1. Telecom Sector (SP-50) August 2007 George Andress Brandi Bennington

2. Agenda Recap of Sector Presentation Sprint (S) Metro PCS (PCS) Recommendation

3. Sector Weights-SIM portfolio

4. Sector Weight- S&P 500

5. Size and Composition Telecom sector composition TickerCompanyCurrent PriceYTD returnP/E ATALLTEL Corp65.908.96%23.6 TAT&T38.878.73%14.1 CTLCentury Telephone41.99-3.83%14.2 CZNCitizens Communications13.52-5.92%20.5 EQEmbarq Corporation59.0312.31%13.2 QQwest Communications8.370%14.8 SSprint Nextel Corp18.85-0.21%21.3 VZVerizon Communications41.3310.98%17.5 WINWindstream Corporation13.81-2.88%15.2 Current SIM Holdings TickerCompanyCurrent PriceYTD return% of SIM AMXAmerica Movil57.3426.80%3.92% SSprint Nextel Corp18.85-0.21%0.84%

6. Sector Decision and Reasoning Defensive Sector Cheap sector relative to the S&P 500 Trending toward consolidation Opportunities in new technologies Opportunities in international growth Increase overweight in SIM portfolio by 100 basis points Results in a total overweight to the Telecom Sector of 2.01%

7. Recommended Actions Hold America Movil Sell Sprint Nextel Buy Metro PCS

8. Sprint Nextel

9. Sprint Nextel-SELL Growth Prospects –WiMax-high-speed broadband service over large areas –Possible buy-out or merger candidate Risk/Concerns –Unable to recognize benefit of merger with Nextel –Lower APRU and higher Churn –Qualcomm Chips –Loss of customers due to increased technology –Poor Customer Service

11. Sprint-Valuation

12. Valuation Current Price-$19.49 –DCF- $16.66 –Valuation- $15.35 Average Price-$16.00 Overvalued by 18%

13. Metro PCS Communications

14. Supply wireless service on a no contract basis Cheap, easy, no-frills service (Plans start at $30,range to $50 for long-distance, internet, and text messaging Prepaid plan that minimizes credit risk to Metro PCS Provides unlimited calls within the local calling area Set to compete with local wireline on a wireless network Limited handset subsidies Target large metro areas

15. Metro PCS-BUY Growth Prospects –Launching into Los Angeles market by the end of the third quarter –Expects to enter Las Vegas, Philadelphia, Boston, and New York in future –Cheap and easy for young, poor, and irresponsible –Speculation of merger with Leap in long-term future

16. Metro PCS-BUY Risks/Concerns –Downturn in the market could result in low subscriber additions and high churn –Inability to maintain low operating expenses –Increased competition from top 3 wireless providers –Ability to grow and maintain infrastructure to attract new markets

17. Valuation Current Price-$28.00 –DCF-$45.86 –Absolute valuation-$29.17 –Dividend Discount Model-$40.56 Average Price-$38.53 Undervalued by 37%

19. Metro PCS Valuation

20. Recommendation Sell 100% of Sprint-84 basis points Buy 184 basis points of Metro PCS SharesStock Price Dollar Total Percentage of Portfolio Metro PCS 16,996$27.50$467,3901.84% America Movil 15,900$62.68$996,6123.92%

21. Questions ?