By Bill Mann (TMF Otter)
August 9, 2001

The Trustees of The Motley Fool 50 Index are pleased to announce that we have selected the 10 bullpen stocks out of the dozens nominated by the Fool community.

In the event that one of the current FOOL 50 components will have to be replaced within the next fiscal year for the FOOL 50, which ends March 31, 2002, a replacement company will be selected from this list.

The companies selected for the bullpen are:

• Southwest Airlines <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LUV)") else Response.Write("(NYSE: LUV)") end if %>
• First Data Corporation <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FDC)") else Response.Write("(NYSE: FDC)") end if %>
• Vodaphone <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: VOD)") else Response.Write("(NYSE: VOD)") end if %>
• Genentech <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DNA)") else Response.Write("(NYSE: DNA)") end if %>
• Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MO)") else Response.Write("(NYSE: MO)") end if %>
• Boeing <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BA)") else Response.Write("(NYSE: BA)") end if %>
• Estee Lauder <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: EL)") else Response.Write("(NYSE: EL)") end if %>
• Tyco <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TYC)") else Response.Write("(NYSE: TYC)") end if %>
• United Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: UTX)") else Response.Write("(NYSE: UTX)") end if %>
• Morgan Stanley <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MWD)") else Response.Write("(NYSE: MWD)") end if %>

This list represents the first "bullpen" that the FOOL 50 has ever created. Previously, when a company was to be replaced in the FOOL 50, we have opened nominations for any stock to the community. This process turned out to be extremely time-consuming and frustrating, as we had to winnow down a list of hundreds of stocks to a single selection. By changing to a bullpen process, with the help of the Fool community the trustees can identify in advance a reasonable list of potential replacement companies, thus limiting the field from which we must work.

In the nomination process, we asked members of The Motley Fool community to identify companies that, in their opinions, are exemplars of the FOOL 50 index objective:

"The Motley Fool 50 Index measures the performance of 50 of the best, most relevant businesses traded on United States exchanges, businesses exhibiting leadership, innovation, superior use of technology, global branding, and strategic vision. The Motley Fool 50 Index therefore provides investors the best, most relevant read on how the leading businesses did today, this month, this year...."

By virtue of the requirement that the FOOL 50 be among the most important companies in the world for investors, we also set out some general qualitative and quantitative guidelines. With the exception of the $4 billion minimum in market capitalization, none of these guidelines should be considered absolute.

• Superior use of technology and communications
• Innovation
• Strategic vision
• Global branding
• Strong growth history and prospects
• Culture of accountability

Quantitative criteria
Each company must have a market capitalization in excess of $4 billion as of October 1, 1999 to be considered. This minimum amount may be adjusted in the future to account for overall growth in the market. In addition, each company must exhibit:

• Sales/revenue growth of at least 15% over the past five years; and
• Free cash flow > 75% of net income.

Up to 20% of the companies may be selected based upon their perceived potential to rapidly reach these criteria.

As always, feel free to post questions on the FOOL 50 Discussion Board.

Fool on!

Bill Mann, Chief Trustee, FOOL 50
Keith Pelczarski
Richard McCaffery
Tim Gallagher
Zeke Ashton
Ann Coleman
Brian Lund