Sprinkler Industry Supplemental Pension Fund

8000 CORPORATE DRIVE ● LANDOVER, MARYLAND 20785

TELEPHONE

(301) 577-1700

TOLL FREE

(800) 638-2603

May 15, 2007

To: All Participants in the Sprinkler Industry Supplemental (“SIS”) Pension Fund

From: The Board of Trustees

The Board of Trustees is pleased to announce several changes to the investment structure of the SIS Pension Fund. These changes will be effective June 1, 2007.

Balancing Large Company Value Stocks and Large Company Growth Stocks

Prior to June 1, 2007, Maximum Growth had an emphasis toward Large Company Growth Stocks while Wealth Building, Growth and Income and Current Income had an emphasis toward Large Company Value Stocks. This adjustment does not change the overall stock exposure for any of the Life Stage Funds. The change simply balances the percentage of Large Company Value Stocks against Large Company Growth Stocks within each Life Stage Fund. These two styles of management have been complimentary over time; when one style is in favor the other typically lags. Having both styles in a portfolio therefore reduces volatility. Furthermore, having an equal weight in each style is expected to provide the best diversification.

Changing the mandate of the Fixed Income Manager for the Maximum Growth, Wealth Building and Growth and Income Life Stage Funds

The U.S. Fixed Income investment manager invests in high quality U.S. Government and Corporate Bonds with an emphasis on limiting the interest rate risk that Fixed Income investments are subject to. The measure of interest rate sensitivity of a fixed income investment is called “Duration”. A bond with lower “Duration” will have less up and down price volatility in a changing interest rate environment. The Current Income and Capital Preservation Life Stage Funds will continue to use this approach to Fixed Income investing. In the chart below, this type of investment is described as “U.S. Fixed Income – Intermediate Duration”.

Effective June 1, 2007, the Fixed Income portion of the Maximum Growth, Wealth Building and Growth and Income Life Stage Funds will take a somewhat more aggressive investment approach than that taken in the Current Income and Capital Preservation Life Stage Funds. In addition to high quality U.S. Government and Corporate Bonds, the Full Duration Fixed Income investment manager can invest a portion of the portfolio (up to 20%) in non-U.S. fixed income securities. The Full Duration investment manager can invest in foreign markets often described as “Developed Markets” and to a lesser extent “Emerging Markets”. The investment manager will be limited to no more than 5% of the Fixed Income portfolio in emerging market securities. The Full Duration Fixed Income investment manager can also invest in below investment grade fixed income securities. Up to 20% of the portfolio can be in securities generally considered to be below investment grade. The duration on this portfolio will be higher than the duration of the U.S. Fixed Income portfolio. Therefore, this portfolio will be subject to higher up and down price volatility as interest rates change. In the chart below, this type of investment is described as “Fixed Income – Full Duration”.

The revised asset allocations are shown in the chart below.

	Maximum Growth	Wealth Building	Growth and Income	Current Income	Capital Preservation
Large US Stocks (Growth)	22.5%	17.5%	12.5%	7.5%	0%
Large US Stocks (Value)	22.5%	17.5%	12.5%	7.5%	0%
Small/Mid US Stocks	15%	10%	5%	0%	0%
International Stocks	10%	5%	5%	0%	0%
Fixed Income – Full Duration	25%	45%	60%	0%	0%
US Fixed Income – Intermediate Duration	0%	0%	0%	40%	25%
Stable Value	0%	0%	0%	40%	70%
Real Estate	5%	5%	5%	5%	5%

Changes in Professional Investment Managers

Before June 1, 2007, the Board of Trustees hired one professional investment manager for each asset class. The Trustees have decided that the SIS Pension Fund has grown in asset size sufficiently to justify two investment managers for the Large Company Value Stocks and the Large Company Growth Stocks portfolios.

As of June 1, 2007, the following changes in professional investment management will be effective.

In addition to the existing Large Company Value Stock investment manager, Barrow, Hanley, Mewhinney & Strauss, Inc., the Trustees have hired the investment manager, Lord, Abbett & Co. Each of these investment managers will have responsibility over one-half of the Large Company Value Stock assets of the SIS Pension Fund.

In addition to the existing Large Company Growth Stock investment manager, INTECH/Enhanced Investment Technologies, LLC, the Trustees have hired the investment manager, Quest Investment Management, Inc. Each of these investment managers will have responsibility over one-half of the Large Company Growth Stock assets of the SIS Pension Fund.

The Trustees have hired Western Asset Management Company to manage the Fixed Income – Full Duration portfolio.

Finally, the Trustees have hired Harris Investment Management, Inc. to be the investment manager responsible for Small and Mid-size U. S. Company Stocks.