Contact: Michael Warden, (512) 499-4363

Date: December 19, 2003

UT System News Release

U.T. System Regents Approve Agenda Items in Final Meeting of 2003

The Board of Regents of the University of Texas System held its last meeting of 2003 in a special called telephone conference call today.

All agenda items were approved including:

• The appointment of Regent John W. Barnhill, Jr., to the Board of Trustees of the Texas Growth Fund.

• The approval of the appointment of I. Craig Hester, R. H. Stevens and Regent James R. Huffines to the Audit and Ethics Committee of The University of Texas Investment Management Company Board of Directors. Mr. Stevens will serve as chair of the committee.

• The approval of Investment Policy Statements for the Permanent University Fund, General Endowment Fund, Permanent Health Fund, and Long Term Fund (including asset allocation policy), and Liquidity Policy for UTIMCO. The Board also passed a resolution to undertake a review of UTIMCO's structure and services for the purpose of improving the investment management function of the U.T. System.

• The correction of technical language in the Board's Nov. 18 special meeting approving tuition for U.T. institutions to include approval for U.T. Austin's School of Law for academic year 2005-2006.

• The authorization of the Chancellor to negotiate and enter in to an economic development agreement with the State of Texas to expand the Erik Jonsson School of Engineering and Computer Science at U.T. Dallas. The agreement is part of the State of Texas' agreement with Texas Instruments for construction of a new $3 billion research, development, and manufacturing facility to be located in Richardson, Texas.

• The approval of a waiver of The Regents' Rules permitting the U.T. Austin Geology Foundation, with the assistance of the Bureau of Economic Geology, to manage the royalties received from the estate of John A. Jackson.

• The approval of the design development for a $4 million additional phase of campus housing at U.T. Dallas to meet heavy student demand. The project will increase the number of available beds for students by approximately 200. Construction will begin in February 2004 with expected completion in August.

• The authorization of the sale of real property (5140 Seneca Drive, Dallas) and the purchase of additional real property at U.T. Southwestern Medical Center in Dallas. The purchased property will be developed as a biomedical technology center that will work with local and state entities to foster the launch of biotechnology companies and create a biotechnology sector in the area.

• The approval of the addition of an Ambulatory Surgical Center at U.T. Southwestern Medical Center in Dallas to the FY2004-2009 Capital Improvement Program and FY2004-2005 Capital Budget. The proposed project will include a 250,000 square-foot, 10-story building and parking garage. The center will be operational in January 2006 with construction planned to begin by August 2004 at an estimated cost of $62,400,000.

The Agenda Book for the meeting, including background information on each agenda item, is available online at www.utsystem.edu/bor/AgendaBook/12-19-03Meetingpage.htm.

UTIMCO: www.utimco.org

Texas Growth Fund: www.texasgrowthfund.com

UTD Jonsson School: www.utdallas.edu/dept/eecs/

TI announcement: www.ti.com/corp/docs/press/company/2003/c03029.shtml

Jackson estate gift news release: www.geosci.utexas.edu/JSGnews.htm

Jackson School of Geosciences: www.geosci.utexas.edu/

Bureau of Economic Geology: www.beg.utexas.edu/