This information was updated April 20, 2010.

• The Extended Small Cap product is benchmarked to the Russell 2000® Value Index.
• As the name implies, the Extended product reaches down into the micro cap universe and up into the mid cap universe, expanding its market cap range from under $100 million up to approximately $5 billion upon initial purchase.
• Typically, about 50% of the portfolio will be invested in small value stocks, 35% in micro cap and 15% in mid cap stocks.
• The weighted average market capitalization is generally reflective of the market cap of the Russell 2000® Value Index.
• Micro cap exposure: Companies at the lower end of the market cap spectrum may have little or no sell-side research coverage – which can lead to pricing inefficiencies.
• Mid cap exposure: The Portfolio Manager will often invest in a mid cap company if he is unable to find a compelling small cap buy in the same industry.
• Portfolios generally demonstrate valuations below and growth characteristics at or above those of the benchmark.
• Portfolios are actively managed using a bottom-up investment approach and the Portfolio Manager does not attempt to time the markets. Cash is generally less than 5% of the portfolio.
• Our approach seeks to minimize risk through diversification. Portfolios generally hold between 250 and 350 stocks, with no single position typically exceeding 2% of the total portfolio.

Objective: The objective of the Extended Small Cap product is to consistently outperform the Russell 2000® Value Index over a complete market cycle. The portfolio manager first identifies micro to mid cap companies we believe have solid fundamentals, and offer significant sales and earning growth potential. Within that universe, the manager seeks to identify companies that may be undervalued because they are underfollowed and/or misunderstood by other investors.

Richard Sinise

Richard Sinise, an Executive Vice President, is the firm’s Chief Portfolio Manager, and is the PM of the Extended Small Cap portfolio. Dick has over 30 years investment experience, co-founding KCM in 1980 with Gerald Kennedy. Dick is largely responsible for the development of the firm’s investment philosophy and process. Throughout our history, Dick has been instrumental in helping to guide and grow the firm, and he has mentored all of the firm's other Portfolio Managers. Prior to joining Kennedy Capital, Dick was a chemical engineer at Monsanto Chemical Company in St. Louis, MO. Mr. Sinise received a BS in Chemical Engineering from the University of Illinois.

Annualized Returns as of 3/31/10

Performance returns presented Gross of Fees do not reflect the deduction of investment advisory fees. A client’s return will be reduced by the advisory fees as described in Part II of the Form ADV and other expenses incurred by the account. For example, an annual advisory fee of 1% compounded quarterly over 10 years will reduce a gross 14.44% annual return to a net 13.24% annual return. Part II of the Form ADV is available upon request. Past performance is not indicative of future results. KCM has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).

Although the statements of fact and data in this report have been obtained from, and are based upon, sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions included in this report constitute the Firm's judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

Russell Investment Group is the source and owner of the Russell Index data contained or reflected in this material and all trademarks and copyrights related thereto.  The presentation may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited.  This is a presentation of Kennedy Capital Management, Inc.  Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Kennedy Capital Management's presentation thereof.

The Russell 2000® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000® Value Index is constructed to provide a comprehensive and unbiased barometer for the small-cap value segment. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set and that the represented companies continue to reflect value characteristics.

The Russell 2000® Value Index is used as the benchmark. The Index is unmanaged and represents total returns including reinvestment of dividends. The benchmark is used for comparative purposes only and generally reflects the comparable risk or investment style of the Firm’s strategy. The investment portfolios underlying the Index are different from the investments in the portfolios managed by the Firm. Certain accounts may also use other benchmarks not listed in the Annual Disclosure Presentation. The Composite Disclosure Presentation does not cover the benchmark returns included in the Annual Disclosure Presentation.

The performance figures reported herein are unaudited, may be based upon information obtained via electronic data sources (”feeds”) and may be subject to change. Data feeds from many of KCM clients' selected custodians are obtained through third party, and are used to compare custodial data to KCM's client account records as frequently as daily. In some instances, variances are noted and aggregated until each month-end, so long as such aggregated variances amount to less than one percent of the prior month-end market value of the account. All such variances are typically reconciled to the applicable account no later than each month-end. Variances of one percent or more will generally be reconciled to the account promptly upon detection.

Composite specific data provided within this presentation has been calculated from accounts that are discretionary as defined in this paragraph. The assets shown are derived only from discretionary accounts. Non-discretionary accounts, as defined by KCM, are accounts that are not included in the composite due to one or both of the following criteria: there were significant cash inflows or outflows within the account and/or the account's asset level did not meet the minimum requirement to remain in the composite. The temporary removal of such an account occurs at the beginning of the month and the account re-enters the composite the month after the criteria has been met.

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