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New Mexico State Investment Council

January 20, 2005

Greg J. Kulka, CFA, Director – Alternative Investments

New Mexico State Investment Council

Phone: (505) 424-2550 / E-mail: greg.kulka@state.nm.us

Brian P. Birk, Regional Director – Private Equity

Fort Washington Capital Partners, LLC

Phone: (505) 843-4228 / E-mail: brian.birk@fortwashington.com

Investing in New Mexico VC Forum @

Coronado Ventures ForumSanta Fe, NM

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SIC Private Equity Program

As of September 30, 2004

Fund Target % Target ($) Commitments DrawdownsIRR as of 6/30/04

Land Grant

National Program 6% 455,992,212$ 735,041,323$ 352,871,651$ -4.14%

Severance TaxNational Program 6% 214,906,525$ 373,498,943$ 202,960,560$ 30.46%

New Mexico Program

Funds 183,247,877$ 59,753,994$ -12.08%Direct Co-investments 26,000,000$ 20,000,000$ NMFTotal 209,247,877$ 79,753,994$ -10.57%

Grand Totals 885,805,262$ 1,317,788,143$ 635,586,205$ 12.88%

6% 214,906,525$

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Private Equity Program Results

Results of SIC Private Equity ProgramsInvestments in New Mexico Companies

Since Inception

YearDirectly Invested

by NMSICInvested by NM

FundsInvested By Other

Co-investorsTotal Amount by All

Investors

1995 - 1998 -$ 1,099,244$ 66,000,000$ 67,099,244$

1999 -$ 8,030,007$ 2,000,004$ 10,030,011$

2000 -$ 12,735,003$ 79,375,000$ 92,110,003$

2001 -$ 6,125,000$ 8,410,467$ 14,535,467$

2002 -$ 4,688,108$ 3,896,250$ 8,584,358$

2003 - Jan to June -$ 1,700,000$ 210,000$ 1,910,000$

Subtotal - Inception Thru June 30, 2003 -$ 34,377,362$ 159,891,721$ 194,269,083$

2003 - July to December 10,000,000$ 12,152,622$ 79,927,756$ 102,080,378$

2004 to Date 18,000,000$ 7,856,999$ 8,697,814$ 34,554,813$

Subtotal - FY04 to Date 28,000,000$ 20,009,621$ 88,625,570$ 136,635,191$

Program Total 28,000,000$ 54,386,983$ 248,517,291$ 330,904,274$

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New Mexico Company Investments

Sources Investment

NMSIC 28,000,000$ NM Private Equity Funds 54,386,983$ Co-investors 248,517,291$

Total New Mexico Company Investments

330,904,274$

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New Mexico Economic Impact

As of 9/30/04

Programs # of Jobs Annual Payroll / Spending

NM Company Investments 1,003 $90,395,900

Film Program* 524 $21,900,000

Totals 1,527 $112,295,900

* as of 6/30/04

Severance Tax Permanent Fund - New Mexico Program

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Film Investment Program

Since Inception through October 31, 2004

Project Name Loan Amount Maturity DateParticiaption Percentage

Total Film Budget

BorrowerDate

Approved

Closed Deals

Suspect Zero $7,500,000 12/12/06 2.50% $27,000,000SZ Productions, Inc. & IM Film

Produktions and Vertriuebs Gmbh & Co. KG

07/23/02

Blind Horizon $4,780,000 02/07/05 5.00% $5,500,000 Blind Horizon Productions, Inc. 11/26/02

Elvis Has Left the Building $7,500,000 10/31/07 6.00% $8,000,000Harmony Productions (UK)

Limited 08/26/03

The Experiment $1,700,000 07/16/06 5.00% $1,700,000The Experiment Productions,

LLC 04/27/04

Preparing Closing Documents

Latin Queens of Comedy $1,303,683 3 Years 6.00% $1,700,000 Payaso Entertainment, Inc. 06/30/04

Wildfire $4,094,897 3 Years 5.00% $4,094,897 Lions Gate Entertainment 10/26/04

Delayed Deals

A Night in Old Mexico $7,500,000 3 Years 5.00% $12,000,000 A Night in Old Mexico, LLC 04/27/04

Walkout $7,500,000 5 Years See Footnote $9,600,000 Esparza-Katz Productions, Inc. 07/27/04

Withdrawn Deals

Believe In Me $3,500,000 3 Years 5.00% $7,000,000 Believe Productions, LLC 07/27/04

Total Approved $45,378,580

Total Capacity† $89,544,385

Remaining Capacity‡ $47,665,805

† 2 ½ Per Cent of the Market Value of the Severance Tax Permanent Fund‡ Total Capacity less Total Approved plus Withdrawn Deals

Note: Walkout will pay simple interest at 3.67% annually. SIC will receive first $1million after breakeven then split additional receipts 50/50 with Esparza-Katz Productions.

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Fort Washington Fulfills Two Official Roles In New Mexico

Advisor to In-State Program– Identify, assess and

recommend investments into VC Funds that qualify for the program

– Monitor funds for compliance and performance

GP for New Mexico Co-Investment Partners– Manage $46 million Fund

that co-invests in NM companies

– State Investment Committee is the Limited Partner

Unofficial Role: Matchmaker and Facilitator

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NM Private Equity FundApproval Process

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NM Direct Co-investmentApproval Process

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For More Information:

fortwashington.com\nmsic

Brian Birk

1.505.988.9547 – SFE office1.505.843.4295 – ABQ office