CORBYN INVESTMENT MANAGEMENT, INC.

INVESTMENT PROGRAMS

Aggressive Money — The objective of this investment program is capital appreciation with low sensitivity to the financial markets. To achieve this goal, Corbyn may invest a substantial portion of the account in “event-driven” equity and fixed-income securities such as workouts and special situations. This classification is less sensitive to the stock market than other Corbyn investment programs due to the large exposure to non-market sensitive securities. Security holdings are in fewer, but more concentrated, positions than in other Corbyn account types. A separate Investment Management Agreement is used for “Aggressive Money” accounts.

Capital Appreciation — The objective of this investment program is capital appreciation with less sensitivity to the overall stock market. The account is invested primarily in equity securities, but will also include an exposure to fixed income securities. That exposure will focus primarily on securities capable of providing equity-like returns. Income generation is a secondary consideration.

Balanced — The objective of this investment program is capital appreciation, with income generation an important, but secondary, goal. “Balanced” accounts, the largest number of accounts managed by Corbyn, are invested in both equity and fixed income securities. The relative weighting between these security types is skewed toward equities but will vary depending on available investment opportunities and market conditions. The ratio of equity to fixed income investments is lower than that of the “capital appreciation” account classification.

Income oriented — The primary objective of this investment program is to generate current income, with the achievement of capital appreciation a secondary consideration. To attain this objective, Corbyn invests primarily in fixed income investments with either income or capital appreciation potential. Equity investments may be included; however, they will comprise a much smaller portion of the portfolio.

Strategic Income — The principal objective of this investment program is total return, primarily resulting from current income, but also some capital appreciation. To accomplish this objective, Corbyn employs a flexible strategy of investing in fixed income securities including convertible bonds, corporate bonds, and preferred stocks. There is a heavy emphasis on high-yielding convertible bonds, where the focus is on the yield-to-expected-maturity, not the conversion feature of the bonds. The goal is to achieve total returns that are less dependent upon general interest rate moves with low correlation to movements in the equity markets.