NESTLE INVESTMENT SAVINGS PLAN
Investment Model Portfolios

The funds established under the Plan as of December 31, 2009, are as follows:

• The Core Stable Investment Fund, which is invested in bonds and real estate, with insurance contracts that “wrap” the bond and real estate investments (see note 3). The underlying investments of this fund can also be loaned out under a securities lending arrangement with the trustee, in exchange for cash collateral.

• The Core Bond Fund, which is primarily invested in a balanced mix of government securities, mortgage-backed securities, and corporate bonds

• The Core Common Stock Fund, which is primarily invested in stocks of companies contained in the S&P 500 index

• The Core International Stock Fund, which is primarily invested in stocks of non-U.S. companies

• The Core Small Company Stock Fund, which is primarily invested in stocks of smaller U.S. companies

• The Active Bond Fund, which is primarily invested in government securities, corporate bonds, and mortgage-related securities

• The Active Large Cap Value Fund, which is primarily invested in undervalued large U.S. companies

• The Active Large Cap Core Fund, which is primarily invested in stocks contained in the S&P 500 index and seeks to outperform that index

• The Active Large Cap Growth Fund, which is primarily invested in higher growth potential large U.S. companies

• The Active International Stock Fund, which is primarily invested in stocks of non-U.S. companies

• The Active Mid-Cap Stock Fund, which is primarily invested in stocks of small and mid-size U.S. companies

• The Active Small Company Stock Fund, which is primarily invested in stocks of smaller U.S. companies

The Mutual Fund Window, which is an investment offering of retail mutual funds

Since all of the above funds are not mutual funds, we have to use index funds as their proxies.