Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The portfolio characteristics shown relate to the Formula Investing Composite. Not every client's account will have these exact characteristics. The actual characteristics with respect to any particular client account will vary based on a number of factors including but not limited to: (i) the size of the account; (ii) investment restrictions applicable to the account, if any; and (iii) market exigencies at the time of investment. Formula Investing, LLC reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the investment decisions we make in the future will be profitable or will equal current investment performance.

Formula Investing, LLC is a registered investment advisor. More information about the advisor including its investment strategies and objectives can be obtained by visiting www.formulainvesting.com.

The investment objective of the Formula Composite (the “Composite”) is long-term capital appreciation. The Composite contains fully discretionary separately managed accounts and for comparison purposes is measured against the S&P 500 Index with dividends. The volatility (beta) of the Composite may be greater or less than its respective benchmark. The S&P 500 Total Return Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices. It is not possible to invest in this index.

* Returns are presented net of investment advisory fees and include the reinvestment of all income. For the period May 1, 2009 – June 30, 2010, the composite includes accounts that received a temporary waiver of the advisory fee. Actual performance results will vary from this example. Net returns may be reduced by additional fees (outside of investment advisory fees) and transaction costs that may be incurred in the management of the account.

The fee schedule for Formula Investing’s investment advisory services is 1.00% of assets under management. This fee includes all trading costs and the advisory fee. Actual investment advisory fees incurred by clients may vary. A complete description of Formula Investing’s fee schedule can be found under Part II of its FORM-ADV which is available upon request.