Executive Summary Report
June 30, 2000


Mellon Equity
Mid-Cap Equity Manager

• Assets held in the Mellon Equity totaled $3.7 million at the close of the quarter.
• The portfolio return of 1.6% outperformed the S&P 400 Index ( -3.3%) for the quarter.
• The manager's superior stock selection in the materials & services, technology, and finance sectors were the primary reasons for the portfolio's performance. Within the materials & services sector, holdings like Quest Diagnostics (+88%), Quanta Services (+ 36%), and Credence Systems Corp. ( + 34% ) helped performance. Quest Diagnostics, a diagnostic testing, information, and services provider, surged after a number of upgrade announcements and an agreement to provide services to United Health. Digital Lightwave (+ 61%) and Power-One Inc. (+83%) boosted the technology sector. Power One soared after announcing the acquisition of Powec S.A. in May.
• The portfolio was diversified in all of the major equity industry sectors.