SGAM 03/09/00 Page 1

Profiles valid under current market conditions (September 2000) For Institutional Investors Only

1. Features of the product

Investment horizon 1 year or longer; 2 years recommended Investment philosophy Dynamic money management approach aiming at achieving an annual

return of above the predetermined objective Guarantee Unconditional capital guarantee of 95% of funds at maturity

(Société Générale: S&P rating AA ; Moody’s rating Aa3) Currency EURO or USD Investment Manager Messrs. Alfred PARK Minimum Notionals EURO 20 Millions / USD 20 Millions * Subsequent subscription EURO 100 000 / USD 100 000 Management fees * Fees corresponding to the objectives outlined below:

Fixed 1.5% p.a. (taxes included) Incentive fees 30% of the performance above objective

Performance objectives Currency / Maturity 1 Year 2 Years (annualized)

EURO EURIBOR 3month + 3% EURIBOR 3month + 3.5% USD LIBOR 3month + 3.5% LIBOR 3month + 4%

Note: The investment horizon may range from 6 months to two years, the guarantee can also be extended to a guarantee of minimum rate of return.

2. Investment philosophy

The money management approach is designed to achieve a double objective: To obtain a market neutral performance that is significantly higher than the risk free rate, combined with capital preservation. Investment process is as followed: SG Risk-Profiled Core Plus (“SG RPCP”) invests the bulk of the portfolio in monetary assets of highest investment grades to secure the initial capitals and positions on highly diversified arbitrage opportunities in order to create the desired outperformance. The search for outperformance follows a structured and systematic methodology; • First, the major financial markets are continuously monitored with quantitative tools, in order to detect investment opportunities. • Once an opportunity has been identified, the possible associated strategies are evaluated according to their profit potentials.

SSGG RRiisskk--PPrrooffiilleedd CCoorree PPlluuss Guaranteed Fund

SGAM 03/09/00 Page 2

• This risk analysis, central to the investment process, is performed on the basis of every individual strategy and then scaled on the global portfolio. Such an approach allows for optimisation of the portfolio’s risk/return ratio. Moreover, every unwanted risk is hedged in an efficient manner. • Positions are then implemented and continuously reviewed for consistent optimization of the performance potentials of the fund.

Investment Methodology Diagram

As a result, we obtain the desired portfolio that is uncorrelated with the market where the exposures are diversified in terms of underlying assets and where the risk is spread over the investment period. The type of strategies involved range from the pure arbitrage to the straight market exposure. Main categories of positions are detailed hereafter. -1- Pure Arbitrage Principle: benefit from any irrationality in the market without being exposed to any risk. Example: Long position combined with a short position on two assets that have exactly the same financial properties. -2- Convergence Trade Principle: Buying one asset and selling another that have strong convergence properties. Example: Long position in GILTs and equivalent short position in OATs or BUNDs with similar characteristics (i.e. duration). In the case of an increasing likelihood of the UK joining EMU, yields should converge.

RISK CONTROL (performed at 2 levels)

- For each strategy: Efficient Hedging of Unwanted Risks - For the portfolio: Optimisation of risk/return

CONTINUOUS MARKET ANALYSIS

- Value - Preference - Liquidity - Risk Premia - Volatility

Evaluation of performance Potential

Harmonization with the Portfolio’s risk profilethe

DECISION-MAKING

Active trading :

- Efficiency Monitor - Risk/return Optimization - Market Evolition - Market Adaptation

DYNAMIC MANAGEMENT

Proprietary Platforms

OPPORTUNITY IDENTIFICATION

Equity, Fixed Income and cross-currency markets :

SGAM 03/09/00 Page 3

-3- Model dependent arbitrage Principle: Positioning on valuation differences of complex instruments. Example: Taking on a market neutral position through a convertible bond (long bond, short stock according to the delta of the embedded option). Here the fund benefits from the relative cheapness of the implied volatility on the underlying stock priced in the convertible as compared to the option market. -4- Factor Exposure Principle: Positioning on a second order market factor that seems over- or undervalued. Example: Selling put options on an equity market index and selling index futures when the implied volatility is too high. By managing the delta continuously the fund cashes the difference between the price of an option with a high volatility and the price of the same option priced with the effectively realized volatility on this market at maturity. -5- Market Exposure (i.e. Yield Curve Positioning) Principle: Positioning on an asset that seems incorrectly valued on the basis of market anticipation. Example: Long position on bonds on an anticipation of a rate ease.

3. Portfolio instruments

• «Plain Vanilla» securities (stocks, bonds...) (long and short) • Interest Rate Swaps • Currency Swaps • Equity linked Swaps • Listed Derivatives All used instruments are used in proportions such as to comply with the COB (French equivalent of the SEC) prudential guidelines.

4. Management Team

SG Asset Management has been structuring and managing guaranteed funds for more than ten years. Due to the growing demand for these products, SG Asset Management has created a dedicated structure in January 1998. This team is, since then, in charge of the creation as well as of the management of products having asymmetrical return/risk profile. The applied management styles are essentially quantitative. The team is comprised of seven highly skilled individuals with strong academic backgrounds. They developed proprietary models and use advanced risk management techniques. The assets under management account for over USD 5 billion from which two thirds are designed for retail investors. The current offers include:

SGAM 03/09/00 Page 4

• Market-Neutral Fund • Private Equity Fund • Dynamic Money Market Funds • Fixed Income Guaranteed Funds • «Special Exposure» Structured Funds • Equity linked Guaranteed Funds • Index-Linked Funds (Index-tracking) Moreover, schemes have been developed to allow for the issuance of guarantees on existing actively managed funds.

5. Liquidity

This type of fund is to be considered as fully liquid, any subscription and redemption have to be communicated one business day before value date. For a sizable withdrawal, however, it is recommended to inform the manager a few weeks in advance.

6. Client Benefits

The client benefits from: • An active and dynamic management aiming at achieving above average return with low volatility • A market uncorrelated performance • An unconditional guarantee at maturity • A fully liquid investment

SGAM 03/09/00 Page 5

SG RPCP DJ STOXX 50 EONIA/TMPPerformance (1/8/98~31/8/00) 25.49% 43.91% 7.34%Return (annualised) 12.21% 21.03% 3.51%Volatility (annualised) 6.48% 24.11% NASharp Ratio 1.88 0.87 NAMaximum Drawdown -2.84% -30.22% NA# of days exceeding -0.5% 19 163 NA

7. Track record

The historical record of fund performance described below is based on the realized performance as of August 31, 2000 on a 50 Million EURO Fund, having inception date of July 31, 1998. The client was a corporation in France and the management fee accounted for 1.5%, all taxes included.

Details

90

95

100

105

110

115

120

125

130

Jul-98

Aug-9

8

Sep-9

8

Oct

-98

Nov-

98

Dec

-98

Jan-9

9

Feb-9

9

Mar

-99

Apr-

99

May

-99

Jun-9

9

Jul-99

Aug-9

9

Sep-9

9

Oct

-99

Nov-

99

Dec

-99

Jan-0

0

Feb-0

0

Mar

-00

Apr-

00

May

-00

Jun-0

0

Jul-00

Aug-0

0

SG RPCP EONIA/TMP

SGAM 03/09/00 Page 6

5%

8%

11%

39%

28%

9%

Factor Expoure Arbitrage

Yield Curve Positioning

Type of Strategy Performance Attribution (annualised)Pure Arbitrage 0.56%Convergence Trade 0.97%Model Dependent Arbitrage 1.31%Factor Exposure 4.78%from which interest rates related 3.11%from which equity related 1.67%Yield Curve Positioning 3.45%Money Market 1.14%Total 12.21%

Performance breakdown with respect to the classification of strategies

Compartmental contribution of performance