H.S. Dreher Capital Management, LLC is a SEC-Registered Investment Adviser domiciled in North Carolina. The firm operates on a fee-only basis. It does not receive payment or commissions for the sale, recommendation or exchange of securities.

· Formulation of Investment Strategy:

A strategy identifies the assets that are available for investment and allocates them between income and growth investments.

· Execution of Investment Strategy:

On behalf of our clients, the firm invests in stocks, bonds and No-load mutual funds. In conjunction with these activities, the firm--if requested--will assist clients to select brokers and custodians.

· Reporting and Reviews:

Quarterly, the firm prepares for each client a consolidated statement of assets (monthly account statements are furnished by stock brokers, banks and other custodians). Performance reviews are conducted annually.

Research is conducted and special reports are prepared for individual investments to determine and describe their suitability based on client objectives.

Research reports on individual stocks, bonds and No-load mutual funds are from time to time offered for sale.

H.S. Dreher Capital Management, LLC is a SEC-Registered Investment Adviser domiciled in North Carolina. All information contained herein is for informational purposes only and does not constitute an offer to sell advisory services. Such an offer can only be made in stated where the firm is registered or an exemption from such registration is available. No new account will be accepted unless and until all local regulations have been satisfied.

** Minimum amount required to establish an account is $100,000

Sam Dreher, president of H.S. Dreher Capital Management, LLC began his investment career in 1968 as a research analyst with a large financial institution in Chicago.  Over the next three decades, Mr. Dreher's experience includes municipal bond trading and underwriting, commodities futures trading, investment brokerage and investment management.  A member of the National Association of personal Financial Advisors (NAPFA), Mr Dreher holds an MBA from the University of Kansas.  He established Dreher Capital Management in 1994.

Tom Velevis, a partner with H.S. Dreher Capital Management, LLC is a CERTIFIED FINANCIAL PLANNER(TM) practitioner and a NAPFA-Registered Financial Adviser . Prior to joining the firm in 1999, Mr. Velevis worked for a national brokerage firm as an investment adviser. He graduated from the University of North Carolina at Chapel Hill in 1993.

• Individual Accounts
• Trust Accounts
• IRA's
• Other Retirement Plans
• Corporations and business entities
  
  

H.S. Dreher Capital Management, LLC is a Fee-Only Registered Investment Adviser.  The firm does not broker investments or in any other manner derive compensation or commissions from their sale, recommendation or exchange.

FEE SCHEDULE

Assets Under Management:
Normally, fees are 0.8% on an annual basis, of the first $500,000 under management and 0.5% on the balance. Fees are paid quarterly after service is rendered.  Fees based on performance can be negotiated in accordance with Rule 275.205-3 of the Code of Federal Regulations.

Due Diligence and Research Reports:
Fees for these services are $100 per hour, with a $250 minimum charge.

Minimum Account Size:
$100,000

Negotiation:
All fees and account sizes are negotiable. Total firm fees average less than 1% of assets under management. The firm's average account size is just under $400,000.

Registration Statement:
More information is available in the firm's Registration Statement. Please call 910-692-4330 to order a copy of this statement (or write to: H.S. Dreher Capital Management, LLC 275 SE Broad St, Southern Pines, NC 28387).