Worcester Polytechnic Institute Presentation to the Advisory Boards October 13, 2006

Worcester Polytechnic Institute New Management Team

Worcester Polytechnic Institute Vision 2015 Students and Student Life  Undergraduate enrollment of 3,400  Graduate enrollment of 1,600  Increase percentage of undergraduates living on campus to 70%  New and renovated residence facilities  Newly-constructed sports and recreation center  Indoor garage with parking for 600 cars

Worcester Polytechnic Institute Vision 2015 Academic  Research funding of $40 million  Stronger core competencies in engineering, science, technology, and management, with special strengths and leadership in such areas as: Life sciences and bioengineering Entrepreneurship and business development Media, technology, and communication Environmental engineering and science  BA programs in selected fields within the humanities, arts, and social sciences  School of Management with a full-time, one-year, MBA Program and separate building

Worcester Polytechnic Institute Vision 2015 Academic (continued)  WPI Gateway Park, a life-science and technology-based development with: WPI life science (whole) departments Bioengineering Institute offices and programs Bioengineering-related corporate tenants WPI corporate & professional education division WPI graduate housing WPI-based programs in education, training, technology commercialization, and business incubation  An industry leader in corporate and professional education  Renovation and expansion of several academic buildings  Top 50 national research university

Worcester Polytechnic Institute Vision 2015 Financial  Completion of major comprehensive campaign  Endowment of $750 million  Tuition discount factor of 35%

Worcester Polytechnic Institute FY07 Expenditure Budget Salaries & benefits $61.7 M 58.8% Equipment, supplies, etc M 21.9% Debt service & depreciation 11.8 M 11.2% Utilities 5.6 M 5.3% Contingency 1.5 M 1.4% Gateway Park 1.4 M 1.4% Total expense $104.9 M 100%

Worcester Polytechnic Institute FY07 Revenue Budget Net tuition & fees $72.9 M 69.6% Auxiliary operations 12.5 M 11.9% Endowment draw 9.8 M 9.3% & investment income Extended education 3.4 M 3.2% Indirect cost recovery 3.0 M 2.9% Unrestricted gifts 2.2 M 2.1% Other revenue 1.1 M 1.0% Total revenue$104.9 M 100%

Worcester Polytechnic Institute

Budgeted Expense by Area

Worcester Polytechnic Institute Vision 2015 Reputation  Project-enriched, world-class education preparing students for achievement, leadership, and fulfillment  Excellent research focused on important problems and innovative technologies and science  Driver of technology commercialization  Culture supportive of women faculty and students  Ethical, diverse, principled, stimulating community  Emphasis on civic responsibility and leadership

Worcester Polytechnic Institute Key Performance Indicators

Worcester Polytechnic Institute Student Demand  Number of applications reached an all-time high for Fall 2006.

Worcester Polytechnic Institute Student Quality  Strong average combined SAT scores maintained during enrollment growth.

Worcester Polytechnic Institute Student Quality  High class rank (% in top 5 th of class) maintained during enrollment growth.

Worcester Polytechnic Institute Tuition Discount  Impact of new enrollment management strategies driving decline in tuition discounting while growing enrollment.

Worcester Polytechnic Institute Fundraising Results (In Millions)  Consistent fundraising history.

Worcester Polytechnic Institute Research Award Volume (In Millions)  Level of research growing with investments in faculty and Gateway Park development.

Worcester Polytechnic Institute Change in Net Assets from Operating Activities (In Thousands)  Operations have returned to positive results. FY2002 FY2003 FY2005 FY2006 FY2004

Worcester Polytechnic Institute Expendable Resources (In Millions)  Balance sheet continues to strengthen.

Worcester Polytechnic Institute Endowment-Market Value History (In Millions)  Market value of endowment reached $354 million as of June 30, 2006.

Worcester Polytechnic Institute Endowment Ten-Year Return History