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DECEMBER 15, 2009

COMPANIES REMOVED FROM THE S&P 500 FOR DECEMBER 18, 2009

On Friday, December 11, 2009, Standard & Poor’s (“S&P”) announced the companies that are going to be removed from the S&P
500 Index on December 18th. Historically, the companies that are removed from the S&P 500 tend to suffer a decline in their share
price. This slide in share price mainly results from institutional investors, who are trying to mimic the performance of the S&P 500,
unloading their shares of the removed companies onto the market. Usually, the price decline has little to do with a recent change in
the company’s performance. Such situations present the potential for investment opportunities trading below their intrinsic value.
As a result, Chain Bridge Investing (“CB”) has provided the names and selected financial details of the companies being removed
from the S&P 500 for those who are interested in conducting further research.

As a final note, these listings are in no way to be construed as financial advice or investment recommendations. These listings are
meant to provide ideas to readers for their own research and show parts of the investment research process of CB. All data is
pulled from Stock Pro Investor and Yahoo! Finance. CB is not an investment advisor, please read the disclaimer at
www.chainbridgeinvesting.com/disclaimer/.

EXHIBITS
Exhibit A: Companies Removed from the S&P 500 for December 18, 2009

# Company Name Ticker Industry Exchange Website Country

1 MBIA Inc. MBI Insurance (Property & Casualty) New York http://www.mbia.com/ United States
2 Ciena Corporation CIEN Communications Equipment Nasdaq http://www.ciena.com/ United States
3 Dynegy Inc. DYN Electric Utilities New York http://www.dynegy.com/ United States
4 KB Home KBH Construction Services New York http://www.kbhome.com/ United States
5 Convergys Corporation CVG Computer Networks New York http://www.convergys.com/ United States
Exhibit B: Companies Removed from the S&P 500 for December 18, 2009
% of 52-Wk. Mkt. Cap. Cash Short Gross Oper. RoA RoE
# Company Name Price High (m) Debt (m) (m) EV (m) Ratio Margin Margin (LTM) (LTM)
1 MBIA Inc. $ 3.40 39.8% $ 763 $ 11,640 $ 1,646 $ 10,757 2.9x nm -69.3% -1.1% -14.6%
2 Ciena Corporation 10.83 65.1% 1,058 798 486 1,371 3.3x 43.6% -88.8% -35.6% -96.8%
3 Dynegy Inc. 1.86 66.4% 1,666 6,193 703 7,156 2.0x 35.7% -56.3% -9.0% -30.4%
4 KB Home 13.07 63.1% 1,169 1,813 954 2,028 4.6x -0.5% -19.1% -14.1% -70.4%
5 Convergys Corporation 10.53 88.0% 1,358 630 336 1,652 7.0x 31.2% -937.2% -5.3% -12.9%
Exhibit C: Companies Removed from the S&P 500 for December 18, 2009
PE P/ CapEx/ S 1 Yr. S 3 Yr. EV/ LT Debt/ Net Debt/
# Company Name P/E PE Yr+0 Yr+1 PEG P/S P/B FCFPS S Gwth CAGR EBITDA Total Cap. EBITDA
1 MBIA Inc. nm nm nm nm 1.91x .3x nm 1.6% nm nm -41.34x 70.8% nm
2 Ciena Corporation nm 115.2x 25.5x 10.2 1.53x 2.1x nm 3.7% -27.7% 5.0% -24.79x 63.6% nm
3 Dynegy Inc. nm nm nm nm .53x .4x nm 20.6% 14.4% 20.7% 8.05x 62.6% 6.18x
4 KB Home nm nm nm nm .49x 1.6x 2.5x 0.0% -52.7% -28.1% -64.79x 74.7% nm
5 Convergys Corporation nm 9.2x 9.0x 0.8 .46x 1.2x 5.7x 3.1% -2.1% 2.6% 9.17x 32.5% 1.63x

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