Managed Investment Services

Separately Managed Accounts A customized investment experience for today’s sophisticated investors

Why Choose a Goldman Sachs Managed Account?

Once clients decide that a managed account is an appropriate investment, the next most critical decision is selecting the right money manager. Since 1869, institutional investors have relied on Goldman Sachs’ global resources and expertise to help define their investment policies and manage their portfolios.

Clients who invest with Goldman Sachs are choosing to do business with one of the world’s preeminent investment banking, securities and asset management firms. A Goldman Sachs managed account leverages our global resources, in-depth research and risk management expertise to deliver a customized investment solution for the high net worth investor.

GOLDMAN SACHS ADVANTAGE

POTENTIAL CLIENT BENEFIT

GLOBAL RESOURCES AND GLOBAL REACH

Access to sophisticated investment opportunities and historically strong, consistent performance over time*

TEAM APPROACH TO PORTFOLIO MANAGEMENT

Confidence in the sustainability and integrity of the investment process used to manage accounts

DISCIPLINED PROCESSES

Investment returns that are explainable, definable and seek to be repeatable

RIGOROUS RISK MANAGEMENT

Portfolios that support the risk/return profiles clients seek — and an understanding of what drives returns over time

PROPRIETARY GLOBAL RESEARCH

Understanding of local markets, economies, industries and cultures

Source: Goldman Sachs Asset Management *Past performance is no guarantee of future results.

Benefits of Investing in a Personalized Separately Managed Account 쐍 Access expert portfolio managers 쐍 Receive customized investment management

Leverage

쐍 Seek to manage tax liability

Goldman Sachs

쐍 Participate in a focused investment strategy

Separately Managed

쐍 Obtain personalized investment advice

Accounts

About Managed Accounts Managed accounts are individually tailored investments designed to meet the specific objectives and needs of today’s sophisticated investors. In the past, this level of customization was reserved only for large institutions. However, with the changing investor landscape and growth in personal wealth, managed accounts have emerged as one of the fastest growing investment vehicles today due to their ability to potentially deliver tax-efficiency within a customized portfolio.

Simply stated, a managed account allows an individual to invest in a diversified portfolio of individual securities. Unlike a mutual fund, the individual securities are owned directly by the investor. This portfolio of securities is managed by a professional money manager and is often packaged with customized advice from an Investment Professional.

MANAGED ACCOUNT ASSETS IN BILLIONS

$672

700 $587

600 $499

500 400

$707

$396

$424

2000

2001

$339

$386

300 200 100 0

1999

2002

2003

2004

Source: Cerulli & Associates Managed Account Research 1Q 2006 Summary

2005

1Q06

Why Choose a Managed Account Versus a Mutual Fund or Individual Stock?

Managed accounts can help individuals build a comprehensive, customized solution for their investment needs. However, investors face many choices when determining the right investment vehicle for their portfolio. By using a managed account, investors gain some distinct advantages.

INDIVIDUAL STOCKS

MUTUAL FUNDS

MANAGED ACCOUNTS

DIVERSIFICATION

No diversification

Diversified portfolio of securities

Diversified portfolio of securities

OWNERSHIP

Clients own the securities they purchase

Clients own shares of the fund — not the underlying securities

Clients own the securities purchased on their behalf

COST BASIS

Clients create the cost basis at the point of initial investment

Clients potentially buy into unrealized capital gains

Clients create the cost basis at the point of investment

CUSTOMIZATION

Clients can use individual stocks to build a customized portfolio

Customization is generally not available

Ability to restrict securities and customize a professionally managed portfolio to suit client preferences

GAIN/LOSS DISTRIBUTION

Ability to take gains and harvest losses as needed

Gains are distributed at year-end; losses cannot be distributed

Money manager can situationally take gains and harvest losses for potential tax advantages

INVESTMENT TRANSPARENCY

N/A

Specific fund holdings are difficult to obtain on a timely basis

Specific portfolio holdings are easy to obtain and review for potential overlap and diversification benefits*

FUNDING

N/A

Clients can invest cash only

Clients can fund the investment with existing securities including stock or cash

FEES

Clients pay both transaction and commission-based fees

Clients pay one asset-based fee and receive fee breakpoints at larger asset levels

Clients pay an asset-based fee and receive fee breakpoints at larger asset levels

*Holdings are available monthly or quarterly upon request. Annual and semi-annual reports are also sent to clients.

This chart is not an all inclusive list of the differences between individual stocks, mutual funds and managed accounts.

Goldman Sachs does not provide tax advice. Potential investors are strongly encouraged to consult with their tax advisors.

Is a Managed Account Right for You? Managed accounts may be appropriate for investors who have: 쐍 High net worth – or significant investable assets resulting from wealth transfers or rollovers 쐍 Large tax bills – can help clients manage tax burdens 쐍 Need for personalized advice – managed accounts provide a customized investment strategy based on specific goals and tolerances 쐍 Recent monetization of assets – such as the sale of a business or inheritance 쐍 Long term investment goals – an Investment Professional can help you implement a specific disciplined strategy aimed at achieving your goals

For more information about Goldman Sachs’ approach to managed account investing, call your Investment Professional.

Goldman Sachs Asset Management 쐍 32 Old Slip, 32nd Floor 쐍 New York, NY 10005 Goldman, Sachs & Co., member NASD. Copyright 2006 Goldman, Sachs & Co. All Rights Reserved. Date of First Use: December 15, 2006 06-5833 / MISBRO / 13K / 12-06