• In February, the weak stock market again led 401(k) participants to move balances away from stock investments and into fixed income funds, according to the results of the Hewitt 401(k) Index™.


• 401(k) participant net transfers were fixed income oriented during 70% of the days in February. However, overall participant activity slowed down significantly as compared to January. Only 0.04% of plan balances transferred on a daily basis in February, which was in line with the twelve month trailing average, and much lower than the 0.09% daily transfer experienced during January 2008. For the entire month of February, transfer activity was above normal* level on merely two days.


• By month end, nearly $219 million in balances transferred out of equities and into fixed income investments on a net basis. Approximately 80% of the net transfers flowed into GIC/stable value funds.


• Interestingly, lifestyle funds received the second largest net inflow of $46 million. During times of significant market volatility, these pre-diversified funds may help to protect participants' assets against large swings.


• Similar to January, large U.S. equity funds took the biggest hit as a total of $80 million transferred out on a net basis during the course of February. However, the activity was much less significant than the $521 million net outflows experienced in January. International funds, which attracted nearly $1.2 billion in 2007, also experienced net outflows of $74 million in February, following its substantial January outflows of $489 million. Company stock funds had $68 million transferring out in February.


• Participants' discretionary equity contribution, another measurement of participant sentiment, went down by 0.8% to 67.0% by the end of February.


• As for participants total equity allocation, it also declined slightly to 64.0%, which was the result of both market weakness and participant transfers. This is now back to nearly the same level as experienced in July 2004.

*A "normal" level of relative transfer activity is when the net daily movement of participants' balances as a percent of total 401(k) balances within the Hewitt 401(k) Index equals between 0.3 times and 1.5 times the average daily net activity of the preceding 12 months. A "high" relative transfer activity day is when the net daily movement exceeds two times the average daily net activity. A "moderate" relative transfer activity day is when the net daily movement is between 1.5 and two times the average daily net activity of the preceding 12 months.

The following tables show Hewitt 401(k) Index statistics and the returns of major market indices for the month of February 2008:

Dow Jones IA	-2.78%
Russell 2000	-3.71%
Lehman Aggregate	0.14%
S&P 500	-3.25%
MSCI EAFE	1.43%
NASDAQ	-4.95%

Number of Fixed Income Days	14
Number of Equity Days	6
Percent of Equity Days	30%