-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ej2iKtLctAbnihvmmiTzwu6PKmBPmGQ6fXzrFFs0vWpAAOD2gxUwGFNr9MzvZkUn Uo84u1zpqdBnR4xFxUg+cg== 0000919893-07-000015.txt : 20071128 0000919893-07-000015.hdr.sgml : 20071128 20071128164143 ACCESSION NUMBER: 0000919893-07-000015 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070930 FILED AS OF DATE: 20071128 DATE AS OF CHANGE: 20071128 EFFECTIVENESS DATE: 20071128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLETON DRAGON FUND INC CENTRAL INDEX KEY: 0000919893 IRS NUMBER: 650473580 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-08394 FILM NUMBER: 071271993 BUSINESS ADDRESS: STREET 1: 500 E BROWARD BLVD. STREET 2: SUITE 2100 CITY: FORT LAUDERDALE STATE: FL ZIP: 33394-3091 BUSINESS PHONE: 9545277500 MAIL ADDRESS: STREET 1: 500 E. BROWARD BLVD. STREET 2: SUITE 2100 CITY: FORT LAUDERDALE STATE: FL ZIP: 33394-3091 N-Q 1 tdf-nq907.txt TDF QTRLY INVESTMENTS PE 9/30/07 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-08394 TEMPLETON DRAGON FUND, INC. --------------------------------------------------- (Exact name of registrant as specified in charter) 500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091 ------------------------------------------------------------------ (Address of principal executive offices) (Zip code) CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 ------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 954/527-7500 ------------ Date of fiscal year end: 12/31 ------- Date of reporting period: 9/30/07 --------- ITEM 1. SCHEDULE OF INVESTMENTS. Templeton Dragon Fund, Inc. QUARTERLY STATEMENT OF INVESTMENTS SEPTEMBER 30, 2007 - -------------------------------------------------------------------------------- CONTENTS Statement of Investments ................................................. 3 Notes to Statement of Investments ........................................ 7 [LOGO](R) FRANKLIN TEMPLETON INVESTMENTS Franklin o TEMPLETON o Mutual Series Quarterly Statement of Investments | 1 This page intentionally left blank. Templeton Dragon Fund, Inc. STATEMENT OF INVESTMENTS, SEPTEMBER 30, 2007 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------- COMMON STOCKS 98.7% AIR FREIGHT & LOGISTICS 0.1% Sinotrans Ltd., H ................................................ China 3,017,000 $ 1,847,194 -------------- AUTO COMPONENTS 2.0% Cheng Shin Rubber Industry Co. Ltd. .............................. Taiwan 10,519,391 23,852,763 Norstar Founders Group Ltd. ...................................... Hong Kong 13,376,000 5,041,087 -------------- 28,893,850 -------------- AUTOMOBILES 1.8% a Brilliance China Automotive Holdings Ltd. ........................ China 2,230,000 613,831 Chongqing Changan Automobile Co. Ltd., B ......................... China 1,283,003 1,637,079 Dongfeng Motor Corp., H .......................................... China 27,354,000 24,031,002 -------------- 26,281,912 -------------- COMMERCIAL BANKS 9.9% Bank of China Ltd., H ............................................ China 15,400,000 8,240,326 b Bank of China Ltd., H, 144A ...................................... China 20,840,000 11,151,194 China Construction Bank Corp., H ................................. China 48,581,000 44,304,007 b China Construction Bank Corp., H, 144A ........................... China 38,097,000 34,743,002 a Chinatrust Financial Holding Co. Ltd. ............................ Taiwan 11,281,896 8,279,498 HSBC Holdings PLC ................................................ United Kingdom 626,498 11,459,076 b Industrial and Commercial Bank of China, H, 144A ................. China 31,104,000 21,804,346 Mega Financial Holding Co. Ltd. .................................. Taiwan 2,989,000 1,886,729 -------------- 141,868,178 -------------- COMMUNICATIONS EQUIPMENT 0.7% D-Link Corp. ..................................................... Taiwan 3,128,301 7,764,436 ZTE Corp., H ..................................................... China 304,000 1,601,245 -------------- 9,365,681 -------------- COMPUTERS & PERIPHERALS 4.2% Acer Inc. ........................................................ Taiwan 3,636,360 6,406,947 Advantech Co. Ltd. ............................................... Taiwan 1,727,219 5,117,882 Asustek Computer Inc. ............................................ Taiwan 12,971,755 39,469,749 Compal Electronics Inc. .......................................... Taiwan 2,233,110 2,524,951 a Lite-On IT Corp. ................................................. Taiwan 4,220,760 3,931,702 Lite-On Technology Corp. ......................................... Taiwan 1,988,514 3,107,529 -------------- 60,558,760 -------------- DISTRIBUTORS 1.7% China Resources Enterprise Ltd. .................................. Hong Kong 5,818,000 24,695,509 -------------- DIVERSIFIED TELECOMMUNICATION SERVICES 2.0% China Netcom Group Corp. (Hong Kong) Ltd. ........................ China 1,456,000 3,895,427 China Telecom Corp. Ltd., H ...................................... China 32,240,000 24,300,934 -------------- 28,196,361 --------------
Quarterly Statement of Investments | 3 Templeton Dragon Fund, Inc. STATEMENT OF INVESTMENTS, SEPTEMBER 30, 2007 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) ELECTRIC UTILITIES 2.9% Cheung Kong Infrastructure Holdings Ltd. ......................... Hong Kong 11,060,000 $ 41,540,173 -------------- ELECTRICAL EQUIPMENT 1.1% BYD Co. Ltd., H .................................................. China 1,193,500 8,911,585 Phoenixtec Power Co. Ltd. ........................................ Taiwan 6,741,945 6,528,128 -------------- 15,439,713 -------------- ELECTRONIC EQUIPMENT & INSTRUMENTS 0.9% AU Optronics Corp. ............................................... Taiwan 6,856,845 11,829,029 Yorkey Optical International Cayman Ltd. ......................... China 6,405,000 1,622,990 -------------- 13,452,019 -------------- FOOD & STAPLES RETAILING 11.4% Dairy Farm International Holdings Ltd. ........................... Hong Kong 34,636,578 162,791,917 -------------- FOOD PRODUCTS 0.7% a COFCO International Ltd. ......................................... China 3,628,000 2,305,284 Luzhou Bio-Chem Technology Ltd. .................................. Singapore 2,503,000 800,246 People's Food Holdings Ltd. ...................................... China 3,045,000 2,930,841 Uni-President Enterprises Corp. .................................. Taiwan 1,717,231 2,630,965 Xiwang Sugar Holdings Co. Ltd. ................................... Hong Kong 2,940,000 1,505,084 -------------- 10,172,420 -------------- HOTELS RESTAURANTS & LEISURE 0.4% NagaCorp Ltd. .................................................... Cambodia 17,265,000 5,418,596 -------------- HOUSEHOLD DURABLES 0.0% c Samson Holding Ltd. .............................................. Hong Kong 1,860,000 528,732 -------------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 3.9% Datang International Power Generation Co. Ltd., H ................ China 33,630,000 38,628,572 Guangdong Electric Power Development Co. Ltd., B ................. China 8,604,300 9,108,476 Huadian Power International Corp. Ltd., H ........................ China 8,404,000 5,383,264 Huaneng Power International Inc., H .............................. China 1,454,000 2,008,626 -------------- 55,128,938 -------------- INDUSTRIAL CONGLOMERATES 5.4% Citic Pacific Ltd. ............................................... Hong Kong 6,638,000 42,349,594 Shanghai Industrial Holdings Ltd. ................................ China 6,850,000 34,186,341 -------------- 76,535,935 -------------- INSURANCE 0.6% China Life Insurance Co. Ltd., H ................................. China 1,452,000 8,339,085 -------------- IT SERVICES 0.5% SinoCom Software Group Ltd. ...................................... China 2,374,000 488,575 Travelsky Technology Ltd., H ..................................... China 5,674,000 6,079,455 -------------- 6,568,030 --------------
4 | Quarterly Statement of Investments Templeton Dragon Fund, Inc. STATEMENT OF INVESTMENTS, SEPTEMBER 30, 2007 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) MACHINERY 1.9% China Infrastructure Machinery Holdings Ltd. ..................... Hong Kong 716,000 $ 1,657,738 China International Marine Containers (Group) Co. Ltd., B ........ China 11,818,895 25,387,718 -------------- 27,045,456 -------------- MEDIA 0.1% b Next Media Ltd., 144A ............................................ Hong Kong 4,974,000 1,407,534 -------------- METALS & MINING 0.3% Aluminum Corp. of China Ltd., H .................................. China 1,028,000 2,955,296 a,b Fosun International, 144A ........................................ China 585,000 927,036 -------------- 3,882,332 -------------- OIL, GAS & CONSUMABLE FUELS 25.4% a,b China Coal Energy Co., H, 144A ................................... China 1,367,000 4,061,728 China Petroleum and Chemical Corp., H ............................ China 103,150,000 128,830,528 China Shenhua Energy Co. Ltd., H ................................. China 6,448,000 38,732,206 CNOOC Ltd. ....................................................... China 24,902,000 41,831,914 b CNOOC Ltd., 144A ................................................. China 14,270,000 23,971,625 a,b Hidili Industry International Development, 144A .................. China 29,000 46,105 PetroChina Co. Ltd., H ........................................... China 58,400,000 110,723,716 Yanzhou Coal Mining Co. Ltd., H .................................. China 7,680,000 15,805,620 -------------- 364,003,442 -------------- PHARMACEUTICALS 0.1% Tong Ren Tang Technologies Co. Ltd., H ........................... China 679,000 1,537,138 -------------- REAL ESTATE 1.3% Cheung Kong (Holdings) Ltd. ...................................... Hong Kong 1,167,000 19,243,728 -------------- REAL ESTATE MANAGEMENT & DEVELOPMENT 0.1% a,b Country Garden Holdings Co., 144A ................................ China 744,000 1,265,129 -------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 4.0% MediaTek Inc. .................................................... Taiwan 380,000 6,846,637 Novatek Microelectronics Corp. Ltd. .............................. Taiwan 2,125,673 9,249,136 a Semiconductor Manufacturing International Corp. .................. China 30,520,000 3,611,626 Sunplus Technology Co. Ltd. ...................................... Taiwan 3,628,419 6,882,155 Taiwan Semiconductor Manufacturing Co. Ltd. ...................... Taiwan 15,447,914 30,105,327 -------------- 56,694,881 -------------- SPECIALTY RETAIL 0.1% I.T. Ltd. ........................................................ Hong Kong 5,772,000 1,321,529 -------------- TEXTILES, APPAREL & LUXURY GOODS 0.5% Tack Fat Group International Ltd. ................................ Hong Kong 19,824,000 2,855,878 Tainan Enterprises Co. Ltd. ...................................... Taiwan 1,657,443 2,440,329 Weiqiao Textile Co. Ltd., H ...................................... China 801,000 1,504,235 -------------- 6,800,442 --------------
Quarterly Statement of Investments | 5 Templeton Dragon Fund, Inc. STATEMENT OF INVESTMENTS, SEPTEMBER 30, 2007 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - ----------------------------------------------------------------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) TRANSPORTATION INFRASTRUCTURE 2.9% Cosco Pacific Ltd. ............................................................. China 3,354,000 $ 10,612,764 Hopewell Holdings Ltd. ......................................................... Hong Kong 5,876,000 28,040,517 a,b Rickmers Maritime, 144A ........................................................ Singapore 2,904,000 3,166,507 ---------------- 41,819,788 ---------------- WIRELESS TELECOMMUNICATION SERVICES 11.8% China Mobile Ltd. .............................................................. China 9,820,000 160,794,140 Taiwan Mobile Co. Ltd. ......................................................... Taiwan 6,292,764 8,561,321 ---------------- 169,355,461 ---------------- TOTAL COMMON STOCKS (COST $541,649,463) ........................................ 1,411,999,863 ---------------- SHORT TERM INVESTMENT (COST $6,075,480) 0.4% MONEY MARKET FUND 0.4% d Franklin Institutional Fiduciary Trust Money Market Portfolio, 4.95% ........... United States 6,075,480 6,075,480 ---------------- TOTAL INVESTMENTS (COST $547,724,943) 99.1% .................................... 1,418,075,343 OTHER ASSETS, LESS LIABILITIES 0.9% ............................................ 12,752,260 ---------------- NET ASSETS 100.0% .............................................................. $ 1,430,827,603 ================
a Non-income producing for the twelve months ended September 30, 2007. b Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Fund's Board of Directors. At September 30, 2007, the aggregate value of these securities was $102,544,206, representing 7.17% of net assets. c Rounds to less than 0.1% of net assets. d The Franklin Institutional Fiduciary Trust Money Market Portfolio is managed by an affiliate of the Fund's investment manager. The rate shown is the annualized seven-day yield at period end. 6 | See Notes to Statement of Investments. | Quarterly Statement of Investments Templeton Dragon Fund, Inc. NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) 1. ORGANIZATION Templeton Dragon Fund, Inc. (the Fund) is registered under the Investment Company Act of 1940, as amended, as a non-diversified, closed-end investment company. 2. SECURITY VALUATION Securities listed on a securities exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Over-the-counter securities and listed securities for which there is no reported sale are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Investments in open-end mutual funds are valued at the closing net asset value. Foreign securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded, or the NYSE, whichever is earlier. If no sale is reported at that time, the foreign security will be valued within the range of the most recent quoted bid and ask prices. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at the close of the NYSE on the day that the value of the foreign security is determined. The Fund has procedures to determine the fair value of individual securities and other assets for which market prices are not readily available or which may not be reliably priced. Methods for valuing these securities may include: fundamental analysis, matrix pricing, discounts from market prices of similar securities, or discounts applied due to the nature and duration of restrictions on the disposition of the securities. Due to the inherent uncertainty of valuations of such securities, the fair values may differ significantly from the values that would have been used had a ready market for such investments existed. Occasionally, events occur between the time at which trading in a security is completed and the close of the NYSE that might call into question the availability (including the reliability) of the value of a portfolio security held by the Fund. The investment manager monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depository Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services. All security valuation procedures are approved by the Fund's Board of Directors. Quarterly Statement of Investments | 7 Templeton Dragon Fund, Inc. NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 3. INCOME TAXES At September 30, 2007, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of investments .......................................... $ 547,869,997 ============== Unrealized appreciation ...................................... $ 877,141,151 Unrealized depreciation ...................................... (6,935,805) -------------- Net unrealized appreciation (depreciation) ................... $ 870,205,346 ============== 4. NEW ACCOUNTING PRONOUNCEMENTS In September 2006, the Financial Accounting Standards Board (FASB) issued FASB Statement No. 157, "Fair Value Measurement" (SFAS 157), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Fund believes the adoption of SFAS 157 will have no material impact on its financial statements. For information on the Fund's policy regarding other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report. 8 | Quarterly Statement of Investments ITEM 2. CONTROLS AND PROCEDURES. (a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective. (b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q. ITEM 3. EXHIBITS. (a) Certification pursuant to Section 30a-2 under the Investment Company Act of 1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and Galen G. Vetter, Chief Financial Officer. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TEMPLETON DRAGON FUND, INC. By /s/JIMMY D. GAMBILL ------------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date November 27, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/JIMMY D. GAMBILL ------------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date November 27, 2007 By /s/GALEN G. VETTER ------------------------- Galen G. Vetter Chief Financial Officer Date November 27, 2007 EX-99.CERT 2 tdf907-302cert.txt SECTION 302 CERTIFICATION Exhibit 3(a) I, Jimmy D. Gambill, certify that: 1. I have reviewed this report on Form N-Q of TEMPLETON DRAGON FUND, INC.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 11/27/07 /s/ JIMMY D. GAMBILL Jimmy D. Gambill Chief Executive Officer - Finance and Administration I, Galen G. Vetter, certify that: 1. I have reviewed this report on Form N-Q of TEMPLETON DRAGON FUND, INC.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 11/27/07 /s/ GALEN G. VETTER Galen G. Vetter Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----