Freedom Center

Narration to Five Year Pro forma

April 30, 2007
Page 1 of 2
Confidential Not to be Distributed

Revenues---
Earned Revenue--$1,800,000 in 2006 and $1,965,000 thereafter
Management is confident that based on two and one half years of historical operating
performance that earned revenue will be within the above range especially as we (a) further
develop changing exhibits which we began introducing in late 2006 as well as (b) continue
the growth in our annual membership base. To the extent that the increase to $1,965,000
from $1,808,000 is not totally achieved discretionary operating expenses to achieve higher
levels will be reduced.

It is also important to note that facility rental continues to maintain itself in the $450,000
range as of April 2007.

Private Support--$8,840,000 in 2006, $4,713,000 in 2007 and $2.8 million thereafter

The private support results for 2006 include the Bridge to the Future Campaign which is a
private support campaign to eliminate a substantial portion of the deficit that occurred in late
2004 and 2005. BTTF was intended to be a two year effort. As a result of the success of the
BTTF in 2006 the campaign goals were substantially achieved. Therefore the 2007 private
revenue budget is substantially less than 2006.

Based on bookings and verbal commitments to date, the Freedom Center has achieved
approximately $2.7 million of the $4,713,000 budget and is confident we are positioned to
meet the annual budget. Management can verbally outline the prestigious list of donors that
make up this $2.7 million raised to date upon request.

The significant reduction to $2.8 million after 2007 represents the Freedom Center’s on-
going level of support we believe is required annually without any special initiatives such as
the BTTF. This is based upon our history and benchmarking to like institutions. The source
of this revenue includes individual, foundations and corporations who have given
continuously over the years to the FC as well as board members and new contributors.

Government--$1,160,000 in 06, $3,095,000 in 07 and $3.7 million-$4.0 million thereafter

Federal-The $1,160,000 relates to appropriations under the National Underground Railroad
Education and Cultural Act that began in 1999. Legislation is in process to extend this
program at a $2.2 million level for a period of five years through 2012. The FC received an
appropriation in 2006 that covers the $1.4 million budget for 2007. We will be requesting a
new grant request in May, 2007 for at least $1.4 million under this program that will
substantially cover 2008 and 2009 educational and other eligible budget program expenses.
Freedom Center
Narration to Five Year Pro forma
April 30, 2007
Page 2 of 2
Confidential Not to be Distributed

Government-Continued
The City of Cincinnati is in the final stages of appropriating to the Freedom Center
$1,000,000 a year for 2007 and 2008. This appropriation is part of a larger effort by the city
to fund cultural and art institutions within the city. Similar to other governmental agencies
the Freedom Center will seek additional funding in 2008 for the period 2009 and 2010.

The remaining $695,000 of revenue in 2007 relates primarily to State of Ohio initiatives (non
capital budget) including both Educational and Tourism activities that are working their way
through the current budget process.

On-going governmental support in the $3.7 million range includes $1.5 million in
Department of Education dollars, proposals with IMLS and other Federal agencies (NEA,
etc), City of Cincinnati ($1.0 million) and State of Ohio involvement in supporting
Educational and Tourism at the Freedom Center consistent with current proposals at the
various agencies.

Revenue Summary—Management remains confident that the above described components

aggregating $9.8 million revenues for 2007 remain achievable and that the $8.5 million
estimated for 2009 through 2011 remains attainable. To the extent there should be shortfalls
in one segment additional funding could be derived from another segment.

Operating Expenses---
Wages and Benefits of $3,820,000 in 2006 and in range of $3.9 million thereafter
The Freedom Center after 2 plus years of operations has stabilized its expenses in this area
and is down significantly from prior years. Management is confident that the amounts shown
are achievable and with the continuation of the growth in its volunteer support further
reductions in this area are possible.

Other Operating Expenses of $3,947,000 in 2006 and $3.9 million range thereafter.
Similar to Wages and Benefits the Freedom Center has worked through various areas of
activities and cut expenses dramatically in 2006 over 2005 its first full year of operations. It
anticipates that operating expenses (non wages & benefits) will stabilize in the $3.7 million
plus area in the future as it continues to bring about cost reduction ideas in its early years of
operations.

Net Interest Exp.-$1,158,000 in 2006, $960,000 in 2007 decreasing to $77,000 in 2010

Continue to have significant improvement in this area with an increase in investment
balances attributable to (a) capital campaign pledge pay-downs, (b) receipt of State of Ohio
moneys and (c) surpluses budgeted for the next two years. Interest rate swap agreements
substantially “lock in” cost of borrowed money that is not covered by investments.