SUMMARY ANNUAL REPORT

Vanderbilt University is required to file annual reports with the Internal Revenue Service on each of its insured benefits programs. In addition, a summary of each annual report must be provided to employees and beneficiaries. Following is an insured benefit report. The format, style and content for this report were designed by the Internal Revenue Service (IRS). The IRS requires employers to strictly follow this format. Employees who would like clarification or additional information should contact the Benefits Division of Human Resource Services, 322-8330.

SUMMARY ANNUAL REPORT FOR VANDERBILT UNIVERSITY FLEXIBLE

REIMBURSEMENT ACCOUNT (FRA) PLAN

PERSONAL SPENDING ACCOUNT (PSA) PLAN

PREMIUM CONVERSION PLAN

This is a summary of the annual report of the Vanderbilt University Flexible Reimbursement Account (FRA) Medical Plan, Personal Spending Account Plan (PSA) and Premium Conversion Plan. Employer Identification Number 62-0476822, Plan Number 509, for plan year beginning Jan. 1, 2000, and ending Dec. 31, 2000. The annual report has been filed with the Internal Revenue Service, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

OPERATIONAL INFORMATION

The FRA portion of the Plan is funded by a commitment from the employer in the amount of $25 per month per plan participant. Benefits are paid from the employer's general assets to reimburse participants for certain otherwise tax-deductible medical expenses incurred during the plan year. For the current year, 7,034 employees participated by receiving reimbursement of qualifying health claims.

The PSA portion of the Plan is funded by employee contributions. Benefits in the amount of $2,765,195.01 were disbursed to participants for qualified medical and dependent care expenses during 2000. 2,189 employees participated in this portion of the Plan.

The Premium Conversion benefit provided by the Plan is the agreement of the Employer to pay the Employee's share of the cost of certain insurance for which the Employee and the Employee's dependents are eligible. The compensation of each participant will be reduced each pay period to the extent necessary to pay the Employee's share of the cost of insurance attributable to that pay period.

SUMMARY ANNUAL REPORT FOR VANDERBILT UNIVERSITY GROUP LIFE INSURANCE PLAN

This is a summary of the annual report of the Vanderbilt University Group Life Insurance Plan. Employer Identification Number 62-0476822, Plan Number 506, for Jan. 1, 2000, and ending Dec. 31, 2000. The annual report has been filed with the Internal Revenue Service, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

INSURANCE INFORMATION

The Plan has a contract with Metropolitan Life Insurance Company to pay claims incurred under the terms of the Plan. The total premiums paid for the plan year ending Dec. 31, 2000, were $2,198,988.

YOUR RIGHTS TO ADDITIONAL INFORMATION

You have the right to receive a copy of the full annual report, or any part thereof, on request. One of the items included in that report is insurance information including sales commissions paid by insurance carriers, if any.

To obtain a copy of the full annual report, or any part thereof, write or call the office of the Plan Administrator, Vanderbilt University, Box 357700, Station B, 213 Peabody Administration Building, Nashville, Tennessee 37235; (615) 322-8330. The charge to cover copying costs will be $.20 per page.

You also have the right to receive from the Plan Administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or both. If you request a copy of the full annual report from the Plan Administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without a charge.

You also have the legally protected right to examine the annual report at the main office of the Plan Administrator and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the Department should be addressed to Public Disclosure, Room N4677, Pension and Welfare Benefit Programs, U.S. Department of Labor, 200 Constitution Ave., N.W., Washington, D.C. 20216.