Kopp Investment Advisors
August 2008 Market Commentary

August 8, 2008

While the markets continue to challenge us all, we are starting to see some signs of progress. At the top of the list is oil coming down from its peaks. Declining oil prices would provide a boost throughout our economy. Most of the earnings reports for the quarter have been released. As we expected from our own research, many companies, particularly in technology and healthcare, reported in-line to better results, with reasonably good outlooks, considering the economic environment.

Once this market looks beyond some of the current problems, I think the recovery can be powerful. Many stocks are at such low levels that I find it, frankly, shocking. There are companies trading for not much more than the cash they have in the bank. In an improving market, some of these stocks can have dramatic moves upward.

I am pleased to let you know that Jeff Olson, our Director of Information Technology, has taken on a role on the investment side. Jeff, bringing his years of expertise in technology consulting and management, is working with Sally and me analyzing our technology stocks. His grasp of the various and sometimes competing technologies is very helpful. Sally and I both expect to gain from his knowledge. Jeff has been an employee here for six years after having worked with us as an outside consultant.

Clients often tell me that they benefit from coming into our office to review their accounts and hear about some of the companies and investment themes. If you are out of town, we can do conference calls. Give us a call and ask for John Keyes if you would like to set up a meeting, either in person or by phone.

I would like to thank you for your patience in these trying markets. I firmly believe your resolve will be nicely rewarded over the coming years.

Best regards,

Lee Kopp
Chairman

It should not be assumed that our stock selections or investment philosophy will be profitable or will equal any past performance. Small-cap stocks involve greater risks and volatility than those of larger, more established companies. Potential for profit involves possibility of loss. This newsletter is for general information only and is not intended to provide specific advice or stock recommendations to any individual. Future investment decisions and commentary may be made under different economic, market, and industry conditions from those existing at the time these comments were prepared. Although the facts in this newsletter have been obtained from and are based on sources we believe to be reliable, we do not guarantee their accuracy, and such information is subject to change without notice. The information and opinions expressed herein are provided for informational purposes only and do not constitute a solicitation for the purchase or sale of any security or investment advisory service.

08/13/08