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Presented to the Montana Board of Regents By College Savings Bank September 19, 2007

Presented to the Montana Board of Regents By College Savings Bank September 19, 2007. Product Description. 85% to 100% of the average increase in the S&P 500 Principal protection FDIC insurance Initially issued quarterly Initially offered at a 5-year maturity

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Presented to the Montana Board of Regents By College Savings Bank September 19, 2007

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  1. Presented to the Montana Board of Regents By College Savings Bank September 19, 2007

  2. Product Description • 85% to 100% of the average increase in the S&P 500 • Principal protection • FDIC insurance • Initially issued quarterly • Initially offered at a 5-year maturity • Historically profitable

  3. Product Benefits • One of the largest selling CD types in the US • Free of enrollment fees & the Bank will pay broker fees up to 1.25% • Offers the upside of the equity market without the risk of principal loss • Averaging further protects investors from negative market swings • Features all 529-Plan tax benefits

  4. Product Disclosure • If the market declines, Investors may be limited to receiving only principal invested upon maturity • Early withdrawals will only be permitted once a year, with interest credited and a 10% principal penalty • The participation rate will vary between offerings from 85% to 100%, but will ‘lock in’ for that specific offering

  5. Product Marketing • The Bank will invest an additional $300,000 to announce the InvestorSure CD during November and December along with $300,000 in 2008 • The Bank will market the CollegeSure CD and InvestorSure CD side by side so investors can compare the two products • Key messages: • “One of the largest selling CDs in the US has come to Montana’s 529 college savings plan” • “Featuring the upside of the equity market without the risk of principal loss” • “An alternative, or complimentary investment to the CollegeSure CD”

  6. Historical Rate of Return Over the previous 20-years, issued monthly, the InvestorSure CD would have returned investors full principal on 39 occasions when a similar, but unprotected 5 year investment indexed to the S&P 500 lost money.

  7. Historical Rate of Return The following charts demonstrate ROI in both a positive and negative market. For the period measured, the S&P 500 grew from 916.07 to 1,477.01. The InvestorSure CD would have yielded 50.56% at full participation or 42.98% at (.85) participation. The taxable equivalent average APY within the MFESP would have ranged from 14.04% to 11.94%. Positive Market August 2002 - July, 2007 Negative Market April 2000 - March 2005 For the period measured, the S&P 500 lost value, declining from 1,452.43 to 1,180.59. The InvestorSure CD would have returned full principal regardless of the participation rate, while the S&P 500 lost 21.22%.

  8. Questions

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