Tendering Peoplesoft Shares

To vote FOR the Oracle acquisition shareholders must tender their Peoplesoft shares by Friday, July 18, 2003 . If more than 50% of PeopleSoft shares are tendered by the deadline and other contingencies of the offer are met, then all shares will be exchanged for $19.50 in cash.

Stockholders do NOT have the option to exchange only a portion of their shares.

The Peoplesoft employee stock option plan states that any acquiring company will assume the current plan or substitute a comparable plan, or else all options vest immediately.

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2003 Tax Law Changes

Is there anything more boring than reading about all of these tax law changes? But the 2003 Tax Act significantly reduces income taxes and makes planning more complicated than before. For an summary of the changes go to www.sterling-futures.com/TaxActSummary.pdf

For a discussion of the impact of the changes go to www.psinvest.com/research/Jobs_Growth_Tax_Relief_Act_of_2003.pdf

The 2003 Tax Act reduces the appeal of 529 College Savings Plans and some tax deferral accounts. Deductible retirement plans still make sense, but the non-deductible plans, including 529 College Plans and Coverdell IRAs are less desirable and not automatically the best choices anymore.

Market Results as of June 30, 2003

For the first time in three years investors have reason to cheer. Here is a look at how markets have performed lately.

Investment Ideas

ICON Covered Call Fund

There is a new mutual fund with a twist: ICON Covered Call Fund. The fund invests in US large-cap stocks and sells call options against its stock positions to generate income from the portfolio. We expect the fund to be less volatile than most US large-cap stock funds, while maintaining equity exposure.

Outlook for Ginnie Mae Bonds

Ginnie Mae securities are pools of Government National Mortgage Association mortgages packaged for investors. Ginnie Maes have been a good investment as mortgage rates have declined. Over the last three years they have returned 9% per year, of which 6% has been income from the investments and 3% has been capital gain as mortgage rates have declined.

If mortgage rates increase the Ginnie Mae investors will be locked in to income rates below 6%. Owners would see their existing investments lose value as new securities are issued at better rates.

Check out What's New for more details...