, New York, NY $75,00000 Anderson Ranch Arts Foundation, Snowmass Village, CO $100,00000 The Boston Conservatory, Boston, MA $50,00000 The Boston Public Library Foundation, Boston, MA $250,00000 The Brooklyn Academy of Music, Inc (BAM), Brooklyn, NY $100,00000 Brooklyn Conservatory of Music, Brooklyn, NY $50,00000 California Academy of Sciences, San Francisco, CA $250,00000 California Institute of the Arts, Valencia, CA $200,00000 Children's Museum of Manhattan, New York, NY $75,00000 Court Theatre, Chicago, IL $50,00000 Cultural Initiatives - Silicon Valley, San Jose, CA $50,00000 Elaine Kaufman Cultural Center/Lucy Moses School for Music and Dance, New York, $100,00000 NY Field Museum, Chicago, EL $250,00000 Ford's Theatre Society, Washington, DC $25,00000 Fresno Philharmonic Association, Fresno, CA $50,00000 Fnends of Recreation & Parks, San Francisco, CA $100,00000 The Harlem School of the Arts, New York, NY $100,00000 International Center of Photography, New York, NY $150,00000 Jacob's Pillow Dance Festival, Inc , Lee, MA $100,00000 Las Vegas Philharmonic, Las Vegas, NV $50,00000 Lincoln Center for the Performing Axts, Inc , New York, NY $150,00000 Lower East Side Tenement Museum, New York, NY $100,00000 Lyric Opera of Kansas City, Kansas City, MO $100,00000 Maryland Historical Society, Baltimore, MD $50,00000 Memphis Brooks Museum of Art, Memphis, TN $50,00000 Metropolitan Museum of Art, New York, NY $500,00000 Mexican Fine Arts Center Museum, Chicago, IL $100,00000 Museum of Fine Arts, Houston, Houston, TX $Q00,000 00 Museum of Modem Art, New York, NY $250,00000 Music Conservatory of Westchester, White Plains, NY $100,00000 Natural History Museum of Los Angeles County, Los Angeles, CA $200,00000 The New Museum Of Contemporary Art, New York, NY $100,00000 The New York Botanical Garden, Bronx, NY $250,00000

WRHF - 2



New York City Opera, Inc, New York, NY $50,00000 New York Foundation for the Arts, Inc , New York, NY $150,00000 Poets & Writers, Inc , Los Angeles, CA $100,00000 Queens County Farm Museum, Floral Park, NY $25,00000 Reynolda House, Museum of American Art, Winston-Salem, NC $50,00000 San Luis Obispo County Community Foundation, San Luis Obispo, CA $100,00000 Santa Fe Art Institute, Santa Fe, NM $50,00000 Solomon R Guggenheim Museum, New York, NY $250,00000 Southwestern Association for Indian Arts, Santa Fe, NM $100,00000 Statue of Liberty - Ellis Island Foundation,lnc, New York, NY $200,00000 TADAI, New York, NY $50,00000 Town Hall Foundation, New York, NY $45,00000 United States Department of State, Washington, DC $25,00000 Utah Opera Company, Salt Lake City, UT $100,00000 The Village of Arts and Humanities, Philadelphia, PA $50,00000 Vineyard Theatre, New York, NY $50,00000 Washington Performing Arts Society, Washington, DC $50,00000 Women's Project and Productions, New York, NY $25,00000

Total CULTURE $6,145,000 00

EDUCATION: American Graduate School of International Management, Glendale, AZ $100,00000 American Indian College Fund, Denver, CO $200,00000 Archdiocese Of Baltimore, Baltimore, MID $100,00000 Archdiocese of Los Angeles, Los Angeles, CA $100,00000 Art Center College of Design, Pasadena, CA $100,00000 Assumption College, Worcester, MA $100,00000 Audrey Cohen College, New York, NY $100,00000 Bellarmine College, Louisville, KY $100,00000 Berkeley Biotechnology Education, Inc , Berkeley, CA $50,00000 Boys Hope Girls Hope, Bridgeton, MO $100,00000 California College of Arts and Crafts, Oakland, CA $100,00000 The Catholic Diocese of Memphis in Tennessee, Memphis, TN $100,00000 The Catholic Schools Foundation, Inc , Boston, MA $200,00000 Chaminade High School, Mineola, NY $50,00000 Charles R Drew University of Medicine and Science, Los Angeles, CA $100,00000 Charleston Southern University, Cbarlestnn, SC --- 00 I $100,UUU City Parks Foundation, New York, NY $50,00000 Claremont Graduate University, Claremont, CA S100,00000 Clarke School for the Deaf, Northampton, MA $50,00000 College of the Ozarks, Point Lookout, MO $50,00000 Columbia Theological Seminary, Decatur, GA $100,00000

I

WRHF - 3



Creighton University, Omaha, NE $100,00000 Edgewood College, Madison, WI $100,00000 Foreign Policy Association, New York, NY $50,00000 Georgetown University, Washington, DC $100,00000 Hendrix College, Conway, AR $100,00000 Holy Names College, Oakland, CA $100,00000 Husson College, Bangor, ME $100,00000 Huston-Tillotson College, Austin, TX $100,00000 Independent Colleges of Southern California, Los Angeles, CA $50,00000 The Indiana University Foundation, Indianapolis, IN $100,00000 Jacksonville University, Jacksonville, FL $100,00000 Lesley University, Cambridge, MA. $100,00000 Library Foundation of Los Angeles, Los Angeles, CA $100,00000 Manhattan College, Riverdale, NY $100,00000 Meharry Medical College, Nashville, TN $150,00000 Michigan State University, East Lansing, MI $200,00000 New School University, New York, NY $100,00000 New York Public Library, New York, NY $250,00000 Pikeville College, Pikeville, KY $100,00000 Rensselaer Polytechnic Institute, Troy, NY $100,00000 Saint Francis College, Brooklyn Heights, NY $100,00000 Southwest Texas State University, San Marcos, TX $100,00000 Southwestern University, Georgetown, TX $100,00000 Summit Speech School, New Providence, NJ $50,00000 Susquehanna University, Selinsgrove, PA $100,00000 Texas Woman's University Foundation, Denton, TX $100,00000 Thomas Aquinas College, Santa Paula, CA $100,00000 Touro College, New York, NY $100,00000 Tri-State University, Angola, IN $100,00000 Tulane University School of Medicine, New Orleans, LA $50,00000 University at Albany, Albany, NY $150,00000 University of California, Los Angeles, Los Angeles, CA $100,00000 University of Houston, Houston, TX $100,00000 University of La Verne, La Verne, CA $100,00000 University of Portland, Portland, OR $100,00000 University of South Carolina, Columbia, SC $200,00000 1 Jniverqity of St Thomas, Houston, TX $100,00000 Wake Forest University, Winston-Salem, NC $100,00000 Washington University, St Louis, MO $100,00000 Westminster College, Fulton, MO $100,00000 Wheelock College, Boston, MA $100,00000 Whittier College, Whittier, CA $100,00000

WRHF - 4



Total EDUCATION $6,500,000 00

HEALTH : AFAR American Federation for Aging Research, New York, NY $150,00000 Beth Israel Deaconess Medical Center, Boston, MA $100,00000 Brain Research Foundation, Chicago, IL $150,00000 Children's Hospital Foundation, Denver, CO $200,00000 Children's Hospital Medical Center, Boston, MA $200,00000 Cold Spring Harbor Laboratory, Cold Spring Harbor, NY $500,00000 The ffealthCare Chaplaincy, Inc , New York, NY $100,00000 Hope Heart Institute, Seattle, WA $50,00000 John Wayne Cancer Institute, Santa Monica, CA $500,00000 Massachusetts General Hospital, Boston, MA $30,00000 Memorial Sloan-Kettering Cancer Center, New York, NY $1,000,000 00 Mercy Foundation North, Redding, CA $100,00000 Michigan State University, East Lansing, MI $50,00000 Mount Sinai School Of Medicine, New York, NY S50,00000 The National Center on Addiction and Substance Abuse at Columbia University $150,00000 (CASA), New York, NY New England Medical Center, Inc , Boston, MA $50,00000 New York University School of Medicine, New York, NY $250,00000 Newport Hospital Foundation, Newport, RI $75,00000 Northern Michigan Hospital Foundation, Petoskey, MI $50,00000 The Rockefeller University, New York, NY $250,00000 Saint Luke's - Roosevelt Hospital Center, New York, NY $1,000,000 00 Salk Institute for Biological Studies, San Diego, CA $1,000,000 00 Southwest Foundation for Biomedical Research, San Antonio, TX $250,00000 Stanford University Medical Center, Stanford, CA $50,00000 The UMass Medical Center Memorial Foundation, Worcester, MA $250,00000 University of Alabama at Birmingham, Birmingham, AL $150,00000 University of California at Davis, Sacramento, CA $250,00000 Vanderbilt University Medical Center, Nashville, TN $150,00000 Visiting Nurse Service of New York, New York, NY $50,00000 Weill Medical College of Come]) University, New York, NY $25,00000

Total HEALTH $7,180,000 00

SOCIAL SERVICE : Appalachian By Design, Lewisburg, VrV $60,00000 Boy Scouts of America - Greater New York Councils, New York, NY $150,00000 Bread for the City, Inc , Washington, DC $50,00000 California Women's Law Center, Los Angeles, CA $50,00000

WRHF - 5



Calvert Social Investment Foundation, San Francisco, CA $100,00000 Center for Rural Affairs, Walthill, NE $50,00000 Chicanos Por La Causa, Inc , Phoenix, AZ $75,00000 Children's Aid Society, New York, NY $150,00000 Children's Home Society Of Florida, West Palm Beach, FL $100,00000 Chinese Mutual Aid Association, Inc , Chicago, IL $75,00000 Coalition for the Homeless, Inc, New York, NY $100,00000 CompassPoint, San Francisco, CA $100,00000 East Harlem Tutorial Program, Inc , New York, NY $100,00000 'Me Educational Alliance, Inc, New York, NY $100,00000 Esperanza Unida, Inc, Milwaukee, WI $50,00000 Eureka Communities - San Francisco Bay Area, Oakland, CA $100,00000 Federation of Southern Cooperatives Land Assistance Fund, East Point, GA $100,00000 Fifth Avenue Committee, Brooklyn, NY $75,00000 First Nations Development Institute, Fredericksburg, VA $100,00000 Food Bank Coalition of San Luis Obispo County, Paso Robles, CA $25,00000 The Fresh Air Fund, New York, NY $100,00000 Fresno Regional Foundation, Fresno, CA $45,00000 Friends of St Lawrence-Watts Youth Center, Los Angeles, CA $25,00000 Fund for the City of New York, New York, NY $150,00000 Goddard-Riverside Community Center, New York, NY $100,00000 The Grant Center, Memphis, TN $50,00000 Hamilton - Madison House Inc, New York, NY $100,00000 Heartland Alliance for Human Needs & Human Rights, Chicago, IL $100,00000 Henry Street Settlement, New York, NY $150,00000 Inner City Christian Federation, Grand Rapids, MI $50,00000 Lakefront SRO, Chicago, IL $50,00000 Larkin Street Youth Services, San Francisco, CA $50,00000 Lenox Bill Neighborhood House, New York, NY $100,00000 Local Initiatives Support Corporation (LISC), New York, NY $200,00000 Los Angeles Free Clinic, Los Angeles, CA $50,00000 Mayhew, Bristol, NH $50,00000 Mi Casa Resource Center for Women, Inc , Denver, CO $50,00000 Montana Community Foundation, Inc , Helena, MT $100,00000 My Sister's Place, Washington, DC $75,00000 National Child Labor Committee, New York, NY $150,00000

A I National Council on Agricultural Life and Labor Research Fund, In (NC ~L , $75,0oooo Dover, DE

New York City Outward Bound Center, Inc , Long Island City, NY $50,00000 The New York Society For The Prevention Of Cruelty To Children, New York, NY $75,00000

$50,00000 $50,00000

$150,00000 $100,00000 $50,00000 $40,00000 $50,00000 $100,00000 $250,00000 $100,00000 $200,00000 $150,00000 $100,00000 $100,00000 $75,00000 $50,00000 $75,00000

Standing Against Global Exploitation, San Francisco, CA Women In Need, Inc, New York, NY Women's Housing and Economic Development Corporation, New York, NY $75,00000

Total SOCIAL SERVICE $5,420,000 00

MISCELLANEOUS : The Advertising Council, Inc, New York, NY BBB Wise Giving Alliance, Arlington, VA The Foundation Center, New York, NY Passionist Communications, Inc , Pelham, NY

$50,00000 $100,00000 $50,00000 $25,00000

Total MISCELLANEOUS- $225,00000

HEALTH : Memorial Sloan-Kettering Cancer Center, New York, NY $1,000,000 00

Total Cash Donations Awarded and Paid for Future Payment $1,000,000 00

TOTAL CkSH DONATIONS $26,A'70,000 00

WRHF - 6



Northern California Community Loan Fund, San Francisco, CA Northern California Grantmakers, San Francisco, CA Pacific Institute for Community Organizations, Oakland, CA Parent Services Project, Inc , San Rafael, CA Parents Anonymous, Claremont, CA Partners for Livable Communities, Washington, DC People Assisting the Homeless, Los Angeles, CA Project Vote Smart, Philipsburg, MT Salvation Army of Greater New York, New York, NY Santa Cruz Barrios Unidos, Santa Cruz, CA Save the Children, Westport, CT Seedco, New York, NY Settlement Housing Fund, New York, NY Southern California Association for Philanthropy, Los Angeles, CA Southern Rural Development Initiative, Raleigh, NC

CASH DONATIONS AWARDED FOR FUTURE PAYMENTS

100.000%

r~

WILLIAM ]RANDOILPH HEARST FouNDATION

Ti-iE HEARST FOUNDATION, INC. SSS SEVENTH AVENUE

NEW YORK. N. Y. 10106-0057

(TEL) 212 586-5404

4FAX) 212 586-1917

On April 1, 1975 The Hearst Foundation, Inc. and William Randolph Hearst Foundation entered into investment advisory and custodial agreements for substantially all of the assets of the two foundations . The assets are maintained in a commingled account and are not separately identified as to ownership. The investments in the accompanying Statement of Combined Investments and Summary of Capital Gains and Losses so maintained are allocated to each foundation based on the ratio of the value at April 1, 1975 of each foundation's assets transferred to the advisors to the total of such value. Further, uninvested cash balances maintained by the advisors interest and dividend income earned on the commingled investments, and certain expenses are allocated to each foundation bases on such ratio as follows :

The Hearst Foundation, Inc. 31 .458%

William Randolph Hearst Foundation 68.542%

BONDS AND OTHER INTEREST- BEARING OBLIGATIONS

ABBEY NATL CAP Due 1212912049 175,000 203,817 231,826 ABBOTT LABS Due 7/1/2004 300,000 299.493 313,834 ACE LTD Due 4111201IT 75,000 74,873 80,022 AMERADA HESS CORP Due 1011/2029 110,000 116,629 126,575 AMERICAN ELEC PWR INC Due 5/15/2006 100.000 101,352 98,268 AMERICAN EXPRESS CO Due 200,000 206,218 222,196 AMERICAN EXPRESS CR ACCOUNT MA 120,000 119,934 119.963 AMERICAN EXPRESS MASTER TR Due 5/1512006 50,000 50,000 50,000 AMERICAN EXPRESS MASTER TR Due 12/1512005 380,000 380,056 380,237 AMERICAN GEN CORP Due 7/112030 135,000 160,831 176,850 AMERICAN HOME PRODS CORP Due 3115/2004 100,000 99,872 103.578 AMERICAN STORES CO MEDIUM TERM Due 3/20/2028 1,200,000 1,040,188 1,252.339 AMERICREDIT AUTOMOBILE REC Due 1011212006 95,000 94,941 95,104 AMERICREDIT AUTOMOBILE REC Due 4/12/2009 310.000 309,987 324,870 AMERICREDIT AUTOMOBILE RECEIVA Die 316/2007 155,000 155.000 155,266 AMOCO CORP Due 61912008 4,000,000 4,268,240 4,485.800 AMVESCAP PLC Due 5/1512005 110,000 116,481 119,801 ANADARKO FIN CO Due 51112031 125 11110 1A7 1Q1 IA7,R56 ANHEUSER BUSCH COS INC Due 1115/2031 100,000 99,420 116,177 AOL TIME WARNER INC Due 5/1/2005 280,000 279,107 285,109 AOL TIME WARNER INC Due4/15/2031 440,000 394,058 450,633 ARCHER DANIELS MIDLAND CO Due 51212029 170,000 158,258 185,543 ARG FOG CORP 11 Due 2120/2006 200,000 200,000 199,041 ASSET BACKED FOG CORP Due W25(2033 57,919 57,756 511,073 AT&T CORP Due 11/1512006 100,000 87,070 104,934

THE HEARST FOUNDATION, INC AND WILLIAM RANDOLPH HEARST FOUNDATION

SCHEDULE OF COMBINED INVESTMENTS December 31, 2002

SHARES OR PRINCIPAL MARKET

SECURITY DESCRIPTION AMOUNT COST VALUE

MUTUALFUNDS

INTERNATIONAL CAPITAL GUARDIAN INTERNATIONAL 2,444,980 s 60,847,555 $ 41,662,457 EMERGING MARKETS GROWTH FUND 326,388 23,863,2BO 13,443,933 EURO-PARTNERS ARBITRAGE FUND, LTD 5,400 10,000,000 8,957,500 MSC OFFSHORE FUND, LTD 172,463 30,000,000 32,133,241 KD OFFSHORE FUND N V 128,826 10,000,000 13.696,763 ANDOR TECHNOLOGY (FORMERLY PEQUOT) 22,770 5,000,000 9,367,550 PEQUOT INTERNATIONAL FUNDS, INC 14,913 15,000,000 13,515,327 ANDOR DIVERSIFIED GROWTH OFFSHORE 66,815 7,697,424 7,922,496

TOTAL INTERNATIONAL 162,408,259 140,699,267

DOMESTIC

MSIF Small Cap Value Fund 2,778,309 44,472,038 41,369,020 MSIF Mid Cap Value Fund 2t989,535 56,836,243 43.378,151 STATE STREET GLOBAL ADVISORS 1,144,888 58,910 .335 43,720,973

TOTAL DOMESTIC --T6-0-.218616 128,468,144

TOTAL MUTUAL FUNDS 322,626,875 269,167,411

AT&T CORP Due 3/1512009 14,000 13,296 14,007 AT&T CORP Due 11/15/2011 100,000 102,000 107.6" AT& T CORP Due 3/15/2013 630,000 540,358 625,805 AT&T BROADBAND CORP Due 3/1512013 145,000 138,340 164,575 AT&T WIRELESS SVCS INC Due 311/2031 175,000 176,372 173,870 AUSTRIA REP OF Due 7/15/2012 280,000 280,213 310,328 AXA SA Due 12/1512030 175,000 197,250 199,913 BANC ONE/ FCCC COMIL MTG LN TR Duo 10/18/2031 528.439 534,244 559,819 BANK NEW YORK INC Duo 1211/2017 75,000 74,861 77.507 BANK ONE CORP Duo 1130/2013 235,000 233,198 243.578 BANKAMERICA CORP Due 4/1512006 2,750,000 2,738,780 3.146,785 BANKAMERICA INSTL CAP B Due 12/3112026 215,000 226,217 231,340 BEAR STEARNS ASSET BACKED SECS Due 4/25/2019 100,643 100 .643 100,603 BEAR STEARNS COS INC Duo 7/15/2005 1,000,000 942,670 1,087,516 BELGIUM (KINGDOM OF) 455,000 382 .798 476,209 BELLSOUTH CAP FDG CORP Due 2/15/2030 150,000 164,405 183,511 BELLSOUTH TELECOMMUNICATIONS Due 5/1512035 3,000,000 2,855,430 3,201,270 BISHOPS GATE RES MTG TR Due 3/20120114 "5,000 445,000 "4,857 BOENG CAP CORP MT SIR NTS Due 11/1512007 300,000 302,916 327,075 BOISE CASCADE CORP Due 211/2016 3,000,000 2,879,370 2,813.147 BORDEN INC Due 3/15/2021 3,000,000 2,783,340 1,672,500 BRITISH COLUMBIA PROV COA Due 61912008 475,000 303,453 324,619 BRITISH TELECOMMUNICATIONS PLC Duo 1211512030 60,000 71,539 76,106 BRITISH TELECOMMUNICATIONS PLC Due 12/1512035 150,000 160,563 169,310 BURLINGTON NORTHN SANTA FE CDR Due 71112012 1,000,000 1,073,240 1,082,384 BURLINGTON RES FIN CO Duo 2/15/2011 80,000 80,000 89,204 CAMPBELL SOUP CO Due 2115/2011 140,000 147,181 158,683 CANADIAN NATL RY CO Due 7/1512028 70,000 68,583 77,450 CAPITAL AUTO RECEIVABLES ASSET Duo 1/18/2005 35,000 35,000 35,005 CAPITAL AUTO RECEIVABLES ASSET Due 7/15/2005 385,000 385,000 385,121 CAPITAL AUTO RECEIVABLES ASSET Due 1/16/2006 95.000 95,000 95,000 CAPITAL AUTO RECEIVABLES ASSET Duo 7115/2006 815.000 815,000 815.382 CAPITAL ONE AUTO FIN TR Due 10116/2006 65,000 65,000 65,000 CAPITAL ONE MASTER TR Due 2115/2008 555.000 555,000 552,311 CAPITAL ONE SECD NT TR Due 4/17/2006 150,000 149,426 150,773 CARDINAL HEALTH INC Due 2/15/2011 205,000 207,431 231,394 CARRAMERICARLTY CORP Due 1115/2012 105,000 104,238 112,377 CATERPILLAR FINL SVCS CORP Due 5/l/2006 160,000 159,808 175,843 CATERPILLAR INC Due 7/1512028 1,525,000 1 .318,752 1,686,330 CHASE CR CARD OWNER TR Due 1/1512008 385,000 385,000 385.060 CHASE FOG MTG LN Due 2/2512017 209,701 209.701 209,504 CHASE MANHATTAN AUTO OWNER TR Due 5115/2006 450 .000 449,955 460,195 CHESAPEAKE FDG LLC Duo liff/2007 190,000 190,000 190,416 CHEVY CHASE AUTO RECEIVABLES Due 4/16/2007 340,000 339,952 353,441 CHILE REP Due 111112012 875,00 868,315 981,315 CINCINNATI GAS & ELEC CO Due 911512012 35,000 34,988 35.327 CIRCUIT CITY CR CARD MASTER TR Duo 2/15/2006 120,000 120,084 120.000 CIT EQUIP COLL TR Due 12121/2009 500,000 499 .981 522,1`10 CIT GROUP INC Duo 4/2/2007 590,000 588,832 652,214 CIT GROUP INC Due 1113012007 410,000 411,997 420,200 CIT GROUP INC MT SR NTS Due 5117/2004 130,000 129,848 133,221 CIT RV TR Due 11/1512013 1,500,000 1,437,188 1,603,125 CITIBANK CDT CARD ISSUANCE TST Due 4/10/2013 230,000 189,180 254,164 CITIBANK CR CARD ISSUANCE TR Due 9/17/2007 190,000 190,000 190 .030 CITIGROUP CAP It Due 12/1/2036 300,000 310,743 325,347 CITIGROUP INC Due 812712012 '130,000 129,826 137,768

THE HEARST FOUNDATION, INC . AND WILLIAM RANDOLPH HEARST FOUNDATION




CNH EQUIP TR Due 1111512005 157,334 157 .334 157,358 CNN EQUITY TR Due 8/15/2007 1 .000,000 999,946 1,047,656 COCA COLA ENTERPRISES INC Duell/1512026 200,000 199,566 227,242 COMCAST CABLE COMMUNICATIONS Due 6115/2013 150,000 148,731 160,680 COMM 2000 FL3 Due 11/15/2003 355,793 355,793 355,701 COMM 2001 FL4 Due 4/1512013 530,000 530,000 529,309 COMM 2001 A Due 2J16/2034 88,538 89,399 96,692 COMMERCIAL M7G ACCEP CORP Due 911512030 '150,000 i62jB8 163,431 CONAGRA INC Due 9/15/2010 35.000 41,194 42 .005 CONAGRA INC Due 9/1512011 150 .000 153,768 171,189 CONOCO INC Due 4/15/2004 50,000 51,852 52,408 CONOCO INC Due 4/1512029 345,000 331,852 388,846 CONSECO FIN SECURITIZATIONS Due 7/11/2032 45,595 45,581 45.595 CONSECO FIN SECURITIZATIONS Due 12/31/2049 142,839 142 .806 144,312 CONSECO FIN SECURITIZTN CORP Due 5/112033 40.758 40 .758 40,603 CONSOLIDATED EDISON CO NY INC Due 5/112010 200,000 217,056 246,332 CONSTELLATION ENERGY GROUP INC Due 41112007 400,000 401,743 420,366 CONSTELLATION ENERGY GROUP INC Due 9/1/2009 645,000 648,725 662,007 CONSTELLATION ENERGY GROUP INC Duo 4/l/2012 175,000 175,406 183,071 CORE INVT GRADE BD TR I Due 11130/2007 560,000 560,000 569,251 CORPORACION ANDINA DE FOMENTO Due 3M512012 130,000 128,565 136,286 COUNTRY HOME LN INC Duo 6/15/2004 100,000 106,411 106,208 COUNTRYWIDE FOG CORP MTN Due 411512009 200,000 189,796 218 .830 COX COMMUNICATIONS INC NEW Due 811/2008 275,000 264,358 292 .178 COX COMMUNICATIONS INC NEW Duo 31112011 575,000 506,795 611,312 CREDIT SUISSE FB USA INC Due a/112006 150,000 152 .100 160,893 CREDIT SUISSE FIRST BOSTON MTG Due 11/15/2036 2,210,000 198,652 196,160 CREDIT SUISSE FIRST BOSTON USA Due 111512008 160,000 159,851 163,113 CRH AMER INC Due 3/1512012 100,000 99,902 111,259 CSX CORP Due 5/1/2007 50,000 52,816 57,153 CSX CORP Due 311512012 250,000 271,51a 269,26Q CVS CORP Due 3/15/2006 150.000 158,705 160,819 DAIMLERCHRYSLER MASTER OWNER T Due 5/1512007 '100.000 100,000 100,031 DAIMLERCHRYSLER NA HLDG Duo 5/1512006 260,000 257,605 280,592 DENMARK(KINGDOM) Due 8/15/2005 420,000 57,059 61,861 DENMARK(KINGDOM) Due a/iS/2008 2.200,000 288,953 312,828 DEUTSCHE TELEKOM INTL FIN B V Due 6115/2030 65,000 64.459 81 .730 DEUTSCHE TELEKOM INTL FIN BV Due 6/l/2032 70,000 71,345 83,773 DEVON FING CORP U L C Due 9/3012031 100,000 102,330 117 .140 DIAGEO CAP PLC Duo B11512(1(15 100 .000 103,1313 108,493 DISNEY WALT CO NEW MTN BK ENTR Due 31112012 115,000 114,748 126,040 DOW CHEM CO Duo 1111/20209 140,000 145,744 147,935 DTE ENERGY CO Due 611/2006 50,000 51,118 54,640 DUKE WEKS REALTY CORP Due 3115/2011 100,000 101,333 107,540 DVI RECEIVABLES XVII LLC Due 611112010 170,000 170 .000 170,690 ENSCO INTL INC Due 11/15/2007 1 .000 .000 978,060 1,113,702 EOP OPER LTD PARTNERSHIP Due 7115/2011 200,000 206,850 215,921 EDP OPER LTD PARTNERSHIP Due 7/15/2028 250,000 231 980 250,636 EOP OPERATIONS LIP Due 2115/2012 700,000 684,211 745,558 EUROFIMA Due 8/2212011 90,000 48,616 54,584 EUROPEAN INVT BK Duo 4126/2004 210,000 216,716 217,851 EXELON CORP Due 5/112011 110,000 113,304 120,221 F G MUT FID ASSETS BY NEW WORLD Due 8/112018 210,735 186.369 226,224 FEDERAL HOME LOAN PC Due 71112017 100,029 103,801 104,636 FEDERAL HOME LOAN PC Due 9/l/2017 112 .500 116,750 117,681 FEDERAL HOME LOAN PC Due 1D/i/2017 995,042 1,012,456 1,021,550





FEDERAL HOME LOAN PC Due 91112024 65,305 66,323 6a,601 FEDERAL HOME LOAN PC C00731 Due 31112029 296,155 304,924 309,343 FEDERAL HOME LOAN PC C00785 Due 6/112029 1,018,106 1,037,584 1,063,444 FEDERAL HOME LOAN PC C43638 Due 1111/2029 495,237 494,927 513 .963 FEDERAL HOME LOAN PC C46106 Due 1111/2031 840,220 818,952 869.890 FEDERAL HOME LOAN MTG Due 111512012 355,000 324,136 392,502 FEDERAL HOME LOAN BANKS Due 211512007 475,000 516,335 519,734 FEDERAL HOME LOAN MTG CORP Due 2/412005 1,500,000 1,513 .350 1,503,988 FEDERAL HOME LOAN MTG CORP Due 111512006 4,595,000 4,580.381 4,991,240 FEDERAL HOME LOAN MTG CORP Due 311512011 1,00,000 1,499,116 1.551,009 FEDERAL HOME LOAN MTG CORP Due 611512011 2.500,000 2,630,065 2,831.704 FEDERAL HOME LOAN MTG CORP Due 5/2512012 320,000 332,301 339.905 FEDERAL HOME LOAN MTG CORP Duo 7/1512012 7`14.000 671,832 759,701 FEDERAL HOME LOAN MTG CORP Due 111 5/2022 56,140 56,947 56,103 FEDERAL HOME LOAN MTG CORP Due 5/25/2030 76,736 76,796 76,353 FEDERAL HOME LOAN MTG CORP DueE 1212512032 48,679 48,679 48,656 FEDERAL HOME LOAN MTG CORP MTN Due 8/20/2012 1,025,000 1,017,723 1,045,677 FEDERAL HOME LOAN MTG PC GTD Duo 9/15/2007 420,000 433,830 429,249 FEDERAL HOME LOAN MTG PC GTD Duo 1/1512008 68,082 69.710 68 .352 FEDERAL HOME LOAN MTG PC GTD Due 3115/2022 753,210 710,224 756,584 FEDERAL HOME LOAN MTG PC GTD Due 7/15/2024 334,528 321,931 337,5aa FEDERAL NAT'L MTG ASSN Due 4115/2004 595,000 594,994 611,628 FEDERAL NAT'L MTG ASSN Due 8115/2004 50,000 53,467 53,902 FEDERAL NAT'L MTG ASSN Due 11114/2005 1,765,000 1,762,370 1,772,385 FEDERAL NAT L MTG ASSN Due 12/1512005 1,000,000 1,009,414 1,107,199 FEDERAL NAT L MTG ASSN Due 10/1512006 455,000 443,003 482,905 FEDERAL NAT'L MTG ASSN Duo 2127/2007 870,000 870,000 875,071 FEDERAL NAT'L MTG ASSN Due 6/1812007 235,000 240,040 2",914 FEDERAL NAT'L MTG ASSN Duo 5/1512008 65,000 72,937 73,635 FEDERAL NAT'L MTG ASSN Duo 1/1512009 400,000 405,984 437,320 FEDERAL NAT'L MTG ASSN Duo 9/15/2009 235,000 265,892 275,299 FEDERAL NAT'L MTG ASSN Due 111512010 280,000 333,63.4 339,041 FEDERAL NAT'L MTG ASSN Due 3/15/2011 4,385,000 4,478,096 4,812,060 FEDERAL NAT*L MTG ASSN Due 5/15/2011 1,165,000 1,284,758 1,317,817 FEDERAL NAT'L MTG ASSN Due 9125/2011 55,000 54,999 59,411 FEDERAL NAT'L MTG ASSN Due 10125/2021 85,000 85,887 88,598 FEDERAL NAT'L MTG ASSN Due 12125/2023 1,264,870 1 .214,473 1 .285,990 FEDERAL NAT'L MTG ASSN Duo 5/15/2029 200000 199,352 223,013 FEDERAL NAT'L MTG ASSN Duo 5/15/2030 945000 1,008,697 1 .062,923 FEDERAL NAT'L MTG ASSN Due 712512032 129,090 129,090 128 .735 FEDERAL NAT'L MTG ASSN GTD Duo 10/2512023 511,807 509,968 522,907 FEDERAL NAT'L MTG ASSN GTD Duo 8/25/2032 219,485 219,437 219,435 FEDERAL NAT'L MTG ASSN GTD REMI Duo 11125/2032 118,081 118,081 118 .081 FEDEX CORP Due 211212004 225,000 224,741 235,488 FHLMC TBA JAN 15 GOLD SINGLE Due 12/1/2099 1,450,000 1,522,500 1 .525,899 FHLMC TBA JAN 15 GOLD SINGLE Due 12/3112099 1,165,000 1,195,835 1,206,594 FHLMC TBA JAN 30 GOLD SINGLE Due 1211/2099 2,590,000 2,646,884 2,677,413 FHLMC TBA FEB 30 GOLD SINGLE Due 12/31/2099 2,490,000 2,569,155 2 566608 FIFTH THIRD CAP TR I Due 3115/2027 100,000 107,123 108,853 FINLAND(REP OF) Due 7/4/2007 300 .000 258 .232 335,092 FIRST ENERGY CORP Due 11/15/2031 100,000 95,170 96,495 FIRST FRANKLIN Cl I Due 6/2512032 67,891 67,891 67 .721 FIRST FRANKLIN MTG LN TR Due 412512032 521,679 521,679 531 .531 FIRST IND'L LP MTN Due 12/l/2017 3 .000,000 2,994 .240 3,270 .000 FIRST NAT'L MASTER NT TR Duo 3117/2008 80,000 80 .000 80 .125 FIRST UN CORP Due 8/18/2005 265,000 277.831 297,805






FIRST UNION LEHMAN BROS BK Duo 11118/2035 185,000 205,399 205,975 FIRSTBANK P R Due 12120/2005 3,000,000 3,017,726 3,300,200 FLEET FIN'L GROUP INC NEW Due 3/112003 100,000 104,583 100,698 FLEETBOSTON FIN'L CORP Due 9/1 5/2005 200,000 214,660 219,865 FNMA TBA JAN 15 SINGLE FAM Duo 12/112099 1,955,000 2,029,385 2,044,965 FNMA TBA JAN 30 SINGLE FAM Duo 12/l/2099 3,930,000 4.010,996 4,055,410 FNMA TBA JAN 15 SINGLE FAM Due 1213112099 2 .780 .000 2,839,372 2,865,777 FNMA TBA FEB 30 SINGLE FAM Due 12131/2009 905,000 928.489 932,809 FNMA POOL

Due 111112011 499,405 514,212 552,156 Due 6/112014 2,424,506 2,401,776 2,544,500 Due 8/1/2017 180,306 186,898 188,779 Due 9/l/2017 83,620 86,843 87,549 Due 10/112017 3,093,427 3 .143,091 3,171,488 Due 111112017 1,015,702 1,032,762 1 .041 .332 Duo 4/112024 45,411 46,092 47,667 Due 10/l/2024 78,999 80,194 82,925 Due 11/l/2024 197,225 200,184 207 .025 Due 7/1/2025 30,783 31,244 32,312 Due 71112028 663,924 672,846 694,008 Due 8/112028 42,564 43,089 44,426 Due 9/1/2028 21,110 21,371 22,034 Due 10/l/2028 45,563 46,126 47,592 Due 1111/2028 131,012 135,662 136,744 Due 121112028 697.817 717,716 728,3-47 Due 3/l/2029 283,457 286,779 295,858 Due 41112029 646,638 654,216 674,929 Due 611/2029 336,633 331 .899 347,942 Dual/l/2032 678,338 715,647 721,403 Due 21112032 526,330 555,278 559,575 Due 5/112032 496,640 518,541 526,893 Due 61112032 1,740,883 1 .812,921 1,833,639 Due 71112032 2.504,699 2 .623,652 2,638,152 Due 81112032 643 .348 670,445 677,627 Due 9/l/2032 734,263 766,517 773,386

FORD CR AUTO OWNER TR Due 2115/2006 65,000 65,000 65,041 FORD MOTOR CREDIT Duo 2122/2005 60,000 91.264 93 .624 FORD MTR CO DEL Due 8il/2018 2,500,000 2.486,975 2,090,994 FORD MTR CR CO Due 3115/2005 275,000 275,705 282,593 FORD MTR CR CO Due 211/2006 285,000 290,489 288.594 FORD MTR CR CO Due 211/2011 485,000 455,242 473,901 FPL GROUP CAP INC Due 6/112009 100,000 110,965 112,859 FRANCE TELECOM SA Due 311/2006 80,000 83,920 85,706 GE GLOBAL INS HLOG CORP Due 3/112019 105,000 94,183 104,805 GENERAL ELEC CAP CORP MTN Due 2/1512012 265,000 258,568 283.383 GENERAL ELEC CAP CORP MTN Due 6115/2012 925,000 921,023 1,000,156 GENERAL ELEC CAP CORP MTNOuel/15/2013 255,000 254,218 261,023 GENERAL ELEC CAP CORP MTN Due 3115/2032 150,000 146,663 165828 GENERAL MTRS ACCEP CORP Due 1115/2006 515,000 529,406 538,674 GENERAL MTRS ACCEP CORP Due 9/15/2006 500,000 498,765 513 .679 GENERAL MTRS ACCEP CORP Due 9/15/2011 345,000 337,928 343,516 GENERAL MTRS ACCEP CORP Due 11/112031 295,000 297,155 295,033 GNMA I TBA JAN 30 SINGLE FAM Due 12115/2099 2,325,000 2,424,027 2,444,222 GNMAPOOL

Due 3/1512028 574,888 586,834 606,731 Due 811512029 41,872 42,631 44,464




Due 6/1512031 947,460 945,683 996,979 Due 12/1512031 763,433 777,270 810,701 Due 3/15/2032 430,877 444,038 457,554 Due 5115/2032 28,531 29,503 30,298 Due 711512032 351,507 361,304 366,163

GOLDMAN SACHS GROUP INC Due 11115/2014 1,500,000 1,498,189 1 .548,921 GOVERNMENT NAT'L MTG ASSN Due 8/20/2012 215,000 215,001 215,673 GREEN TREE FIN'L. CORP Due 3/li2030 285,768 279,997 294 .029 GS MTG SECS CORP 11 Due 8/5/2018 423,454 423,456 456.139 GSAMP TR Due 7125/2032 78,450 78,393 80,742 GTE CORP Due 4115/201 8 200,000 '189 .290 208,300 HARTFORD FIN'L SVCS GROUP INC Due 11/l/2008 125,OOD 127,732 134,888 HOLMES FIN PLC Due 7/15/2017 95,000 95,124 95,000 HOLMES FING NO 3 PLC Duo 1/1512007 320,000 320,341 320 .000 HOLMES FING NO 6 PLC Duo 4/15/2008 1,000,000 1,000,000 1,000 .000 HONDA AUTO RECEIVABLES Due 211912007 500,000 499,984 515,391 HONDA AUTO RECEIVABLES 2001 3 Due 9/17/2007 150.000 149,988 157,523 HOUSEHOLD CR CARD MASTER TR I Due 7/15/2008 25,000 25,000 25,051 HOUSEHOLD FINANCE CORP Due 112412006 170,000 169,627 183,190 HOUSEHOLD FINANCE CORP Due 6/2412009 185,000 157,137 187,955 HOUSEHOLD FINANCE CORP Due 5/1512012 170,000 164,282 184,788 HSBC MTG LN TR Due 12/1512030 15,946 15,946 15,988 IDEX CORP Duo 2/11512008 11100 .000 1,096,579 1,187,039 INTER AMERN DEV GLOBAL MTN Due 9127/2004 230,000 233,123 237,411 INTERNATIONAL PAPER CO Due 91V2011 850.000 851,904 935,967 INTERNATIONAL PAPER CO Due 1013012012 135.000 134,791 140,010 INTERNATIONAL PAPER CO Due 1111/2023 750,000 670,682 781,039 INT'L BANK RECON & DV Due 8/2012007 625,000 188,952 244,102 INT*L BK FOR RECON & DEV Due 4/30/2004 315,000 324,909 326,526 IRELAND (REPUBLIC OF) Due 411812016 500,000 481,861 525,660 IRWIN WHOLE LN HOME EQUITY TR Due 7/25/2014 86,301 86,300 86,294 ITALY (REPUBLIC OF) Due 311/2007 50,000 52,235 54,566 ITALY REP Due 111 6/2004 265,00 274,741 274,531 ITALY REP Due 9127/2023 230,000 250,474 271,863 J P MORGAN CHASE & CO Due 3/l/2007 35,000 34,958 37,476 J P MORGAN CHASE COML MTG SECS Duo 31`1512033 i .iso.000 l,174,567 1 .294,790 JPM CAP TR I Due 1115/2027 175,000 157,946 179,799 KEYSPAN CORP Due 11115/2010 125,000 133,520 146,875 KFW INT'L FIN INC Due 10/112004 165,000 166,652 170,871 KOHLS CORP Due 6/112029 175,000 174 .347 203,295 KOMMUNEKREDIT Due 6/712006 1,020,000 99,320 141,727 KOREA DEV BK Due 11/16/2006 95,000 99,467 101,341 KOREA DEV BK Due 11/1312007 65,000 64,895 62,983 KREDITANSTALT FUR WIEDERALIFEAU Due 1/4/2010 485,000 421,590 547,075 KROGER CO Due 4/1512012 50,000 49,940 55,034 LB UBS COWL MTG TR Duo 911512031 550,000 552,713 558,954 LEHMAN BROS HLDG Due 2111200B 255.000 254,900 289,325 LEHMAN BROS INC Due 2/1512008 350,000 336990 391 270 LEKMAN ISROS INC Due 4/15/2008 50D,000 465,265 556 .858 LIBERTY PPTY LTD PARTNERSHIP Due 3/15/2011 150 .000 148,940 162,485 LINCOLN NAT'L CORP IN Due 12/15/2011 500,000 487,663 517,626 LOCKHEED CORP Due 3115/2003 150,000 152,912 151,477 LOCKHEED MARTIN CORP Due 5/1512006 85,000 90,654 96,472 MADISON RESIDENTIAL SECS FDG Due 911712003 448,822 448,822 448,642 MANUFACTURERS & TRADERS TR CO Due 10/l/2010 150,000 164,970 179,940 MARATHON OIL CORP Due 3115/2032 70,000 69,713 71,561





MASCO CORP Due 3/15/2006 65,000 64,869 70,963 MBNA ASSET BACKED NT TR Due 1111512005 265.000 272,660 269,224 MBNA CR CARD MASTER NT TR Due 4115/2008 190,000 190,000 190,030 MBNA CR CARD MASTER NT TR Due 7115/2014 150 .000 149,547 158.625 MEADWESTVACO CORP Due 4/2/2012 105,000 104.305 116,181 MELLON RESIDENTIAL FOG CORP Due 6/15/2030 275,722 275,722 276,653 MERIT SECURITIES CORP Due 9128/2025 299,075 299,495 300,732 MERRILL LYNCH & CO INC MTN Due 11/1512007 90,000 89,910 89,968 MERRILL LYNCH MTG INVS INC Due 12/2512022 200,000 201,516 204,813 METRIS MASTER TR Due 5/20/2009 195,000 195,000 190,666 MEXICO UNITED MEXICAN STS Due 12130120`19 105,000 105,630 111 .038 MEYER FRED INC DEL NEW Due 31112008 160 .000 169,133 183.034 MIDAMERICAN FOG LLC Duo 31112009 2,700,000 2,700,000 2,857,086 MITCHELL ENERGY & DEV CORP Duo 2/1512004 11000,000 1,005,970 1,029.203 MMCA AUTO OWNER TR Due 611512005 235.000 247,521 245.061 MMCA AUTO OWNER TR Due 911512005 88,081 88,081 88,040 MORGAN JP COWL MTG FIN CORP Due 411512010 122,890 122,890 122,881 MORGAN JP COWL MTG FIN CORP Due 9/1512029 425,000 453,372 482,222 MORGAN STANLEY GROUP INC Duo 4/15/2006 250,000 256,394 270 .000 MORGAN STANLEY GROUP INC Due 4/1512011 500 .000 498,180 554,373 MOTOROLA INC Due 11/1512010 1,620,000 1,551,163 i,r45,615 MUENCHENER HYPOTHEKENBANK EG Due 111612012 115,000 114,366 126,225 NATIONAL CITY AUTO REC TR Due 8/1512009 275,000 274,957 291 .500 NATIONAL CITY CR CARD MASTER Due %1151200T 70,(100 70,101 70,175 NATIONAL RURAL UTILS COOP FIN Duo 8/28/2009 120,000 119,231 129,420 NATIONWIDE FINL SVCS INC Due 11115/2011 250,000 242,295 255.237 NAVISTAR FINL 2001 B OWNER TR Duo 11115/2008 1,000,000 999,878 1,042,969 NAVISTAR FINL 2002 A OWNER TR Duo 4115/2009 500,000 499,966 527,969 NELNET STUDENT LN TR Due 6/25/2011 90,000 90,000 89,958 NEW SOUTH WALES TR Due 5/l/2006 640,000 398,552 378 .943 NEWS AMER HLDGS INC Due 1/20/2024 150,000 144,722 154,452 NEWS AMER INC Due 11/30/2028 55,000 50,312 55,602 NEWS AMERICA HLDGS Duo 2/7/2014 710,000 476,713 407,636 NORDIC INVESTMENT BANK Due 4/20/2006 700,000 73,567 82,674 NORFOLK SOUTHN CORP Duo 5/1512007 150,000 169,841 173 .577 NORFOLK SOUTHN CORP Duo 211512011 100,000 99,049 111,827 NORTHERN STS PWR CO MN Due 812812012 160,000 160,000 175,8TO NORWAY (KINGDOM OF) Due 1/15/2007 290,000 41,295 43,776 NPF XII INC Due 5/212005 420,000 419,752 86,100 ONTARIO HYDRO Due 612/2003 240,000 154,524 153,511 ONTARIO PROV CDA Due 12/l/2008 315,000 205,606 212,514 OPTION ONE MTG SECS CORP Duo 4/2612009 64,007 64,007 64,020 PEMEX PROJ FOG MASTER TR Due 12/1512014 160,000 157,343 163,680 PERMANENT FING NO 1 PLC Due 6/1012007 730 .000 729,800 756,127 PHARMACIA CORP Due 12/l/2005 2,615 .000 2,608,070 2,851,405 PHARMACIA CORP Due 12/l/2008 400,000 380,S.40 448.248 PHILIP MORRIS COS INC Due 2/112006 1,500,000 1,467,A95 1,629,506 PHILIP MORRIS COS INC Due 61112006 100,000 107,980 111,045 PHILLIPS ELECTRONICS NV Due 5/1612011 235,000 193,672 262,378 PIONEER NAT RES CO Due 11`15)2008 1,750,000 1 .642,395 1,778,438 PNC FOG CORP Due 91112003 105,000 106,452 107,503 PNC FOG CORP Due 7/1/2007 165,000 177,500 184,297 POPULAR NORTH AMER INC Due 10/15/2006 100,000 100,110 108,045 PP&L CAPITAL FOG INC Due 6/1512007 105,000 105,854 '121,490 PRINCIPAL FIN'L GROUP AUSTRALIA Duo 8115/2004 120.000 119,884 128,404 PRINCIPAL FIN'L GROUP AUSTRALIA Due 8/15/2009 75,000 74,767 86,806





PROGRESS ENERGY INC Due 31112011 100,000 106,888 109,910 PROGRESSIVE CORP OH Due 12/l/2032 95 .000 94,287 97,075 PRUDENTIAL FOG CORP MTN 144A Due 5115/2008 140,000 139,838 152 .866 PRUDENTIAL SEC5 SECD FING CORP Due 4/15/2009 255,000 253,974 295 .507 RAYTHEON CO Due 8/1512007 125,000 128,748 138 .957 RAYTHEON CO Due 1111/2008 500,000 428,540 545,231 RAYTHEON CO Due 12115/2010 2,420 .000 1,995,521 2,522,407 RAYTHEON CO Due 3115/2018 250,000 209,862 253,802 RAYTHEON CO Duo 8/15/2020 300 .000 246,057 316.554 REGIONS FIN'L CORP Due 311/2011 110,000 109,533 126,266 RENTAL CAR FIN CORP Due 812512006 170,000 170,000 169,422 REPSOL INTERNATIONAL FINANCE Due 121412006 300 .000 242,411 312,127 REPUBLIC SVCS INC Duo 8/1512011 75 .000 76,532 80,343 RESIDENTIAL ASSET MTG PROD INC Due 12/25/2020 80 .668 80,668 80,681 RESIDENTIAL ASSET MTG PRODS Due 11/25/2021 70,612 70,612 70,601 RESIDENTIAL ASSET MTG PRODS Due 912512032 193,435 193,435 193,013 RESIDENTIAL ASSET MTG PRODS IN Due 4125/2021 24,534 24.534 24,530 RESIDENTIAL ASSET SEC MTG PASS Due 4/25/2018 2,719 2,719 2,719 RESIDENTIAL FOG MTG SECS It IN Due 712512010 32,367 32367 32,369 ROHM & HAAS DENMARK FIN Duo 3/9/2007 200,000 172,298 224,738 SAFEWAY INC Due 31112006 150,000 153,758 162,411 SALOMON BROS MTG SECS VII INC Due 12115/2003 335 .021 335,021 334,612 SASKATCHEWAN PROV CDA Due 7/1512004 191 .000 208,505 207,572 SBC COMMUNICATIONS INC Due 311512011 250,000 254,T93 272,701 SBC COMMUNICATIONS INC Duo 8/15/2012 375,000 401,363 403,078 SEARS CR ACCOUNT MASTER TR 11 Due 211812009 305,000 805,126 804,246 SEARS CR ACCT MASTER TR 11 Due 1/15/2008 107,917 105,265 110,581 SEARS ROEBUCK ACCEP CORP Due 21112011 75,000 75,695 72,"4 SOUTH AFRICA REP Due 6123/2017 310,000 293,771 348,750 SPEAR LEEDS & KELLOGG LIP Due 8/15/2005 210,000 209,351 239,613 SPRINT CAP CORP Due 5/l/2004 700,000 665,371 702,306 SPRINT CAP CORP Due 11/15/2008 245,000 218,658 227 .336 SPRINT CAP CORP Due 11/1512028 1,750,000 1,574,851 1,421,061 STANDARD CHARTERED BK Due 513012031 100 .000 103,761 109,136 STILWELL FIN'L INC Duo 11/l/2006 100,000 97,661 101,372 STRUCTURED ASSET SECS CORP Due 8/25/2032 572,986 572,986 566,987 STUDENT LN MARKETING A5S'N GLOB Due 6/30/2004 1,56D .000 1,570,779 1,637,881 SUPERIOR WHSL INVENTORY FING T Due 1/16/2006 1,670,000 1,670,000 1,671,044 SWEDEN KINGDOM OF Due 311512011 3 .250 .000 303,967 389,135 -TARGET CORP Due 5/15/2006 120,000 125,418 131,362 TECK COMINCO LTD Due 9115/2012 50 .000 49,695 48,788 TELEFONICA EUROPE BV Due 911512030 125,000 140,565 152,367 TENET HEALTHCARE CORP Duo 121112GI 1 150,000 148,318 136,791 TENNESSEE VALLEY AUTH Duo 11/13/2008 275.000 263,209 303 .098 TENNESSEE VALLEY AUTH Duo 12/15/2017 505.000 547,132 574,907 TEXACO CAP INC Due 613012010 3,000,000 3,552,500 3,758,392 TEXACO CAP INC Due 3/15/2020 75,000 100,144 106 .608 TIMEWARNERINC DuelliST202B 3.400,06 3328364 1,234,945 TOYOTA AUTO REC OWNER TR Due 9/17/2007 980,000 980,000 980 .613 TOYOTA AUTO RECEIVABLES Due 1/1612006 235,000 235,000 235,000 TOYOTA AUTO RECEIVABLES Due 5/1512009 30,000 30,000 29,971 TOYOTA AUTO RECEIVABLES 2002 B Due 611512006 200 .000 199,998 205,156 TREASURY Due 11125/2010 70,D00 125,116 127,074 U K TREASURY STOCK Due 3/712012 215,000 344,126 362,189 U S BK NATL ASSN MINNEAPOLIS Duo 8/l/2011 200,000 201,136 223 .079 UNION OIL CO CALIF Due 2/l/2004 50,000 51,637 52,083





UNION PAC CORP Due 2/l/2008 100,000 111,666 113,224 UNITED MEXICAN STS Due 111412011 525,000 549,507 594,038 UNITED STATES TREAS BONDS

Due 2115/2010 1,425,000 1,791,994 1,718,094 Due 511512011 260,000 360,273 357,278 Duo 2115/2015 15,000 23,009 24,986 Due 2115/2016 9D'000 133,116 133,641 Due 5115/2017 1,995,000 2,661,589 2,887,087 Due 211512019 35,000 50,492 51,690 Due 8/1512019 35,000 45.5" 48,761 Due 811512021 790,000 1,024 .128 1,112,107 Duo 211512026 45,000 45,643 51,602 Due 811512027 265,000 311,081 318,448 Due 11115/2027 530,000 594,014 619,455 Due 11115/2028 425,000 392,109 443.592 Duo 2/1512029 125,000 '127 .5-46 130 .544 Due 8/1512029 190,000 206 .264 222,988 Duo 5/15/2030 195,000 226,195 233,277

UNITED STATES TREAS NOTES Due 11130/2003 700,000 710,281 711,232 Duo 3/3112004 50,000 51,381 51 .438 Duo 5/1 512004 1,505,000 1,625,047 1,620,244 Due 613012004 1,160 .000 1,175,180 1,185,644 Due 8/1512004 770 .000 842,248 842,233 Due 9/31/2004 700,000 702.734 707.802 Duo 5/1512005 3,415,000 3,734,249 3,804,589 Due 11/15/2005 755 .000 800,414 834,626 Due 5/1512006 1,240,000 1,399,928 1,413,385 Due 7/1512006 1,360,000 1 .570,338 1,576,737 Duo 2/1512007 190 .000 204,243 217,943 Due 5/1512007 215.000 238,251 240,698 Due 8/1512007 2,025 .000 2,291,766 2,329,206 Due 5/1512008 890 .000 982,199 1,010,034 Due 11/1512008 835 .000 834,526 911,753 Due 8/1512009 360 .000 408,395 418,594 Due 811512009 375,000 426.449 436,036 Due 2115/2010 25 .000 27,634 29,890 Due 2115/2011 195.000 210,771 214,342 Due 8/15/2012 1

UNITED STATES TRES BD STRP PRN Due 11115/2021 705,000 264,379 262,728 UNITED TECHNOLOGIES CORP Due 311/2021 100 .000 121,058 132,439 UNITRIN INC Due 7/1/2007 175,000 174,626 163,502 UNUM CORP Duo 12/15/2028 1,050,000 970,176 866,209 VERIZON GLOBAL FOG CORP Due 1211/2030 200,000 220,776 229,604 VERIZON WIRELESS CAP LLC Due 12/1512006 110,000 109,569 114,438 VIACOM INC Due 6/112005 240,000 245,412 269,282 VIRGINIA ELEC & PWR CO Due 211/2007 200,000 199,118 213,082 VODAFONE AJRTOUCH PLC Due 2115/2010 125,000 141,346 149,274 VODAFONE FINANCE BV Due 5127/2009 400 .000 372,012 422,297 VODAFONE GROUP PLC NEW Due 11/30/2032 110 .000 109,969 108.701 VORNADO RLTY TR Duo 6/15/2007 80,000 79,885 82.200 WASHINGTON MUT FIN CORP Duo 5/15/2011 100,000 99,406 111,609 WELLS FARGO & CO NEW Due 211512007 300000 318,126 324,611 WEYERHAEUSER CO Due 6/1/2006 100000 102,658 107,331 WEYERHAEUSER CO Due 11/112008 550 .000 527.131 590,412 WEYERHAEUSER CO Due 7/1512023 500,000 478.150 526.5`16





SECURITY NAME COST MARKET 3M CO 1,500 181,952 184,950 ACE LTD 7,300 269,343 214,182 ACTIVISION INC NEW 4,600 110,138 67,114 ADC TELECOMMUNICATIONS INC 47,600 916,851 99,494 ADELPHIA COMMUNICATIONS CORP 8,800 202,154 748 ADOBE SYS INC 10 .300 339,327 255,450 AFFILIATED COMPUTER SVCS INC 4,700 230,538 247,455 AGL RES INC 7,200 154.859 174,960 AKZO NOBEL N V 29,100 1,240.857 927,999 ALCOAINC 25,600 468,486 583,168 ALCONINC 5,400 188,159 213,030 ALLTEL CORP 11,500 575,290 586.500 AMERADA HESS CORP 28.200 1,664,121 1,552,410 AMERICAN ELEC PWR INC 19,800 682,372 541,134 AMERICAN GREETINGS CORP 7,900 119,660 124,820 AMERICAN INTL GROUP INC 40,000 2,862,230 2.314,000 AMERISOURCEBERGEN CORP 3,000 204,031 162,930 AMGEN INC 30,000 1,626,111 1,450,200 AMSOUTH BANCORPORATION 4,800 95,742 92,160 ANALOG DEVICES INC 12,300 647,332 293,601 ANHEUSER BUSCH COS INC 8,000 414.618 387,200 ANTHEMINC 1,200 74 .926 75,480 AOL TIME WARNER INC 56,200 2,315,598 736,220 APACHE CORP 3,000 171,292 170,970 APARTMENT INV'r 9 MGMT CO 3,900 144,538 146,172 APPLIED MATERIALS INC 43,100 896,350 561,593 ARAMARK CORP a.400 192,439 197,400 ARCHER DANIELS MIDLAND CO 47,881 565,078 593,724 ARVINMERITOR INC 17,000 445,928 283,390 ASHLANDINC 9,000 260,081 256,770 AT & T WIRELESS SVCS INC 103,000 440,997 581,950 AT&T CORP 44,320 1,187,418 1,157.195 AUTOZONEINC 1.800 129,031 127.170 AVAYAINC 78,400 656,066 192,080 BAKER HUGHES INC 21,700 415,621 698,523 BANK AMER CORP 26,600 1 .669 .502 1,850,562 BANK ONE CORP 48,500 1,544,523 1,772,675 BANKNORTH GROUP INC NEW 9,060 241,392 204,756 SAUSCH & LOMB INC 6,600 320,785 237,600 BAXTER INT'L INC 5,300 248,656 148,400 BEA SYS INC 7,400 80,066 84,878 BECTON DICKINSON & CO 40,600 1,276,201 1,246,014 BED BATH & BEYOND INC 2,800 86,522 96,684 BEST BUY CO INC 16,650 583,579 402,098





WFS FINL 2002 2 OWNER TR due 2120/2007 315,000 314,972 323,466 WHOLE AUTO LN TR Duo 9/15/2006 420,000 419.985 424.463 WORLD OMNI MSATER OWNER TR Duo 2/15/2006 780,000 780,000 760 .000 VifYETH Due 3/1512006 200,000 199,974 216,929 XL CAP FIN EUROPE PLC Due 1/15/2012 90,000 89,522 93,473 ZURICH CAP TRUST Due 6/l/2037 205,000 222,993 188,666

TOTAL BONDS AND INTEREST 236,742,398 246,651,144 BEARING OBLIGATIONS

COMMON STOCK


BIOGEN INC 5,600 317,107 224,336 BIOMET INC 11,200 330,488 320,992 Bi Svcs CO 5.800 206,876 '187,398 BLACK & DECKER CORPORATION 7,100 340,760 304.519 BLACKROCKINC 2,700 116,388 106,380 BLOCK H & R INC 23,800 1.037,235 956,760 BLUECOAT SYSTEMS INC 2,541 68,274 10,013 BOISE CASCADE CORP 11,500 310 .582 290,030 BOSTON SCIENTIFIC CORP 5,000 173,596 212,600 BRISTOL MYERS SQUIBB CO 26.900 574,866 622,735 BROADCOM CORP 7,400 306,235 111,444 BROCADE COMMUNICATIONS SYS INC 7,400 542,738 30,636 CAPITAL ONE FINL CORP 24,800 827 .529 737,056 CARDINAL HEALTH INC 11,100 777,259 657,009 CAREER ED CORP 3,400 128 .532 136 .000 CAREMARK RX INC 5,200 82,169 84.500 CATERPILLAR INC 13,100 426,169 598,932 CBRL GROUP INC 6,100 174,242 183,793 CENTERPOINT ENERGY INC 23,000 293,788 195,500 CENTURYTELINC 20,500 550,295 602 .290 CERIDIAN CORP NEW 21.000 316,761 302,820 CHECK POINT SOFTWARE 14,250 856,993 184 .823 CHEVRONTEXACO CORP 15.800 1.120,704 1,050,384 CHICOS FAS INC 5,200 98,731 98,332 CHUBB CORP 7,000 286,082 365,400 CISCO SYS INC 74,600 1,239,841 977,260 CIT GROUP INC NEW 46,500 1,069,500 911,400 CITIGROUP INC 76,855 2,827,758 2,704,527 CITIZENS COMMUNICATIONS CO 6,300 64,967 66,465 CIAS ENERGY CORP 18,900 171,788 178,416 CNA FIN'L CORP 4,700 128,661 120,320 COACHINC 4,600 97 .050 151,432 COCA COLA CO 4,000 209,167 175,280 COLGATE PALMOLIVE CO 1,000 55,234 52,430 COMCAST CORP NEW 108,107 2,626,579 2,522,303 COMMERCE BANCORP INC NJ 3,200 131,219 138,208 COMPUTER SCIENCES CORP 16,500 557,214 568,425 COMPUWARE CORP 93,500 728,378 448 .800 CONAGRAINC 11,100 283,614 277,611 CONCORD EFS INC 8,600 197,129 135,364 CONOCOPHILLIPS 53,356 2,501,011 2,581,897 CONSOL ENERGY INC 3,900 67,064 67,392 CORNING INC 226,700 361,000 750 .377 COX COMMUNICATIONS INC NEW 12,100 335,500 343,640 DANAHER CORP 3,800 225,594 249,660 DARDEN RESTAURANTS INC 3,200 68,140 65,440 DELL COMPUTER CORP 31,600 773,890 844,984 DELPHI CORP 79,127 1 .232 .757 636,972 DEVON ENERGY CORPORATION NEW 10,050 481,824 461,295 DIAL CORP NEW 6,000 124,35B 122.220 DILLARDS INC 14,600 410,213 231,556 DISNEY WALT CO 19,700 4`10,514 321,307 DONNELLEY R R & SONS CO 27,600 756,525 600,852 DORAL FIN'L CORP 10,450 250,441 298,870 DOW CHEM CO 58,370 1,640,823 1,733,589 DPLINC 20,000 284,063 306,800





EASTMAN CHEM CO 26,300 1,033,797 967,051 EASTMAN KODAK CO 44,800 1,455,456 1,569,792 ECHOSTAR COMMUNICATIONS CORP N 15,600 497,059 347,256 EDISON INTT 11,600 100,641 137,460 ELAN PLC 36.300 1,316,141 89,298 ELECTRONIC ARTS INC 8,400 444,653 418,068 ELECTRONIC DATA SYS CORP NEW 10,800 148,687 199,044 EMC CORP 8,000 380.042 49,120 EMULEX CORP 4.400 153,097 81,620 ENERGIZER HLDGS INC 5,100 154,002 142,290 ENGELHARD CORP 15,400 203,671 344,190 EQUITY OFFICE PPTYS TR 40,600 1.199,252 1,014,188 EQUITY RESIDENTIAL 25,400 601,575 624,332 EXPEDIA INC 1,668 122,665 111,640 EXPEDITORS INT L WA INC 1,600 47,340 52,240 EXPRESS SCRIPTS INC 2,600 119,140 124,904 EXXON MOBIL CORP 6,500 270,062 227,110 FAMILY DLR STORES INC 5,800 176,426 181,018 FEDERAL HOME LN MTG CORP 23,000 1,509,934 1,358,150 FEDERAL NATT MTG ASSN 25,000 1,854,050 1 .608,250 FEDEX CORP 27,900 906,503 1 .512 .738 FIAT S P A 59.500 710,040 473,025 FIFTH THIRD BANCORP 3.800 227,961 222 .490 FIRST DATA CORP 8.000 304,521 2a3 .280 FIRST TENN NATL CORP 20,400 736,613 733,176 FIRSTENERGY CORP 1,400 47,679 46,158 FISERV INC 7,750 261,128 263,113 FISHER SCIENTIFIC INT'L INC 3,600 104,224 108,288 FLEETBOSTON FIN L CORP 21,000 548,890 510,300 FLUOR CORP NEW 23,500 637,826 658,000 FORD MTR CO DEL 24,889 389,062 231 .468 FORTUNE BRANDS INC 12,400 597,546 576,724 FOX ENTMT GROUP INC 15,100 345,036 391,543 FRESH DEL MONTE PRODUCE 9,900 236,003 187,209 GANNETT INC 7,400 529,343 531,320 GAP INC 39,000 481,014 605 .280 GENERAL ELEC CO 63,400 2,844,653 1,543,790 GENERAL GROWTH PPTYS INC 5,300 263,246 275,600 GENERAL MLS INC 600 28,082 28 .170 GENERAL MTRS CORP 7,200 367,371 265,392 GENUINE PARTS CO 35,900 868,317 1,105,720 GEORGIA PAC CORP 35.600 916,936 575,296 GILEAD SCIENCES INC 4,400 144,927 149 .600 GILLETTE CO 13.800 428,546 418 .968 GLOBAL PMTS INC 3.400 94,886 108,834 GOLDEN WEST FIN'L CORP DEL 22,000 277,733 1 .579,820 GOLDMAN SACHS GROUP INC 14,500 1,207,426 987,450 GREATER BAY BANCORP 6,000 142981 103 74n GREENPOINT FIN L CORP 15,500 562,795 700,290 GTECH HLDGS CORP 12,800 324,725 356.608 HARLEY DAVIDSON INC 15,000 780,348 739.200 HARRIS CORP DEL 3,600 129,693 94,680 HCA INC 22,900 906,354 950,350 HEALTH MGMT ASSOC 12,600 258,920 225,540 HEARST ARGYLE TELEVISION INC 5,500 126,017 132,605 HEWLETT PACKARD CO 132,065 2,103,891 2 .292 .648




HIBERNIACORP 8,600 161,742 165,636 HILLENBRAND INDS INC 2,000 115,938 96 .620 HOME DEPOT INC 47,700 1,895,723 1,142,892 HUBBELL INC 4,500 146,513 158,130 IDEC PHARMACEUTICALS CORP 7,900 330.985 262,043 IKON OFFICE SOLUTIONS INC 6.900 74.596 49,335 INGRAM MICRO INC 9,400 130,468 116,090 INTEL CORP 64,600 1,683,698 1 .005,822 INTERNATIONAL BUSINESS MACHS 5,200 522,219 403,000 INTERNATIONAL GAME TECHNOLOGY 7,300 541,500 554,216 INTERNATIONAL PAPER CO 14,700 497.065 514,059 INTUIT 6,200 280 .207 290,904 ITT IND INC 2,400 104,908 145,656 J P MORGAN CHASE & CO 17,000 370,670 408 .000 JABIL CIRCUIT INC 20.200 549,486 361,984 JDS UNIPHASE CORP 26.600 2,119,478 65,702 JOHNSON & JOHNSON 25,000 1,429 .558 1,342,750 JUNIPER NETWORKS INC 21,800 157,061 148,240 KISHOME 11,800 541,733 505 .630 KERR MCGEE CORP 2,600 115,039 115,180 KINDER MORGAN INC KANS 4,600 230,005 194 .442 KLA TENCOR CORP 13,200 562,189 466,884 KOHLS CORP 33.650 1,882,982 1,882,718 KRAFT FOODS INC 8 .300 267,846 323,119 L 3 COMMUNICATIONS HLDG CORP 4,000 174,907 179,640 LABORATORY CORP AMER HLOGS 6,200 235,692 144,088 LAMAR ADVERTISING CO 8,700 349,408 292,755 LEAR CORP 16,200 659,839 539 .136 LEGG MASON INC 5,100 243,268 247 .554 LEHMAN BROTHERS HLDGS INC 2,900 190,105 154,541 LEXMARK INT'L INC 6.700 411,954 405,350 LIBERTY MEDIA CORP NEW 27,450 409.749 245,403 LILLY ELI & CO 6,000 473,987 381,000 LINEAR TECHNOLOGY CORP 5,900 272,798 151 .748 LOCKHEED MARTIN CORP 7,200 335,280 415.800 LOEWS CORP 26,500 920,982 1,178,190 LOWES COS INC 13,000 488.143 487,500 LSI LOGIC CORP 22,900 285,356 132,133 LUBRIZOL CORP 6,000 172,800 183,000 MARATHON OIL CORP 21,800 526,405 464,122 MARSH & MCLENNAN COS INC 8,500 442,425 392,785 MASCO CORP 27,400 466,334 576,770 MATSUSHITA ELEC iND'L LTD ADR 66,800 894,867 641,280 MATTEL INC 28,100 545,386 538,115 MAXIM INTEGRATED PRODS INC 18,800 903,984 621,152 MAY DEPT STORES CO 48.200 1,094,320 11107,635 MBIAINC 20,550 864,463 901,323 MBNA CORP 117,300 2378556 2211.046 MCDONALDS CORP 62,300 1,263.128 1,001,784 MEDIMMUNE INC 8,700 325 .800 236,379 MEOTRONIC INC 25,100 1,191,083 1,144 .560 MERCK & CO INC 19,200 1,086,714 1,086,912 MERRILL LYNCH& CO INC 14,500 730,606 550 .275 MICHAELS STORES INC 6,600 260,338 206,580 MICROCHIP TECHNOLOGY INC 3,400 94,654 83,130 MICRON TECHNOLOGY INC 73,000 1,076,942 711,020


SCHEDULE OF COMBINED INVESTMENTS December 31 . 2002



MICROSOFT CORP 59,800 3,898,396 3,091,660 MORGAN STANLEY 15,100 755,231 602,792 MURPHY OIL CORP 2,000 81.423 85,700 NATIONAL CITY CORP 13,700 443.458 374,284 NCR CORP NEW 19,300 565,465 458,182 NEW YORK CNINTY BANCORP INC 18,300 527,242 528,504 NEWELL RUBBERMAID INC 4,800 160,113 145.584 NEWS CORP LTD 71,400 1,727,784 1,617,210 NEXTEL COMMUNICATIONS INC 39 .506 454,044 456.294 NOBLE CORPORATION 8,200 319,015 288,230 NOKIACORP 90,700 1,806.424 1,405,850 NORDSTROMINC 33.800 666 .615 641,186 NORTHROP GRUMMAN CORP 2,500 270,733 242,500 NOVA CHEMICALS CORP 16,500 330,389 301,950 NOVELLUS SYS INC 2,100 64,149 58 .968 NVIDIACORP 8,800 217.805 101,288 NVRINC 200 67,519 65,100 OCCIDENTAL PETE CORP 61,000 1,356,868 1,735,450 OLD REP INT'L CORP 23,300 605,856 652,400 ORACLE CORP 37,400 607,171 403,920 OSHKOSH TRUCK CORP 2,400 133,398 147,600 OWENS ILL INC 13,900 205,631 202,662 OXFORD HEALTH PLANS INC 1,900 77,147 69 .255 PANAMSAT CORP NEW 4,961 109,675 72 .629 PEOPLESOFTINC 14,400 337,969 263,520 PEPSI BOTTLING GROUP INC 4,200 105 .090 107,940 PEP51CO INC 8,600 382,519 363,092 PFIZER INC 95,800 3,822,242 2,928,606 PG&ECORP 44,000 488,332 611,600 PHARMACIACORP 28405 1,127,923 1 .187.329 PITNEY BOWES INC 14 .000 425.660 457,240 PNC FIN'L SVCS GROUP INC 3,900 202,510 163,410 POPULARINC 7,000 233,373 236,600 PRECISION CASTPARTS CORP 5,500 104,646 133,375 PROCTER & GAMBLE CO 9,200 758,295 790,648 PUBLIC SVC ENTERPRISE GROUP 19.700 556.552 632,370 QLOGIC CORP 4,464 171 .472 1154 .053 QUALCOMM INC 12,500 475,241 454,875 QUEST DIAGNOSTICS INC 3,000 205,037 170,700 RENT A CTR INC NEW 5.826 278,021 291,009 RIO TINTO PLC 14,000 839,002 1,113,420 ROCKWELL COLLINS INC 6,800 164,763 158,168 ROHM & HAAS CO 20.800 591,700 675,594 ROYAL CARIBBEAN CRUISES LTD 26.700 537,319 445,890 RPM INT'L INC 12 .200 178,823 186,416 RYDER SYS INC 1,800 40,394 40,392 SARA LEE CORP 22,400 496,887 504,224 SBC COMMUNICATIONS INC 8,100 369,569 219 591 SCHERING PLOUGH CORP 78,200 2.242,300 1,736,040 SCHLUMBERGER LTD 4,500 242,039 189,405 SEMPRA ENERGY 5,400 104,470 127,710 SHERWIN WILLIAMS CO 20,300 614,823 573,475 SIGMAALDRICH 3,600 158,642 175,320 SIX CONTINENTS PLC 70,000 643,704 560 .000 SONUS NETWORKS INC 72,100 397,435 72,100 SONY CORP 15,200 655,186 627,912






SPRINT CORP 89.600 1,259,960 989,358 SPX CORP 4,800 303,461 179,760 ST JUDE MED INC 3,800 131,085 150,936 ST PAUL COS INC 32,900 1,233,198 1,120,245 STAPLESINC 3,100 61,692 56,730 STERICYCLE INC 3,000 103,831 97,137 STORAGE TECHNOLOGY CORP 25,600 502,377 548,352 STRYKER CORP 1 .000 56,074 67,120 SUNGARD DATA SYS INC 7,200 194 .255 169,632 SUNOCOINC 6,600 212,927 218,988 SUPERVALUINC 19,900 391,028 328 .549 SYMANTEC CORP 15,515 542,136 628,513 SYNGENTA AG 25,900 322,940 298,368 SYNOPSYSINC 1,800 92,596 83 .070 SYSCO CORP 5,800 153,174 172,782 TAKE TWO INTERACTIVE SOFTWARE 8,600 230,322 202,014 TARGET CORP 15,300 522,490 459,000 TCF FINANCIAL CORP 10,900 265,006 476,221 TECO ENERGY INC 37,600 659.692 581,672 TENET HEALTHCARE CORP 18,200 866,354 298,480 TERADYNEINC 8,200 137,471 106.682 TEVA PHARMACEUTICAL INDS LTD 9,400 309,588 362.934 TEXASINSTRSINC 12,150 197,236 182,371 TEXTRON INC 2,200 78,766 94,578 THERMO ELECTRON CORP 37,700 532,536 758,524 TIDEWATER INC 11,900 355,873 370 .090 TJX COS INC NEW 17,200 329,428 335.744 TORCHMARK INC 39,100 1,464,403 1,428,323 TRAVELERS PPTY CAS CORP NEW 58,294 874,703 854,007 TXU CORP 16,100 547,555 300,748 TYCO INT'L LTD 6,200 268,014 105,896 UNILEVER N V 10,100 557,795 623,271 UNION PAC CORP 17,900 706 .397 1,071,673 UNION PLANTERS CORP 22,800 655,832 641,592 UNITED DEFENSE INDS INC 1,300 30,313 30,290 UNITED STS STL CORP NEW 33,900 593,256 444,768 UNITEDHEALTH GROUP INC 27,600 2,051,454 2.304,600 UNOCALCORP 49,200 1 .644,777 1 .504,536 UNUMPROVIDENT CORP 52,000 1,187,376 912,080 US BANCORP DEL 30,700 679,060 651,454 V F CORP 32,800 1,149 .514 1,182.440 VALERO ENERGY CORP 15,900 530,732 587,346 VARCO INTL INC DEL 11,100 178,668 193,140 VARIAN MED SYS INC 6,600 296,181 327,360 VERITAS SOFTWARE CORP 24,969 1,578,633 390,465 VERIZON COMMUNICATIONS 5.570 166,623 215,837 VIACOM INC 62,500 2,568,438 2 .547,500 VISTEON CORP 24,000 356,667 167040 VQUAFONE GROUP PLC NEW 48,400 1,100,042 877,008 WACHOVIA CORP 2ND NEW 33.600 1,034,950 1 .224,384 WAL MART STORES INC 24,500 1,212,662 1,237,495 WALGREEN CO 29,500 1,023,188 861,105 WASHINGTON FED INC 5,400 134,226 134,190 WASHINGTON MUT INC 31,750 964,427 1,096 .327 WEATHERFORD INT'L LTD 4,800 218,544 191,664 WEBSTER FINL CORP WATERBURY 1,700 67,242 59 .160

THE HEARST FOUNDATION, INC. AND WILLIAM RANDOLPH HEARST FOUNDATION



SCHEDULE OF COMBINED INVESTMENTS December 31 . 2002

VENTURE CAPITAL

BACHOW INVESTMENT PARTNERS 111 1,051,964 3,025,628 2,985,314 CALIFORNIA COMMUNITY FINL 4,769,453 4,236,955 5,477.356 CREDIT SUISSE FIRST BOSTON 3,661,282 1,793,175 1,593,820 INDEPENDENCE VENTURE + TECH 1,970,373 1,794,960 1 .794,960 NEWBURY VENTURES III L P 1,460.421 I .D81,243 889,920 SILVER LAKE PARTNERS LP 3,651,362 2,495,735 5.643,788 TECHNOLOGY CROSSOVER VENT 111 3,911,599 4,017,653 1,746,316 VS+A COMMUNICATIONS PARTNS 111 3,270,474 2,734,166 2,005,235

TOTAL VENTURE CAPITAL 21,179,515 22 .136,709

TOTAL ASSETS 779,521,484 715.403,696




WELLPOINT HEALTH NETWORKS INC 21,400 1,248,571 1,522,824 WELLS FARGO & CO NEW 49,200 2,281,09T 2,306,004 WHIRLPOOL CORP 16,60D 881,585 866,852 WILLIAMS SONOMA INC 3,000 79,585 81,450 WILLIS GROUP HOLDINGS LTD 2,700 78,220 77,409 WINN DIXIE STORES INC 3,500 47,496 53,480 WISCONSIN ENERGY CORP 5.600 142,626 141,120 WYETH 15,100 578,241 564,740 XEROX CORP 175,300 1,229,322 1,411,165 XILINX INC 20 .000 728,208 412,000 XL CAPITAL LTD 2.500 215,325 193,125 XTO ENERGY INC 8,000 182,227 197,600 YAHOOINC 2,200 40,364 35,970 YORK INT*L CORP 3.800 121,399 97,166

TOTAL COMMON STOCK 198,972,696 177,448,432

The Hearst Foundation, Inc was founded in 1945 by philanthropist William Randolph Hearst In 1943, Mr Hearst established the California Charities Foundation That name was changed to the William Randolph Hearst Foundation soon after Mr Hearst's death in 1951 Both Foundations are independent private philanthropies operating separately from The Hearst Corporation

The two Foundations are administered out of the headquarters in New York City, which reviews all proposals from organizations located east of the Mississippi River Requests from organizations located west of the Mississippi are reviewed by our office in San Francisco .

The charitable goals of the two Foundations are essentially the same, and reflect the philanthropic interests of William Randolph Hearst - Education, Health, Social Service and Culture Within these four areas, the Foundations assist institutions in providing opportunities to underserved and underrepresented populations. Specific guidelines for each of these funding categories have been established by the Directors of the Hearst Foundations, and are described in the following pages

We hope that these guidelines are helpful in determining whether your funding needs fall within the Hearst Foundations' philanthropic priorities Because the charitable goals of the two Foundations are the same, only one proposal need be submitted for review

Hearst Fund I Proposed investment and payout

policies 2 Fund utilization - estimate of the

anticipated scholarship dollars available through the Fund, including the projected number and dollar amounts of scholarships to be awarded

V

The Hearst Foundations support undergraduate education through the establishment of endowed scholarships at private liberal arts colleges and universities In addition, similar support is provided for professional study in teaching, engineering, mathematics, science and the health care professions, at the undergraduate and graduate levels A limited number of proposals is also accepted from independent, K-12 schools with outstanding academic programs and demonstrated track records of outreach to economically disadvantaged students As a general policy, grants are not made to publicly funded educational institutions However, private organizations or coalitions seeking to improve and broaden access to public education may be considered for grant support

If you are submitting a request to establish a Hearst Endowed Scholarship Fund or add to an existing Hearst Fund, please provide the following information in addition to the information requested in the General Proposal Requirements (see p BY

Proposal Narrative 1 Recent accomplishments, current

activities, future goals 2 Governance and accreditation 3 Purpose and anticipated impact of

a Hearst Scholarship Fund

3 Proposed selection process for scholarship recipients (must reside in the United States)

Institutional Financial Information 1 . Budget

Total budget for the current and prior fiscal years

- Explanation of any deficits 2 Endowment - Total endowment " Investment and payout policies " Total endowment designated for financial aid

" Endowment per student - total endowment divided by total number of students

3 Financial Aid " Amount of aid provided by institution, and percent of total budget

" Sources of aid, including public and private, loans and grants, etc

" Average aid package per student 4 Student expenses " Tuition * Room and board

Students I Demographics " Total enrollment " Number of undergraduate and graduate students

" Number of full-time and part-time students

o Number of male and female students

" The percentage of unreimbursable chanty care your organization provides

" The degree to which risk factors play a part in the community you serve, e g infant mortality rates, teenage pregnancy, substance abuse, domestic violence, incidence of disease, above

" Total minority student enrollment, defined as African American, Asian American, Hispanic American and Native American, with enrollment breakdown of those groups

" Percentage of students from low-income families (with definition of institutional criteria for low-income) Percentage of first-generation students

" Percentage of non-traditional students (defined as age 25 and older)

2 Retention and Graduation " Overall freshman-to-sophomore year retention rate

" overall four, five and six year graduation rates

" Retention and graduation rates for minorities, as defined above

" Average number of years to graduate " Description of any programs or services designed to improve and maintain retention and graduation rates

Faculty I Demographics " Total number " Number of full-time and part-time faculty

" Number of male and female faculty " Number of minority faculty, as defined

The Hearst Foundations are committed to supporting programs that seek to improve and assure access to quality health care for underserved populations in both urban and rural areas Grants are awarded primarily to leading regional hospitals, medical centers and specialized medical institutions, such as children's and women's hospitals The Foundations support direct medical services that promote wellness, prevention and rehabilitation Pnmary areas of interest include cancer, perinatology, pediatrics, women's health, and healthcare for the elderly and the disabled A small number of grants are made to support medical research, primarily in the areas of cancer and pediatric neuromotor disabilities . In addition, the Foundations have established several endowments at leading medical research institutions to provide young scientific investigators with research fellowships

If you are submitting a request in the Health category, please include the following information, where appropinate, in addition to the General Proposal Requirements (see p 8)

The percentage of care paid for by Medicaid, Medicare and private insurance

" Number of faculty with terminal degrees environmental factors, geographic barriers, " Student Faculty ratio lack of access to health care, poverty

rates, unemployment, homelessness, etc in addition, please include a profile or fact sheet

The HearA Foundations support human service agencies that foster effective solutions to social and economic problems Preference is given to we(I-established organizations that provide comprehensive, direct-service programs that share one or more of the following goals

" Helping individuals move from welfare dependence to economic independence

" Strengthening families and ensuring healthy childhood development

" Addressing the frequently interrelated problems of homelessness, drug addiction, and mental illness

" Fostering youth leadership " Increasing access to affordable housing

" Creating socio-economic opportunities for women and girls

" Promoting literacy

" Capacity building for social service organizations

While the Foundations tend to favor organizations that work with large constituencies, we recognize that the demographics and service-deltvery infrastructures of rural America are significantly different from those of the nation's urban and suburban regions Therefore, those factors are considered when the Foundations review requests from rural organizations

If you are submitting a request in the Social Service category, please include the information requested in the General Proposal Requirements (see p 8)

The Hearst Foundations support programs that enrich the lives of young people by engaging ther in cultural activities, primarily through arts-in-education progra

' ms Grants are awarded to major institutions and community organizations in the art

and sciences that address the lack of arts programming in pre-kindergarten through 12th grade curricula by providing comprehensive, on-s(te and/or outreach education activities

If you are submitting a request for an arts-in-education program, please describe the following program components, in addition to fulfilling the General Proposal Requirements (see p 8)

" Number of students (with grade levels), teachers, artists and schools

" Teacher training materials and/or workshops

*Teaching artist residencies Integration of activities into school curricula

The Foundations do not have formal application forms We prefer that applicants submit a one-page executive summary accompanied by a proposal narrative and attachments, as described below The proposal narrative should not exceed five pages In addition to these general requirements, please be sure to provide the information requested in the specific category requirements relevant to your organization

1 . Narrative A Executive Summary Briefly summarize the key points of your proposal, describe the purpose and relevance of your request, and indicate the dollar amount of the grant that you are seeking

B Organizational History and Capacity Tell us about the organization's history, mission, governing structure, and its principal activities and population served

C Statement of Need Please identify the needs that the program addresses, and how those needs coincide with the philanthropic _goals of the Foundations Substantiate your case with pertinent data, including detailed demographic information about the populations you seek to assist, where appropriate

D Program Description identify the program's goals and objectives, activities, numbers served, facilities, timeline and staffing plan, and anticipated results

E Evaluation Indicate how program outcomes and effectiveness are measured, and include findings from previous evaluation efforts, if available

F Conclusion Summarize the Proposal's main points and describe the Purpose, relevance and amount of the grant request

11 . Attachments The following supporting documentation is required to ensure a complete and fair review of your grant application

Current IRS documentation certifying that the applicant is tax-exempt under Section 501(c)(3) of the Internal Revenue Code and not a private foundation under Section 509(a) The applicant should be listed in the current IRS Cumulative List of Tax-Exempt Organizations (Publication 78) Names and primary affiliations of officers and board members Most recent audited financial statements -if you are presenting a qualified audit, please explain corrective action Organizational operating budget for the previous and current fiscal years

" Program budget for the previous and current fiscal years, if applicable

" List of foundation and corporate grants for the previous and current fiscal years, for both the organization and program or project, including the dollar amounts of each grant

" Current market value of endowment, if applicable

, Most recent annual report

Ill . Supplemental Materials Supplemental materials should be held to a minimum necessary to convey a basic understand-ing of the organization Video tapes should not be sent unless specifically requested

" Loans and Program-related investments " Multi-year grants " Start-up or seed funding- " Equipment of any kind, including computers and transportation " Publishing projects " Radio, film, television or other media-related projects

" Conferences, workshops or seminars " Public policy research " Special events, tickets, tables or advertising for fundraising events

" The Foundations do not provide funding for building projects (e 9 new construction, renovation, relocation, etc)

" Proposals submitted by fax or e-mail will not be accepted

" Only one proposal from an organization will be reviewed within a calendar year Proposals from institutions with more than one department (e 9 universities, medical centers, etc) should be coordinated through the appropriate central office

" A site visit to the organization is required prior to Board review, and office visits to the Foundations are generally discouraged

" Grantee organizations must wait a minimum of three years from their grant award date before the Foundations will consider another request

I/

The Foundations provide the following kinds of support endowments, funding for specific programs or projects, a limited number of challenge grants, and general operating support

Except in rare cases, the following restrictions apply

" Grant funds must be used for charitable purposes exclusively within the United States and its territories

" Private sector organizations are favored over those financed through taxation

" Organizations serving larger geographical areas are favored over those of a neighborhood, grassroots or community-based nature

In addition, the Foundations will Do consider requests for

A generally

0 Grants to individuals

Two operating programs have been administered and funded by the William Randolph Hearst Foundation since the 1960's

United States Senate Youth Program This program brings two high school students from each state to Washington, D C for one week to observe the federal government in action and meet key officials Students visit Capitol Hill, the White House, State Department, Supreme Court and Pentagon and tour Washington landmarks Delegates must be elected student officers or school representatives, selected by education officials in each state . Each student receives a college scholarship award

Contact Rita A Almon . Program Director William Randolph Hearst Foundation 90 New Montgomery Street, Suite 1212 San Francisco, California 94105 Telephone. (415) 543-4057 Fax (415) 243-0760

Journalism Awards Program This national program is designed to encourage excellence in journalism education Prizes are awarded in writing, photography, television and radio news to undergraduates at accredited schools of journalism School-year competitions are judged by panels of media professionals Finalists compete at national championships in San Francisco Winning students and their schools earn cash prizes and special medallions Students may submit entries oD-Ly through their schools of journalism For information contact the chair of your journalism department or the program director listed below

Contact: Jan C Watten, Program Director William Randolph Hearst Foundation 90 Montgomery Street, Suite 1212 San Francisco, California 94105 Telephone (415) 543-6033 Fax (415) 243-0760

Form8868 Application for Extension of Time to File an

(December 2000) Exempt Organization Return OW No 1545 1709 Departrrient of the 7reasury internal Revenue Service File a separate application for each return " If you are filing for an Automatic 3-Month Extension, complete only Part I and check this box " If you are filing for an Additional (not automatic) 3-Month Extension, complete only Part 11 (on page 2 of this form) Note Do not complete Part fl unless you have already been granted an automatic 3-month extension on a previously riled Forni 8868

Ltart 1-j Automatic 3-Month Extension of Time - Only submit original (no copies needed) Note Form 990- r corporations requesting an automatic 6-month extension - check this box and complete Part I only

All other cor rations (including Form 990 C filers) must use Form 7004 to request an extension of time to file income tax returns Partnerships, REMICs an7torusts must use Form 8736 to request an extension of time to file Form 1065, 1066, or 1041

Name of Exempt Organization Employer idendfic .t.on number Type or rint William Randolph Hearst Foundation 13-6019226 Ile by the Number, street and room or suite number If a P 0 box, see insirmlions

due date for filing your 888 Seventh Ave , #45th Floor return See Oty tovivin or Post office For a foreign address see instructions ~tate ZIP cod. instructions

New York NY 10106-0057 Check type of return to be filed (file a separate application for each return)

Form 990 Form 990 T (corporation) Form 4720 Form 990 BIL Form 990 T (Section 401 (a) or 408(a) trust) Form 5227 Form 990 EZ Form 990 T (trust other than above) Form 6069

X Form 990 PF I Form 1041 A N Form 8870 0 If the organization does not have an office or place of business in the United States, check this box lx~

ix~ M calendar year 20 02 or llx~ tax year beginning _, 20 and ending .20

----[TFinal return 2 If this tax year is for less than 12 months, check reason Initial return E] Change in accounting period

3a If this application is for Form 990 BIL, 990 PF, 990-T, 4720, or 6069, enter the tentative tax, less any nonrefundable credits See instructions $ 0

b If this application is for Form 990 PF or 990 T, enter any refundable credits and estimated tax payments made Include any prior year overpayment allowed as a credit S 398,032

c Balance Due Subtract line 3b from line 3a "n""dWur pa n' th 'h s 0 m

or, if required, deposit with FTO coupon or, if required, by using EFTPS (Electronic deral CTPZyment'Sysfer~) See instructions 0

Signature and Verification

Under penalties of pvjuryu~~fe that I have examined this return incluidrig accompanying schedules, and statements and to the best of my krimledge and belief it is true complete wdthat I asa nz .~ to prepare this form

::;Z~ Title i" Ceibi 711~ Ile 4 s1rinaluie 6: 1-f e , 14<, 'r li- ~~/

,W(12'2000) BAA For Form Act Notice, see

FIFZ0501 07/25/02

If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) _ If this is for the whole group, check this box x` 11 If it is for part of the group, check this box and attach a list with the names and EINs of all members the extension will cover

I I request an automatic 3 month (6-month, for 990-T corporation) extension of time until Aug 15 .20 03 . to file the exempt organization return for the organization named above The extension is for the organization's return for

correct and

-------------------------------------------------------------------t-di~~pheat fiR 6 111 r Form 990 BL, 990 PF, 990-T . 4720, or 6069, enter the tentative tax, less any

credits See Instructions 119, 182

Form 990 PF, 990 T. 4720, or 6069, enter any refundable credits and estimated tax ~ any prior year overpayment allowed as a credit and any amount paid previousfy with

la If this ar ,,,paymeni

c Balance this form, or, if required, deposit with jbtof~t line 8b from line 8a if re6uired bv usino EFTPS 0

We have not approved this application After considering the reasons stated in item 7, we cannot gr, cv-, ENSION APPROVED time to file We are not granting a I Jtday grace period

We cannot consider this application because it was filed after the due date of the return for which ar SEP 0 42003 Other

Uji)AINEISKOPF, FIELD DIRECTCP" By SUBV=01i PROCESSMG-OGIDEN

Alternate Mailing Address - Enter the address if you want the copy of this application for an additional 3 m address different than the one entered above

Name

Type or Number and street (include suite room a r apartment numbi.r) or a P 0 box number

print

I

City or town Produce or state, and country (including postal or ZIP code)

SAA FIFZ0502 10104102 Form 8868 (Rev 12 2000)

~-8 000) Williapi Ran olph Hearst Foundation 13-6019226 it~ I Fc rm ~886 12fIJ2 d a If vou -Month Extension, complete only Part 11 and check this box a if you are filing for an Additional (not automatic) 3

_'yr_;,~Omy complete Part Itifyou have already been grantedan automatic 3-month extension on aPreviously filed ,rorm, 8868

if ou are filing for an Automatic 3-Month Extension, complete only Part I (on page 1) Mus File Onipinal and One C Part 11 Additional (not automatic) 3-Month Extension of Time - opy.

Name of Exempt OrganiZation Employer identification number Type or

c7_ _~h print am a,.!o Hearst Foundation 13-GO19226 e, te number If a P 0 box see instructions

d For IRS Use Only

File by (he extended due date for 888 Seventh Ave , #45th Floor ~e'inlme .e Cily town or post office state and ZIP code For a foreign address see instructions instructions

New York NY 10106-0057 Check type of return to be filed (file a separate application for each return)

H Forrn 990 2 Form 990 EZ Form 990 T (Section 401 (a) or 408(a) trust) Form 1041 A Form 5227 Form 8870 Form990131- IXIForm9 HForm 990 T (trust other than above HForm 4720 H Form 606q

Stop Do not complete Part 11 if you were not already granted an automatic 3-month extension on a previously filed Form 8868 " if the organization does not have an office or place of business in the United State% . check this box " If this is for a Group Return, enter the organizations four digit Group Exemption Number (GEN) If this is for the

whole group check this box If it is part of the group, check this box and attach a list with the names and EINs of all members the extension is for 4 1 request an additional 3 month extension of time until Nov 1 7 20 03 5 For calendar year 2002 , or other tax year beginning

- - - - - - 0-5nd ending . . . . . . . 20

6 if this tax year IS for less than 12 months, check reason Initial return 11 Final return Change In accounting period 7 State in detail why you need the extension A d d i t 1 o n a I -t-1 M e i s _n e e d e d _ t o c ~m pj tt~e . . . . . . . . . . . . . . . .

Investment -1 nformat 1 on -necessary to preRare -a_CcLrn_Pl(j_tf jjn~jj.Ccurate -re turn - - - - - - - - -

$ 398,032

Signature and Verification Under Pe,

pall"" 01 pelli:~ tfat I Inave examined this form including accon,panying schedules anxi statements and to ffie best of my knowledge and belief it is true

corfect and 1.11. utinarized to prepare this form

'ile Date Signature

Notic,6 to Applicant - To be Cofnipleted by the IRS We fiave approved this application Please attach Iris form to the organiZatior S rtLr, I We have not approved this application However, we have granted a 10 day grace period from the later of the date shown below or the due date of the organization Is return (including any prior extensions) This grace period is considered to be a valid elections otherwise required to be made on a timely filed return Please attach this form to the orgai

Documents

Return of Private Foundation - Form 990-PF ~