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      develop. UK is working closely with the state and legislators in getting a company to
      come there.

      UK was able to get $1.3 million from the tobacco settlement money and has announced
      the beginning of the entrepreneurship center in the 19 most tobacco dependent counties
      where 30 people will be selected to be taught entrepreneur skills. That is one of the best
      uses of some of that agriculture tobacco settlement money.

      UK is present in Paducah with a $5 million earmark that Senator Mitch McConnell got
      for UK and the state of Kentucky. This project will focus on environmental research and
      the site cleanup of the Paducah Gaseous Diffusion Plant. UK officials are working to
      recover and recycle contaminated materials, which can be used to develop various
      products.

      UK extension agents are working to improve the health of Kentuckians with the Health
      Education through Extension Leadership (HEEL) program. This is an effort which has a
      lot of potential and is moving well.

      UK has hired John Parks to be executive director at UK's Coldstream Research Campus.
      He was at the University of Illinois and Iowa State University overseeing their research
      parks prior to coming to UK.

      President Todd announced that he will be sending out a four-page paper where he will be
leveraging athletics success to enhance academic success. He mentioned the following athletic
improvements because athletics consumes some of his attention:

      The Women's Basketball program success in attendance -- going from 148 to 16 in
      the nation.

      The Golf Team completed its most successful season since 1947.

      Two of UK's athletic sponsors will sponsor a program called Class of Kentucky where
      sophomore students will be part of 30-second T.V. promotions. UK will track these
      students as they go through their career. This program will give exposure for high
      performers in the classroom, and it will not cost UK any money.

      President Todd then talked about some new innovations that lie ahead in 2004-05. He
mentioned the launching of the four-year graduation agreement that will involve about 12
academic majors and said that this is an effort to try to get students graduated in four years. He
reported that UK has added a winter intersession, and that will begin in 2005.

      He concluded his remarks by stating that there has been a lot going on this year, and he is
pleased with the progress that has been made, even in spite of some of the challenges that the
university has faced. A lot of time was spent in the legislative session. He thinks the platform is
healthier, and he feels good about it. He entertained any questions or comments.