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      achievements. This will be a four-year period. The commercials will allow the
      University to send an academic and leadership message across the state of Kentucky and
      highlight bright students. It will also allow the University to start recruiting at the
      sophomore level.

      Two UK students, Jack Challis and Ryan Gabbard, have won NSF grants for graduate
      studies. Each student will receive $30,000 a year plus other expenses. It will total about
      $120,000 for each student. These are outstanding students, and this is a great recognition
      for the University.

      UK COPC's first Citizens Leadership Academy class graduated 18 people during a
      ceremony on April 27th. The COPC program is financed through a grant. Dr. Retia
      Walker is the principal investigator on that grant. It is a way to work with the Bluegrass-
      Aspendale Teen Center, the East End Empowerment Program, LexLinc, and the YWCA
      Phillis Wheatly Center to get a grass roots leadership effort started. This program will
      have an impact on the surrounding neighborhood.

      President Todd called attention to a document in the Board packet. It is called &Success.
He thanked Connie Ray and her assistants for putting this brief report together. It is one of
several methods UK will use to track progress on the 2003-2006 Strategic Plan. He said that the
Board would be given a full, more detailed report in September; however, he would present a
few slides at this meeting just to give the Board an indication of how it is going.

      He said that as we go through this three-year Strategic Plan, it is important to give the
Board an update on what is taking place. One of the success measures is the market value of the
University's endowment. At the end of 2003, UK was at $414 million. As of March 3 1st, UK is
almost on target. He applauded Mr. Mobley and his organization, the deans, Provosts, and
everybody who is really focusing on endowments.

      There have been recent articles about UK losing some faculty to Texas A & M and
Vanderbilt. These universities have substantial endowments. Building an endowment is one
way to allow UK to be more competitive. UK's goal was to get to one-half of a billion dollars
by year three and as of the end of this month, the University is above that. The administration
may move that goal up because it is going to keep pursuing it. This is great progress for that
particular goal.

      Another success measure is in the area of federal research expenditures. This is one of
the things pushed by HB 1 - that Kentucky needed a flagship university that was a leader in
research. This is important because this is federal research, and it is money that UK has to
compete for. It is not institutional money. It is not state money where UK sometimes has to
compete. This is the most competitive grant you have to go for.

      As of the end of 2003, UK was at $120 million. In 2002 when UK set its goals with
CPE, UK projected to be at $87 million in 2002. UK is well above that goal, and it is now 20
percent ahead of the $100 million goal for 2003. As the "Bucks for Brains" professors get their