1. The Essentials of Investing “ Premier Portfolio Services is a service through which Ameriprise SM Financial Services, Inc. (Ameriprise) offers continuous investment advisory services to individuals, corporations and other investors. This seminar represents the views of an external portfolio manager offered through Premier Portfolio Services and not the views of Ameriprise or any of its affiliates. Ameriprise and its affiliates take no responsibility for the content of this material.” Ameriprise SM Financial Services, Inc. (Ameriprise) is not affiliated with Legg Mason.

2. Diversify Your Portfolio Equity Class Returns 1993-2007 The table above is presented for informational purposes only and does not represent performance of any specific investment. Past performance is no guarantee of future results. Source: GPW as of 12/31/07. Cash is represented by the Citigroup U.S. Domestic 90 day T-Bill. This index represents the monthly return equivalents of yield averages, which are not marked to market, providing an average of the last three-month U.S. Treasury bill issues. International stocks are represented by the Morgan Stanley Capital International EAFE Index. The MSCI EAFE Index is an unmanaged index of common stocks of companies located in Europe, Australasia and the Far East. Large-Cap Growth is represented by the Russell 1000 Growth Index, which measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. These stocks are selected from the 1,000 largest companies in the Russell 3000 index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. Large-Cap Value is represented by the Russell 1000 Value Index, which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. These stocks are selected from the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. Mid-Cap Growth is represented by the Russell Mid-Cap Growth Index. The Russell Mid-Cap Growth Index measures the performance of those Russell Mid-Cap companies with higher price-to-book ratios and higher forecasted growth values. Mid-Cap Value is represented by the Russell Mid-Cap Value Index. The Russell Mid-Cap Value Index measures the performance of those Russell Mid-Cap companies with lower price-to-book ratios and lower forecasted growth values. Small-Cap Growth is represented by the Russell 2000 Growth Index, which measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values. These stocks are selected from approximately 8% of the total market capitalization of the Russell 3000 Index. Small-Cap Value is represented by the Russell 2000 Value Index, which measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values. These stocks are selected from the 2,000 smallest companies in the Russell 3000 index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. The S&P 500 Index is a capitalization-weighted, composite index of 500 stocks designed to measure the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. All these indices are unmanaged and do not represent the performance of any actual investment. Investors cannot invest directly in an index. Average annual total return assumes reinvestments of income dividends and capital gain distributions. Investments in small- and mid-capitalization companies may involve a higher degree of volatility than investments in larger, more established companies. Non-U.S. investments are subject to certain risks of overseas investing, including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets. TN08-3132 Annual returns of varied market indices

3. Diversify Your Portfolio Bond Class Returns: 1993-2007 Annual returns of varied market indices Investors shoule be aware that indexes are unmanaged and one cannot invest directly in any index. Sources: Zephyr StyleADVISOR, Yield Book, Lehman Brothers and Merrill Lynch; as of 12/31/07. The table above is presented for informational purposes only and does not represent performance of any specific investment. Past performance is no guarantee of future results. Cash is represented by the Citigroup U.S. Domestic 90-day T-Bill. This index represents the monthly return equivalents of yield averages, which are not marked to market; this index is an average of the last three-month U.S. Treasury bill issues. Government bonds are represented by the Lehman Brothers Government Bond Index, which is a broad-based index of all public debt obligations of the U.S. government and its agencies that have an average maturity of approximately nine years. Mortgage bonds are represented by the Lehman Borther Mortgage Bond Index, which is a broad measure of the performance of mortgage-backed bonds in the U.S. market. Corporate bonds are represented by the Lehman Brothers Corporate Bond Index, which covers USD-denominated, investment-grade, fixed-rate, taxable securities sold by industrial, utility and financial issuers. It includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity and quality requirements. Municipal bonds are represented by the Lehman Brothers Municipal Bond Index, which is a broad measure of the municipal bond market with maturities of at least one year. High Yield is represented by the Merrill Lynch (ML) High Yield Master II Index, which is a market-capitalization weighted index of all domestic and Yankee High Yield Bonds. Issues included in the index have maturities of at least one year and have a credit rating lower than “BBB- Baa3,” but are not in default. High-yield bonds are subject to more risks than investment-grade bonds, such as greater liquidity and credit risk and increased risk of default due to the lower credit quality of the issues. Emerging Markets Debt is represented by the J.P. Morgan Emerging Markets Bond Index Plus from January 1994 to December 2006 and the J.P. Morgan Emerging Markets Index from January 1992 through December 1993. The J.P. Morgan Emerging Markets Bond Index is a total return index that tracks the traded market for the U.S. dollar-denominated Brady bonds and other similar sovereign restructured bonds traded in the emerging portfolio. World Government Bonds are represented by the Citigroup World Government Bond Index (CWGBI), which measures the performance of developed countries’ global fixed-income markets invested in debt issues of U.S. and non-U.S. government entities. Multi-Sector Fixed Income is represented by the Lehman Brothers Aggregate Bond Index, which is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues, rated investment grade or higher and having at least one year to maturity. Fixed income investments are subject to interest rate risk. As rates rise, the price of fixed-income securities falls. There is also a risk than an issuer will be unable to make principal and/or interest payments. High-yield bonds are subject to increased risk of default and greater volatility due to the lower credit quality of the issues. Mortgage-backed securities involve additional risk of default and greater volatility due to the lower credit quality of the issues. Mortgage-backed securities involve additional risk over more traditional fixed-income investments, including: interest rate risk, implied call and extension risks, and the possibility of premature return of principal due to mortgage prepayment, which can reduce expected yield and lead to price volatility. TN08-3133

4. Keep Your Focus…Put Time On Your Side Past performance is no guarantee of future results. Source: Thomson Financial. This chart is for illustrative purposes only and does not represent an actual investment or the performance of any specific investment. The chart represents growth of four hypothetical investments, including unmanaged indexes in which investors cannot directly invest. Figures do not reflect any fees, expense or tax consequences and assumes no withdrawals after consequences. Stocks are represented by the S&P 500 Index, a market capitalization-weighted index of 500 widely held common stocks. The Index assumes reinvestment of dividends. Bonds are represented by the Lehman Brothers Aggregate Bond Index, a broad-based bond index comprising government, corporate, mortgage- and asset-backed issues, rated investment grade or higher, and having at least one year to maturity. Inflation is represented by the Consumer Price Index (CPI), which measures the average change in U.S. consumer prices over time in a fixed market basked of goods and services determined by the U.S. Bureau of Labor Statistics. The CPI is adjusted monthly at the discretion of the U.S. Board of Labor Statistics. TN08-3134 Time is on Your Side: Growth of a $10,000 (12/31/1982 investment —12/31/2007) based on average annual total returns

5. Take Stock in History* *Sources: Animatedatlas.com, as of 12/31/07. Timeline of the 1980s, 1990s, National Bureau of Economic Research, “Business Cycle Expansions and Contractions.” The Mountain Times, “World Events of 1960-1969.” TN08-3135

6. Take Stock in History We can give you at least one “reason” for every year not to invest in stocks.* However, history has shown the stock market not only has survived, it has thrived. Past performance is no guarantee of future results. All investments involve risk, including possible loss of principal. Please note that the chart shown is for illustrative purposes only and does not represent the past or future performance of any Legg Mason product. The figures assume reinvestment of income dividends and capital gains, if any, but do not reflect any fees, expenses or tax consequences, and assumes no withdrawals. Please note that an investor cannot directly invest in an index. *Source: Yahoo Finance. This table is for illustrative purposes only. The results, as of December 31, 2007, do not reflect the performance of any Legg Mason product. The DJIA is a widely followed measurement of the stock market. The average comprises 30 stocks that represent leading companies in major industries. Please note that an investor cannot invest directly in an index. TN08-3136 Dow Jones Industrial Average (DJIA)* closing price from December 1928 through December 2007

7. Take Stock in History Growth of a hypothetical $10,000 investment in the S&P500 Index made at the beginning of a year directly following some of the worst events in our nation’s history.* *Source: Thomson InvestmentView Weisenberger; as of 12/31/2007. Please note that the chart shown if for illustrative purposes only and does not reflect the past or future performance of any Legg Mason product. The figures assume reinvestments of income dividends and capital gains, if any, but do not reflect any fees, expenses or tax consequences, and assume no withdrawals. The S&P 500 is a capitalization-weighted, composite index of 500 stocks designed to measure the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Past performance is no guarantee of future results. All investments involve risk, including possible loss of principal. Please note that the chart shown is for illustrative purposes only and does not represent the past or future performance of any Legg Mason product. $10,000 INVESTED ON JANUARY 1 OF THE YEAR: ALL SEEMED NEGATIVE BECAUSE OF: VALUE OF THAT $10,000 ON DECEMBER 31, 2007 1942 Pearl Harbor Attack – 1941 $20,348,237 1948 Berlin Blockade - 1947 $8,463,963 1951 Korean War – 1950 $5,058,932 1956 President Eisenhower suffers a heart attack – 1955 $1,733,436 1964 President Kennedy assassinated – 1963 $796,609 1969 Vietnamese Tet Offensive; MLK and RFK assassinated – 1968 $537,495 1975 President Nixon’s resignation - 1974 $606,921 1982 U.S. recession coupled with soaring inflation – 1981 $243,058 1988 Stock market crash – 1987 $93,322 1992 War with Iraq and U.S. recession – 1991 $48,074 1997 U.S. barracks bombed in Saudi Arabia – 1996 $23,676 2002 Terrorist attacks on the U.S. – 2001 $14,241 2004 Iraq War – 2003 $14,207

8. The Rewards of Long-Term Investing: A Look Back to the 1920s Total returns for the S&P 500 Index — 1926-2007: One-Year Periods Sources: GPW, FactSet, 1998-2007; Bloomberg, 1986-1987. This chart is for illustrative purposes only and does not represent an actual investment or the performance of any specific investment. Past performance is no guarantee of future results. TN08-3138

9. It’s Time in the Market—Not Timing Market returns: S&P 500 Index from 12/31/87-12/31/07 Sources: FactSet, Standard & Poor’s, as of 12/31/07. The chart provided is for illustrative purposes only and represents an unmanaged index in which investors cannot directly invest. Performance shown does not represent the past or future performance of any investment product. The S&P 500 Index is an unmanaged index of 500 stocks that is generally a representation of the performance of larger companies in the U.S. Past performance is not guarantee of future results. All investments involve risks, including loss of principal. TN08-3139