Market Overview

Walthausen & Co. Puts Big Focus on Tiny Stocks

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In response to increasing demand for active management in the stock
market's smallest companies, Walthausen & Co., LLC has launched their
Micro Cap Value strategy, focusing on companies with market caps from
$50 million to $1.0 billion. The strategy will be co-managed by John
Walthausen and Gerard Heffernan.

"The opportunity available in the smallest market cap stocks is very
attractive right now as more attention has been paid to this group as a
result of recent tax and regulatory changes," said John Walthausen,
Founder, Chief Investment Officer and Portfolio Manager. "We have always
had a focus on micro-cap stocks. In fact, this strategy plays to our
strengths in selecting quality companies with attractive upside
potential that typically are overlooked."

The decision to offer this strategy was a result of the team's outlook
for companies with market capitalizations below $1 billion. Over the
past 10 years, the firm has consistently uncovered sound companies at
the lower end of the market cap range that deliver long-term shareholder
value through high return on invested capital, strong cash generating
capabilities and disciplined uses of cash. Even if the U.S. economy
slows or interest rates rise, companies in this market cap range have
typically done well during periods of rising interest rates and
inflation.

"Our decades of experience in the micro-cap space has afforded us with a
wealth of knowledge on companies over various market cycles that have
been good drivers of shareholder value," states co-portfolio manager,
Gerard Heffernan. "Whichever direction the economy goes, we believe that
the smaller end of small cap will provide meaningful opportunity,
particularly those we strive to own that have elements of price control
and leadership within their given industry group."

About Walthausen & Co., LLC

Walthausen & Co. has grown from its inception in August 2007 to
approximately $1.3 billion in assets under management as a result of its
strong reputation as an investment management firm and the success of
its domestic equity strategies in small and small to mid-capitalization
companies.

The investment team endeavors to provide returns in excess of their
stated benchmarks over a market cycle by discovering opportunity in
companies that they believe are trading below their underlying intrinsic
value and over time will appreciate to reflect their legitimate worth.

For more information please visit our website at www.walthausenco.com
or contact Erik Nero, Portfolio Specialist & Director of Client Service
at enero@walthausenco.com.

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