SBIC Income

Fund L.P.

Fund Investment Objectives

The SBIC Income Fund is one of four funds managed by Santa Barbara Investment Capital. This Fund seeks higher returns than other safe, income oriented investments. Our August '98 return was hurt by an investment in an international bond fund that we have since closed out. The vast majority of all investments are now U.S. based and we are much more diversified. Underlying Funds are only disclosed to existing investors.