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Goal I       Reach for National Prominence

One of the major objectives is to enhance the excellence and sustainability of the clinical
enterprise. UK recently opened the Linda and Jack Gill Heart Institute, hiring one of the
nation's top minimally invasive surgeon's David Moliterno, M.D. to serve as co-director.

The reorganization of the Medical Center has saved $2 million a year in recurring money.
About 88 jobs have been eliminated. The Medical Center is running as efficiently as it
did prior to those changes.

The College of Public Health was created in spring 2004. Public health is a big issue in
the state, and this is a significant opportunity for funding from the state.

Another goal was to increase the university's endowment to $500 million by 2006. As of
March 31, 2004, the market value of the endowment was $495 million.

UK is in the midst of a multi-pronged effort to revolutionize the university's information
system. The Board will be asked to spend quite a bit of money over the next several
years to revolutionize this system. This needs to be done in order to become a modern
university.

The university is working to strengthen its role within the National Association of State
Universities and Land-Grant Colleges (NASULGC), which is the top organization for
land-grant colleges. To that end, he has been named chair of NASULGC's Commission
on Outreach and Diversity. This appointment placed him on Board of Directors.

At the SEC level, he helped initiate an Academic Initiative Committee, along with
Gordon Gee of Vanderbilt University. A memorandum of understanding to form an
academic alliance with all SEC schools has been signed.

Goal II      Attract and Graduate Outstanding Students

The university has exceeded the target to improve the six-year graduation rate to 60
percent by 2006. UK's graduation rate is the highest in the state.

Freshmen enrollment has increased this year from approximately 3,700 students to
approximately 4,000. It is expected to be the best academic class the university has ever
had. This speaks well for recruiting efforts and marketing for undergraduates.

Four new dormitories will be built to accommodate the increased enrollment. One of the
dormitories will be for the arts. They will be state-of-the-art dormitories.

Goal III     Attract, Develop, and Retain a Distinguished Faculty

The university has added three more endowed chairs and eight endowed professorships.
UK now has 80 endowed chairs and 193 endowed professorships.