November 6, 2000

Suncoast Equity Management, Inc. (SEM) is now ranked in the top 25% of money managers for performance since the inception of our firm. Effron/PSN, a national performance reporting company, which collects data on over 5000 money managers, compiles this ranking and it is for the most recent period available ending June 30, 2000. We are delighted to share this independent report which can be viewed in graphic form at our website - www.suncoastequity.com.

If you don't have convenient access to the Internet, below are Suncoast Equity Management's year-to-date results and since inception performance through September 30th, versus two comparable benchmarks:

SEM's solid ranking early in our history is a strong endorsement that we are meeting our long-term client goals. SEM has two goals: (1) delivering above average performance returns while taking less risk over long periods and (2) delivering excellent client communication and relations.

We are also excited to tell you that we have rebuilt our company website to better serve our clients and interested visitors. Exciting new features include a secured client only section that provides daily portfolio valuation and current news and information about our holdings. A performance history tab and an easy to use "Tell A Friend about our website" tool are also new. Future developments will likely include a one-on-one client communication message board and video conferencing capabilities live through the Internet.

October 2000 was an extremely volatile and tough month for many investors. SEM clients faired well as our results at the end of October were virtually unchanged from September.

By most measures it appears that U.S. economy is slowing. Two important components of economic health and business growth are the current level of interest rates and corporate earnings growth. The Federal Reserve has raised interest rates six times since June 30, 1999 in order to thwart inflation, and rising interest rates are generally negative for business. For now it seems that interest rates have leveled-off.

Recently, investor attention has shifted to slowing profit growth and for good reason. The S&P 500, a good representation of corporate America, grew its earnings at an average annual rate of 14.5% from 1991 to 1999, well above its long-term historical rate of 9%. It is quite possible that profit growth ahead could be far less robust.

Other issues also lie ahead. I believe that from time to time there are generational shifts in the types of business that are growing their profits and those that have slowed down. The great growth companies of 10-15 years ago, Kellogg Company, Coca-Cola, Procter & Gamble, Gillette and even Microsoft, face much different environments today. Recently, Procter & Gamble made an important announcement that growth rates of the past are unsustainable.

Another issue is the U.S. Government's involvement in business. AT&T's struggle to close the MediaOne cable acquisition and government scrutiny of everything from aluminum (Alcoa) to software (Microsoft) suppresses confidence and slows the ability of capital to find its most efficient use. Infrastructure strain and our increasing appetite for electric utility power is another issue. Did you know that Oracle Software's campus of employees consumes as much power as a small steel mill?

Having said all of that, a moderately growing economy combined with a less than giddy stock market can create opportunities for the long-term investor. The SEM-Disciplined Investment System (SEM-DIS) is designed to study, compare and value growth businesses, while filtering out the noise and short-run gyrations of the stock market.

Review our credentials and our website at www.suncoastequity.com. I believe that SEM can be of great service to you or someone you know. Please call us to learn more about how the SEM-DIS can help you reach your goals.

Thank you for your continued interest and I wish you and your family a happy and peaceful holiday season.

Sincerely,

Donald R. Jowdy
President