FISCHER INVESTMENT GROUP, INC.

(Formerly known as Hayes Fischer Capital Management, Inc.)

VERIFICATION

AND

PERFORMANCE EXAMINATION FOR THE

BALANCED COMPOSITE

AND

ALL CAP VALUE EQUITY COMPOSITE

TOGETHER WITH INDEPENDENT

ACCOUNTANTS’ REPORT
 CONTENTS

PAGE

Independent Accountants’ Report 3

Statement of Performance Results for the:

Balanced Composite 5

All Cap Value Equity Composite 6

Notes to Statement of Performance Results 7

 INDEPENDENT ACCOUNTANTS’ REPORT

Board of Directors
Fischer Investment Group, Inc.

We have examined Fischer Investment Group, Inc.’s (formerly known as Hayes Fischer Capital Management,
Inc.) (the “Company”) (1) compliance with all the composite construction requirements of the Global
Investment Performance Standards (“GIPS® standards”) on a firm-wide basis for the ten year period ended
December 31, 2006, and (2) design of its processes and procedures to calculate and present performance results
in compliance with the GIPS standards as of December 31, 2006. We have also examined the accompanying
statement of performance results of the Company’s Balanced Composite for the annual investment periods from
January 1, 1997 through December 31, 2006, and the statement of performance results of the Company’s All
Cap Value Equity Composite for the annual investment periods from January 1, 2002 through December 31,
2006. The Company’s management is responsible for compliance with the GIPS standards and the design of its
processes and procedures and for the statement of performance results of the Company’s Balanced and All Cap
Value Equity Composites. Our responsibility is to express an opinion based on our examinations.

Our examinations were conducted in accordance with attestation standards established by the American Institute
of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the
Company’s compliance with the above-mentioned requirements; evaluating the design of the Company’s
processes and procedures referred to above; examining, on a test basis, evidence supporting the accompanying
composite performance presentation; and performing the procedures for a verification and a performance
examination set forth by the GIPS standards and such other procedures as we considered necessary in the
circumstances. We believe that our examinations provide a reasonable basis for our opinion.

In our opinion, Fischer Investment Group, Inc. has, in all material respects:

• Complied with all the composite construction requirements of the GIPS standards on a firm-wide basis for
the ten-year period ended December 31, 2006; and

• Designed its processes and procedures to calculate and present performance results in compliance with the
GIPS standards as of December 31, 2006.

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Also, in our opinion, the statement of performance results of the Company’s Balanced Composite for the annual
investment periods from January 1, 1997 through December 31, 2006, and the statement of performance results
of the Company’s All Cap Value Equity Composite for the annual investment periods from January 1, 2002
through December 31, 2006, are presented, in all material respects, in conformity with the GIPS standards.

This report does not relate to any composite presentation of the Company other than the Company’s Balanced
and All Cap Value Equity Composites.

Rochester, New York

February 14, 2007

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 FISCHER INVESTMENT GROUP, INC.

STATEMENT OF PERFORMANCE RESULTS FOR THE BALANCED COMPOSITE

Rate of Return Total Total

Before After Number of Composite firm
deducting deducting Performance portfolios assets assets
management management Benchmark in the (U.S. Dollars) (U.S. Dollars)
fees fees (See Note E) Composite (Thousands) (Thousands)
Years
2006 10.22 % 9.21 % 15.84 % 57 $ 27,734 $ 76,572
2005 3.20 % 2.22 % 3.97 % 100 $ 45,517 $ 156,161
2004 9.68 % 8.66 % 13.31 % 94 $ 45,607 $ 150,637
2003 17.19 % 16.13 % 25.55 % 77 $ 42,026 $ 138,738
2002 (4.64)% (5.45)% (8.62)% 59 $ 42,210 $ 124,218
2001 5.47 % 4.56 % 3.16 % 62 $ 48,532 $ 153,988
2000 2.19 % 1.24 % 16.94 % 74 $ 52,515 $ 1,015,764
1999 12.56 % 11.50 % (1.49)% 94 $ 49,992 $ 718,276
1998 14.38 % 13.23 % (6.43)% 77 $ 40,849 $ 528,448
1997 26.33 % 25.09 % 31.80 % 74 $ 36,193 $ 305,169

Cumulative rates of return Compound rates of return

Before After Before After
deducting deducting deducting deducting
management management management management
fees fees fees fees
Three year period
(January 1, 2004 -
December 31, 2006) 24.76% 21.30% 7.65% 6.65%

Five year period

(January 1, 2002 -
December 31, 2006) 39.42% 33.19% 6.87% 5.90%

Ten year period

(January 1, 1997 -
December 31, 2006) 144.40% 122.66% 9.35% 8.33%

Past performance is no guarantee of future results. Individual investor results will vary.
Performance results may be materially affected by market and economic conditions.

See accompanying Notes to Statement of Performance Results.

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 FISCHER INVESTMENT GROUP, INC.

STATEMENT OF PERFORMANCE RESULTS FOR THE ALL CAP VALUE EQUITY COMPOSITE

Rate of Return Total Total

Before After Number of Composite firm
deducting deducting Russell 3000 portfolios assets assets
management management Value in the (U.S. Dollars) (U.S. Dollars)
fees fees (a) Composite (Thousands) (Thousands)
Years
2006 8.95 % 7.64 % 22.34 % 31 $ 6,642 $ 76,572
2005 4.75 % 3.72 % 6.85 % 90 $ 26,138 $ 156,161
2004 12.57 % 11.50 % 16.95 % 73 $ 21,435 $ 150,637
2003 22.99 % 21.81 % 31.13 % 62 $ 18,806 $ 138,738
2002 (9.08)% (9.97)% (15.18)% 44 $ 9,215 $ 124,218

Cumulative rates of return Compound rates of return

Before After Before After
deducting deducting deducting deducting
management management management management
fees fees fees fees
Three year period
(January 1, 2004 -
December 31, 2006) 28.47% 24.48% 8.71% 7.57%

Five year period

(January 1, 2002 -
December 31, 2006) 43.66% 36.52% 7.51% 6.42%

Past performance is no guarantee of future results. Individual investor results will vary.
Performance results may be materially affected by market and economic conditions.

(a) This published index return was provided by Fischer Investment Group, Inc. and was not examined by
Mengel, Metzger, Barr & Co., LLP. Fischer Investment Group, Inc. has presented this information for
comparative purposes. This performance benchmark was selected since the All Cap Value Equity Composite
contains accounts that hold securities with characteristics similar to those in this index.

See accompanying Notes to Statement of Performance Results.

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 FISCHER INVESTMENT GROUP, INC.

NOTES TO STATEMENT OF PERFORMANCE RESULTS

NOTE A: THE COMPANY

On October 2, 2001, the governmental sector business of Rulison & Company, reflecting assets under
management of approximately $1.1 billion, was sold to Fleet National Bank. Acquired in the transaction
were six Rulison & Company employees, including Joseph R. Rulison, President & CEO of the firm.

Controlling ownership and overall management of the private sector business was retained by the two
existing corporate executives: Chief Investment Officer, Christopher C. Hayes, and Chief Financial Officer,
Robert J. Fischer. The portfolio management structure was retained in whole and no changes were made to
investment style or procedure.

As mandated in the agreement with Fleet National Bank, the corporate name was changed on December 31,
2001, to Hayes Fischer Capital Management, Inc. (“Hayes Fischer”).

On June 30, 2006, the President and majority owner of Hayes Fischer Capital Management, Inc. accepted
the resignation from and purchased the equity ownership of the Firm’s Chief Investment Officer. A portion
of the Firm’s clients were retained by the former Chief Investment Officer by agreement with the Firm.
Naveed Yahya, the Firm’s Research Analyst, was promoted to the position of Chief Investment Officer.
Subsequently, the Firm was renamed to Fischer Investment Group, Inc. (“Fischer”) and relocated to
Pittsford, New York, from the Firm’s downtown Rochester location. The Firm’s investment discipline,
majority ownership and corporate business structure remained unchanged. The Firm’s nine employees were
retained by Fischer. The performance results of Hayes Fischer Capital Management, Inc. are linked to the
performance record of Fischer Investment Group, Inc.

NOTE B: COMPOSITES

The following composite definitions have been prepared by Fischer based on investment philosophy.

Balanced Composite
Accounts in the Balanced Composite contain a combination of equity and fixed income securities. The
allocation between equity and fixed income is determined as per the client’s investment objectives and risk
tolerance. The primary investment objective is typically to grow the portfolio with a reduced amount of
risk; income is a secondary objective.

The equity investment style in the Balance Composite is “All Cap Value”. In addition to domestic equities,
the equity component of balance portfolios may contain, but is not restricted to, ADRs, closed and open end
funds and Exchange Traded Funds (“ETFs”). The fixed income component of balanced portofiios may
contain, but is not restricted to, corporate bonds, treasuries, agency bonds, closed and open end funds and
ETFs.

All Cap Value Equity Composite

Accounts in the All Cap Value Equity Composite are invested using the firms “All Cap Value” investment
discipline. Accounts may contain, but are not restricted to, domestic equities, ADRs, closed and open end
mutual funds and ETFs.

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 FISCHER INVESTMENT GROUP, INC.

NOTES TO STATEMENT OF PERFORMANCE RESULTS, Cont’d

NOTE C: BASIS OF PRESENTATION

Fischer is defined as an independent investment management firm that is not affiliated with any parent
company. The performance results disclosed in the accompanying statements are calculated on the rate of
return from accounts managed by Fischer, as defined below. These accounts are managed by Fischer on a
discretionary basis and have no restriction in the manner in which the account can be invested. There are no
non fee paying accounts in the Balanced and All Cap Value Equity Composites. The U.S. dollar is the
currency used to express performance. New accounts are eligible for inclusion upon completion of two full
quarters under management. Closed accounts are included through the completion of the last full month
under management and are not removed from the historical rates of return. There is no minimum asset size
requirement for inclusion in the Balanced and All Cap Value Equity Composites.

Fischer has prepared and presented this report in compliance with the Global Investment Performance
Standards (GIPS®).

The effective date of firm compliance with the GIPS Standards is January 1, 1997.

The Balanced and All Cap Value Equity composites were created January 1, 1997. A complete list and
description of firm composites is available upon request.

The performance presentations utilize the following criteria:

(a) The rates of return are compiled monthly by calculating the percentage change in the end of the
period market values over beginning of the period market values with all cash flows time weighted.
Cash flows consist principally of contributions, withdrawals and management fees. The monthly
results are then geometrically linked to derive the yearly rates of return. Geometric linking is the
method used to combine rates of return for multiple periods.

(b) The rates of return reflect realized and unrealized gains and losses and include dividend and
ordinary income (interest).

(c) The calculations are weighted for the size of each clients account as a relationship to the total
Composite.

(d) The calculations are shown both net and gross of investment management fees.

(e) Additional information regarding policies for calculating and reporting returns is available upon
request.

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 FISCHER INVESTMENT GROUP, INC.

NOTES TO STATEMENT OF PERFORMANCE RESULTS, Cont’d

NOTE C: BASIS OF PRESENTATION, Cont’d

For purposes of determining market values, securities transactions are recorded on a trade date basis, interest
is accrued to the end of the period and dividends are recorded on ex-dividend dates. Market values of fixed
income securities are based on closing prices on the last trading day of the month or, in the absence thereof,
the last bid prices.

Compound annual rates of return are supplementary information that represent the cumulative portfolio
return expressed on an annual basis over the period presented.

NOTE D: ANNUAL DISPERSION

Composite dispersion measure represents the consistency of the Company’s composite performance results
with respect to the individual portfolio returns within the composite. Annual composite dispersion is
calculated through the use of an asset weighted standard deviation for portfolios included in a composite for
the entire year.

Annual dispersion for the Balanced and All Cap Value Equity Composites using the asset weighted standard
deviation described above on rates of return before deducting management fees and after deducting
management fees is as follows:

Dispersion
Before deducting After deducting
management management
fees fees
Balanced Composite

Years Ended December 31,

2006 3.77% 3.87%
2005 2.64% 2.70%
2004 3.44% 3.40%
2003 3.82% 3.76%
2002 3.38% 3.39%
2001 5.84% 5.87%
2000 6.28% 6.30%
1999 1.90% 1.91%
1998 .41% .42%
1997 .52% .53%

All Cap Value Equity Composite

Years Ended December 31,

2006 4.95% 5.01%
2005 3.34% 3.56%
2004 3.87% 3.97%
2003 5.65% 5.64%
2002 4.28% 4.23%

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 FISCHER INVESTMENT GROUP, INC.

NOTES TO STATEMENT OF PERFORMANCE RESULTS, Cont’d

NOTE E: PERFORMANCE BENCHMARK FOR THE BALANCED COMPOSITE

Effective July 1, 2000, the Company changed its Balanced Composite performance benchmark from the
Russell 2000 Value Index to a blended index return representing a weighted average of the Russell 2000
Value Index (33%), the S&P 500 Barra Value Index (33%) and the Merrill Lynch Government Corporate
(1–3 year) Index (34%). Effective January 1, 2003, the Company changed a component of its blended index
return from the Merrill Lynch Government Corporate (1-3 year) Index to the Lehman Brothers Aggregate
Bond Index. Effective July 1, 2006, the Balanced Composite performance benchmark was changed to a
blended index return representing a weighted average of the Russell 3000 Value Index and the Lehman
Brothers Aggregate Bond Index. Allocation factors are rebalanced monthly to be representative of the
Balanced Composite’s holdings. Management believes that the characteristics of the blended index more
closely correlate with the characteristics of the Balanced Composite. This blended index return was
provided by Fischer and was not examined by Mengel, Metzger, Barr & Co. LLP. Fischer has presented
this index for comparative purposes.

NOTE F: FEES

Performance results shown gross of fees do not reflect the deduction of advisory fees. Such fees and costs
will reduce the return of an account. The investment management fees are described in Part II of the
Company’s Form ADV.

Investment performance statistics, after deducting management fees, include the effect of imputed
management fees which are either paid separately by clients or charged directly to the Composite accounts
by the Company. Performance results shown net of investment management fees are based on actual
investment advisory fees charged to the Composite accounts. Current advisory fees may be greater than
those charged in the past. Fischer’s standard investment management fee for accounts in the Balanced and
All Cap Value Equity Composites is 1.25% of the first $2,000,000 of assets, 1.00% of the next $3,000,000,
0.75% of the next $5,000,000, and 0.5% of amounts over $10,000,000.

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