Hello!

Welcome to the first year of The Lawrence Foundation. We were founded this year and consider this a year of organization.

The Lawrence Foundation is a private charitable foundation founded by us in 2000 to make charitable contributions and grants to support a variety of causes. The initial funding of our foundation came from a portion of the proceeds we received from the acquisition of Trillium Digital Systems by Intel Corporation in August 2000. Jeff is co-founder and formerly president and CEO of Trillium. Trillium develops and licenses communications software to communications equipment manufacturers.

Prior to the foundation, our philanthropic activities were of an opportunistic and ad-hoc nature. We made donations in previous years to organizations that we came into contact with on a somewhat random basis. Our donations did not have a single theme and they were made to a fairly wide range of organizations.

The initial focus of our contributions and grants is education, environment and health although our interests are fairly diverse and may lead us into other areas on an occasional basis. Nonprofit organizations that qualify for public charity status under section 501(c)(3) of the Internal Revenue Code or public schools and libraries are eligible for contributions or grants.

In honor of the importance our parents have played in our lives we have committed to them that we will make a substantial one-time donation in their name to organizations that they specify. The grants we will make in this case are entirely reflective of our parent's interests and not necessarily of the foundations interests.

The legal entity for the foundation was created in 2nd quarter of 2000 and its initial funding of some cash and a significant amount of stock occurred in the 3rd quarter of 2000 after the Trillium and Intel deal closed. The asset value of the foundation decreased significantly this year as a result of the bear equity market and the inability to diversify or liquidate the assets due to initial trading restrictions on the stock used to fund the foundation. The foundation initially had an asset value of $12 million and ended the year ended with an asset value of $5 million.

We created a Web site at http://www.thelawrencefoundation.org to establish our presence and to start receiving unsolicited requests related to our mission and stated interests. We joined the Association of Small Foundations.

We had no staff during the year and handled all of the foundation activities personally.

We paid no grants this year and made one commitment in partial fulfillment of our previously stated goal of honoring our parents. Additional commitments to fulfill this goal will be made in the future. Next year after the stock becomes liquid, we intend to make a number of grants and start paying down our commitments. We also expect that during 2001 we will be developing the process for identifying and making grants to organizations in support of our mission.

Respectfully Submitted,

Jeff Lawrence & Diane Troth
Trustees
The Lawrence Foundation