1. MTS: leading environmental groups, governments & companies Using high leverage activities to achieve 90% sustainable products market penetration by 2015: - Capital markets - Education - Advertising - Standards A nonprofit public charity

2. Purpose of Today’s Meeting Go over key issues in Capital Markets Partnership Strategic Plan for Mayor Daley to stop dangerous climate change before it’s irreversible. The Plan requests Mayor Daley’s leadership to organize the Partnership to secure higher ratings for sustainable technologies to stop dangerous climate change. The first step would be to recruit several other elected officials & financial institutions. The following slides summarize the Plan, benefits & rationale for activities deserving higher ratings by Fitch, Moody’s & S&P: green buildings & power, sustainable products, clean vehicles & mass transit.

3. Capital Markets Partnership Strategic Plan To Stop Dangerous Climate Change We Only Have 5-10 yrs. to Eliminate 60% of Global Pollution or else climate change will be irreversible & catastrophic global damages will ensue (NASA & UK 2006). The Capital Markets Are the Best Solution Due To: - Substantial & unprecedented amount of global pollution reduction required - Markets' speed and extent covering greatest pollution amount - Successful precedent - Substantial limits of regulatory efforts - White House support of such market mechanisms

4. Factors for Higher Ratings Stopping Dangerous Climate Change Economic Risks are Real & Severe. Insurance suffered $40B in climate damages in 2004, $80B in 2005, is expecting further increases, and will end private insurance if these damages remain unchecked (Reinsurance Risk Officers & Lloyds 2006). Agencies are Legally Responsible to Reflect These Substantial Risks (SEC, Investment Advisors Act, & UN) There is no Discrimination & Devaluation - Existing market differentiators of value are followed. - Property not achieving higher ratings are not devalued. - Any property can be made to be certified to higher rated performance based consensus standards: green bdgs., green power, sustainable products, clean vehicles & mass transit. - Chicago & many governments have adopted them. - Agencies require consensus stds. to limit risk & uncertainty.

5. Electricity Transportation Heating Allocation of 6.2 GtC/yr Electricity: 40% Fuels used directly: 60% 60% of Global Carbon Reduction Needed in 5-10 yrs to Stop Dangerous & Irreversible Climate Change Fossil fuel use in 2000 (IEA) Allocation of 6.2 GtC/yr Higher ratings for green buildings & power, sustainable products, clean vehicles & mass transit, will reduce more than the needed 3.7GtC/yr in 5-10 yrs.

6. Successful Precedent Phase 1 & Property Condition Assessment (PCA) Resulted in 95% US Market Penetration in 3-5 Yrs. Phase 1 was rated higher & PCA was mandated by Rating Agencies for all mortgage backed securities Phase 1 Growth PCA Growth LEED Green Building Growth

7. Benefits of Higher Ratings for Green Buildings & Power, Sustainable Products, Clean Vehicles & Mass Transit Stop substantial & devastating global damages & runaway irreversible climate change Protect/enhance human health, environment & social equity Ensure stability & prosperity of global capital markets & economy Ensure viability of private insurance Offset annually rising energy costs for foreseeable future providing energy security Implement much needed efficiencies in technology

8. Challenges & Solution Politics. Gore’s movie is very political. White House opposes regulation. Bipartisan & business leadership vacuum. Denial & Lack of Market Mechanisms. Not enough viable choices for consumers. Many feel powerless & thus shut out the urgency & need to act. Very Effective Disinformation. Energy industry is still paying about 20 perceived to be reputable scientists & journalists to misrepresent the facts. Intimidation/Fear. Many leading scientists including with governments, know we only have 5-10 yrs. to solve the problem but are intimidated & afraid to speak out. Legislation can help but we can’t pin our hopes on it. Solution & Benefits to Chicago. The public wants leaders to tell them about the problem, solutions, & how working together we can solve it. Mayor Daley’s leadership is needed because the business community alone will not solve this problem. This activity would provide a higher rating for any city bonding for renewable energy or energy efficiency roughly saving the City $2- 5M/yr. in interest for a $500M bond. Chicago could host the first meeting of the Capital Markets Partnership and showcase it’s sustainable leadership & achievements.

9. Management Team John Howard, Attorney, Vinson & Elkins, past White House Environmental Executive Don Reed, CFA, Ecos Corp., MTS Economic Benefits Committee Chair Dan Winters, LEED AP, President, Evolution Partners, Real Estate Finance Expert Leanne Tobias, President, Malachite LLC, Real Estate Investment Advisors, formerly with Mortgage Bankers Association David Springer, Attorney & Government Affairs Expert, Venable Paul Watchman. Attorney, Freshfields, author of UN Study concluding that laws of countries with capital markets require reflection of climate risk Chris Walker, Attorney, Swiss Re & The Climate Group Rob Watson, Senior Scientist, MBA, Natural Resources Defense Council. Cofounder of LEED and USGBC Director Chris Dobrzanski, Sr VP, Citizens Bank of Canada, Vancity Bank Matt Petersen, CEO, Global Green, MTS Director & Partner in Enterprise Foundation $550m green building fund Jim Dougherty, Attorney, Sierra Club

10. Economic Benefits Green Buildings Are Growing at a 70% Rate and are 5% of New Construction Market. Turner Construction's 2005 Green Building Construction Survey of 719 building executives shows: - 93% expect their green building workload to rise - 51% expect substantial increases

11. Multiple environmental, social & economic benefits over global supply chain. Economic benefits equal or exceed green buildings. Maximum Credit for Certified Products With: 100% reduction of 1000 pollutants 100% Green-e power use 100% postconsumer recycled content 100% biobased organic content w/BMPs 100% reuse/reclamation Social equity requirements SMART© Sustainable Building Product Standards Adopted by California, Dallas & Chicago

12. Phenomenal USGBC Member Growth We Gave The Market What It Wanted: consensus green building standard

13. Who’s Driving Growth? Everyone

14. LEED Green Building US Distribution

15. GREEN BUILDING FACTS HIGHER REVENUE Green building rents are in the upper quartile of Class A peer group when compared across different markets and varying time frames Lease-up rates significantly exceed pro-forma expectations in numerous case studies –At $30.00 NNN office lease rates, one month of lost revenue due to slower lease-up = ($2.50/SF) LOWER OPERATING EXPENSES 67% of LEED-certified buildings to date received credit for a 30% increase in energy efficiency –At $2.85/SF avg. for utilities, a 30% reduction = $0.86/SF Operations and maintenance costs consistently in lower quartile when compared against BOMA peer group Every $1.00/SF in increased revenue and/or reduced operating expenses equals $12.50/SF in property value at an 8.0% cap rate LOWER OCCUPANCY COSTS Green building tenants achieve superior metrics on their total occupancy costs –Recruiting, retention, absenteeism / inner-office technological churn / employee personal comfort / general productivity / insurance and medical / risk

16. Evolution Partners World-class Green private equity professionals & thought leaders Solely focused on acquiring Green buildings in select markets EP develops preferred lending relationship with Green-focused banking groups Rating Agencies Address environmentally responsible projects Assets deemed superior risk-adjusted investments RESULT: Lower cost of debt / equity capital for Green projects Wells Fargo Develops Green financial instruments Lowers lending rates / creates Green mortgage backed securities (MBS and CMBS) Becomes Green Bank of Choice by addressing the demands of consumers, developers & investors State of California has taken a global leadership role by launching the Green Wave Initiative & LEED CalPERS is stimulating global private markets toward environmentally sound, risk adjusted investment opportunities when considering Real Estate investment allocations By approving allocations to Green Real Estate Private Equity, CalPERS is the catalyst for far-reaching impacts: State of CA continues leadership in environmental stewardship & moves forward the objectives of Executive Order s-20-04 Higher risk-adjusted rates of return Reduction in state-wide energy usage and infrastructure Reduction in water use and infrastructure Lower raw material usage & landfill construction waste Reduction in auto-based transportation & urban sprawl Increased investor capital flow to meet residential & commercial consumer demand Creates markets for emerging energy technologies / stimulates investment in alternative energy Social Investors $2.2 trillion in US investments * Green MBS and Green CMBS become preferred holdings RESULT: Increasing the demand for Green assets * Source: Social Investment Forum, 2003 LEED Investment Funds

17. Retail Green Buildings/MBS

18. Green Mortgage Backed Securities (MBS) Can Cause Certification of Thousands of Green Buildings, Pool Their Mortgages, Obtain Higher Rating & Sell it as a Security. Everyone makes more $$. Successful Precedent: Phase I & Property Condition Assessment Resulted in 95% Market Penetration in 3-5 Yrs. Substantial value is created for entire building industry.

19. Green MBS Added Value Buildings owners/developers achieve lower costs, higher asset value, more productive work environments & possibly a lower cost of capital via mortgage rate. Investment bankers achieve value through profit & differentiation surrounding structure & distribution of Green MBS pool. Ratings agencies reduce risks of Green MBS pool & receive commission. Investors purchase Green MBS backed by assets that are worth more, viewed as less risky, & more closely aligned with investor goals of purchasing sustainable assets.

20. Hines Peachtree Symphony Center 41 story Atlanta office tower with retail store, supermarket & art gallery; registered LEED project

21. Economic Benefits 100,000 ft² LEED™ building saves* $80,000/yr in energy costs $93,000 through 186 tons of waste reduction $44,000/yr for avoided wastewater treatment & water conservation $53,368/yr from energy efficient appliances & lighting * about 30-50% in operating costs, MTS Economic Benefits Standard

22. LEED EB CERTIFIED National Geographic Society Headquarters, Wash., DC The Society added $16M in value from this LEED certification from a higher appraised value, raising tenant rents, lower operating costs, increased credit rating from Moody’s, & lower interest rates on large loans secured to the building. Presentation at 2003 Congressional Green Building Luncheon by Chris Liedel, CFO, National Geographic Society.

23. Economic Benefits Increased Building Valuation Increased Building Valuation Using the income-capitalization method: asset value = net operating income (NOI) divided by the capitalization rate. If the cap rate is 7%, divide the reduction in annual operating costs by 7% to calculate the increase in the building’s asset value.Using the income-capitalization method: asset value = net operating income (NOI) divided by the capitalization rate. If the cap rate is 7%, divide the reduction in annual operating costs by 7% to calculate the increase in the building’s asset value. Green building cost/investment is 20 year net benefit of $50 to $66/ft ² based on 33 green buildings (USGBC/Capital-E 2003), and 10% net dollar savings for the total investment from 300 Johnson Controls Green Buildings (Leonardo Academy 2001).Green building cost/investment is 20 year net benefit of $50 to $66/ft ² based on 33 green buildings (USGBC/Capital-E 2003), and 10% net dollar savings for the total investment from 300 Johnson Controls Green Buildings (Leonardo Academy 2001).

24. Economic Benefits Projected 70% US Commercial Green Building Market Penetration * Projected 70% US Commercial Green Building Market Penetration * Energy Savings & Daylighting: $36 Billion/yr Construction Waste Reduction: $6.7 B/yr Water Pollution Savings from Water Conservation: $20 B/yr Energy Savings from appliances & Lighting: $24 B/yr Added Value from Increased Occupant Productivity, Energy Savings & Daylighting: $36 Billion/yr Construction Waste Reduction: $6.7 B/yr Water Pollution Savings from Water Conservation: $20 B/yr Energy Savings from appliances & Lighting: $24 B/yr Added Value from Increased Occupant Productivity, IAQ & Reduced Absenteeism: $632 B/yr Emission Reductions’ Market Value: $ 1.1 B/yr Total $720 billion/yr value added Emission Reductions’ Market Value: $ 1.1 B/yr Total $720 billion/yr value added Green Retail Buildings Will Also Accrue Increased Retail Sales Green Retail Buildings Will Also Accrue Increased Retail Sales * Leonardo Academy & MTS Projections 2003

25. Cheaper Cost of Capital Program The Economic Benefits Committee’s cheaper cost of capital for Green & ENERGY STAR Buildings: G reen MBS Whole green building loan product Institutional financing for green buildings - debt & equity Improved credit ratings for investors, Green REITS & owners Higher appraised value for real estate Green Building Finance Summit in NYC with over $100B in real estate investment represented, concluded that green buildings are more valuable through debt & equity panels & case studies Prepared Case For Added Green Building Value for CMBS industry & Fitch

26. Tom Owens, Sr. VP Hines Development from October 2003 MTS/BOM Special Report “Green Economics” “If a building costs less to operate, then there is less risk in owning that building”… “Tenants will be attracted to that. The buildings are easier to keep leased in down times and can draw a premium rent in up times.” “If the owner has lower financing costs, you’re effectively giving the owner money for less,” …. “As a result the developer could borrow more money — money that can be applied to making the building even greener.” Owens said Hines has recognized the value of energy efficiency and green buildings. “It’s time the agencies recognized this.”

27. Next Steps Strategic Plan To Stop Dangerous Climate Change Higher ratings for sustainable technologies will stop dangerous climate change. We are continuing discussions with other leading elected officials with a nexus to capital markets & who have assisted: Governors Corzine & Schwarzeneger, Attorney General Spitzer & Mayor Bloomberg Will You Ask Mayor Daley to Take a Leadership Role? Should we Confirm the Meeting Requested With Mayor Daley in our July 6 Letter?