Modelitec TM Experiment Results 5/7/2005 – 4/3/2006

Tested Product ■Comprehensive, advanced and automated weekly stock picking strategies running on commercial platform □Statistically analyzed and constantly optimized with current data □Over 10 years back-tested using Monte-Carlo simulation □Strategy and stock diversification ■Operating on systematically selected and constantly updated, high-volume US stocks group ■Customizable market analysis strategy ■Advanced money management techniques ■Promotional web-based virtual portfolio manager

Tested Product (cont’d) ■Single stock analysis: ■Portfolio Simulation:

Tested Product (cont’d) ■Web-based Tracking Portfolio:

Experiment Results ■Experiment period: 5/7/05-4/3/06 (35 weeks) ■The experiment was conducted on a virtual portfolio of $500,000 ■The portfolio consisted of equity (selection from 350 stocks) and hedging, up to 5% of the portfolio value. ■The portfolio was hedged using QQQQ put options (“at the money”) ■Buy & Sell prices were derived from real-time trading ■All stocks in the portfolio had average daily volume above $5 million.

Statistics ■Portfolio Value: $578,860; Gain: 15.8% ■Equity Gain: 21.1% ■Options Gain: -4.8% ■Commissions: -0.5% ■Trades: 114, Winning: 67 (59%) ■Average Trade: □Winning: 11.7% □Losing: -5% □All: 4.8% ■Sharpe Ratio (Weekly): 1.52

Comparison ■Index Performance: IndexGain (from 5/7) Gain (from 18/7) NASDAQ %7% NASDAQ Composite 12.2%7% S&P %4.8% Russell %11.3% Portfolio15.8%15.2%

Conclusions ■The system requires 2-3 weeks “warm up” period ■The portfolio beat NASDAQ100 by 18% ■In the 33 weeks since 18/7/2005 the portfolio bypassed NASDAQ100 by 117% ■In comparison with the computerized systems, 2- 3% of the Portfolio were lost due to slippage. ■The results match the expected range ■The system is scalable without major changes to manage over $10 million.

Portfolio Value Line