Argus Core Equity Strategy (All Data as of June 30, 2010)    


Objective
Argus Core Equity seeks to outperform the S&P 500® by 200-300 basis points per annum, gross of fees, over a full market cycle with a tracking error of approximately 3-4%.

Philosophy
While the majority of equity market participants construct portfolios according to what has happened in the recent past, Argus manages equity portfolios with the understanding that much of future market behavior cannot be reliably forecast. Thus, Argus constructs portfolios best suited to prosper through unpredictable markets starting with the following key concepts:

> The S&P 500® is an investable universe, not an investment strategy. Index construction methodologies often create risks.

> Investors can capture alpha from a diversified equity portfolio through systematic rebalancing that eliminates emotion-driven buy/sell decisions and takes advantage of persistent industry rotation.

> Financial Strength, measured by fundamental analysis, is critical to long-term investing success.

Advantages
Predictability: Produce dependable, repeatable returns that are systematic and do not rely on short term forecast of earnings or economic trends.

Risk Management: Strict equal weighting and ongoing rebalancing manages individual stock and industry risks.

Downside Protection: Our process maintains true diversification and has produced valuable downside protection in declining market environments.


Annualized Performance - Core Equity Composite
(As of June 30, 2010)*

Trailing Period	Argus Composite (Gross)	Argus Composite (Net)	S&P 500 Benchmark
1 Year	15.20%	14.91%	14.43%
3 Year	-7.14%	-7.35%	-9.81%
5 Year	1.33%	1.13%	-0.79%
10 Year	1.11%	0.89	-1.59%

Risk Analysis - Past Three Years

Risk Analysis	AIC
Alpha(%)	2.66
Beta	0.98
Standard Deviation	99.4
Upside Capture	107.77
Downside Capture	93.28
Information Ratio	0.84
Tracking Error(%)	3.19
Source: Informa Investment Solutions

Portfolio Characteristics- (Quarter to Date)

Portfolio Characteristics	AIC	S&P 500
P/E Ratio	12.7	12.3
EPS Growth Rate %	11.5	10.8
Price-to-Book Ratio	2.19	1.94
Dividend Yield %	2.35	2.20
Turnover Rate (12 months) %	22.3	--
Number of Issues	50	500
Average Wtd Market Cap ($billions)	72.78	75.21
Source: Bank of New York Mellon Corporation

Top & Bottom Securities - (Q2 2010)

Top 5 Contributors	Bottom 5 Contributors
Apple Computer	General Electric
McDonalds Corp	Gen. Dynamics
Kimberly Clark	Fedex Corp
American Express	Alcoa Inc.
IBM	Walgreen Co.
Source: Bank of New York Mellon Corporation

Equity Sectors

Equity Sectors	AIC	S&P 500
Consumer Discretionary	11.07	10.2
Consumer Staples	16.8	11.53
Energy	4.0	10.69
Financials	7.3	16.31
Healthcare	11.9	12.09
Industrials	17.8	10.50
Information Technology	19.0	18.75
Materials	7.1	3.44
Telecom Services	2.2	3.0
Utilities	0.0	3.76
Source: Bank of New York Mellon Corporation

Performance Report (as of June 30, 2010)*

Annual Performance	2004	2005	2006	2007	2008	2009
AIC Gross of Fees	10.37	0.14	17.68	6.20	-32.91	32.85
AIC Net of Fees	10.16	-0.05	17.51	6.04	-33.07	32.50
S&P 500	10.88	4.91	15.80	5.49	-37.00	26.46
Excess Return - Gross	-0.51	-4.76	1.88	0.71	4.09	6.39

Performance Notes
Argus Investors' Counsel, Inc. (AIC) is an SEC registered investment advisor that provides investment advisory services to institutional and individual investors. The Argus Core Equity Composite contains fully discretionary core equity accounts that for comparison purposes are measured against the S&P 500 Index.

AIC's SEC registration does not imply a certain level of skill or training. The information in this document has not been approved or verified by the SEC or by any state securities authority.

Annual and annualized periods are calculated based upon geometrically linked monthly returns.

Information above is based upon data provided by The Bank of New York Mellon Corporation and Informa Investment Solutions.

It should not be assumed that investments in any of the contributors discussed above were or will prove to be profitable. The contributors discussed above may no longer be held in client portfolios. The holdings of any particular account may vary based on any investment restrictions applicable to the account. This information is for illustrative purposes only, is subject to change at any time and should not be considered investment advice or a recommendation to buy or sell any particular security. In accordance with Rule 206(4)-1 under the Investment Advisers Act of 1940, upon request, AIC will furnish you with a list of all recommendations made by AIC within the immediately preceding twelve months. There is no guarantee that holding securities with relatively high (or low) price-to earnings, price-to-book, or price-to-cash flow will cause the composite to outperform its benchmark or index.

* The Argus Core Equity Composite was created on December 31, 1994. Compliance with the Global Investment Performance Standards (GIPS®) has been verified firmwide by Ashland Partners & Company, LLP from January 1, 1995 through December 31, 2009.
* The US dollar is the currency used to express performance.
* Past results are not indicative of future returns. AIC claims compliance with the Global Investment Performance Standards (GIPS®).

To receive a complete list and description of AIC's composites and/or a presentation that adheres to the GIPS® standards, contact Jim Tierney at 203-316-9000, or JTierney@argusinvest.com.