The Directed Account Plan Excessive Trading Policy can be found at the Fidelity web site by clicking on the following link:

http://www.401k.com/401k/Excessive.html

The Directed Account Plan Board of Directors terminated Clipper in the Value Stock Option.  The termination was due to management and performance issues.  The Clipper assets will be reallocated to the BGI Value Stock Index.  The Board is currently researching a replacement fund that has a strong track record and management team that the Board believes will enhance this option’s return performance.  A rebalancing of the option has resulted in the following target allocation, effective 10/20/05:

Call The Benefits Center at 1-877-489-2327 for a fact sheet/prospectus on any of the above funds.

The Directed Account Plan Board of Directors replaced Franklin Small Cap Growth II with the Century Small Cap Select Institutional Fund in the Diversified Small Co. Stock Option. The termination of Franklin Small Cap Growth II was due to poor performance relative to its benchmark. There was also concerns resulting from recent organizational changes within the fund family. The replacement fund, Century Small Cap Select Institutional, has a strong track record and management team that the Board believes will enhance this option’s return performance. A rebalancing of the option has resulted in the following target allocation, effective 07/20/05:

Call Benefits Express 1-877-489-2327 for a fact sheet/prospectus on any of the above funds.

If you are visiting this website, you probably have a balance in the DAP but this news could be helpful to a friend who has left the plan since 1993. Over the years many pilots have rolled their balance from the DAP to an IRA for any number of reasons. Unless the participant left a balance in the DAP, they were not allowed to return to the DAP with the previous distribution. That policy has been changed by the DAP Board of Directors. The DAP will now accept qualified rollovers from any former DAP participant regardless of whether or not they left a balance in this plan. There are many IRS rules that apply to qualify a rollover back to the plan. If you or a friend who is a former DAP participant are interested in a rollover back to the DAP, please call the Directed Account Plan office at 314-739-7373 for the details. IRAs that contain other than DAP assets (i.e. – your own IRA contributions) do NOT qualify for rollover back into the DAP. Tell a friend!

The Directed Account Plan Board of Directors adopted a policy that allows a maximum 20% target allocation to any actively managed equity fund. This new policy required an adjustment to the target allocations in the International Stock Option, effective 12/6/04, as follows:

State Street Research Aurora S was terminated from the Diversified Small Company Stock Option on 12/6/04. The change was due to a recent ownership transfer at State Street Research and the reorganization of company and our portfolio management. The assets of this option were reallocated as follows:

It is anticipated that the allocation to BGI Small Company index will be reduced when a small cap growth manager search is completed. The BGI Small Company Index tracks the Russell 2000 Total Index.

Please click on the link below to view the new Fidelity Trading Restrictions to Target Disruptive Trading in PDF format. You will need Adobe Acrobat Reader 3.0 or greater to view. Click here to download Acrobat Reader.

Fidelity Trading Restrictions to Target Disruptive Trading

A New Combined Distribution and Installment Form is now available on this web site. Click here for links to the DAP Forms Online.

Diversified Small Company Stock Option Investment Manager Change

The Diversified Small Company Stock Option has been reallocated as follows due to the termination of MFS Instl. Emerging Equities :

The MFS Instl. Emerging Equities Fund was terminated on March 31, 2004. The fund’s performance was below the Russell 2000 benchmark year to date and longer term. Furthermore, MFS Investment Management was investigated for questionable trading practices by the SEC and recently reached a multi-million dollar settlement.

MFS Instl. Emerging Equities Fund’s 12% allocation was reallocated to Janus Small Cap Value Instl. and State Street Aurora. Please view the above chart for the new target allocations.

Value Stock Investment Option Investment Manager Changes

The Value Stock Option has been reallocated as follows due to the termination of Federated Stock Trust :

The Federated Stock Trust Fund was terminated on March 25, 2004. Its performance has not improved since it underwent manager change approximately two years ago. The fund’s performance was below the Russell 1000 Value benchmark year to date and longer term. The fund shows no value added from active management over its benchmark in all time periods. Furthermore, recent SEC settlements indicate possible problems with the fund’s management.

Federated Stock Trust’s 20% allocation was divided evenly between the Clipper and T. Rowe Price Value funds. Clipper is a new fund to the DAP with a 10% allocation in the Value Stock Option. The T. Rowe Price Value Fund’s allocation has been increased to 20% in the Value Stock Option.

The Wellington Mid Cap Opportunities Fund was added to the Growth Stock Option this month. This Fund is an institutional commingled fund (not a mutual fund). You can find out more information about this new Fund by clicking here. The assets have been reallocated to the Growth Stock Option as follows:

Wellington Mid Cap Opportunities was added to increase exposure to Mid Cap Growth.

The Janus Overseas Fund has been terminated today with the assets being reallocated to the International Stock Option as follows:

Termination was due to one and three year under-performance and recent manager changes for the Janus Overseas Fund.

Manager Name Change

Effective 4/18/03, the name of Berger Small Cap Value Institutional Shares will become Janus Small Cap Value Institutional Shares.

Traders and Transfer Fees

“New Trading Rules”

The Directed Account Plan continues to experience a high level of trading activity, which could be detrimental to the Plan in a number of ways. First, excessive trading is expensive to the option in which the trade is being made, and therefore, costly to everyone in that option. To support daily trading, the end of the day price is given to the participant, even though the actual trade to support this asset transfer is completed at market opening the next day. Any gap in pricing the next day is absorbed by the Plan’s option and everyone in that option as a cost, in addition to the usual transaction expense.

In 2002, the following trading activity was experienced, which could be considered excessive.

The total commission for the above activity was over six million dollars. Obviously, less unnecessary activity would result in lower costs to the Plan.

A high level of trading activity related commission costs is not the only problem. Large, frequent transactions require a high level of cash to be carried for liquidity to meet the trades. Stable Value assets that could be invested in a longer term fixed income product with higher returns need to be carried in shorter term products with less return to provide liquidity for the high level of trading activity. The traders effect all DAP option returns.

The Directed Account Plan’s Board of Directors resolved at it’s First Quarter 2003 meeting to adjust the Plan’s transfer fee policy in an attempt to discourage unnecessary trading without restricting normal trades for the majority of participants.

Effective July 1, 2003, all trades in excess of twelve per year will be charged a $500.00 transfer fee. The number of trades will be counted from January 1, 2003. The International Option will continue to carry an additional 1% redemption fee for short-term trades of less than 30 days. The proceeds of all transfer fees will be used to reduce the expenses of all plan participants. In 2002, $266,000 was collected and used for Plan expenses.

Rebalancing your portfolio is an important part of the investment process. Twelve free trades a year should be sufficient for that purpose. The Board of Director’s objective is to not restrict your ability to trade or rebalance, but to discourage excessive trading which is not in the best interest of Plan participants.

Twelve free trades a year. Excess trades will be charged a fee of $500.00 per trade over twelve. This new policy will go into effect July 1, 2003.