Contact: Monty Jones, (512) 499-4363 or Greg D. Lee, UTIMCO, (512) 225-1600

Date: August 7, 2003

UT System News Release

Board of Regents Approves New UTIMCO Board Members

SAN ANTONIO - The University of Texas System Board of Regents approved the appointment of two new members to the Board of Directors for The University of Texas Investment Management Company. The appointment of J. Philip Ferguson and I. Craig Hester were approved today at the Board of Regents meeting in San Antonio. Their terms will run through April 1, 2006.

J. Philip Ferguson is the senior investment officer of AIM Capital Management, Inc. He is also a former managing partner of Beutel, Goodman Capital Management, senior vice president of Lehman Brothers, Inc., and vice president of Goldman, Sachs & Co. Mr. Ferguson holds a bachelor's degree from Texas Christian University and a law degree from The University of Texas School of Law. He currently serves on the board of the Houston Ballet and the Memorial Hermann Foundation. He also serves on the Board of Governors for the Investment Counsel Association of America, and is an active volunteer for several non-profit organizations in the greater Houston area.

I. Craig Hester is the founder of Hester Capital Management, L.L.C. Mr. Hester has been actively involved in professional investment management since 1972. He holds a bachelor's degree and master of business administration degree from the University of Texas at Austin and is a chartered financial analyst and certified investment counselor. He is the past president of the Austin Investment Association and a member and past president of the Austin and San Antonio Societies of Financial Analysts. He currently serves on the board of the UT Ex-Student Association, on the advisory council of the KMFA Capitol Broadcasting Association, as a Junior League of Austin community advisor, and 2003 chair-elect of the Foundation for SafePlace. He also serves on various investment committees.

The new directors replace John McStay and Lowry Mays, whose terms expired.

UTIMCO is a 501(c)(3) investment management corporation whose sole purpose is the management of investment assets under the fiduciary care of the Board of Regents of The University of Texas System. Created in March 1996, UTIMCO is the first external investment corporation formed by a public university system. It invests endowment and operating funds in excess of $14 billion.

UTIMCO is governed by a nine-member Board of Directors appointed by the Board of Regents. The UTIMCO Board of Directors includes three members of The University of Texas System Board of Regents, one member of The Texas A&M University System Board of Regents, the Chancellor of The University of Texas System, and five outside investment professionals.

UTIMCO web site

Related news releases:

UTIMCO makes investment returns data available - October 4, 2002

UTIMCO board unanimously approves new public information policy - September 18, 2002

Other news and presentations from the Board meeting