v OMB No 1545-0047 Form goo Return of Organization Exempt From Income Tax Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation) LOOZ Department of the Treasury I Open to Public Internal Revenue Service InSDeCtl0n A For the 2002 calendar ear or tax ear be innin 7/1/2002 an n B Check if applicable C Name of organization Please DAddress change ~60iRS The Peddie School 21-0634492 label or Number and street (or P 0 box if mail is not delivered to street address) E Telephone n Name change print o, Initial return saa P.O . Box A 609-490-7510 specific City or town State or count ZIP + 4 F Accounting method : Cash Accrual Final return msttic- 0 Fx] D Amended return Hi htstown NJ 08520 0 Other (specify) DApplication pending 0 Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable H and I are not applicable to section 527 organizations trusts must attach a completed Schedule A (Form 990 or 990-EZ). H(e) Is this e group return for affiliates? a Yes 0 NO G Web H(b) If "Yes," enter number of affiliates

H(c) Are all affiliates included? ~ Yes E]No J ORGANIZATION TYPE (check only one) 01 [X]501 (c) ( 3 ) " (insert no ) 04947(a)(7) OR F-1527 (If "No," attach a list See instructions) K Check here " [:] if the organization's gross receipts are normally not more than $25,000 The H(d) Is this a separate return filed by an or anization organization need not file a return with the IRS, but if the organization received a Form 990 Package in the covered by a group ruling? ~ Yes No mail, it should file a return without financial data SOME STATES REQUIRE A COMPLETE RETURN 1:1 - I Enter 4-digit GEN 10' M Check 10i the organization is NOT required L Gross receipts Add lines 6b 8b 9b and 10b to line 12 1111" 89 ,491 , 100 1 to attach Sch B (Form 990, 990-EZ, or 990-PF) Part I Revenue, Expenses, and Changes in Net Assets or Fund Balances (See page 17 of the instructions ) 1 Contributions, gifts, grants, and similar amounts received : a Direct public support ...... 1a 9,889 ,777 b Indirect public support ...... 1 b c Government contributions (grants) ...... 1c d TOTAL (add lines 1a through 1c) (cash $ 9,503,615 noncash $ 386,162 ) 1d 9,889 , 777 2 Program service revenue including government fees and contracts (from Part VII, line 93) . . 2 13,435 ,849 3 Membership dues and assessments ...... 3 4 Interest on savings and temporary cash investments ...... 4 3,489 , 733 5 Dividends and interest from securities ...... 5 6 a Gross rents ...... 6a 13 ,015 b Less' rental expenses ...... 6b c Net rental income or (loss) (subtract line 6b from line 6a) ...... 6c 13,015 7 Other investment income (describe 10, 7 d 8 a Gross amount from sales of assets other A Securities B Other than inventory ...... 59,870 , 755 8a b Less' cost or other basis and sales expenses . . . . . 70,306 , 006 8b c Gain or (loss) (attach schedule) . Schedule 1 -10 ,435 ,251 8c 0 d Net gain or (loss) (combine line 8c, columns (A) and (B)) ...... 8d -10 ,435,251 9 Special events and activities (attach schedule) a Gross revenue (not including $ of contributions reported on line 1a) ...... 9a b Less direct expenses other than fundraising expenses . . . . 9b c Net income or (loss) from special events (subtract line 9b from line 9a) ...... 9c 0 10 a Gross sales of inventory, less returns and allowances . . . . . 1oa 389 ,768 b Less . cost of goods sold Schedule 2 10b 284 ,800 c Gross profit or (loss) from sales of inventory (attach schedule) (subtract line 10b from line 10a) . . . 10c 104 ,968 11 Other revenue (from Part VII, line 103) ...... 11 2,402,203 12 TOTAL REVENUE add lines 1d 2 3 4 5 6c 7 8d 9c 10c and 11 12 18,900,294 L . _ 13_ Pro ram services (from line 44, column (B)) ...... 13 17,015,035 rji bent a general (from line 44, column (C)) . . . . 14 6,314,766 f line 44, column (D)) ...... 15 1 ,207,897 16 Payments to fates (attach schedule) ...... 16 2t~ ~l TiDTAhcEXP ES (add lines 16 and 44. column lAl) ...... 17 24.537.698 Tff -Excess _& ( t) for the year (subtract brie 17 from line 12) 18 -5,637,404 ~ -~~a or 'u d balances at beginning of year (from line 73, column (A)) . . . 19 229611 ,038 ~~fF1~r nges i net assets or fund balances (attach explanation) Schedule 3 20 11 818,437 e asse s or and balances at end of ear combine lines 18 19 and 20 21 235,792 ,071 (HTn) For Paperwork Reduction Act Notice, see the separate instructions . Form 990 (2002)

l Form 990 2002 The Peddie School 21-0634492 Page 2 Part II Statement of All organizations must complete column (A) Columns (B), (C), and (D) are required for section 501(c)(3) and (4) organizations Functional Expenses and section 4947(a)(1) nonexempt charitable trusts but optional for others (See page 21 of the instructions )

Do not include amounts reported on line (A) Total (B) Program (c) Management (p) Fundraising 6b, 8b, 9b, 10b, or 16 of Part l. services and genera 22 Grants and allocations (attach schedule) . Schedule 4 (cash $ 4,150,129 noncash $ ) 22 4150 , 129 4, 150 , 129 y=;~tiff% 23 Specific assistance to individuals (attach schedule) . . . 23 0 ;%'-- 24 Benefits paid to or for members (attach schedule) 24 0 ' 25 Compensation of officers, directors, etc. . . . 25 404,450 296,000 108 450 26 Other salaries and wages ...... 26 71816,971 51074,481 21264,700 477 , 790 27 Pension plan contributions ...... 27 643, 212 475,788 120 ,368 47,056 28 Other employee benefits ...... 28 11124.195 831 ,574 210 377 82,244 29 Payroll taxes ...... 29 614,146 454,287 114 929 44,930 30 Professional fundraising fees . . . . . 30 0 31 Accounting fees ...... 31 23, 100 23,100 32 Legal fees ...... 32 41 , 199 41 ,199 33 Supplies ...... 33 249, 221 66,833 161 ,759 20i629 34 Telephone ...... 34 54, 895 26, 106 17 ,418 11 , 371 35 Postage and shipping ...... 35 91 , 888 36 159 14 .032 41 697 36 Occupancy ...... 36 906 ,426 757:369 140 , 323 8, 734 37 Equipment rental and maintenance . . . . . 37 0 38 Printing and publications ...... 38 156 ,645 45,676 110 ,969 39 Travel ...... 39 102 , 189 54,057 7, 713 40,419 40 Conferences, conventions, and meetings ...... 40 0 41 Interest ...... 41 1 1076 , 360 899,359 166 ,630 10,371 42 Depreciation, depletion, etc (attach schedule) . . . 42 2,452 ,295 1 ,977,731 459,463 15, 101 43 Other expenses not covered above (itemize) a Statement 5 43a 4,630 , 377 2, 165 ,486 2,276, 755 188 , 136 b 43b 0 c 43c 0 d 43d 0 e 43e 0 f 43f 0 44 TOTAL FUNCTIONAL EXPENSES (add lines 22 through 43) ORGANIZATIONS COMPLETING COLUMNS (B)-(D), CARRY THESE TOTALS TO LINES 13-15 44 24,537,698 17,015,035 6,314,766 1,207, JOINT COSTS Check t Dif you are following SOP 98-2 Are any point costs from a combined educational campaign and fundraising solicitation reported in (B) Program services 0- [:] Yes ~X No If "Yes," enter (i) the aggregate amount of these joint costs $ , (u) the amount allocated to Program services $

Part III Statement of Program Service Accomplishments (See page 24 of the instructions ) Program Service What is the organization's primary exempt purpose? I,- See statement 6 Expenses Required All organizations must describe their exempt purpose achievements in a clear and concise manner State the number o~gs rand04947((a)(1 )d served, publications issued, etc Discuss achievements that are not measurable (Section 501(c)(3) and (4) trusts, but optional for of chants others > organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others ) a A private seconda ry school includin g $4,089,629 in scholarships and other financial aid . See Statement 7 for additional information

and allocations $ 4.1 b

and allocations c

d

e utner program services attacn scneauie uran1s aria anvL;auons %0 f TOTAL OF PROGRAM SERVICE EXPENSES (should equal line 44, column (B), Program services) . t 17,015,035 Form 990 (2002) Form 990 (2002) The Peddle School 21-0634492 Page 3

Part IV Balance Sheets (See page 24 of the instructions .)

Note : Where required, attached schedules and amounts within the description (A) (s) column should be for end-of-year amounts only Beginning of year End of year 45 Cash - non-interest-bearing ...... 45 46 Savings and temporary cash investments ...... 4,467,027 46 4,685,623

47 a Accounts receivable ...... 47a 44, 161 b Less allowance for doubtful accounts . . . . . 47b 40,000 18 , 126 47c 4, 161

48 a Pledges receivable ...... 48a 10 , 108 ,954 b Less : allowance for doubtful accounts ...... 48b 1 ,696,261 1 ,295,809 48c 8,412,693 49 Grants receivable ...... 49 50 Receivables from officers, directors, trustees, and key employees (attach schedule) ...... 0 50 0 51 a Other notes and loans receivable (attach schedule) ...... 51a 0 °' b less . allowance for doubtful accounts ...... 51b 0 0 51 c 0 52 Inventories for sale or use ...... 141 ,991 52 145 ,881 53 Prepaid expenses and deferred charges ...... 84,801 53 101 ,806 54 Investments - securities (attach schedule) #8 . t . F-I Cost .E] FMV 192 ,048 ,678 54 190 ,856,215 55 a Investments - land, buildings, and equipment : basis ...... 55a 0 b Less : accumulated depreciation (attach schedule) ...... 55b 0 0 55c 0 56 Investments - other (attach schedule) ...... 0 56 0 57 a Land, buildings, and equipment basis 57a 81 ,859,367 b Less . accumulated depreciation (attach schedule) ...... Schedule 9 57b 22,574 ,465 59,380 ,758 57c 59,284 ,902 58 Other assets (describe t See attached worksheet ) 478 ,744 58 297 ,908

59 TOTAL ASSETS add lines 45 through 58 must equal line 74 257,915 , 934 59 263,789 , 189 60 Accounts payable and accrued expenses ...... 2,355 , 185 60 2,702 , 145 61 Grants payable ...... 61 62 Deferred revenue ...... 910 , 311 62 1 ,068 ,750 63 Loans from officers, directors, trustees, and key employees (attach schedule) ...... 0 63 0 '° 64 a Tax-exempt bond liabilities (attach schedule) Schedule 11 25,039 ,400 64a 24,226 ,223 b Mortgages and other notes payable (attach schedule) 0 64b 0 65 Other liabilities (describe " ) 0 65 0

66 TOTAL LIABILITIES add lines 60 through 65 28 ,304 ,896 66 27,997, 118 Organizations that follow SFAS 117, check here " OX and complete lines . 67 through 69 and lines 73 and 74. y 67 Unrestricted ...... 73 ,299 ,359 67 73,592,431 Gl ~t 68 Temporarily restricted ...... 3,698,560 68 11 ,503, 147 m 69 Permanently restricted ...... 152 ,613, 119 69 150 ,696,493 ,~ Organizations that do not follow SFAS 117, check here t 7 and complete lines 70 through 74. 70 Capital stock, trust principal, or current funds . . . TO y~ 71 Paid-in or capital surplus, or land, building, and equipment fund . . . 71 9~ 72 Retained earnings, endowment, accumulated income, or other funds . 72 a 73 TOTAL NET ASSETS OR FUND BALANCES (add lines 67 through 69 OR zd lines 70 through 72, column (A) MUST equal line 19, column (B) MUST equal line 21) 229 ,611 ,038 73 235 ,792,071 74 TOTAL LIABILITIES AND NET ASSETS / FUND BALANCES (add lines 66 and 73) 257,915,9341 74 ~ 263,789,189 Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization How the public perceives an organization in such cases may be determined by the information presented on its return Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments Form 690 ~20012) The Peddle School 21-0634492 Page 4 Part IV-A Reconciliation of Revenue per Audited Part IV-13 Reconciliation of Expenses per Audited Financial Statements with Revenue per Financial Statements with Expenses per Return See page 26 of the instructions Return a Total revenue, gams, and other support a Total expenses and losses per per audited financial statements " a 15,095,464 audited financial statements . . . " a 20,685,005 b Amounts included on line a but not b Amounts included on line a but not , . VA - on line 12, Form 990' on line 17, Form 990: (1) Net unrealized gains °i (1) Donated services on investments . $ and use of facilities (2) Donated services and ~ (2) Prior year adjustments use of facilities . $ reported on line 20, (3) Recoveries of prior ' -Form 990 . . . . . $ '' year grants . $ (3) Losses reported on . (4) Other (specify) : ~, line 20, Form 990 . . $ / Financial Aid ' ° (4) Other (specify) , ,089,629 Cost of Goods Sold ;"-4 Add amounts on lines (1) through (4) t b -4,089,629 $ 284,800 Add amounts on lines (1) through (4) " b 284,800 c Line a minus line b . . No- c 19 , 185 ,093 c Line a minus line b ...... No- c 20,400,205 d Amounts included on line 12, d Amounts included on line 17, Form 990 but not on line a: 4Form 990 but not on line a' ' , (1) Investment expenses (1) Investment expenses ` ' not included on line not included on line 6b, Form 990 . . . $ ~ 6b, Form 990 (2) Other (specify) : (2) Other (specify) Cost of Goods Sol Financial Aid $ -284 ,800 $ 4 89,629 Add amounts on lines (1) and (2) . . t d -284 ,800 Add amounts on lines (1) and (2) . . t d 4,089,629 e Total revenue per line 12, Form 990 e Total expenses per line 17, Form 990 line c plus line d . . 10- e 18 ,900 ,293 line c plus line d . . . t e 24,489,834 Part V List of Officers, Directors, Trustees, and Key Employees (List each one even if not compensated, see page 26 of the instructions ) (C) Compensation I (D) Contributions to I (E) Expense (B) Title and average hours per CIF NOT PAID, employee benefit plans 8 account and other (A) Name and address week devoted to position ENTER -0-) deferred compensation allowances

The Peddle School P.O . Box A Hi htsto Business Manager 40+ 141 ,000 1 Mr. John F. Green The Peddle School P.O . Box A Hi htsto Headmaster 40+ 155,000 1 Ms Anne Seltzer I The Peddle School. P.O Box A. Hiahtsto Director of Development 401 108.4501 1

"All other Trustees are see Statement 12

75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from your or anization and all related organizations, of which more than $10,000 was provided by the related organizations? " Yes ~ No If "Yes," attach schedule-see page 26 of the instructions Form 990 (2002) 21-0634492 Pa e 5 Part VI I Other Information (See page 27 of the instructions Yes No 76 Did the organization engage m any activity not previously reported to the IRS If "Yes," attach a detailed description of each activity 76 X 77 Were any changes made in the organizing or governing documents but not reported to the IRS? 77 X If "Yes," attach a conformed copy of the changes. 78 a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return 78a X b If "Yes," has it filed a tax return on FORM 990-T for this year? ...... 78b X 79 Was there a liquidation, dissolution, termination, or substantial contraction during the year? If "Yes," attach a statement 79 X 80 a Is the organization related (other than by association with a statewide or nationwide organization) through common membership, governing bodies, trustees, officers, etc ., to any other exempt or nonexempt organizations 80a X b If "Yes," enter the name of the organization So- and check whether it is U exempt OR nonexempt. 81 a Enter direct or indirect political expenditures See line 81 instructions ...... 81a b Did the organization file FORM 1120-POL for this year? ...... 81b X 82 a Did the organization receive donated services or the use of materials, equipment, or facilities at no charge or at substantially less than fair rental value? ...... 82a X b If "Yes," you may indicate the value of these items here. Do not include this amount as revenue in Part I or as an expense in Part II. (See instructions m Part III.) ...... 82b 83 a Did the organization comply with the public inspection requirements for returns and exemption applications? 83a X b Did the organization comply with the disclosure requirements relating to quid pro quo contributions? 83b X 84 a Did the organization solicit any contributions or gifts that were not tax deductibles . . 84a X b If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? ...... 84b 85 501(c)(4), (5), or (6) organizations. a Were substantially all dues nondeductible by members . . . 85a b Did the organization make only in-house lobbying expenditures of $2,000 or less? . . . 85b If "Yes" was answered to either 85a or 85b, DO NOT complete 85c through 85h below unless the organization received a waiver for proxy tax owed for the prior year. c Dues, assessments, and similar amounts from members ...... 85c d Section 162(e) lobbying and political expenditures ...... 85d e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices ...... 85e f Taxable amount of lobbying and political expenditures (line 85d less 85e) ...... 85f 0 g Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? . . 85 h If section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount on line 85f to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following tax year? ...... 85h 86 501(c)(7) orgs. Enter: a Initiation fees and capital contributions included on line 12 . . . 86a b Gross receipts, included on line 12, for public use of club facilities ...... 86b 87 501(c)(12) orgs. Enter a Gross income from members or shareholders ...... 87a b Gross income from other sources. (Do not net amounts due or paid to other sources against amounts due or received from them ) ...... 87b 88 At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations sections 301 .7701-2 and 301 7701-3? If "Yes," complete Part IX . . 88 X 89 a 501(c)(3) organizations. Enter. Amount of tax imposed on the organization during the year under. section 4911 " ; section 4912 lo, ; section 4955 b 501(c)(3) and 501(c)(4) orgs. Did the organization engage in any section 4958 excess benefit transaction during the year or did it become aware of an excess benefit transaction from a prior year? If "Yes," attach a statement explaining each transaction ...... 89b X c Enter Amount of tax imposed on the organization managers or disqualified persons during the year under sections 4912, 4955, and 4958 ...... " d Enter Amount of tax on line 89c, above, reimbursed by the organization .t 90 a List the states with which a copy of this return is filed t b Number of employees employed in the pay period that includes March 12, 2002 (See instructions .) ~ 90b ~ 255 91 The books are in care of 0- The Peddle School Telephone no " (609) 490-7510 Located at b- South Main Street, Hightstown, NJ ZIP + 4 . 08520-1010 92 Section 4947(a)(1) nonexempt charitable trusts filing Form 990 in lieu of FORM 1041 - Check here and enter the amount of tax-exempt interest received or accrued during the tax year . 0- 1 92 Form 990 (2002) Form 990 2002 The Peddle School 21-0634492 s Part VII Analysis of Income-Producing Activities (See page 31 of the instructions ) Note : Enter gross amounts unless otherwise Unrelated business income Excluded by section 512, spa, or spa (E) indicated. (A) (B) (C) (D) Related or exempt 93 Pr og ram service revenue' Business code Amount Exclusion code Amount function income a Tuition and Fees b c d e f Medicare/Medicaid payments g Fees and contracts from government agencies 94 Membership dues and assessments 95 Interest on sarongs and temporary cash investments 96 Dividends and interest from securities 14 3,,489,733 97 Net rental income or (loss) from real estate a debt-financed property b not debt-financed property 16 13,015 98 Net rental income or (loss) from personal property 99 Other investment income 100 Gain or (loss) from sales of assets other than inventory 18 -10,435,251 101 Net income or (loss) from special events 102 Gross profit or (loss) from sales of inventory 103 Other revenue a Snack Bar 03 152.370 b Golf Course, Lacrosse, SummerProgram 713910 1 c Day Care Center 624410 183 d Miscellaneous 03 I 253 e 104 Subtotal (add columns (B), (D), and (E)) 1 1 1,995,8361 I -6,526,136 13,540,817 105 TOTAL (add line 104, columns (B), (D), and (E)) " 9,010,517 Note : Line 105 l us line 1d Part I should equal the amount on line 12 Part l. Part VIII Relationship of Activities to the Accomplishment of Exempt Purposes (See page 32 of the instructions .) Line No. Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment of the organization's exempt purposes (other than by providing funds for such purposes) 93a The activities noted above are critical to the taxpayer's tax exerino sacs because flows aadnnlhms emu The 102 Peddle School to arovide aualitv education to students .

Part IX Information Regarding Taxable Subsidiaries and Disregarded Entities (See page 32 of the instructions .) (A) (B) (C) (D) (E) Name, address, and EIN of corporation, Percentage of Nature of activities Total income End-of-year partnership, or disregarded entity ownership interest assets TPS Management, L L C c/o The Peddle School 100% Pro perty Mana gement 3 578 405 P O Box A Hiahtstown. NJ 0

I Part X I Information Regarding Transfers Associated with Personal Benefit Contracts (See page 33 of the instructions .)

(a) Did the organization, during the year, receive any funds, directly or indirs (b) Did the organization, during the year, pay premiums, directly or i SCHEDULE A, Organization Exempt Under Section 501(c)(3) (Form 990 or 990-EZ) (Except Private Foundation) and Section 501(e), 5010, 501(k), 501(n), or Section 4947(a)(1) Nonexempt Charitable Trust Department oftheTreasury Supplementary Information - (See separate instructions.) 2 internal Revenue Service MUST be completed by the above organizations and attached to their Form 990 or 990-EZ Name of the organization Employer i< number The Peddie School Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees (See page 1 of the instructions. List each one If there are none, enter "None.") (a) Name and address of each (b) Title and average (d) Contributions to (e) Expense account employee paid more than $50,000 hours perilweek I (c) Compensation I employee benefit plans 8 I and other devoted to position deferred compensation allowances Lawrence Jones c/o The Peddie School Plant Engineer P .O Box A Hi htstown NJ 08520 40+ 7 4 Edward A. deVillafranca c/o the Peddle School Director of Admission P.O Box A Hi htstown NJ 08520 40+ 000 Timothy E. Corica Go The Peddle School Dean of Faculty P .O Box A Hi htstown NJ 08520 40+ M Catherine Rodngue c/o The Peddle School Dean of Academics P .O. Box A Hi htstown NJ 08520 40+ 7.505 John C. Newman c/o The Peddle School Director of Building P O Box A Services Hiahtstown . NJ 08520 40+ 7 Total number of other employees paid over $50,000 39 Part II Compensation of the Five Highest Paid Independent Contractors for Professional Services (See page 2 of the instructions . List each one (whether individuals or firms). If there are none, enter "None ")

(a) Name and address of each independent contractor paid more than $50,000 (b) Type of service (c) Compensation

60 Monmouth Park Hwy Contracto 1

2145 Nottingham Way 114

Hillier Group P.O. Box 31760 Hartford . CT 061 Architect

HanoverCon P.O Box 158 151 .119

Streeker Road Jacobstown NJ 08562 Painting 95 ,738 Total number of others receiving over $50 ,000 for professional services (Hrn) For Paperwork Reduction Act Notice, see the Instructions for Form 990 and Form 990-EZ. Schedule A (Form 990 or 990-EZ) 2002 The Peddie School E .I .N. #21-0634492 990 Part I, Line 8c - Investment Gains For the fiscal year ended June 30, 2003

Gains/ Type Name (Losses)

Other Endowment Equities Cap Guard. Emerging Mkts Growth (755,380) Equities Cap. Guard. All Country World Equity (1,329,209) Equities W P. Stewart (57,513) Equities Barrow, Hanley (24,281) Equ. Trust Silchester International 583,198 Ltd . Part. Wicks Communications. L P. 41,975 Ltd . Part. HarbourVest Partners, L.P. 44,239 Ltd Part Trident Capital Fund V, L P. (69,007) Miscellan . Gain/Loss on sale of stock 607 Other Endowment Sub-Total (1,565,370)

Annenberg Endowment Equities Cap. Guard. All Country World Equity (1,108,244) Hi Yield Flying Sail High Yield (509,797) Equities Cardinal Capital Management 171,952 Equities Westcap Investors 184,686 Equities Becker Capital (3,235,839) Equities W P. Stewart (14,267) Equities Vanguard Institut. Index Fund (3,104,722) Equities Barrow, Hanley, Mewhinney & Strauss (184,917) Equities PNC - Small Cap (3,326,097) Equities T Rowe Price Sml Cap 2,000,329 Ltd. Part. Brinson Capital Partners 211,639 Ltd Part Trident Capital Fund IV, L P. (268,631) Ltd Part. AG Capital Recov. Ptnrs II, L P 445,328 Ltd Part Dover Street V, L P (24,893) Ltd Part. Pantheon USA Fund IV, L .P. (20,103) Ltd. Part Yorktown Energy Ptners V, L.P. (1,909) Annenb. Endow, Sub-Total (8,785,484)

CRUT M LYNCH-Graham CRUT (36,128) CRUT M LYNCH - Cunningham CRUT (7,647) PIF ML Pooled Income Fund (8,601) CRUT ML Sickler Trust (12,033) Total Life Income Fund (64,409)

CGA M Lynch Char. Gift Annuity a/c (26,942) CGA Res. M Lynch CGA Reserve a/c 7,655 (519) Total Gift Annuities (19,805)

Misc Miscellaneous (183)

Total Loss on Investments (10,435,251)

File Gain-Loss 03 xls Schedule 1 The Peddle School E . I D # 21-0634492 990, Part 1, Line 10c - Cost of Goods Sold For the fiscal year ended June 30, 2003

Inventory at Beginning of year 111,427 Purchases 294,275 Subtotal 405,702 Less . Ending Inventory 120,902 Cost of Goods Sold 284,800

COGS 02-03 xls Statement 2 The Peddle School E I N #21-0634492 Form 990, Part I Line 20 - Other increases in Fund Balance For the fiscal year ended June 30, 2003

Unrealized Gain on Investments 11,818,437

File Unrealized Loss - Part 1 Line 20 xls Statement 3 THE PEDDIE SCHOOL TAX ID #21-0634492 Form 990, Part II, Line 22 - Cash Grants and Allocations For the fiscal year ended June 30, 2003

Financial Aid Scholarships to various students (based on financial need) 4,089,629 Contributions to Hightstown Boro-Fire Department, First Aid, Municipal Services 60,500 Total Grants and Allocations 4,150,129

Statement 4 File Grants & Allocations Part 11 Line 22 xls The Peddle School 21-0634492 Form 990 Part II - Line 43 Other Expenses For the year ended June 30, 2003

Total Program Management Fundraising

Insurance 317,362 317,362 Membership 29,025 5,516 21,649 1,860 Copier Expenses 66,277 66,277 Library Books/Cd's Etc 118,700 118,700 Food Service 475,878 475,878 Athletic Program 201,956 201,956 Professional Development 51,570 51,570 Middle States Evaluation 13,088 13,088 Student Activities 172,345 172,345 Plant Expenses 86,819 72,538 13,444 837 Classroom Technology 650,478 650,478 Graduation 18,578 18,578 Bank Fees 12,307 12,307 Alumni Day 57,624 57,624 Special Events 11,260 11,260 Planned Giving Expenditures 20,680 20,680 Miscellaneous 2,326,430 318,562 1,900,733 107,135 4,630,377 2,165,486 2,276,755 188,136

File Miscellaneous Income xls, Tab Other Exp Statement 5 The Peddie School E.I .D. # 21-0634492 Form 990, Part III - Organization's Primary Exempt Purpose

The Peddie School is an independent co-educational college preparatory school for Secondary students from grade eight to post-graduate .

Statement 6 The Peddie School E.I.D. #21-0634492 Statement of Program Service Accomplishments, Part III a

The Peddie School is an independent, non-sectarian, co-educational college preparatory school . The enrollment is approximately 525 young men and women in grades eight through twelfth, including postgraduate students . Included in the 525 students, are 327 boarding students representing more than 26 states and 18 foreign countries .

The School is located in Hightstown, New Jersey, approximately 10 miles east of Princeton, New Jersey and 50 miles from New York City and Philadelphia .

Originally the New Jersey Classical and Scientific Institute, the School was founded in 1864. The School was renamed in 1872 in honor of a distinguished benefactor, Thomas B. Peddie, a businessman, Mayor of Newark, State Assemblyman and Congressman. Incorporated in the State of New Jersey since 1879, the School is governed by a self- perpetuating Board of Trustees. It is accredited by the Middle States Association of Colleges and Secondary Schools and accredited by the New Jersey Department of Education.

The Peddie community commits itself to the intellectual, social and moral growth of our students. Remarkable for the range of their talents, abilities, interests, and backgrounds, our students distinguish themselves through their excitement, curiosity, and character. They help make Peddie an open, dynamic community where a passion for learning thrives . With respect, enthusiasm, humor, and patience, we challenge our students to reach for levels of achievement they have not attempted before and encourage them to measure the success of their efforts by the progress they make . Ultimately, we seek not only to provide our students with vigorous preparation for college but also to inspire them to strive for the highest quality of citizenship .

The Administration of the School believes it is fortunate to have a dedicated faculty that serves beyond the classroom as advisors, dorm supervisors, coaches and mentors . While small classes are not unique to the School, the intensity with which faculty devote themselves to the students brings high marks from parents and from the students themselves. Many teachers have been singled out for awards or granted fellowships for their achievements.

Statement 7 The Peddie School E.I.N. 21-0634492 Form 990, Part IV Line 54 For the ficals year ended June 30, 2003

Fair Market Value Bonds M . Lynch - MAS Securities 41,362 Bonds Vanguard Bond Index Fund II 785,825 Bonds Vanguard Bond Index Fund 20,039,582 Bonds M . Lynch CGA Reserve a/c 1,020,715 Hi Yield Bonds Flying Sail High Yield 11,738,622 Total Bonds 33,626,106

Equities Parda - PNC Brokerage a/c 9,071 Equities AIG (Starr Fndt.) 690,633 Equities Cap. Guard. All Country World Equity 12,572,816 Equities W. P . Stewart II 1,402,124 Equities Barrow, Hanley II 2,033,522 Equities Cap. Guard. All Country World Equity 10,415,187 Equities Cardinal Capital Management 8,973,971 Equities W.P . Stewart 19,611,594 Equities Barrow, Hanley, Mewhinney & Strauss 24,210,165 Equities Westcap Investors 9,577,075 Equities M . LYNCH-Graham CRUT 1,300,661 Equities M .LYNCH - Cunningham CRUT 68,071 Equities ML Pooled Income Fund 194,842 Equities ML Sickler Trust 111,010 Equities First Union-Simmons Trust 684,435 Equities M. Lynch Char. Gift Annuity a/c 435,151 Equities Franklin Capital Corp 7,650 Total Equities 92,297,979

Equ. Trust Silchester International 11,986,942 Hedge Fd. Millgate International Ltd . 5,729,018 Hedge Fd. Brencourt Arbitrage InYI 7,523,950 Hedge Fd. Lone Cedar Ltd . 6,715,558 Hedge Fd. Lone Pinon Ltd. 1,949,094 Hedge Fd. Red Coat Capital Limited Hedge Fd. Seneca Capital International Ltd . 11,338,630 Ltd. Part. Dover Street V, L.P. 779,112 Ltd. Part. Wicks Communications. L.P . 2,442,946 Ltd. Part. HarbourVest Partners, L.P . 1,528,118 Ltd. Part. Trident Capital Fund V, L.P. 442,241 Ltd. Part. Greenbriar Equity Fund, L.P . 488,414 Ltd. Part. Brinson Capital Partners 2,545,260 Ltd. Part. Trident Capital Fund IV, L.P. 937,682 Ltd. Part. AG Capital Recov. Ptnrs II, L.P. 7,076,139 Ltd. Part. Pantheon USA Fund IV, L.P. 1,535,765 Ltd. Part. Yorktown Energy Ptners V, L.P. 1,846,016 Total Alternative Investments 64,864,885

Mortgages Mortgages Receivable 67,245 Total Mortgages 67,245

TOTAL INVESTMENTS 190,856,215

Statement 8 File Investment Schedule03 xls The Peddle School 21-0634492

Line 57 (990) - Land, buildings, and equipment Land Only (net of any amortization)

1 Land 1 452,844 452 ,844 2 Land Improvements ______2 1 ,257,885 1 ,275,085 3 4 5 6 7 8 10------109

Total land (net of any amortization) ...... 1 ,710,72t-, 1 , 727,929

Buildings and equipment Only Bwldin s and equipment Accumulated de reciation Beginning End Be innin End 1 Artwork 1 849,528 849 ,529 2 Building Improvements ...... 2 21 , 136 ,898 23,268 ,660 51924,158 6 816 515 3 Building ------3 50984385 51192594 11747011 12885349 4 Furniture and Equipment 4 3,400,640 3,492 ,760 2,292,450 2, 521 ,176 5 Vehicles 5 566,292 643 ,283 300,027 351 ,425 6 CIP-______--____-_-_----__--__--_----_---- 6 904,210 684 ,612 7 7 8 8 9 9 ------10 10 Total buildings and equipment . . . 77 ,841 ,953 80,1 31 ,438 1 20 ,263,646 22, 574 ,465

Buildings and equipment (less accumulated depreciation) ...... 57,578,307 57,556,973

Beginning of Year End of Year Total land buildings and equipment . 59,289,036 59,284,902

Schedule 9 The Peddle School 21-0634492

Line 58 (990) - Other Assets

1 Assets held under bond indenture agreement 1 2 Interest Receivable 2 3 Miscellaneous Receivables 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 Total other assets ......

S.Qbedu J. e =10 The Peddle School E I.D #21-0634492 Form 990, Part IV Line 64a - Tax Exempt Bonds Payable As of June 30, 2003

Outstanding New Jersey Economic Development Authority- Principal Payable Series 1994 A Bonds 4,910,000 Original Proceeds $8,165,000 Due serially to February 1, 2012 Form 8038 filed June 27, 1994

Serves 1994 B Bonds 7,000,000 Original Proceeds $7,000,000 Due serially to February 1, 2019 Form 8038 filed June 27, 1994

Series 1996 A Bonds, due serially to 2026 3,850,000 Original Proceeds $4,350,000 Due serially to 2026 Form 8038 filed March 7, 1996

Series 1999 Bonds, due serially to 2029 8,100,000 Original Proceeds $8,700,000 Due serially to 2029 Form 8038 filed August 19, 1994

NJEFA Bond June 2016 366,223

Total Tax-exempt bond liabilities - Line 64a 24,226,223

Statement 11

File Part IV -Bonds Payable 03 xls The Peddie School E.I.N. 21-0634492 List of Trustees (All NON-COMPENSATED) - Part V

Trustee Name Address City State Zip Code Mrs. Jayne Abess c/o The Peddie School, P.O. Box A Hightstown NJ 08520

Mr. Christopher J. Acito c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Michael R. Armellino c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. H. Lawrence Bourland c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Stephen L. Brown c/o The Peddie School, P.O. Box A Highstown NJ 08520

Arthur E. Brown, M.D. c/o The Peddie School, P.O . Box A Highstown NJ 08520

Mr. Roger J. Burns c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Finn M. W. Caspersen c/o The Peddie School, P.O . Box A Highstown NJ 08520

Mrs. Emily Caspersen c/o The Peddie School, P.O . Box A Highstown NJ 08520

Mr. Henry Christensen III c/o The Peddie School, P.O. Box A Highstown NJ 08520

Dr. Charles F. Clark c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mrs. Angela Manley Cook c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. John M. Delaney c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Alfred P. DiCenso c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Michael J . Donohue c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Jeffrey M. Finn c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Gabriel A. Galindo c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Morton J. Goldfein c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Ian H. Graham c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Roy D. Grossman c/o The Peddie School, P.O. Box A Highstown NJ 08520

Dr. Mary S. Hartman c/o The Peddie School, P.O. Box A Highstown NJ 08520

Terry Hensle, M.D. c/o The Peddie School, P.O. Box A Highstown NJ 08520

Page 1 of 2 Statement 12 The Peddie School E.I.N. 21-0634492 List of Trustees (All NON-COMPENSATED) - Part V Continued

Mr. J. Robert Hillier c/o The Peddie School, P.O . Box A Highstown NJ 08520

Mr. Matthew N. Hulsizer c/o The Peddie School, P .O. Box A Highstown NJ 08520

Mr. Robert M. Kaye c/o The Peddie School, P .O. Box A Highstown NJ 08520

Mr. Joseph Kelly c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mrs . Jan Denise Loughran c/o The Peddie School, P .O. Box A Highstown NJ 08520

Mrs . Linda C. Marshall c/o The Peddie School, P .O. Box A Highstown NJ 08520

Mr. Martin Mooney c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Harold S . Neiderhoffer c/o The Peddie School, P.O. Box A Highstown NJ 08520

Mr. Fred D. Price c/o The Peddie School, P.O. Box A Highstown NJ 08520

Gregory K. Smith, Esq . c/o The Peddie School, P.O. Box A Highstown NJ 08520

Page 2 of 2 Statement 12 `° 7 H

I

Form $$68 Application for Extension of Time To File an (December 2000) Exempt Organization Return OMB No 1545-1709 Department of the Treasury Internal Revenue Service t File a separate application for each return

" If you are filing for an Automatic 3-Month Extension, complete only Part I and check this box ...... " D " If you are filing for an Additional (not automatic) 3-Month Extension, complete only Part II (on page 2 of this form). Note : Do not complete Part Il unless you have already been granted an automatic 3-month extension on a previously fried Form 8868. Automatic 3-Month Extension of Time-Only submit original (no copies needed) Note: Form 990-T corporations requesting an automatic 6-month extension-check this box and complete Part 1 only . , " D All other corporations (including Form 990-C filers) must use Form 7004 to request an extension of time to file income tax returns . Partnerships, REMICs and trusts must use Form 8736 to request an extension of time to file Form 1065, 1066, or 1041 Type or Name of Exempt Organization Employer identification number print The' Peddie School File by the Number, street, and room or suite no If a P O box, see instructions due date for filing your return See town or post office, state, and ZIP code For a foreign address, see instructions instructions City,

Check type of return to be filed (file a separate application for each return) . Form 990 D Form 990-T (corporation) D Form 4720 Form 990-BL - D Form 990-T (sec 401(a) or 408(a) trust) D Form 5227 Form 990-EZ El Form 990-T (trust other than above) [I Form 6069 , Form 990-PF D Form 1041-A D Form 8870 ~ If the organization does not have an office or place of business in the United Sates, check this box ~ If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) . If this is for the whole group, check this box " [3 . If it is for part of the group, check this box " F1 and attach a list with the names and EINs of all members the extension will cover. 1 I request an automatic 3-month (6-month, for 990-T corporation) extension of time until 20P.3, to file the exempt organization return for the organization named above. The extension is for the organization's return for " ED calendar year 20 , . . or n tax year beginning .__ .&1 .Y__1_ ...... , 20a?, and ending ._ . ._ . .June._30------. 2CQ3 .

2 If,this tax year is for less than 12 months, check reason. D Initial return D Final return 0 Change in accounting period

3a If this application is for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less any nonrefundable credits . See instructions ...... b If this application is for Form 990-PF or 990-T, enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credit . . . . c Balance Due. Subtract line 3b from fine 3a. Include your payment with this form, or, if required, deposit with FTD coupon or, if required, by using EFTPS (Electronic Federal Tax Payment System) . See instructions Signature and Verification Under penalties of penury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete, and that I am authorized to prepare this form

Title " Controller Date 2003 For Pa Act N6tice, see Cat No 27916D Form 8868 (12-2000) 1