Introduction to The Snecma Savings Plan


Saving for the future is difficult. The days when Social Security alone could see you through your retirement years are gone. The Snecma Savings Plan provides eligible employees an opportunity to save for their future. The Plan offers you the following benefits :

Company Matching Contribution
Snecma adds $.50 for each dollar of the first 6% of pay you contribute to the Plan. You get an immediate 50% return on your savings.

Favorable Tax Treatment
Your contributions are taken out of your paycheck before your income taxes are calculated. This means you pay no federal income tax and, in most areas, no state or local income taxes, as long as that money is not withdrawn prior to your retirement.

Investment Control
You decide how your contributions and the Company Matching Contributions are invested. You may choose from a variety of funds that range from a Stable Income Fund to a Janus Overseas Fund. You may also change your elections at any time by simply calling 1-888-319-9451 or via the internet at: https://retirementonline.wellsfargo.com/omniweb3.htm.

Daily Valuation
This means your account is updated daily to reflect Investment Earnings/Losses, Investment Transfers, and other account activities.

Accessibility
Unlike an IRA, the Plan will allow you to borrow from your vested account without paying taxes or incurring penalties. In certain circumstances, withdrawals are also available.

Participant Statements
You will receive an individual statement at least quarterly showing your Contributions, the Company Matching Contributions, and Investment Earnings/Losses. On request statements are available through the internet at: https://retirementonline.wellsfargo.com/omniweb3.htm.

Payroll Deductions
A commitment to saving and an ideal way to save automatically.

The most effective way to build personal savings and provide for a secure retirement is to plan in advance. A Summary Plan Description that explains the main provisions of the Snecma Savings Plan with further information about eligibility, benefits, claims or other details of the Plan is available from the company.

Simply send a message to shendrickson@snecmausainc.com for a copy of the Summary Plan Description

Current Investment Fund Offering

Summary information about each investment fund is available here. Further information is available by contacting the web site maintained by Wells Fargo, administrator of the Plan.

This information was last updated in August, 2001

Stable Return Fund

Investment Style: The Stable Return Fund is a bond fund. Bonds are debt certificates issued by corporations, the government or its agencies. This fund offers a conservative fixed income investment with higher returns over time than other shorter-term alternatives (such as money market investments). Safety of the original investment is emphasized, with a fairly stable return compared to alternatives. This fund invests in high yielding, high quality instruments such as guaranteed investment contracts (GIC's), GIC alternatives, marketable securities and money market investments. Diversification and credit quality are important considerations in choosing investments for this fund.

Moderate Balanced Fund

Ticker Symbol: NVMBX

Investment Style: This fund provides its return from a balanced portfolio of stocks and fixed income investments. The fixed income portion includes two actively managed bond portfolios. The stock component is invested in a diversified portfolio including income oriented stocks, large company growth stocks, small company stocks, international stocks, and an S&P 500 Index portfolio. Fund performance is enhanced by automatically shifting between stocks and bonds when market conditions warrant an adjustment. The stock portion can be as high as 50% or as low as 30% of the fund depending upon market opportunities. This balance between stocks and bonds entails more risk than bonds alone, but offers the prospect for higher returns as well.

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Dodge & Cox Stock Fund

Ticker Symbol: DODGX

This Fund seeks long-term growth of principal and income. A secondary objective is the achieve a reasonable current income. The Fund invests primarily in a broadly diversified portfolio of common stocks that appear to be temporarily undervalued by the stock market but have a favorable outlook for long-term growth.

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Index Fund

Ticker Symbol: NVINX

Investment Style: The Index Fund is a stock fund. A stock investment represents residual ownership in a public company. By purchasing stock, you are giving yourself the opportunity to participate in the profit (or losses) of the company. The Fund is invested in the common stocks which comprise the Standard & Poor's 500 Index. The Fund seeks to replicate the returns of the S & P 500 index.

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Massachusetts Investors Growth Stock Fund

Ticker Symbol: MIGFX

Investment Style: Massachusetts Investors Growth Stock Fund seeks long-term growth of capital and future income, rather than current income. The fund invests primarily in common stocks or convertibles issued by companies exhibiting above-average prospects for long-term growth. It may invest up to 35% of assets in foreign securities.

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Diversified Equity Fund

Ticker Symbol: NVDEX

Investment Style: the Diversified Equity Fund is a stock fund. A stock investment represents residual ownership in a public company. By purchasing stock, you are giving yourself the opportunity to participate in the profit (or losses) of the company. The term "equity"is used to describe investment in stocks. This fund seeks to achieve above average investment returns over the long term but will likely experience ups and downs in getting there. A carefully designed diversification strategy, however, should provide for more consistent performance with less overall risk than a single equity investment. The fund incorporates five unique equity investment approaches which limits the negative impact if one style is not performing well in the market.

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Growth Equity Fund

Ticker Symbol: NVGEX

Investment Style: The Growth Equity Fund is a stock fund. A stock investment represents residual ownership in a public company. By purchasing stock, you are giving yourself the opportunity to participate in the profit (or losses) of the company. The term "equity" is used to describe investments in stocks. The fund emphasizes superior long-term returns, but there is an above average level of risk associated with this fund. To help control risk, the fund is diversified among three investment strategies, which limits the impact if one strategy is not performing well in the market place.

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Small Company Growth Fund

Ticker Symbol: NVSCX

Investment Style: The Small Company Growth Fund is a stock fund. A stock investment represents residual ownership in a public company. By purchasing stock, you are giving yourself the opportunity to participate in the profit (or losses) of the company. The fund is a portfolio of aggressive common stocks seeking dramatic price appreciation through investments in securities of small to medium size companies. Investments in small issuers generally carry greater risk than is customarily associated with larger companies such as narrower markets, limited financial resources and less liquid stocks.

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Janus Overseas Fund

Ticker Symbol: JAOSX

Investment Style: This fund invests primarily in companies located outside the U.S. Stocks are selected on their fundamental merits, rather than by geography, economic climate, industry sector or market capitalization, often resulting in an eclectic, yet broadly diversified portfolio - which may help to lessen the risks of foreign investing.

Diversifying overseas can help your portfolio stay on track through all types of market conditions without you having to tinker with it. Since foreign markets often move out of synch with domestic markets, investing overseas may cushion a downturn in domestic markets.

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