4 -



members. Dick Furst and Dean Harvey are working with that organization, and that is a
significant move forward to try to get some capital locally to try to help some of the companies
that start at the ASTeCC Center and elsewhere.

      President Todd said that Professor Harvey has done an inventory of about 35 start-up
companies in the Lexington area. Last year, they received $14 million as start-up funding. They
received zero from venture capital. Most of it was from friends, families, and angels that they
had already found. The other major source of money was from Kentucky Commercialization
Investment Funds and Federal SBIR grants. In getting this information out, bringing on the
CPST building at Coldstream, and bringing in a director of Mr. Parks' capabilities, gets the
University on the move at Coldstream. With the economy beginning to show some signs of
coming back, the University can, in his opinion, have some successes at Coldstream.

      President Todd mentioned a press release that came out of Senator McConnell's office
about Mr. McConnell securing over $11 million in funding for the University of Kentucky.
Senator McConnell, Senator Bunning, Congressman Rogers, and Congressman Fletcher have
been very good to the University of Kentucky in the last few years, and the University has been
able to get several things. He pointed out that, through Congressman Rogers, the University
received a $1 million grant to start cataloging and finding lung cancer patients in the Fifth
Congressional District early so that they can be treated with the best practices. Drs. Al Cohen
and Wendy Baldwin met with Congressman Rogers about this grant. Congressman Rogers put
the earmark in there to get it started because his congressional district is the worst in the country
with respect to lung cancer.

      President Todd talked about Bill Schweri and Jim Duff, who are doing a good job in
Washington. He provided some background information about Mr. Duff and said that Mr. Duff
knows the Washington delegation and their staff. He has been a big help to Mr. Schweri. A lot
of credit goes to Mr. Schweri for the Washington success. Mr. Duff is somebody that is in place,
and Mr. Schweri can call on him. President Todd then provided the following information
regarding funding:

      Fiscal year 2001 UK received $8,000,000 (targeted funds).
      Fiscal year 2002, UK received $16,700,000.
      Fiscal year 2003, UK received $19,600,000.
      Fiscal year 2004, there is more than what is indicated in Senator McConnell's
         Announcement - $22,700,000 from the state government.

      The University has made a significant improvement in what it gets from the federal
government which is a great way to jump-start the research programs and get them up to a
competitive level where they can go after the competitive funding.

      President Todd said that concluded his report and asked for any questions.

      Dr. Plattner said that she was in Prestonsburg the day after his speech about Robinson
Scholars, and it was widely appreciated.