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     G.    President's Report to the Board of Trustees (PR 1)

     President Wethington called attention to the following items in PR 1:

     1. Faculty and staff attracted $125,607,107 in research contracts, grants
         and gifts from outside the University during the 1996-97 fiscal year,
         a 15 percent increase over last year's extramural funding total.

      2. The University set two fund-raising records last fiscal year: 1) gifts
         to the University in 1996-97 totaled $41.4 million, 6 percent more
         than the previous year, and 2) $44,424 donors contributed, 2.4
         percent more than the previous year.

      3. The grand opening of the UK Children's Hospital will be held
         Saturday, August 23, with a formal dedication and ribbon cutting at
         10 a.m.

      4. New officers of the UK National Alumni Association named at the
         association's summer workshop in Louisville are Marianne Smith
         of Owensboro, president; Robert F. Pickard of Brentwood,
         Tennessee, president-elect; and Daniel L. Sparks of Houston, Texas,
         treasurer.

     5. Henderson Community College has completed the most successful
         fund-raising campaign in the history of Henderson County with a
         total of $3,768,867 in contributions.

      6. The Good Samaritan Foundation, Inc. recently awarded grants for
         1997-98. Those grants are primarily health related grants that Good
         Samaritan is making to the University of Kentucky.

      7. The Center for Rural Health has compiled a three-volume set of
         comprehensive health-related information which has been
         published by the Good Samaritan Foundation.

      8. UK Hospital's Aeromedical Service celebrates its 10th anniversary
         August 28. Each year, the service transports more than 900 patients
         to UK Hospital.

      President Wethington asked the members to read the other items in
the report at their leisure.