Financial Services

1

• Financial Services
• Laboratory
• http//www.lehigh.edu/infsl/
• College of Business Economics

2
Financial Services Laboratory

• College of Business Economics Mission
• Financial Services Laboratory
• - Prominent Alumni Leadership
• - Business Plan
• - Funding Requirements/Use of Proceeds
• - Timetable
• - Physical Plant
• - Prominent Alumni Commitments
• Naming Opportunities
• Appendix 1 CBE Overview
• Appendix 2 CBE Board of Advisors
• Appendix 3 Fundraising Committee

3
College of Business and Economics Mission

• Establish Lehigh CBE
• as a world-class leader in
• 3 critical areas
• Financial Services
• Information Technology
• Health Bio-Pharma Economics

4
CBE Game Plan Outcomes

• Develop distinctive, market-responsive,
  niche-based academic programs
• Collaborate across Colleges and the University
• Establish partnerships with financial services
  alumni
• THIS WILL
• Increase national international recognition
• Attract first-in-class students
• Attract and retain superior faculty

5
From Theory to Practice

• FINANCIAL SERVICES LABORATORY
• A Financial Services Laboratory at Lehigh
  will be a distinctive advantage for its faculty
  and future business leaders it prepares. Science
  has always relied on labs for research and
  practical teaching, and so should business.
• -- Joseph R. Perella 64
• Chairman
• Institutional Securities Investment Banking
  Group
• Morgan Stanley

6
Financial Services Laboratory

• Classroom and research facility aimed at
  developing educational programs for application
  towards the financial services industry
• 27 seat classroom designed to simulate a Wall
  Street trading environment
• State of the art wireless networking and
  engineering facility
• Training facility available for outsourcing to
  corporations
• Think tank for research on financial services
  market structure
• Leader in creation of programs and majors
  specifically geared towards distinct financial
  services disciplines

7
Prominent Alumni Leadership Commitment

• Marc Paley 83 FSL Fundraising Chairman
• Managing Director
• Lehman Brothers
• Joe Perella 64 FSL Honorary Fundraising
  Chairman
• Managing Director Chairman
• Institutional Securities Investment
  Banking
• Morgan Stanley
• Team of accomplished alumni working with Lehigh
  professionals as part of the FSL
  Fundraising/Steering committee

8
Business Plan How We Will Utilize the FSL

• 2,000 undergraduate graduate students will
  take courses in the Lab while at Lehigh
• Existing courses fine-tuned to incorporate
  leverage the FSL
• - Security Analysis Portfolio Management
• Existing courses greatly modified that will
  foster collaboration among students faculty
  across Lehighs disciplines and colleges
• - Advanced Engineering Economy Replacement
  Analysis
• New courses created to leverage expertise of
  alumni
• - Honors Seminar Series in Financial Markets
• National global resource for industry to train
  educate employees

9
Business PlanCampus-Wide Impact

• Undergraduate Business Students
• Graduate Students
• MBA Students
• Engineering Students
• Math Students
• Journalism Students
• Faculty
• Admissions
• Career Services
• Community Outreach

10
Business Plan Measurable Results

• Enhance employment opportunities for CBE
  graduates
• Enhance student understanding of how world events
  impact financial markets
• Reduce on-the-job training time
• Increase quality faculty research
• Increase number of top quality faculty and
  students
• Stay ahead of our competition

11
Timetable

• January 2004 IBM Phase I Lab (up to 10
  stations)
• Spring 2004 Renovation starts May 18th
• Summer 2004 Beta Test
• Fall 2004 FSL fully operational
• October 2004 Dedication of Lab and Recognition
  of Major Sponsors

12
Funding Requirement 3.5M

• An endowment of 3.5 million provides
  175,000 per year in operating income for the
  FSL. Service donations of software and hardware
  (as well as grants) are expected to make up the
  additional 65,000 that is needed.

• One-time Costs 650,000
• Computer and Networking
  400,000
• Renovations 120,000
• Market Data Displays 100,000
• Furniture 30,000
• Annual Expenses 240,000
• Professor of Practice 65,000
• Technical Director 50,000
• Graduate Student 20,000
• Software and Data Services
  70,000
• New Program Development
  5,000
• Operating Expenses 5,000
• Equipment/Lifecycle 25,000

13
Physical Plant
Reserved
Reserved
Reserved
Reserved
Contract Pending
Reserved
14
Floor Plan
15
A Window to the World

• PHYSICAL MAKEUP
• Wireless technology IBM supplying their
  prototype next generation trading room technology
• Real-time market information
• Media
• Market Data
• Software simulated trading, deal capture,
  settlement, analytics, pricing, portfolio
  management, derivatives pricing

16
Making Your Gift

• Three ways to support the Lab
• Endowment Gift - for program development or
  faculty support
• Capital Gift - for Lab construction/renovation
• Restricted Operating Gift - to the College of
  Business Economics FSL

17
Supporters

• Leadership Gifts
• Joe 64 and Amy Perella, Morgan Stanley
• Principal Gifts
• Marc Paley 83, Lehman Brothers
• Tina 88 and Steve 86 Goldfield, Imperium
  Capital Management
• IBM Corporation
• Major Gifts
• Jeff Bosland 88, Daiwa Securities
• Tom Grossman 88, Aenaes Capital Management
• Jeff Enslin 88, Caxton Associates, LLC
• Chris Hite 89, UBS Investment Bank
• Jim Conlin 92, Kabrik Trading
• Ed and Janet Miller, Parents Class of 2005
• Kris Talgo 80, Rochdale Securities Corp.
• John Callies 76, IBM
• Eve Gerriets Mongiardo 86, Soros Private Funds
  Management
• David Kern 86, Kern Capital Management

As of 4/26/2004
18
Key Naming Opportunities

• 3.5 million Lab Name and Permanent
  Endowment for the Lab
• 1.75 million FSL Name (Rauch Lobby)
• 1.3 million Named Professor of Practice
• 1.0 million Named Technical Director
• 1.0 million Lab Name (2nd Floor Suite)
• Benefits include
• Inscription on the Walk of Honor in Leadership
  Plaza priority for student interns faculty
  exchanges and custom designed programs
  invitations to the Presidents home
  distinguished lecture series and VIP table for
  Wall Street Council events.

19
Naming Opportunities

• 700,000 Software Data Services Fund
  (Endowed)
• 500,000 Equipment/Life Cycle Replacement Fund
• 400,000 Named Graduate Fellowship (Endowed)
• 250,000 Lab Renovations and Maintenance
• 100,000 Market Data Displays
• 100,000 Named Program Development Fund
  (Endowed)
• 75,000 Specialized Software
• 50,000 Pooled Operating Endowment
• 50,000 Lab Work Stations
• 25,000 Financial Services Sponsor
• 10,000 Traders Circle

20
Appendices

• College of Business Economics

21
Poised for Success
College of Business Economics

• SOLID FOUNDATION
• BOLD VISION
• THE NEXT CHAPTER

22
Build Upon Strengths
UNDERGRADUATE INTEGRATED PROGRAMS

• Integrated Business and Engineering
• Computer Science and Business
• Integrated Product Development
• Integrated Program in Finance and Accounting

23
Create Market Responsive Niche Programs

• GRADUATE INTERDISCIPLINARY PROGRAMS
• MBA and Engineering
• MBA and Educational Leadership
• Supply Chain Management concentration
• vSeries for Corporate Entrepreneurship MBA
  concentration
• MS in Accounting and Information Analysis

24
Extend Faculty Expertise

• 25 new faculty hired since 1999
• Showcase the expertise of CBEs faculty through
  managerially relevant, cutting-edge research
• Hire world-class experts in their fields as
  Professors of Practice
• NEW FACULTY PROFESSORS OF PRACTICE
• CORE FACULTY LEADERS
• A HIGH QUALITY EDUCATION

25
Prepare Student Leaders for a Global World
HIGHLIGHTS OF CLASS OF 2007

• Most selective class to date (38 Admit Rate)
• Strongest Yield (41)
• Highest overall testing profile (1261 SAT)

26
Respond to Consumer Needs

• CERTIFICATE PROGRAMS
• Supply Chain Management On-line Certificate
• Project Management On-line Certificate
• vSeries Certificate

27
CBE Board of Advisors
Accomplished Leaders from Key Industries
28
CBE Board of Advisors
Accomplished Leaders from Key Industries, cont.
29
Fundraising Committee