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Six money managers examine portfolio management strategies in the latest issue of The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info562.htm

TWST: Tell us about Johnston Lemon Asset Management, Inc., and your responsibilities there.

Mr. Burke: Johnston Lemon Asset Management, Inc., was founded in 1995 as the investment subsidiary of Johnston, Lemon & Co. Incorporated, a long established brokerage house in Washington, DC. Many of the Johnston Lemon Asset Management accounts are individual, i.e., attorneys, physicians, entrepreneurs. In addition, we manage endowment and retirement plans. Our focus is to provide clients with consistent, above-average, yet risk-aware investment results compatible with their investment goals. My responsibilities at Johnston Lemon Asset Management include management of the firm and oversight of investment strategy.

TWST: What was the performance of the portfolio over the last year and in the first quarter?

Mr. Burke: Our historical total return performance has been in line with our investment model over the time we have been in business. The past year and first quarter investment results were in line with our clients’ expectations. During the first quarter of 2002, we maintained a relatively sizable cash position that affected the equity allocation; the fixed income allocation performed well.

TWST: What is the outlook for large cap growth investing going forward?

Mr. Burke: We believe that certain large cap equities have a significant upside. Stock prices over long periods of time will ultimately reflect the earnings growth of companies. Since 1960, the S&P 500 posted an average annual profit of 7%. After reviewing historic trendlines and making reasonable assumptions for earnings growth, we project increasing S&P 500 operating earnings in 2002. 2002-2003 earnings will be enhanced by increased productivity and lower material and interest costs. At some point in late 2002, early 2003, the improved financial and operating leverage will be recognized in the share price of large capitalization companies. We are not oblivious to the current disconnect between economic growth and share price. Market history demonstrates that the malaise or disconnect will lift before increased earnings are recognized; therefore, I believe the market is approaching a point at which the share value of certain large capitalization companies will increase.

TWST: How is the current volatility of the marketplace impacting your portfolio investing?

Mr. Burke: Large company stocks have had a compounded annual return in excess of 10% during the past 75 years. The equity risk premium, i.e., the difference between the returns from large company stocks and the return from Treasury bills, has not been materially different over five-year periods. The short-term volatility caused by a continuing series of corporate governance concerns has reduced the current appetite for equity investment. We believe the lack of interest will dissipate with a consequent reduction in volatility.

TWST: Dow Chemical (NYSE:DOW) and United Technologies (NYSE:UTX) are interesting choices. Can you expound on your reasons for choosing those particular companies at this time?

Mr. Burke: We have monitored United Technologies, like Johnson & Johnson, for a long time. Dow Chemical is the world leader in the production of plastics, chemicals, hydrocarbons, and herbicides and pesticides. Dow bolstered its position with the acquisition of Union Carbide. In April 2002, Dow posted a first quarter net profit, recovering the previous year’s loss. During the next four quarters, the price of Dow will reflect the earnings potential that an improving global economy will signal.

This special Investing Strategies Report includes:

1) Sarat Sethi, Principal and Portfolio Manager/Equity Analyst of Douglas C. Lane & Associates, Inc., examines portfolio management strategies in this timely and deeply informative 3,600-word interview from The Wall Street Transcript.

2) Frederic G. Burke, President of Johnson Lemon Asset Management, examines portfolio management strategies in this timely and deeply informative 2,600-word interview from The Wall Street Transcript.

3)Arnold R. Schmeidler, President of A.R. Schmeidler & Co., examines portfolio management strategies in this timely and deeply informative 6,500-word interview from The Wall Street Transcript.

4) Jerome H. Walther, Chief Operating Officer of Church Capital Management, examines portfolio management strategies in this timely and deeply informative 3,000-word interview from The Wall Street Transcript.

5) Donevan E. Kukul, Portfolio Manager with Cohen Klingenstein & Marks, Inc., examines portfolio management strategies in this timely and deeply informative 4,000-word interview from The Wall Street Transcript.

6) Paul C. Hogan, Investment Research Analyst at Fenimore Asset Management, examines portfolio management strategies in this timely and deeply informative 3,900-word interview from The Wall Street Transcript.