Mohnish Pabrai on Shareholder Orientation

Page 1 1220 Roosevelt, Suite 200 Tel. +1949.453.0609 Irvine, CA 92620-3675 mp@pabraifunds.com USA www.pabraifunds.com To: All Limited Partners and Investors of the Pabrai Investment Funds From: Mohnish Pabrai, Managing Partner Date: January 18, 2021 Re: 2020 Results, etc. Dear Partners: Happy New Year! December 31 was our annual redemption date. A total of $44 million was redeemed from the various funds in 2020. The redemptions on a per fund basis are: PIF2: $9.5 million PIF3: $9.5 million PIF4: $25.0 million For the quarter ended December 31, 2020, a total of $4.2 million was added to the various funds by new and existing partners. The additions on a per fund basis are: PIF2: $3.7 million PIF4: $0.5 million The funds are currently open to new and existing Pabrai investors to add funds. The next opening is April 1, 2021. PIF2 is the oldest fund and has been closed to new investors for many years. It has just 100 slots and those were all used up several years ago. Over the years we’ve had a few redemptions and this has opened up about 8 slots. PIF2 is open to US-based investors who are qualified clients. The minimum investment to join PIF2 as a new partner is $4 million. PIF3 is our offshore fund for non-US accredited offshore investors, and U.S. IRAs, foundations, and endowments. The minimum investment to join PIF3 as a new partner is $3.5 million for individuals and $10 million for IRAs/foundations/endowments. PIF4 is for qualified US-based investors.

The minimum investment to join PIF4 as a new partner is $5 million. For current investors in any of the funds, the minimum addition to their current investment is $25,000. For IRA investors the minimum is $5,000. Here are the deposit slips for PIF2, PIF3 and PIF4. If you are interested in or would like more information about the April 1, 2021 opening, please contact me at mp@pabraifunds.com or Valerie Magursky at vm@pabraifunds.com.are:

Have the same long-term ownership mindset of the families and CEOs that founded and ran these businesses. 3. Fixate on discounted growing pies, vs. 30-50 cent dollar bills. Emphasize nimble compounders whose DNA is to relentlessly incubate and spawn new businesses with long runways. 4. If the business is getting better over time and the moat is widening, don’t fixate on the valuation. There is no need to sell such a business simply because it appears to be optically overvalued. All bets are off if valuation goes to egregious extremes. I told Charlie Munger recently that I feel really dumb. It took me 26 years to figure out something so simple. Charlie always excels at making me feel great. He said, “Don’t feel so bad Mohnish. It also took Warren and me 25 years to figure that out.” The business I have held for the longest duration in my life is the 100% General Partner (GP) interest in Pabrai Funds. 21 years and counting.of

4 million back into Reysas Logistics shares and ended up getting about the same number of shares we would have had if we had been able to buy those shares in 2019. All this was only possible due to the hyperactive trading habits of the investors in Turkey. The bottom line is that we invested less than $7 million to get nearly 1/3 ownership of a business whose current market cap is $135 million. Coming back to Nick Sleep, my mindset on Reysas is that we are not an investor in the business. We are a passive owner. Our stake mirrors the stake of the founders. We are their silent partner cheering them on from the sidelines. As long as the moat stays intact and the valuation does not become egregious, we have no plans to sell a single Reysas share for decades. An egregious valuation for Reysas today would be multiple billions of dollars. Thank you Nick! Rain Industries I have written about Rain Industries in the past. You can find those previous thoughts in the ‘19 AR, the ‘18 AR, Jan ‘19 Letter, Oct ‘18 Letter, July ’18 Letter and Jan ’18 Letter. Rain was bought as a future P/E of 1. By 2018, Rain was already a ten bagger and it was dumb not to exit then. What kept me from selling is that I understood the business better and it wasn’t just a cheap business. Rain has an exceptional capital allocator and leader at its helm who is continually improving the business. It is a good but not great business.

17 Spectrum Pointe Drive, Suite 503 Tel. +1949.275.5652 Lake Forest , CA 92630-2277 mpabrai@pabraifunds.com USA www.pabraifunds.com To: All Limited Partners and Investors of the Pabrai Investment Funds From: Mohnish Pabrai, Managing Partner Date: January 14, 2004 Re: Updated Performance Numbers for all Funds Dear Partners: Dec. 31 represents the fiscal year end for PIF3 and PIF4. It also is the annual redemption date for all the funds. To that end, the redemptions we had were: PIF2: $1.4 Million PIF3: $275,000 PIF4: $0 In addition, PIF3 was open to new investors and a total of about $500,000 in new funds were added to PIF3 on January 1, 2004. Between the redemptions and fiscal year end, performance numbers for all the funds are required to be reported as of December 31, 2003. Here are the updated performance numbers on all the funds: Page 1

35 was paid by PIF3 on 12/31/03. A management fee of $223,125.28 was paid by PIF4 on 11/30/03. This fee was reinvested into PIF4. Dalal Street, Inc. (wholly owned by me) has 405,831 units of PIF2 and 23,095 units of PIF4. This stake is worth about $12 Million. Thus I have a deep vested interest in the future performance of The Pabrai Funds. When you win, I win. Our interests are completely aligned. I am very bullish on the long-term future of The Pabrai Funds – as demonstrated by my being the single largest investor in the funds. Next Opening – February 1, 2004 There are 2 funds open to new investors to add funds - PIF3 and PIF4. To invest in PIF3, one needs to be a non-US accredited offshore investor. Tax-exempt accounts like IRAs, Roth IRAs and US Family Foundations can invest in PIF3 as well. The minimum investment to join PIF3 as a new partner is $100,000. The minimum investment for PIF4 is $250,000 and one needs to be a “qualified investor” as defined by the SEC.5

Offshore Investors: A $100,000 investment in PIF3 at inception on February 1, 2002 was worth $123,800 as of May 31, 2003 (net to investors). This equates to an annualized return of 17.4% since inception. PABRAI INVESTMENT FUND I Performance Summary: (closed and merged with PIF2 on 12/31/02) DJIA NASDAQ S&P 500 PIFI (net to investors) 7/1/99 - 6/30/00 -3.3% +48.0% +7.2% +50.5% 7/1/00 – 6/30/01 +2.1% -45.4% -14.8% -8.3% 7/1/01 – 6/30/02 -10.3% -32.7% -18.0% +63.6% 7/1/02 – 12/31/02 -8.7% -10.3% -8.5% -12.6% Annualized -6.4% -18.1% -11.2% +21.5% Cumulative -20.7% -50.3% -34.0% +97.9% Comparison of Changes in Value of $100,000 invested in PIFI vs the Indices $0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 $250,000.00 Jun-99 Oct-99 Feb-00 Jun-00 Oct-00 Feb-01 Jun-01 Oct-01 Feb-02 Jun-02 Oct-02 PIFI S&P 500 DJIA NASDAQ I just received draft statements for all the PIF2 and PIF3 partners for review from the respective fund administrators and, to be absolutely candid, I was elated. Both the funds are at historic highs – which means that every dollar ever invested in either fund at anytime by any partner is worth more than they invested. And with my having interacted in person with nearly every partner in the funds, it was a very good feeling when I reviewed the data on what you invested and its current value. I like making money for all of you. Having said that, I’d like to express that the annualized performance of 29.8% for PIFI/PIF2 and 17.

Next Opening All the 100 slots in PIF2 are spoken for and the fund is now closed to new investors. PIF4 is in the process of being setup. PIF4 will be limited to qualified investors only (folks with investments over $5 Million). PIF4 will go live on October 1, 2003 with a minimum investment of $250,000. The minimum investment to join the funds as a new partner remains unchanged at $100,000 for PIF3 – which is limited to offshore investors. Existing partners in any of the Pabrai Funds can add funds in increments of $25,000 at each opening (with a $25,000 minimum). PIF2 next opening to add funds is Oct. 1, 2003. PIF3’s next opening is Sept. 1, ’03. PIF2 typically opens six times a year to add funds (Feb. 1, April 1, June 1, August 1, Oct. 1 and Dec. 1). PIF3 opens monthly on the 1st day of each month to add funds. Annual Meetings All partners should have received their invites to the Pabrai Funds 2003 Annual Meetings via snail mail. If you didn’t, just let me know and I’ll send another invite over. If you have any friends or family or advisors you’d like to have attend, please let me know and I’ll send them an invite as well. Please send the RSVP cards in by Sept. 6, ’03. The 2003 annual meeting will be held sequentially at two locations – Chicago and Orange County, California. The Chicago meeting is scheduled to be on Saturday, Sept.

investors once we reach a count of 100 investors – so as of now, Pabrai Funds cannot accept anymore US-based accredited investors. PIF4 is in the process of being setup. PIF4 will be limited to qualified investors only (net worth over $5 Million). PIF4 will probably go live on October 1, 2003 with a minimum investment requirement of $250,000. The minimum investment to join the funds as a new partner remains unchanged at $100,000 for PIF3 – which is limited to offshore investors. Existing partners in any of the Pabrai Funds can add funds in increments of $25,000 at each opening (with a $25,000 minimum). Assets under management are about $48 Million as of 7/1/03. Pabrai Investment Funds Assets Under Management (In Millions of $) 1999 2000 2001 2002 2003 Assets Under Management Annual Meetings The annual meeting will be held sequentially at two locations – Chicago and Orange County, California. The Chicago meeting is scheduled to be on Saturday, Sept. 13, 2003 at 4:00 PM at the same venue as the last 2 years: Carlucci’s Restaurant (Auditorium), 6111 North River Road, Rosemont, Illinois 60018 Tel. +1847.518.0990 Carlucci’s is a 3 minutes taxi ride from Chicago’s O’Hare Airport is a adjoining the Marriott Suites and Westin ‘Ohare. Agenda: 4:00 – 4:30 PM: Meet & Greet Page 5 of 8

Here are the links to the PDF Versions: The Danger in Buying the Biggest - PDF Version What Warren Buffett can Teach Microsoft - PDF Version Next Opening – February 1, 2003 The minimum investment to join the funds as a new partner remains unchanged at $400,000. The next opening is 2/1/03. Existing partners can add funds in increments of $25,000 at each opening (with a $25,000 minimum). This does not apply to our offshore investors. PIF3 is setup as an offshore mutual fund limited to non-US accredited investors. The minimum investment for new PIF3 is always $100,000. Assets under management are about $27.5 Million as of 12/31/02.

1% many not seem like much in a year when we’re up over 80%, it is very meaningful in down years (yes, we’ll see a few of those) or even years when we barely eke out a positive return. These expense ratio declines have been accomplished while upgrading our service providers to best in class – like engaging PricewaterhouseCoopers to do the audit and tax work. As assets under management rise, PIF3 and PIF4 will get to 10 basis points as well. As a comparison, the wonderful Vanguard S&P 500 Index Fund has over $66 Billion in assets and an expense ratio of 0.18% - nearly double of PIF2. PIF2 is cheaper than Vanguard’s fund until we get to a return above about 6.3% for investors. With virtually all other mutual funds and hedge funds, Pabrai Funds is cheaper until annualized returns are above 10%. With the 1/20 structure of most hedge funds, Pabrai Funds has lower fees and expenses until annualized returns are over 50% a year. Next Opening – February 1, 2004 for US Investors There are 2 funds open to new investors to add funds - PIF3 and PIF4. To invest in PIF3, one needs to be a non-US accredited offshore investor. Tax-exempt accounts like IRAs, Roth IRAs and US Family Foundations can now invest in PIF3 as well. The minimum investment to join PIF3 as a new partner is $100,000 and the next opening is on January 1, 2004.5

Next Opening – December 1, 2004 for US Investors There are 2 funds open to new investors to add funds - PIF3 and PIF4. To invest in PIF3, one needs to be a non-US accredited offshore investor. The minimum investment to join PIF3 as a new partner is $100,000 and the next opening is on November 1, 2003. The next opening for PIF4 is on December 1, 2004. The minimum investment is $250,000 and one needs to be a “qualified investor” as defined by the SEC. The offering and subscription documents for PIF4 have details on who is considered a qualified investor. Please refer to those documents for the precise definition. Simplistically, individual investors are considered qualified if they are accredited investors (at least a $1 Million net worth) and have at least $5 Million in investments. If, for example, a person owned $5 Million worth of commercial real estate with a $4 Million mortgage on it, she would be considered a qualified investor as she has at least a $1 Million net worth and $5 Million in investments. Existing partners in any of the Pabrai Funds can add funds in increments of $25,000 at each opening (with a $25,000 minimum). PIF2/PIF4’s next opening to add funds is December 1, 2003. PIF3’s next opening is November 1, ’03.4

Page 5 of 8 The minimum investment to join the funds as a new partner remains unchanged at $400,000 for US Investors and $100,000 for offshore investors. The next opening is on 4/1/03. Existing partners can add funds in increments of $25,000 at each opening (with a $25,000 minimum). Assets under management are about $28.5 Million as of 2/1/03. Pabrai Investment Funds Assets Under Management (In Millions of $) 1999 2000 2001 2002 2003 Assets Under Management Meeting the San Francisco Bay Area Partners: On March 18 and 19, I am in the San Francisco Bay area meeting a number of partners who I’ve never met. It’s long overdue. Am also meeting a number of folks who have an interest in learning more. On March 18, I am hosting a dinner for partners and friends in a private room at: Gaylord Restaurant 1706 El Camino Real, Menlo Park, CA 94025 Tel. (415) 326-8761 6:30 – 7:30 PM: Cocktails & Appetizers 7:30 – 9:30 PM: Dinner If you find yourself in the SF Bay area on 3/18 and would like to attend, just call or email me. Also, I am in Los Angeles during the week of February 24, if any of you are in LA during that week and would like to meet up.

process of setting up PIF4. PIF4 will be limited to qualified investors only (net worth over $5 Million), but have the ability to have upto 500 partners. PIF4 will likely start with a minimum investment requirement of $250,000. The minimum investment to join the funds as a new partner remains unchanged at $100,000 for PIF3 – which is limited to offshore investors. The next openings for PIF3 are on July 1, 2003 and August 1, 2003. Existing partners in either fund can add funds in increments of $25,000 at each opening (with a $25,000 minimum). Assets under management are about $43 Million as of 6/1/03. Pabrai Investment Funds Assets Under Management (In Millions of $) 1999 2000 2001 2002 2003 Assets Under Management Pabrai Funds Relocated to Lake Forest, California – June 1, 2003 As I mentioned in my last letter, Pabrai Funds is now based in Lake Forest, California. Here are our new coordinates: Pabrai Investment Funds 17 Spectrum Pointe Drive Suite 503 Lake Forest, CA 92630 Tel. +1949.275.5652 Fax. +1949.457.9394 mpabrai@pabraifunds.com www.pabraifunds.com My new Executive Administrative Assistant/Office Manager is Chris Saludo-Perkins. You can reach her at csaludo@pabraifunds.com or +1949.457.9391. Feel free to visit us at your Page 5 of 8

I do most of my reading after the kids go to bed and it’s been very nice to have the doors open – letting in a gentle breeze off the Pacific while settling in with a good book. Some of the other good reads this summer included Investment Biker and Adventure Capitalist (both by Jim Rogers). Rogers went around the world on a motorcycle about a decade ago and then he did the same trip at the turn of the millennium in a car. He’s been a very successful investor (and a partner of George Soros) for decades and both books are worth reading for their uniqueness. You can’t find any other book that in one paragraph describes the beauty of the Victoria Falls and in the next goes into the diverse investing climate in the two countries on either side of the falls. While I don’t agree with some of Jim’s investing perspectives, he’s clearly a smart value guy and one can learn a lot from him about the world we live in. The only person who comes to mind as being more adventuresome and a better capitalist than Rogers is Richard Branson. His biography, Losing My Virginity, is another terrific read. I highly recommend Branson’s book for its candor and insights on starting and growing businesses. Branson reinforces Amar Bhide’s (author of The Origin and Evolution of New Businesses) thesis that most startups are low-risk ventures. My talk on Sept. 18 to TiE- Seattle focused on how entrepreneurship and investing are closely related with both being low-risk arbitrage oriented vocations.

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Funds From: Mohnish Pabrai, Managing Partner Date: August 1, 2002 Re: Updated Performance Numbers et. al. Dear Partners: Over $4 Million is new funds were added by existing and new partners of The Pabrai Investment Funds on August 1, 2002. Of this $3,860,000 was added to PIF2 and $250,000 was added to PIF3 (offshore). It is the single largest amount added to PIF2 at any time since inception. Previously, at the Oct. 1, 2001 opening (right after 9/11), PIF2 partners added what was at that time the largest amount to the fund. I am very pleased to be associated with this august group of long term partners who have repeatedly demonstrated their high IQ by adding funds to the partnership in droves right after big drops in the stock market. While I don’t believe in trying to play market timing games, I am happy to see Pabrai Funds partners add funds to the stock market while the masses are selling their holdings in droves. It reminds me of the famous Buffett quote: Be fearful when the world is greedy and be greedy when the world is fearful. Anytime there are new subscriptions or redemptions, the funds need to publish NAV numbers so the funds can be correctly priced. Hence PIF2 and PIF3 performance data is being updated through 7/31/02. Here are the updated numbers: Page 1 of 9

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: February 2, 2002 Re: Pabrai Investment Fund 3 (Offshore Fund) Launched Dear Partners: I’d like to begin by welcoming our new partners into The Pabrai Funds. I hope we have a long and mutually prosperous relationship. The BVI-based offshore fund, PIF3 went live on February 1, 2002. Between PIF2 and PIF3, over $3.8 Million in new assets came in on February 1 ($651,000 in PIF3 and $3,216,188.23 Million in PIF2). The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 9/30/01 -15.2% -59.2% -27.5% +17.6% +12.0% 10/1/01 – 1/25/02 +11.4% +29.4% +8.8 % +34.2% +31.0% Annualized -4.2% -38.1% -16.3% +40.8% +33.3% Cumulative -5.5% -47.2% -21.1% +57.8% +46.7% Page 1 of 5

Pabrai Investment Funds Memo To: All Partners of The Pabrai Investment Funds From: Mohnish Pabrai, Managing Partner Date: July 22, 2002 Re: Updated Performance Data; Over $23 Million in Assets Dear Partners: I’d like to begin by welcoming our new partners into the various Pabrai Funds. I hope we have a long and mutually prosperous relationship. Between PIF2, PIF3 and our first managed account, $5,086,000 in funds came in on April 1, 2002. The breakdown is $975,000 into PIF2; $2,100,000 into PIF3 and $2,011,000 in the managed account. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 9/30/01 -15.2% -59.2% -27.5% +17.6% +12.0% 10/1/01 – 3/29/02 +18.2% +23.0% +10.2% +43.2% +40.4% Annualized +0.1% -49.8% -13.9% +41.6% +35.2% Cumulative +0.2% -49.8% -20.0% +68.4% +57.2% Page 1 of 7

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: January 7, 2002 Re: The Misses and The Aces Dear Partners: As I had stated earlier, we have our offshore investors redeeming their interest in PIF2. They are moving their assets in PIF3, which is a BVI based Professional Mutual Fund limited to accredited offshore investors. PIF3 goes live on February 1, 2002. Whenever we add or redeem assets to the funds, I have to release performance to date to assign the correct Net Asset Value to the new funds. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 9/30/01 -15.2% -59.2% -27.5% +17.6% +12.0% 10/1/01 – 12/31/01 +13.4% +30.1% +10.2% +31.9% +29.5% Annualized -3.1% -39.7% -17.1% +42.1% +34.6% Cumulative -3.8% -46.9% -20.1% +55.1% +45.0%

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Funds From: Mohnish Pabrai, Managing Partner Date: June 3, 2002 Re: Updated Performance Data; TPA in Place; Moving to the Big 4 for Annual Audit Services Dear Partners: $2,955,814 in new assets came in on June 1, 2002. All of it was directed towards PIF2. I’d like to begin by welcoming all our new partners into The Pabrai Funds – especially the one who lives in Maui, Hawaii. It’s always good to have a friend and partner in Maui! I hope all of us have a long and mutually prosperous relationship. Whenever we have new subscriptions, redemptions or fiscal year-end for a given fund, I have to publish updated NAV numbers for that fund. Here is the updated (unaudited) performance data for PIF2. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 9/30/01 -15.2% -59.2% -27.5% +17.6% +12.0% 10/1/01 – 5/31/02 +12.9% +7.8% +2.5% +62.9% +55.6% Annualized -2.6% -38.9% -16.4% +47.7% +39.6% Cumulative -4.3% -56.0% -25.7% +91.6% +74.3% Page 1 of 9

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Funds From: Mohnish Pabrai, Managing Partner Date: July 18, 2002 Re: Unaudited Year-end Performance Numbers for PIFI and PIF2 Dear Partners: One of the most frequent questions I get from PIFI partners is: “Hey Mohnish, Why do you treat us like 2nd class citizens and not report updated PIFI performance when you release PIF2 data?” PIFI partners are very near and dear to my heart. You were the first group to give me your hard earned $$$ to manage when there was no track record. The investors who join the partnership today have a three year history to look at – which would not exist without you. All the funds have the same reporting rules. NAV gets reported at fiscal year end and each time there are subscriptions or redemptions. Since PIFI is closed, the only intervals that get reported are redemptions and year end – which leads to a maximum of 2 datapoints a year and a minimum of 1 datapoint a year. The Pabrai Funds are unusual when compared to other funds in their reporting frequency. When Buffett ran his partnerships in the 1950s and 1960s, he reported once a year so investors did not fixate on “noise”. I subscribe to that theory and hence the fund rules. However, it is your turn to bask in the sun. The NAV after all fees and expenses is $22.54/unit. Michael J. Liccar & Co. are in the process of preparing the statements as of 6/30/02 for PIFI and PIF2 and you’ll be receiving them in a few days.8

The diligent reader will notice that PIF2 is at a historical high. January 2002 was good month for PIF2 – considering that we had some further appreciation while all three benchmark indices lost value. Nonetheless, the portfolio continues to trade well below my estimation of its intrinsic value. Raising the Minimum Amount for new Partners There are now 66 limited partners between PIFI and PIF2 and we are limited to 100 by law. As the available slots decrease, the minimum will increase. Going forward, the new minimum investment to join the funds as a new partner will be $250,000. This is effective at the next opening of 4/1/02. Existing partners can add anything over $25,000 at each opening. Pabrai Investment Funds Assets Under Management (In Millions of $) 7/1/1999 7/1/2000 7/1/2001 2/1/2002 Assets Under Management Third-Party Administrator Status (TPA) For PIFI and PIF2 Based on the third amendment votes received todate, the partners appear to be overwhelmingly in favor of the addition on the TPA. I’ll have a final tally when the window closes on 2/1/02 and will move forward with having the TPA in place shortly thereafter. Thank you for your continued interest, support, confidence and referrals. Warm Regards, Mohnish Pabrai Page 3 of 5

PABRAI INVESTMENT FUND I (closed) Performance Summary: DJIA NASDAQ S&P 500 PIFI PIFI (before exp.) (after exp.) 7/1/99 - 6/30/00 -4.7% +47.3% +4.7% +62.5% +50.1% 7/1/00 – 6/30/01 +2.2% -45.5% -15.9% -7.7% -8.3% 7/1/01 – 8/31/01 -5.1% -16.5% -7.4% +14.0% +14.2% Annualized -3.6% -16.9% -9.3% +28.0% +23.3% Cumulative -7.6% -33.0% -18.5% +70.7% +57.3% Comparison of Changes in Value of $100,000 invested in PIFI vs the Indices $0.00 $50,000.00 $100,000.00 $150,000.00 $200,000.00 Jul-99 Oct-99 Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 PIFI S&P 500 DJIA NASDAQ The diligent reader will notice that PIF2 and PIF3 are at historical highs. We had a good couple of months and some holdings took off almost immediately after I bought them. Nonetheless, the portfolio continues to trade well below my estimation of its intrinsic value. Raising the Minimum Amount for new Partners There are now 70 limited partners between PIFI, PIF2 and managed accounts. We are limited to 100 US partners by law. As the available slots decrease, the minimum will increase. Going forward, the new minimum investment to join the funds as a new partner will be $300,000. This is effective at the next opening of 6/1/02. Existing partners can add anything over $25,000 at each opening. This does not apply to our offshore investors. PIF3 is setup an an offshore mutual fund limited to non-US accredited investors.

Appendix A PIF2 NAV and Performance Fees and Expenses Since Inception. Per the January, 2002 custodian statement, the value of PIF2 assets is $7,694,840.86 Accrued interest on bonds in the portfolio is $200,163.20 The expenses incurred by PIF2 through January are legal and accounting expenses totaling $28,641.25 plus accrued expenses of $5391.82. The NAV before fees and expenses is $7,923,645.31 or $15.78/unit. In other words, PIF2 is up 57.8% since inception sixteen months ago before fees and expenses – or an annualized rate of 40.8%. NAV after all expenses is $7,889,612.24 or $14.7047/unit. The previous NAV high after fees is $14.50 set on 12/31/01. Since the NAV is above the previous historical high, there is a fee is payable to Dalal Street (General Partner) at this time. Since the last high was 1 month ago, the first 0.5% goes to investors and then the 3:1 split. Dalal Street’s share is $0.03305/unit or $17,732.55 The NAV after all fees and expenses is $14.6717. In other words, PIF2 is up 46.8% since inception sixteen months ago AFTER all fees and expenses – or an annualized rate of 33.3%. As I have always done in the past 100% of my fee is being reinvested back into PIF2 – resulting in 1208.63 units being issued to Dalal Street. Dalal Street has reinvested all fees earned from PIFI and PIF2 back into the funds. At this point, Dalal Street has 45,566.21 units of PIF2 and 25,610.78 units of PIFI. Based on last published NAV, this stake is worth 668,533.76 + 402,857.

October 1, 2001 was an especially good window because of the market drop after the tragic events of 9/11. Thoughts on Merging PIFI and PIF2 A few of the PIFI partners met with me a few months ago to voice their displeasure and discomfort with the infrequent reporting. At the conclusion of the meeting, a plausible solution was arrived at. If the two funds were merged into one, it is likely that the merged fund would have atleast one partner (old or new) adding funds every 2 months and thus there would be 7 to 8 datapoints a year for PIFI investors. I liked the idea of merging the funds as it would simplify my task (easier to manage 1 fund vs. 2), reduce accounting, audit and administrative costs and I would no longer have less-than-happy partners. We’d also have a larger asset pool to amortize expenses over. The negatives are that the guarantee of principal etc. in PIFI would be eliminated (I see this as a positive). The leverage ratio would go up to 50%. I don’t see this as an issue as I am exceedingly careful with leverage, but some of you might. Finally, we’d have higher accounting and legal fees for 1 year as the funds merge to handle all the tax, accounting and legal issues. I only want to pursue a merge if the overwhelming number of partners want it. At this point, I’d like to get a pulse on your thoughts. Just call me or send me an email letting me know if you’re in favor or against the merger.

It’s pretty much guaranteed we’ll continue to make mistakes (omissions and others). The good news is that we don’t need to do extraordinary things for extraordinary results. Even with the mistakes, I’m confident, we’ll do ok. Raising the Minimum Amount for new Partners Going forward, the new minimum investment to join the funds as a new partner will be $100,000. This is effective 2/1/02. We can have only 99 partners in each fund and as the number of slots left go down, the minimum needs to go up to delay the closing of the present fund for as long as possible to new investors. We have about $12 Million under management and will be targeting minimums to be about 0.75-1.25% of assets under management. Pabrai Investment Funds Assets Under Management (In Millions of $) 7/1/1999 7/1/2000 7/1/2001 1/1/2002 Assets Under Management Third-Party Administrator Status (TPA) For PIFI and PIF2 I will have the draft amendment ready this week. After attorney review, I’ll send it to all partners. Warm Regards, Mohnish Pabrai Page 4

employed leverage. We still expect to continue to beat the indices and 90+% of mutual funds, but this is now one more reason future performance will be less spectacular than the past. The good news is that we have far more control over our destiny and have a substantially lower risk profile. I’ve recently had conversations with some partners on this change and nearly all are enthusiastic about it. I’d welcome your thoughts and comments. Finally, in the highly unlikely event, that I ever change my mind on leverage use, I’ll be giving partners a heads up and a chance to exit the fund before employing leverage again. Merging PIFI and PIF2 Michael J. Liccar & Co. are researching some of the nuances of merging the funds. It appears that it is fairly straightforward with no negative tax impact on anyone. I’ll be proposing an amendment to the PIFI and PIF2 on 1/1/03 after we’ve gotten a handle on all legal, tax and accounting issues. Assuming 2/3 or more of partner units vote in favor, we will proceed with the merger. We’ll also allow any PIFI or PIF2 partners opposed to the merger to exit the fund on 12/31/02, so no one has the merger forced on them if they disagree with it. I see this as a big positive with the reduction in fees and a single larger fund with is easier to manage and amortize the reduced fees over a larger pool of assets. Stay tuned. I’ll email you before any of the amendment docs get sent out so you can watch for them.

Raising the Minimum Amount for new Partners We added 6 new partners - bringing the total US-based partners to 82. We are limited to 100 US partners by law. As the available slots decrease, the minimums continue to increase. Going forward, the new minimum investment to join PIF2 as a new partner will be $400,000. This is effective at the next opening of 10/1/02. Existing partners can add funds in increments of $25,000 (with a $25,000 minimum) at each opening. This does not apply to our offshore investors. PIF3 is setup as an offshore mutual fund limited to non-US accredited investors. The minimum investment for PIF3 is $100,000. Assets under management are about $26 Million. Thanks for your strong vote of confidence! Pabrai Investment Funds Assets Under Management (In Millions of $) 1999 2000 2001 June-02 Assets Under Management Thanks for your continued interest, referrals and support. Warm Regards, Mohnish Pabrai Page 7 of 9

Page 8 of 8 taxes. The NAV before fees and expenses is $16,434,931.59 or $17.25/unit. In other words, PIF2 is up 72.5% since inception twenty one months ago before fees and expenses – or an annualized rate of 36.6% NAV after all expenses is $16,332,195.69 or $15.89/unit. The previous NAV high after fees is $17.43 set on 6/1/02. Since the NAV is below the previous historical high, there is a no fee is payable to Dalal Street (General Partner) at this time. PIF2 is up 58.9% since inception twenty one months ago AFTER all fees and expenses – or an annualized rate of 30.3%. Total units outstanding on 6/30/02 are 1,027,794.97. PIF2’s Performance BEFORE and AFTER fees and expenses vs. the Indices. No. of Date PIF2 NAV PIF2 NAV S&P S&P DJIA DJIA NASDAQNASDAQ Units Pre-Exp. Post- Exp. 500 500 110000 10/1/2000 $10.00 $10.00 $10.00 1436.51 $10.00 10650.92 $10.00 3672.82 330014 6/30/2001 $12.09 $11.74 $8.52 1224.42 $10.46 11140.05 $5.88 2160.54 1027795 6/30/2002 $17.25 $15.89 $6.89 989.82 $8.98 9563.39 $3.98 1463.21 PIF3’s Performance BEFORE and AFTER fees and expenses vs. the Indices. No. of Date PIFI NAV PIFI NAV S&P S&P DJIA DJIA NASDAQ NASDAQ Units Pre-Fees Post- Fees 500 500 65100 1/25/2002 $10.00 $10.00 $10.00 1133.28 $10.00 9840.08 $10.00 1937.70 255836 3/29/2002 $11.39 $11.01 $10.12 1147.39 $10.62 10446.55 $9.52 1845.35 Note: The source for the indices data is Barron’s. The DJIA data includes dividends.

completely masked by the spectacular performance of the rest of the portfolio. The good news is that we have been right about the overwhelming majority of businesses we’ve invested in. Regardless of the obsession with buying businesses with large margins of safety, I am confident that the errors in judgment will continue. However, to paraphrase Buffett, the good news with investing is that one can have good result in the end even with a few mistakes along the way. It is not necessary to be right 100% of the time. I plan to delve more deeply into our mistakes at the Pabrai Investment Funds annual meeting on September 14, 2002. Third Party Administrator (TPA) in Place – Michael J. Liccar & Co., (www.liccar.com) As I had mentioned earlier via email, PIFI and PIF2 are all set with Michael J. Liccar & Co. as the Third Party Administrator. They are based in Chicago and, in addition to their fund administration speciality, are a CPA firm as well. Liccar has dozens of hedge funds and limited partnerships from all over the world as clients and comes highly recommended. They handled most of the subscriptions for the 6/1 closing and I expect all subscriptions, redemptions and additions will be handled directly by them in the future. They will be issuing all the partner statements going forward as well as producing all of your annual K- 1s. The 6/1 statements will likely take longer to get out as they get us into their systems, but should be faster going forward.

We added 5 new partners - bringing the total US-based partners to 76. We are limited to 100 US partners by law. As the available slots decrease, the minimum will increase. Going forward, the new minimum investment to join the funds as a new partner will be $350,000. This is effective at the next opening of 8/1/02. Existing partners can add funds in increments of $25,000 at each opening. This does not apply to our offshore investors. PIF3 is setup as an offshore mutual fund limited to non-US accredited investors. The minimum investment for PIF3 is $100,000. Assets under management are about $28 Million – up from $1 Million less than 3 years ago. Thanks for your strong vote of confidence! Pabrai Investment Funds Assets Under Management (In Millions of $) 1999 2000 2001 June-02 Assets Under Management Warm Regards, Mohnish Pabrai Page 7 of 9

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: October 5, 2001 Re: Welcoming New Partners of The Pabrai Funds. Performance Data Dear Partners: On October 1, 2001, we added a record $1,075,000 from existing and new limited partners to the Pabrai Investment Fund 2 (PIF2). I believe this represents the single largest addition to either fund since inception. Given the tragic events of Sept. 11 and the state of the markets, I was pleasantly surprised to see a strong showing from existing and new investors. Usually the sentiment of investors is to be bullish and add $$$ to their equity positions when the Dow is at, say, 15000. On the other hand a Dow 7000 tends to lead investors to put it all under the mattress. Needless to say this not the sort of investor behavior encouraged by the likes of Peter Lynch or Warren Buffett. It was wonderful to see that my smart partners “get it” and added to PIF2 at what is probably the best investment window since inception of the fund. The diversity of investors is expanding and I am proud to be associated with this august group. I’d like to welcome the new partner from North Dakota. With the recent addition or North Dakota, we now have the following states represented in The Pabrai Funds: Arizona, California, Colorado, Florida, Illinois, Louisiana, Maine, Minnesota, New Jersey, North Dakota, Ohio, Vermont, Washington (13 down, 37 to go).

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: February 3, 2001 Re: Welcome New Limited Partners; Performance Data Dear Partners: On February 1, 2000, we added an additional $800,000 and 7 new limited partners to the Pabrai Investment Fund 2 (PIF2). Between the two funds we’ve brought in $5.3 Million in assets under management since inception and have 37 limited partners. The diversity of investors is expanding and am proud to be associated with this august group. Whenever we add assets to the funds, I have to release performance to date to assign the correct Net Asset Value to the new funds. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 1/26/01 0.1% -24.3% -5.7% 13.8% 10.6% For completeness of the track record, I am also giving all the published performance data on the first fund, PIFI. PABRAI INVESTMENT FUND I Performance Summary: DJIA NASDAQ S&P 500 PIFI PIFI (before exp.) (after exp.) 7/1/99 - 6/30/00 -6.2% +47.3% +4.7% +62.5% +50.05% 7/1/00 – 8/30/00 +7.14% +1.9% +3.4% +14.09% +11.08% Cumulative +0.5% +50.1% +8.3% +85.4% +66.8% (7/1/99 – 8/30/00)

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: April 2, 2001 Re: Welcome New Limited Partners; Performance Data Dear Partners: On April 1, 2001, we added additional funds from existing and new limited partners to the Pabrai Investment Fund 2 (PIF2). Between the two funds we’ve brought in $5.5 Million in assets under management since inception and have 38 limited partners. The diversity of investors is expanding and I am proud to be associated with this august group. We now have the following states represented between the first and second partnership: Arizona, California, Colorado, Florida, Illinois, Minnesota, New Jersey, Ohio, Vermont, Washington (10 down, 40 to go). Internationally, we have one limited partner based in Italy and another in Barbados. Whenever we add assets to the funds, I have to release performance to date to assign the correct Net Asset Value to the new funds. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 3/31/01 -7.3% -49.9% -19.3% -3.3% -5.3%

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: June 4, 2001 Re: Welcome New Limited Partners; Performance Data Dear Partners: On June 1, 2001, we added additional funds from existing and new limited partners to the Pabrai Investment Fund 2 (PIF2). Between the two funds we’ve brought in over $6 Million in assets under management since inception and have 40 limited partners. The diversity of investors is expanding and I am proud to be associated with this august group. We now have the following states represented between the first and second partnership: Arizona, California, Colorado, Florida, Illinois, Louisiana, Minnesota, New Jersey, Ohio, Vermont, Washington (11 down, 39 to go). In addition, we have 2 offshore investors. Whenever we add assets to the funds, I have to release performance to date to assign the correct Net Asset Value to the new funds. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 5/25/01 +3.3% -38.7% -11.0% +16.0% +13.5%

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: July 5, 2001 Re: 2nd Anniversary of The Pabrai Funds. Performance Data Dear Partners: On June 30, 2001, The Pabrai Funds turned two years old. The last two years, while being traumatic for the general market, have been fairly good to The Pabrai Funds. Since the fiscal year end for the funds is June 30, our auditors are busy preparing their audit report for both funds that I hope to share with you on or before August 15, 2001. In the interim, I’m providing UNAUDITED results for both funds through June 30, 2001. There is bound to be some variance between these figures and the audited numbers particularly as they relate to accrued expenses, deferred taxes etc. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND I Performance Summary: DJIA NASDAQ S&P 500 PIFI PIFI (before exp.) (after exp.) 7/1/99 - 6/30/00 -4.7% +47.3% +4.7% +62.5% +50.1% 7/1/00 – 6/30/01 +2.2% -45.5% -15.9% -7.7% -8.3% Annualized -1.3% -10.4% -6.2% +22.5% +17.5% Cumulative -2.6% -20.8% -12.0% +49.7% +38.0%

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: August 1, 2001 Re: Welcoming New Partners of The Pabrai Funds. Performance Data Dear Partners: On August 1, 2001, we added additional funds from existing and new limited partners to the Pabrai Investment Fund 2 (PIF2). Between the two funds we now have over $8 Million in assets under management and have 46 limited partners. Both the number of limited partners and assets under management has quadrupled in the last two years. The diversity of investors is expanding and I am proud to be associated with this august group. I’d like to welcome the new partner from Maine. With the recent addition or Maine, we now have the following states represented in The Pabrai Funds: Arizona, California, Colorado, Florida, Illinois, Louisiana, Maine, Minnesota, New Jersey, Ohio, Vermont, Washington (12 down, 38 to go). In addition, we have 2 offshore investors. Whenever we add assets to the funds, I have to release performance to date to assign the correct Net Asset Value to the new funds. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 7/27/01 -0.9% -44.8% -16.1% +34.1% +27.1% Annualized -1.1% -53.8% -19.3% +40.1% +32.5%

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund I, L. P. From: Mohnish Pabrai, Managing Partner Date: August 31, 2001 Re: Redemption of PIFI Units; Updated PIFI NAV Dear Partners: I had received requests from two limited partners of PIFI to redeem their units. Per PIFI partnership rules, any limited partner can request a withdrawal of their interest in the partnership during a two week window after audited results are released. Between the two, a total of 26,726.94 units were redeemed at $15.73/unit. I’m sending checks totaling $420,414.77 to the two partners. Both partners have a gain on their original investment and I’d like to take this opportunity to thank them for participating in PIFI and hope our paths cross again. As an FYI, I was forced to liquidate positions that I otherwise would not have sold at this time. We will have higher realized capital gains this year as a result of the withdrawals. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND I Performance Summary: DJIA NASDAQ S&P 500 PIFI PIFI (before exp.) (after exp.) 7/1/99 - 6/30/00 -4.7% +47.3% +4.7% +62.5% +50.1% 7/1/00 – 6/30/01 +2.2% -45.5% -15.9% -7.7% -8.3% 7/1/01 – 8/31/01 -5.1% -16.5% -7.4% +14.0% +14.2% Annualized -3.6% -18.3% -9.4% +24.9% +21.1% Cumulative -7.6% -33.0% -18.5% +70.7% +57.3%

Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: December 7, 2001 Re: Fifteen States Represented Dear Partners: On December 1, 2001, we added $875,000 from existing and new limited partners to the Pabrai Investment Fund 2 (PIF2). The diversity of investors is expanding and I am proud to be associated with this august group. I’d like to welcome all the new partners. We just added our first investors from the great states of New Mexico and Texas. With the recent additions, we now have the following states represented in The Pabrai Funds: Arizona, California, Colorado, Florida, Illinois, Louisiana, Maine, Minnesota, New Jersey, New Mexico, North Dakota, Ohio, Texas, Vermont, Washington (15 down, 35 to go). In addition, we have 2 offshore investors. Whenever we add assets to the funds, I have to release performance to date to assign the correct Net Asset Value to the new funds. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 9/30/01 -15.2% -59.2% -27.5% +17.6% +12.0% 10/1/01 – 11/30/01 +11.1% +28.8% +9.5% +18.5% +18.7% Annualized -5.0% -40.6% -17.2% +33.7% +28.2% Cumulative -5.8% -47.4% -20.1% +39.3% +32.9% Pabrai Investment Funds

Along with the audit report, I’ll send each of you an updated statement of the value of your holdings as of 8/1/01 well before the annual meeting for your perusal. The diligent reader of these memos will recall the PIF2 was up 20.9% as of 6/30/01 and is up 34.1% as of 7/27/01 – a gain of over 13% in less than a month. July saw all three of the benchmark indices go down, yet the fund went up. How come? Publicly traded stocks are strange creatures. Historically, stocks have delivered an annualized rate of 10-12%. This 10-12% has been delivered in a very lumpy form. The DJIA hit the same number in 1966 and 1982 – a gap of 16 years. Thus one could have invested in 1966 in 30 formidable blue chips and shown a 0% return after 16 years! The return in the next 16 years (1983-1999) were stellar and well above the 12% norm. But it would have taken 30+ years to get the 10+% annualized rate. That’s long term! The Pabrai Funds investment style is hard to distill down to two words, but “Focused Value” comes close. Focus means that we have positions in a handful of equities. As I write this PIFI has a total of 11 distinct stocks and PIF2 has a total of 15 distinct stocks and bonds. Buffett’s partner, Charlie Munger, would probably view the Pabrai Funds portfolio as somewhat over diversified. Charlie feels that 3 or 4 well-selected businesses are all that is required to have a diversified portfolio.

I do have some confidence that a few good ideas will pop up on the radar every so often – just as they have over the last seven years. PIF3 Approved by the BVI Pabrai Investment Fund 3 (PIF3) has been formally approved and setup as an Offshore Mutual Fund based in the British Virgin Islands. I’d like to thank Walter Stasiuk at Sonnenschein, Nath and Rosenthal (New York) and Conyers, Dill and Pearman (BVI) who serve as legal counsel for PIF3 for all their help and efforts in getting the fund setup. Its scheduled to go live on 1/1/02 with the 2 offshore investors in PIF2 moving their interest to PIF3. PIF3 is limited to accredited investors and they must be non U.S. Citizens or Residents. Unlike PIFI and PIF3, there is no limit to the number of investors in PIF3. As a result of the redemption of PIF2 units on 1/1/02, I’ll be reporting NAV on that date as well. I do not expect the redemptions to affect our holdings as nearly $2 Million has come into the funds in the last 2 months and the total redemption will be under $300,000. Raising the Minimum Amount for new Partners Going forward, the new minimum investment to join the funds as a new partner will be $100,000. The previous minimum was $50,000. This is effective 2/1/02. We can have only 99 partners in each fund and as the number of slots left go down, the minimum needs to go up to delay the closing of the present fund for as long as possible to new investors.3

Page 1 00.02.2000 Partnership Amendment Suggestions To: Pabrai Investment Fund Limited Partners New Limited Partners intending to become investors in PIFI From: Mohnish Pabrai, Managing Partner Date: 2/2/00 Re: Problem with the setup of the Pabrai Investment Fund I Dear Partners/Prospective Partners: I have recently discovered a problem with the Pabrai Investment Fund rules and bylaws that make very little logical sense and need some fixing immediately. I cannot bring in additional funds into PIFI until the problem is resolved. I have shared this problem with a few investors already and I believe that they agree with my proposed solution. Let me give you some hypothetical examples of scenarios that depict the problems: Case 1: Assume that PIFI starts on 7/1/99 with $1,000,000 from 8 investors. 100,000 shares are issued to investors at $10.00 each. Assume that PIFI has a 100% return on invested capital through 1/31/00 and brings in $800,000 in new funds from new and existing investors. Assume legal and accounting fees through 1/31/00 are $15,000. Bringing in new investors under current rules requires a calculation of Net Asset Value (NAV) per share as of 1/31/00 after management fees and expenses. Thus, investors get the (7/12) of 6% of $1,000,000 as the guarantee or $35,000. Then the $15,000 expenses are paid. Then the balance ($950,000) gain is split: Dalal Street: $237,500 PIFI Investors: $712,500 Thus the total PIFI investor gain is $747,500.

Pabrai Investment Funds Memo To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: December 4, 2000 Re: Welcome New Limited Partners; Performance Data Dear Partners: As you know, The Pabrai Investment Fund 2 (PIF2) was launched on 10/1/00 with $1.1 Million in assets and 9 limited partners, including myself. On December 1, 2000, we added an additional $600,000 in assets and 8 new limited partners. Between the two funds we’ve brought in $4.5 Million in assets under management since inception and have 30 limited partners. The diversity of investors is expanding and am proud to be associated with this august group. We now have the following states represented between the first and second partnership: California, Colorado, Florida, Illinois, Minnesota, New Jersey, Ohio, Vermont, Washington. (9 down, 41 to go). We are now international with one limited partner based in Italy. Whenever we add assets to the funds, I have to release performance to date to assign the correct Net Asset Value to the new funds. The details of the Asset Value Calculations are in the attached Appendix A. PABRAI INVESTMENT FUND 2 Performance Summary: DJIA NASDAQ S&P 500 PIF2 PIF2 (before exp.) (after exp.) 10/1/00 – 11/24/00 -1.7% -21.0% -6.6% -3.5% -4.0% For completeness of the track record, I am also giving all the published performance data on the first fund, PIFI. The NAV before expenses is $9.65/unit and after expenses is $9.60/unit.

To: All Limited Partners of The Pabrai Investment Fund 2, L. P. From: Mohnish Pabrai, Managing Partner Date: October 6, 2000 Re: …and we’re up and running … Dear Partners: The Pabrai Investment Fund 2, L. P. was successfully launched on 10/1/00. I had a minimum asset goal of $1,000,000 to launch the fund. We started the fund with $1,100,000 in assets and 9 Limited Partners. In the memos of the first partnership, I published names and amounts of Limited Partners, but received some objections from a few partners concerning the visibility of some of their personal financials to strangers. It’s a very valid objection. Thus, going forward, limited partner identities and amounts invested are not being shared - even with other limited partners. Identities will be visible via name tags at the Annual Meeting to other Partners and attendees. The diversity of investors is expanding and am proud to be associated with this august group. We now have the following states represented between the first and second partnership: California, Florida, Illinois, Minnesota, New Jersey, Ohio, Vermont (7 down, 43 to go; There is atleast one European who’s planning to invest at the next opening, so that’ll make us International.)

2.6 8/18/00 – PIFI Reports Audited Results for year ended 6/30/00 To: All Limited Partners of The Pabrai Investment Fund I From: Mohnish Pabrai, Managing Partner Date: August 18, 2000 Re: Annual Audit Results for PIFI for the Year ended 6/30/00 Dear Partners: Gleeson, Sklar, Sawyers and Cumpata, LLP. has completed its annual audit of The Pabrai Investment Fund I. I am enclosing their report for your perusal. If you recall, I had estimated $5000 in accrued expenses in my memo to you dated July 3, 2000. Gleeson has estimated accrued expenses at $6125. In addition they have assumed a deferred tax liability of $8152. This relates to the 1.5% Illinois Use Tax on gains. We have unrealized gains that net this tax, if realized. Thus their expense accruals are $9,277 higher than mine. This reduces the NAV to $2,476,277 vs. my number of $2,485,498. The number of shares outstanding on 6/30/00 was 164453.16 leading to a NAV of $15.05/share. My fee is $13,951 or 926.98 shares. The individual audited shareholding as of 6/30/00 is as follows: NAME Shares Held Value of Holdings (Rounded) as of 6/30/00 (rounded) CONFIDENTIAL INFORMATION TOTAL 165,380.14 $2,490,228 PIFI’s Audited Performance AFTER fees and expenses vs. the Indices. Page 1

2.5 7/3/00 – PIFI Reports First Year Unaudited Results To: Pabrai Investment Fund I Limited Partners From: Mohnish Pabrai, Managing Partner Date: July 3, 2000 Re: PIFI Finishes its First Full Year – Unofficial, Unaudited Results PIFI Beats all the Major Indices and over 99% of Mutual Funds and Professional Fund Managers. Up over 62.5% for the year (before fees and expenses) Dear Partners: June 30, 2000 was an important day for me. Not only was it my mother’s 58th birthday, but it also represented the day on which we finished our first year as partners in The Pabrai Investment Fund I. PIFI is very dear to me and close to my heart. I’ve really enjoyed serving all of my partners last year and look forward to many many prosperous years together. Our auditors, Gleeson, Sklar, Sawyers and Cumpata, LLP (GSSC), will be beginning their audit on PIFI’s first year etc. almost immediately and I hope to have their audit report to share with all of you within the next few weeks. In the meanwhile, I would like to share the unofficial, unaudited PIFI results with all of you. PLEASE NOTE THAT I DO EXPECT SOME VARIANCE BETWEEN MY NUMBERS AND THE AUDITED NUMBERS, PARTICULARLY AS THEY RELATE TO EXPENSES AND FEES. However, these differences should be miniscule in the broad scheme of things. For example, the auditors may look at cash vs. accrued expenses differently than the way I’m doing them. The total net assets in PIFI as of 6/30/00 (as reflected in the Brokerage Statement) are $2,504,802.

03.09.2000 To: Pabrai Investment Fund I Limited Partners From: Mohnish Pabrai, Managing Partner Date: 3/9/00 Re: Welcome New Limited Partners; PIFI Valuation Dear Partners: 1. Introducing the new and original Limited Partners Let me begin by welcoming all the new limited partners. Thank you for confidence and support. The new limited partners are: (Deleted for Confidentiality) I’d also like to introduce our new limited partners to the original limited partners: (Deleted for Confidentiality) 2. PIFI Cost/Share calculation for new funds. On February 28, 2000, we brought in $800,000 in new funds into PIFI. Prior to this injection of additional funds, PIFI had 100,000 shares outstanding issued on 7/1/1999 at $10.00/share. PIFI will publish audited results a few weeks after our year-end on 6/30/2000. I am presenting here unaudited results through 2/25/2000 so that a calculation can be done on the present cost/share of PIFI. As support for these numbers, I am attaching a portion of the first page of the PIFI Brokerage account statement as of 2/25/00. The total net assets in PIFI as of 2/25/2000 $1,607,551.68 The costs incurred from inception through 2/25/00 are: Legal: $10,230.45 Tax and Accounting: $1,675.00 TOTAL $11,905.45 Page 1

Limited Partners Holdings This memo is custom for each limited partner. It contains your investment amount, my investment amount and the rest of the investors as a group to maintain confidentiality. The shareholding as of 10/1/00 is as follows: NAME Shares Held Value of Holdings (Rounded) as of 10/1/00 (rounded) Dalal Street, Inc. (Mohnish Pabrai) 10,000 $100,000 All other Limited Partners 100,000 $1,000,000 TOTAL 110,000 $1,100,000 Between the two funds, there is now about $5 Million under management. I am planning to add another $1-2 Million on 12/1/00 to PIF2. I continue to be undercapitalized – i.e. many more ideas than $$$ available to invest. Also, since the investments are in public equities, whether we invest $100,000 or $10 Million in a given company, the work involved is the same. Thus, until I get to about $100 Million under management, I’ll continue to be undercapitalized. There is $350K already committed to come in on 12/1/00. If you are interested in adding to your position, please let me know at the earliest so I can allocate it. I would need funds by 11/30/00. The minimum investment is $100,000. As you know existing investors have the highest priority followed by your referrals from existing investors. Billy Stubbs, our webmaster, continues to enhance our website and add to its content. Check it out at www.pabraifunds.com. After getting to $5 Million under management, I figured that even Warren would approve of my splurging on business cards.

1. The PIFI Website!! I have secured a domain name (www.pabraifund.com) and as time allows am developing the content etc. for the site. I don’t have a firm schedule on when the site will be up, but am hoping to have it up and running before we finish our first year. The site will not have names or identities of the limited partners anywhere on the site to maintain confidentiality. Here is a listing of a subset of the features I’m planning: 1. Post all the PIFI legal docs (with no limited partner names) 2. Post all my memos to limited partners (with no limited partner names) 3. PIFI’s performance, fees and expense data to data vs. the indices. 4. Ability to register and join the PIFI limited partners waiting list. 5. Post all the performance data on all monies I manage (personal portfolio, TransTech’s portfolio, Digital Disrupters portfolio) 6. Description on PIFI and its objectives 7. Data on the original Buffett partnerships. The expenses associated with the development and maintenance of the site will be borne 100% by Dalal Street with no cost to PIFI. Thus, if any of you have investor referral, they can go online, get all the data they need and register to get on the waiting list. I’d welcome any comments or suggestions. See you in August!! Mohnish Pabrai Page 4

12.08.1999 First Letter to Parterns To: Pabrai Investment Fund I Limited Partners From: Mohnish Pabrai, Managing Partner Date: 12/8/1999 Re: Adding Capital to Pabrai Investment Fund I Dear Partners: There will typically be only two occasions where I will be writing to you – the first is the annual letter with results and the second is to get additional funds for Pabrai Investment Fund I (PIFI). This letter deals with the second. At the suggestion of one of you, I am going to first ask my existing partners if they would like to increase funds they have contributed to PIFI. If the total contribution all of you seek to make exceeds the amount I am seeking, then I will not be inviting new partners into PIFI. I think that giving the earliest investors preference to add more funds will always be my priority. My original PIFI partners took the biggest leap of faith in trusting me with your hard-earned money and I intend to remember and recognize that. I had also suggested that I would typically release audited results once a year, except when additional funds are sought. The results I am releasing in this letter are not audited and while I have gone over them several times to ensure no errors, they have not been seen by another set of eyes. If a majority you have a desire to see audited results before committing additional funds and would like PIFI to bear the cost of the same, I will be glad to accommodate you.