California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Three years ago, California voters approved Proposition 71 for a $3 billion investment
for stem cell research. This week State Treasurer Bill Lockyer opened opportunities
for individual Californians as investors to place orders in front of institutional investors
to purchase bonds.

This is the first time in the history of the state that general obligation bonds have ever
been used to directly finance the development of intellectual capital let alone for the
development of intellectual capital for human embryonic stem cell research.

Californians responded ordering $68.6 million of the $250 million of the bond sale that
went on sale this week during this early ordering period. The remainder of the bonds will
go on sale to large institutional investors.

The minimum purchase was $5,000.  Interest earned on bonds is subject to federal income
taxes but are exempt from state income tax.

I am Tim Johnson and this has been the California Business Minute.