Divested Companies

Following are companies that have been removed from Portfolio 21 because they no longer meet our investment criteria.

We divest from companies for financial, environmental, and/or corporate responsibility performance issues. We inform companies when they are divested for environmental and corporate responsibility concerns with the intention of providing education that may motivate changes in their performance. Following is a sample of divested companies during the last 12 months.

Securities mentioned are not recommendations to buy or sell any security. Current and future portfolio holdings are subject to risk.

DIVESTED COMPANIES
Date Company Comments
12/09 Fuel Tech Fuel Tech, an environmental technologies company, was purchased in December 2007. We divested of our position in this smaller company has long been very small and we decided to divest in favor of larger companies that we feel exhibit more stable characteristics.
12/09 Interface We purchased Interface in September 1999 because the company is a leader in environmental stewardship and has set the bar high in terms of what companies can and should do to lessen their environmental loads. Our position in this smaller company has long been very small and we decided to divest in favor of larger companies that we feel exhibit more stable characteristics.
12/09 Agilent Agilent, a Portfolio 21 holding since June 2000, was divested from the fund as a result of the company's growing military revenues. In fiscal year 2009, Agilent's military revenues exceeded Portfolio 21's 10% cutoff.
11/09 Genzyme Genzyme is a biotechnology company purchased in April 2009. The company offers products and services focused on rare inherited disorders, kidney disease, orthopedics, cancer, transplant and immune disease, and diagnostic testing. Around the world, Genzyme's facilities include environmentally responsible features. Despite these features, on numerous occasions Genzyme's facilities have been contaminated. The risk of further manufacturing and regulatory setbacks outweigh potential share outperformance.
8/09 Dell Dell has been a Portfolio 21 holding since August of 2004. The company is among the largest U.S. computer companies and has made great strides in electronic waste management and incorporating Design for Environment principles into its products. However, we divested from the company due to the company's inability to retake lost market share in the PC segment and its lack of product depth in the server segment.
8/09 Ericsson Ericsson was originally purchased in Portfolio 21 in October 1999. The company, headquartered in Sweden, is one of the world's largest providers of mobile networks and cellular phones. Over the years Ericsson has demonstrated environmental leadership by utilizing Design for Environment principles and performing life-cycle analyses on its products and services. We decided to sell our shares because of the razor thin margins and increasing competition in the telecom equipment industry.
8/09 Swisscom SwissCom is a Swiss telecommunications company that was added to the fund in November 1999. While Swisscom has demonstrated good management of its energy use and carbon dioxide emissions, we sold our position in SwissCom because of diminishing growth in its legacy telecom segment and our belief that the company has overpaid for recent acquisitions in an attempt to restore growth.
3/09 Suntech Power Suntech Power is a Chinese solar company. Portfolio 21 originally purchased the company's stock in February 2006. We divested from Suntech in March 2009. Suntech maintains a diverse range of module applications, however, the company's cell efficiency for silicon technologies is lower than its competitors. Suntech is also solely involved in the manufacture and sale of solar cells and modules and is not involved in the processing of silicon or manufacturing of its wafers. We view this as a value chain disadvantage.
3/09 Linde AG In September 2006 Linde AG was added to Portfolio 21 because of the numerous applications of its products with environmental benefits. Although the company continues its R&D activities aimed at improving the use of industrial gases to improve the environmental performance of existing production processes, Portfolio 21 has sold its shares of Linde as part of our rebalancing effort within the materials sector.
2/09 National Express National Express provides public transportation services throughout the UK, North America and Spain. The company's shares were originally purchased in June of 2007. Although Portfolio 21 continues to support the use of public transportation as an avenue to minimize carbon dioxide emissions and other vehicle pollutants we have divested from National Express based on our diminishing confidence of the company's ability to grow and thrive in the crowded and very competitive UK transportation market.