UNIVERSITY OF CONNECTICUT Due Diligence Meeting – April 22, 2010

UNIVERSITY OF CONNECTICUT Due Diligence Meeting – April 22, 2010 UCONN 2000 General Obligation Debt Service Commitment New Money & Refunding Bonds 2010 Series A

Table of Contents • Overview • UCONN 2000 Phase I & II & III • UCONN 2000 Phase III • UCONN 2000 Phase III Current Authorizations • GO-DSC 2010 Series A Indenture Authorizations • GO-DSC 2010 Series A - Projects To Be Funded • GO-DSC 2010 Series A –Security and Expected Ratings • GO-DSC 2010 Series A Bonds – Draft Structure • Recent Developments • GO-DSC 2010 Series A - Financing Schedule • General Obligation DSC Prior Bond Issues • General Obligation DSC Bond Allocations • UCONN 2000 General Obligation DSC Authorized & Issued Projects Phase I & II • UCONN 2000 GO DSC Authorized & Issued Phase III

I. Overview • UConn General Obligation Bonds 2010 Series A secured by the State’s Debt Service Commitment (“GO-DSC 2010A New Money”) • Expected Construction Fund Deposit $105 million for various UCONN2000 Projects • $35.6 million for Storrs & Regional Campus (22 projects) and • $69.4 million for Health Center (4 projects) authorized to date. • UConn General Obligation Refunding Bonds 2010 Series A secured by the State’s Debt Service Commitment (“GO-DSC Refunding 2010-A”) • Provide debt service savings to the Program and the State by refunding certain maturities of previously issued UCONN2000 GO-DSC Bonds

II. UCONN 2000 Phase I & II &III • UCONN 2000 General Obligation Debt Service Commitment Act Authorized Limits PhaseDSC LimitDate DSC Limit Reached Phase I $382,000,000 April 8, 1999 (Actual) Phase II $580,000,000 Spring 2005 (Actual) Phase III $1,300,000,000 Spring 2016 (Expected) Subtotal $2,262,000,000 Spring 2016 The balance of the estimated cost of UCONN 2000 projects which is not to be financed by the University’s Bonds secured by the State Debt Service Commitment or the State’s bonds may be met by the issuance of special obligation bonds (“Special Obligation Bonds”) of the University, or from gifts or other revenue or borrowing resources of the University, or through the deferring of projects or achieved savings.

II. UCONN 2000 Phase I & II & III (Continued) • Phase I & II & III DSC Funding – $2,262 million, 21 year program (FY96 to FY16) • A little more then about Half Way Through Project Funding To date, ninety-four projects, totaling 9 for UCHC in Phase III) • $1,435,000,000 of Projects have been authorized by the Board of Trustees and the Governor for funding with General Obligation Debt Service Commitment bond proceeds. • $1,330,000,000 of projects authorized and funded by UCONN2000 GO-DSC bonds previously issued. • $932,000,000 of Project Funding Remaining in Act to be Issued (of which $105,000,000 is authorized). • $205.1 million in Special Obligation bonds authorized to date net of refunded bonds ($189.2 million for Projects), to be repaid by the University from certain Pledged Revenues (i.e. room/board and other fee proceeds)

III. UCONN 2000 Phase III • The General Assembly and the Governor amended the UCONN 2000 Act in 2002 to include Phase III (21st Century UConn) which extended financing for another 10 years (FY05-FY15) and authorized additional DSC Funded projects with costs of $1.3 billion, of which $305.4 million is for Health Center Projects. The act was subsequently amended in 2007 to reallocate funding between fiscal years and extend the program to FY2016. • The fiscal year 2010 phase in of $140.5 million of authorizations was delayed by the Governor’s non-approval last year. • However $105 Million for UCONN2000 projects are currently authorized by the Board of Trustees and the Office of the Governor but remain unissued (prior to GO-DSC 2010-A).

IV. UCONN 2000 Phase III Current Authorizations $105 Million of GO-DSC 2010 New Money Bonds Authorized Pursuant to 15th Supplemental Indenture • Trustees approved 15th on June 24, 2008 • The Governor approved 15th on June 30, 2008. $140 Million for UCONN2000 Projects authorized by 15th Supplemental Indenture • Less: $35 million previously issued for a GO-DSC 2009 • $105 Million balance available from 15th General Obligation Supplemental Indenture

V. GO-DSC Refunding 2010 Series A Indenture Authorizations • GO-DSC REFUNDING 2010-A Expected to provide Debt Service Savings to the Program and the State by refunding certain previous maturities of bonds depending on market conditions • GO-DSC REFUNDING 2010-A Issued Pursuant to Eight Supplemental Indenture • Board of Trustees approved 8th on September 26, 2001 • The Governor approved 8th on October 19, 2001

VI. GO-DSC 2010 Series A - Projects To Be Funded Storrs & Regional Campuses

VI. GO-DSC 2010 Series A - Projects To Be Funded (Continued) Phase III UCONN Health Center Projects

VII. GO-DSC 2010 Series A –Security and Expected Ratings Bondholder Security & Ratings • Pledge of and lien upon the State Debt Service Commitment • Debt Service Commitment by the State to punctually pay Special Debt Service Requirements out of the resources of the State’s General Fund • Debt Service paid by the State on behalf of UConn directly to Trustee Bank • Pledge of full faith and credit of the University Expected Ratings for UConn General Obligation Debt Service Commitment Bonds 2010 Series A —Fitch “AA” — Moody’s “Aa3” (not including recalibration consideration) — Standard & Poor’s “AA”

VIII. GO-DSC 2010 Series A Bond – Draft Structure *Preliminary +Does not include possible refunding

IX. Recent Developments • March 9, 2010, Governor M. Jodi Rell announced plans to establish the Uconn Health Network – a unique partnership with area hospitals aimed at creating jobs and improving access to quality health care in the state. • The plan for the hospital is estimated to cost $352 million and funding would come from various sources: • UCHC Existing UCONN 2000 Allocation: $25 million • Federal or Other Non-State Funds: $100 million • Increase in UCONN 2000 Bonding: $207 million • State GO Bonds: $20 million • Currently projected, the annual bonding caps under UCONN 2000 will be reduced, while additional UCONN 2000 bonds are issued to construct the John Dempsey Hospital. These reductions as well as the FY10 amount of $140.5 million deferred by the Governor will be restored over the remaining life of the program through an extension of the current end date of FY16 to FY18.

X. GO-DSC 2010 Series A - Financing Schedule Financing Schedule

XI. General Obligation DSC Prior Bond Issues Issued Amounts

XII. General Obligation DSC Bond Allocations UCONN 2000 Act – Fiscal Year Allocations Generally expect to Issue a GO-DSC New Money Bond every fiscal year

XIII. UCONN 2000 General Obligation DSC Authorized & Issued Projects Phase I & II

XIV. UCONN 2000 GO DSC Authorized & Issued Phase III

XIV. UCONN 2000 GO DSC Authorized & Issued Phase III (continued)

UNIVERSITY OF CONNECTICUT Due Diligence Meeting – April 22,2010 UCONN 2000 Special Obligation Student Fee Revenue Refunding Bonds 2010 Series A

Table of Contents • SO-SFR Refunding 2010 Series A – Refunding Series Draft Structure • Bondholder Security • SO-SFR Refunding 2010 Series A –Security • Pledged Revenue • Pledged Revenues Flow of Funds • SO-SFR Refunding 2010 Series A – Financing Schedule • SO-SFR Refunding 2010 Series A – Expected Ratings • Statement of Projected Coverage Levels and Footnotes

I. SO-SFR 2010 Refunding Series A Bond – Draft Structure *Preliminary

II. Bondholder Security • Stable Quality Pledged Revenues • Generated on a consistent basis from fees • Substantial debt service coverage • The physical transformation generates capacity for new students who, in turn, will provide additional student fee revenue for debt service support

III. SO-SFR Refunding 2010 Series A – Security SFR Series A Refunding Bonds are entitled to the lien created by the pledge under the Indenture of: • All monies or securities in the Bond Proceeds Fund, the Debt Service Fund, and the Redemption Fund together with any and all receipts, funds or moneys, investments and other property of every kind and nature from time to time hereafter on deposit in or payable to such funds and accounts thereof except, with respect to the foregoing but subject to the Indenture, the Rebate Fund and moneys and securities in the Rebate Fund; • All monies received as “Pledged Revenues,” including special revenues, subject to the prior lien on and pledge thereof for a certain loan form the United States of America acting by and through the Secretary of the Department of Education and the parity payment of certain general obligation bonds of the State categorized by the State as self-liquidating, each as noted in the Indenture, to be received by the University from fees and charges for certain auxiliary activities, including the Residential Life Room Fee, Student Apartment Rentals, the Greek Housing Fee, the Board (Dining) Fee, the Infrastructure Maintenance Fee, the Parking and Transportation Fee and the General University Fee and such other legally available revenues, including but not limited to other fees and charges and Special Eligible Gifts, as the Board of Trustees of the University may determine to pledge under the Indenture.

Net Revenue Amount” constitutes that amount of Pledged Revenues with respect to the (i) Residential Life Room Fee, (ii) Board (Dining) Fee, (iii) the Parking and Transportation Fee, (iv) the Student Apartment Rentals, and (v) the Greek Housing Fee, after providing for or paying the reasonable or necessary cost of currently maintaining, repairing, insuring and operating the facilities for which such fees, respectively, are imposed and each of which individual amount as a result thereof may be a plus or minus. “Gross Revenue Amount” for purposes of the foregoing covenant constitutes that amount of Pledged Revenues with respect to the (i) Infrastructure Maintenance Fee, (ii) the General University Fee prior to any payments, deductions, offsets or provisions, respectively and (iii) any interest earned or gains realized by the investment of monies which are Pledged Revenues and which constitute a part of the Trust Estate. Collect in each Fiscal Year fees representing Pledged Revenues so that the Net Revenue plus Gross Revenue Amount is equal to no less than the sum of: (1) an amount equal to 1.25 times the Debt Service Requirements in such Fiscal Year, plus (2) an amount equal any Debt Service Expense Requirement not covered above. IV. Pledged Revenue Covenant 1.25 Times Debt Service

Room, Board, Rent & Parking Fees Expenses related to above Pledged Revenue/ Gross Revenue2 University of Connecticut Pledged Revenue/ Net Revenue1 Gross Revenue from Fees Net Revenues Principal and Interest Payments Bond Proceeds Bonds Bondholders V. Pledged Revenues Flow of Funds 1 Net revenue constitutes that amount of pledged revenues with respect to (1) residential life room fee, (2) board dining fee, (3) the parking and transportation fee, (4) the student apartment rentals and (5) the Greek Housing fee 2 Gross revenue constitutes that amount of pledged revenue with respect to (1) infrastructure maintenance fee, (2) the general university fee prior to any payments deductions, offsets or provisions, respectively, and (3) and interest earned or gains realized by the investment of monies which are pledged revenues and which constitute a part of the trust estate

VI. SO-SFR 2010 Series A – Financing Schedule Financing Schedule

VII. SO-SFR 2010 Series A – Expected Ratings Expected Ratings for UConn General Obligation Debt Service Commitment Bonds 2010 Series A — Moody’s “Aa3” (not including recalibration consideration) — Standard & Poor’s “AA-”

UNIVERSITY OF CONNECTICUT Due Diligence Meeting – April 22, 2010