Contact:

Matthew J. Saltzman
Director of Marketing
Todd Investment Advisors, Inc.
101 S. 5th Street, Suite 3160
Louisville, KY 40202
P: 502.585.3121
msaltzman@toddinvestment.com

Internal Announcement

October 10, 2005

TODD LAUNCHES ADR STRATEGY

Todd has launched a strategy investing in American Depository Receipts (ADRs). The firm received a $200 million mandate in June from an incumbent client to develop the portfolio. The ADR strategy is a direct extension of the firms Price to Intrinsic Value methodology that has been employed since 1986.

The strategy seeks to outperform the EAFE index utilizing only ADRs traded on domestic exchanges. ADRs are easy to track, more cost effective, and they provide tremendous access to hundreds of foreign companies. Using ADRs enables us to trade with liquidity, obtain excellent financial information, and eliminate currency risk from the international portfolio.

The portfolio will limit purchases to ADRs with at least $1 billion in market capitalization. Additionally, the strategy will utilize the EAFE index as its style and performance benchmark but may include up to 15% in non-EAFE securities. It is expected that the strategy will hold, on average, 75-100 positions with no single security representing more than 3%. All ADRs are run through Todd’s proprietary Price to Intrinsic Valuation methodology and screened for market capitalization and favorable price to intrinsic valuation. Should no suitable candidates be found, due to either poor valuation or lack of ADR availability, the portfolio may seek to become a market participant in a particular sector or country by utilizing an ETF where available.

As a direct extension of our core competency, this is an extremely exciting strategy for the firm. Other clients will now have the ability to access an international portfolio using the time tested price to intrinsic value methodology that has worked so well in the past. By constructing a portfolio using only ADRs, and if necessary ETFs, we can provide a more fluid, currency neutral, and inexpensively managed international portfolio with downside protection.

The firm expects to make the portfolio available to additional investors in the first quarter of 2006. We expect a lot of interest in the portfolio, especially with the minimum account size being as low as $3 million. However, many potential clients may be hesitant due to the lack of track record. The short track record may be offset somewhat by the demonstrated success we have had with the Price to Intrinsic methodology historically. In essence, the subset of securities applied to the methodology has changed along with an additional layer of analysis that includes international macroeconomic factors.

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