American Values Investments, Inc. devotes a significant part of its efforts and personnel to the identification of companies that do business in a manner that exemplifies traditional American values. Companies are evaluated and scores assigned in sixteen separate areas. Scores are based on a thorough review of all publicly available material including news articles, company literature, SEC filings, and other published materials. The scores are also based on interviews with the company’s principals, employees, customers, vendors, and analysts covering the company. The areas reviewed encompass the company’s commitment to:

Honesty

• in corporate communications to the press, to the government, and to shareholders
• in advertising
• in dealings with employees, vendors, and distributors

Responsibility

• for corporate actions
• for the mental, physical, and spiritual well-being of employees
• for sound fiscal conduct and decisions
• for the continued good stewardship of the environment

Dedication

• to employees
• to quality
• to traditional American values
• to continuous improvement of products, services, and processes
• to the communities in which they are located or involved
• to compassionate leadership
• to the provision of products and services that enhance the lives of consumers

Only those companies that are awarded a total cumulative score greater than 200 points are included in the American Values Investments Index. As the universe of reviewed companies expands, an additional diversification screen will be applied with the goal of only having the companies with the highest cumulative score in each sector in the Index.