N-30B-2 1 dn30b2.htm 2002 THIRD QUARTERLY REPORT 2002 Third Quarterly Report
 
BERGSTROM
CAPITAL
CORPORATION
 
 
2002 THIRD QUARTER REPORT
 
 
Listed: American Stock Exchange (Ticker symbol: BEM)
Transfer Agent, Registrar and Custodian: State Street Bank and Trust Company, Boston, Massachusetts
Independent Auditors: Deloitte & Touche LLP, Boston, Massachusetts
Legal Counsel: Howard, Rice, Nemerovski, Canady, Falk & Rabkin PC, San Francisco, California

BERGSTROM CAPITAL CORPORATION

 
221 First Avenue West, Suite 320
Seattle, Washington 98119-4224
 
November 4, 2002
 
Dear Fellow Stockholders:
 
The Board of Directors of Bergstrom Capital Corporation (the “Company”) has declared a dividend of $4.00 per share payable on December 4, 2002 to stockholders of record on November 14, 2002. The Company estimates that $.21 of this dividend will be from net investment income for the year ending December 31, 2002 and $3.79 per share will be classified as a return of capital. The $4.00 per share dividend represents approximately 3% of the Company’s net asset value per share as of October 31, 2002.
 
During the first nine months of 2002 the Company’s net assets decreased from $164,731,543 to $118,857,754 which is a decrease of $45,873,789. This decrease in net assets was composed of net investment income of $126,823, realized loss on investments of $781,496, and a decrease in unrealized appreciation of $45,219,116.
 
The per share net asset value decreased from $164.73 on December 31, 2001 to $118.86 on September 30, 2002, a decrease of 27.9%. During the same period the Dow Jones Industrial Average, adjusted for dividends, decreased 23.1% and the Standard & Poor’s 500 Stock Average, adjusted for dividends, decreased 28.2%. The per share net asset value on Friday, November 1, 2002 was $129.45.
 
During the first nine months of 2002 the Company had total interest and dividend income of $1,085,074 as compared to $1,003,647 for the same period in 2001 for an increase of $81,427. During the first nine months of 2002 operating expenses were $958,251 which is a $161,688 increase from $796,563 for the first nine months of 2001. The resulting net investment income of $126,823 for the first nine months of 2002 is a decrease of $80,261 from $207,084 for the first nine months of 2001.
 
Please refer to Major Portfolio Changes during the third quarter of 2002 and Ten Largest Portfolio Holdings at September 30, 2002 in this report. The value of the Company’s investment in the securities of Amgen, Inc. amounted to 12.8% of the Company’s total investments at September 30, 2002. During the month of October 2002 the Company sold 25,000 shares of Amgen, Inc. On November 1, 2002 the Company owned 340,000 shares of Amgen, Inc. which represented 12.2% of the Company’s total investments as of that date. The investment of a substantial percentage of the Company’s assets in the securities of a single issuer or industry exposes the Company to a greater risk of loss resulting from unfavorable price movements or market conditions relating to such issuer or industry.
 
The Board of Directors is continuing its consideration of a tax-free merger or other business combination with a larger registered investment company. Any such combination would require a two-thirds vote of the stockholders. If an appropriate combination cannot be achieved, the Board will consider other alternatives, including the liquidation of the Company.
 
In order to preserve the Company’s flexibility in structuring a possible transaction, the Board of Directors, on May 6, 2002, suspended the Company’s distribution policy, which was adopted by the Board of Directors on May 12, 1997. That policy provided for an annual distribution to the Company’s stockholders, during the month of June each year, of a cash dividend at the rate of a minimum of 6% of the Company’s net asset value per share as calculated on the last business day in

BERGSTROM CAPITAL CORPORATION

March of that year. As a result of the suspension of the distribution policy, no annual distribution was made in June 2002.
 
Further, in order to preserve the Company’s flexibility in structuring a possible transaction, the Board has instructed the Company’s investment adviser to refrain from making new equity investments. A consequence of this action is that the Company’s holdings of cash equivalents and other short-term investments have increased and are likely to increase further. As of November 1, 2002, the value of the Company’s holdings in these investments amounted to 20.9% of the Company’s total investments.
 
The annual meeting of stockholders, which is normally held in early November, has been postponed pending the Board’s consideration of a possible transaction. In order to be considered for inclusion in the Company’s proxy materials for the annual meeting, any stockholder proposal must be received at the Company’s principal office a reasonable time before the Company begins to print and mail the proxy materials. The Company may exercise discretionary voting authority with respect to any stockholder proposal which is not included in the Company’s proxy materials, if notice of such proposal is not received at the Company’s principal office before the Company mails the proxy materials and in certain other circumstances.
 
The Company does not have a dividend reinvestment program. The Company has considered this over the years and has determined that the cost of such a program would not be commensurate with the benefit. The Company’s policy of retaining a portion of the net long-term capital gains in certain years accomplishes some of the same goals as would a dividend reinvestment program.
 
The Company’s shares of capital stock are traded on the American Stock Exchange and are identified by the stock ticker symbol BEM. The net asset value per share as of Friday’s close of business is published each Saturday in Barrons, each Sunday in the New York Times, and each Monday in the Wall Street Journal and certain other publications under “Closed-End Funds.” This information is also available on the Internet on a daily basis through a variety of sources. The Company is not responsible for inaccuracies or omissions in the dissemination of this information.
 
Your Company welcomes questions or comments from stockholders. If you wish to communicate with the Company’s transfer agent, State Street Bank and Trust Company, the address is P.O. Box 43011, Providence, RI 02940 and the telephone number is 1-800-426-5523.
 
Yours very truly,
 
LOGO
William L. McQueen
President

BERGSTROM CAPITAL CORPORATION

 
MAJOR PORTFOLIO CHANGES
($500,000 or more)
During the Quarter Ended September 30, 2002
 
      
SHARES
SECURITY NAME
     
ADDITIONS
   
REDUCTIONS
   
HELD SEPTEMBER 30, 2002
American International Group, Inc.
          
9,000
   
48,500
Amgen, Inc.
          
15,000
   
365,000
Dresdner RCM Midcap Fund, Inc.
          
330,416
   
2,065,170
Lilly Eli & Co.
          
33,000
   
12,500
 
TEN LARGEST PORTFOLIO HOLDINGS
September 30, 2002
 
SECURITY NAME
   
MARKET VALUE
     
% OF INVESTMENTS
  
Amgen, Inc.
   
$
15,220,500
     
12.8
%
Pfizer, Inc.
   
 
6,340,870
     
5.3
%
Microsoft Corp.
   
 
5,161,320
     
4.3
%
Wal-Mart Stores, Inc.
   
 
3,939,200
     
3.3
%
Dresdner RCM MidCap Fund, Inc.
   
 
3,469,485
     
2.9
%
Pharmacia Corp.
   
 
3,071,520
     
2.6
%
General Electric Co.
   
 
2,933,350
     
2.5
%
Colgate Palmolive Co.
   
 
2,697,500
     
2.3
%
American International Group, Inc.
   
 
2,652,950
     
2.2
%
Federal National Mortgage Association
   
 
2,619,760
     
2.2
%

BERGSTROM CAPITAL CORPORATION

 
STATEMENT OF ASSETS AND LIABILITIES
September 30, 2002 (Unaudited)
 
Assets:
       
Investments, at value (see accompanying schedule):
       
Short-term investments (cost $24,525,885)
   
$
24,525,885
Common stocks (cost $90,668,882)
   
 
94,381,191
    
Total Investments (cost $115,194,767)
   
 
118,907,076
Cash
   
 
5,000
Receivable for securities sold
   
 
56,134
Interest and dividends receivable
   
 
56,730
Other assets
   
 
3,750
    
Total assets
   
 
119,028,690
    
Liabilities:
       
Advisory fee payable
   
 
114,418
Other accrued expenses
   
 
56,518
    
Total liabilities
   
 
170,936
    
Net assets applicable to 1,000,000 outstanding shares of capital stock equivalent to $118.86 per share on September 30, 2002
   
$
118,857,754
    
 
STATEMENT OF CHANGES IN NET ASSETS
 
    
NINE MONTHS ENDED SEPTEMBER 30, 2002 (Unaudited)
     
YEAR ENDED
DECEMBER 31,
2001
  
Operations:
                  
Net investment income
   
$
126,823
 
   
$
429,886
 
Realized gain (loss) on investments
   
 
(781,496
)
   
 
6,359,724
 
Decrease in unrealized appreciation
   
 
(45,219,116
)
   
 
(56,971,560
)
    
  
Net decrease in net assets resulting from operations
   
 
(45,873,789
)
   
 
(50,181,950
)
    
  
Dividends to stockholders:
                  
From net investment income
   
 
—  
 
   
 
(569,296
)
From net realized gain on investments
   
 
—  
 
   
 
(6,359,724
)
Tax return of capital
   
 
—  
 
   
 
(4,320,980
)
    
  
Total dividends to stockholders ($11.25 per share—2001)
   
 
—  
 
   
 
(11,250,000
)
    
  
Total decrease in net assets
   
 
(45,873,789
)
   
 
(61,431,950
)
Net assets, beginning of period
   
 
164,731,543
 
   
 
226,163,493
 
    
  
Net assets, end of period
   
$
118,857,754
 
   
$
164,731,543
 
    
  
 
See also Notes to Financial Statements in the Company's 2002 Semi-Annual Report to Stockholders.

BERGSTROM CAPITAL CORPORATION

 
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 (Unaudited)
 
Investment Income:
                
Interest
          
$
173,651
 
Dividends
          
 
911,423
 
           
Total income
          
 
1,085,074
 
           
Expenses:
                
Advisory fees
          
 
372,054
 
Legal fees
          
 
231,819
 
Directors' fees and expenses
          
 
72,643
 
Officer's salary and related expenses
          
 
63,949
 
Other expenses
          
 
60,403
 
Accounting expenses
          
 
39,515
 
Auditing fees
          
 
32,220
 
Transfer agent fees and expenses
          
 
25,991
 
State and other taxes
          
 
15,198
 
Stockholders' meeting and reports
          
 
14,076
 
Fee for shares listed on American Stock Exchange
          
 
11,250
 
Custodian fees
          
 
11,235
 
Insurance
          
 
7,898
 
           
Total expenses
          
 
958,251
 
           
Net investment income ($.13 per share)
          
 
126,823
 
           
Realized and unrealized gain or loss on investments:
                
Realized loss on investments (excluding short-term investments):
                
Proceeds from sale of securities
   
$
34,646,508
         
Cost of securities sold
   
 
35,428,004
         
    
        
Realized loss on investments sold
          
 
(781,496
)
Unrealized appreciation of investments:
                
Beginning of period
   
 
48,931,425
         
End of period
   
 
3,712,309
         
    
        
Decrease in unrealized appreciation
          
 
(45,219,116
)
           
Net loss on investments ($46.00 per share)
          
 
(46,000,612
)
           
Net decrease in net assets resulting from operations
          
$
(45,873,789
)
           
 
 
See also Notes to Financial Statements in the Company's 2002 Semi-Annual Report to Stockholders.

BERGSTROM CAPITAL CORPORATION

SCHEDULE OF INVESTMENTS
September 30, 2002 (Unaudited)
 
Shares or Principal Amount
        
Cost
   
Value
    
Short-Term Investments (20.6%):
              
5,584,667
   
SSgA Money Market Fund
   
$
5,584,667
   
$
5,584,667
$4,500,000
   
General Electric Capital Corp., 1.75% Note due 11/21/02
   
 
4,488,844
   
 
4,488,844
$4,500,000
   
Prudential Funding LLC., 1.74% Note due 11/21/02
   
 
4,488,907
   
 
4,488,907
$5,000,000
   
Ford Motor Credit Co., 2.06% Note due 12/04/02
   
 
4,981,689
   
 
4,981,689
$5,000,000
   
General Motors Acceptance Corp., 2.05% Note due 12/04/02
   
 
4,981,778
   
 
4,981,778
         
  
    
Total—Short-Term Investments
   
 
24,525,885
   
 
24,525,885
         
  
    
Common Stocks (79.4%):
              
    
Aerospace and Defense (3.1%):
              
28,000
   
General Dynamics Corp.
   
 
2,336,820
   
 
2,277,240
25,300
   
United Technologies Corp.
   
 
1,617,677
   
 
1,429,197
         
  
         
 
3,954,497
   
 
3,706,437
         
  
    
Air Freight and Couriers (2.0%):
              
37,000
   
United Parcel Service Class B
   
 
2,068,595
   
 
2,313,610
         
  
    
Banks (0.8%):
              
32,000
   
Citigroup, Inc.
   
 
515,185
   
 
948,800
         
  
    
Beverages and Food (5.1%):
              
36,500
   
Coca-Cola Co.
   
 
871,588
   
 
1,750,540
47,500
   
Kraft Foods, Inc.
   
 
1,588,926
   
 
1,731,850
70,000
   
PepsiCo, Inc.
   
 
3,016,639
   
 
2,586,500
         
  
         
 
5,477,153
   
 
6,068,890
         
  
    
Biotechnology (12.8%):
              
365,000
   
Amgen, Inc. (A)
   
 
476,736
   
 
15,220,500
         
  
    
Broadcasting (0.6%):
              
18,000
   
Viacom, Inc. Class B (A)
   
 
844,959
   
 
729,900
         
  
    
Commercial Services and Supplies (1.2%):
              
27,900
   
Accenture Ltd. (A)
   
 
759,978
   
 
398,412
28,000
   
Automatic Data Processing, Inc.
   
 
1,503,756
   
 
973,560
         
  
         
 
2,263,734
   
 
1,371,972
         
  

BERGSTROM CAPITAL CORPORATION
Shares or Principal Amount
   
Common Stocks (Unaudited)—Continued
   
Cost
   
Value
    
Communication Systems (1.3%):
              
40,000
   
SBC Communications, Inc.
   
$
1,817,596
   
$
804,000
61,200
   
Vodafone Airtouch PLC Sponsored ADR
   
 
2,270,711
   
 
785,196
         
  
         
 
4,088,307
   
 
1,589,196
         
  
    
Computers and Information (1.7%):
              
43,500
   
Dell Computer Corp. (A)
   
 
1,146,144
   
 
1,022,685
17,200
   
International Business Machines Corp.
   
 
1,892,765
   
 
1,004,308
         
  
         
 
3,038,909
   
 
2,026,993
         
  
    
Diversified Technology (0.5%):
              
46,000
   
Nokia Corp. Sponsored ADR
   
 
463,483
   
 
609,500
         
  
    
Drugs and Health Supplies (7.4%):
              
26,700
   
Johnson & Johnson
   
 
1,558,616
   
 
1,443,936
23,000
   
Medtronic, Inc.
   
 
1,041,695
   
 
968,760
218,500
   
Pfizer, Inc.
   
 
4,118,315
   
 
6,340,870
         
  
         
 
6,718,626
   
 
8,753,566
         
  
    
Electrical Components (2.5%):
              
119,000
   
General Electric Co.
   
 
2,385,919
   
 
2,933,350
         
  
    
Electronics/New Technology (2.0%):
              
46,500
   
Cisco Systems, Inc. (A)
   
 
350,144
   
 
487,320
63,000
   
Intel Corp.
   
 
1,626,125
   
 
875,070
20,000
   
Maxim Integrated Products, Inc. (A)
   
 
1,055,630
   
 
495,200
20,000
   
Qualcomm, Inc. (A)
   
 
582,429
   
 
552,400
         
  
         
 
3,614,328
   
 
2,409,990
         
  
    
Financial Services, Diversified (3.0%):
              
44,000
   
Federal National Mortgage Association
   
 
3,391,991
   
 
2,619,760
13,700
   
Franklin Resources, Inc.
   
 
573,298
   
 
426,070
15,100
   
Merrill Lynch & Co., Inc.
   
 
701,237
   
 
497,545
         
  
         
 
4,666,526
   
 
3,543,375
         
  
    
Health Care Equipment and Supplies (1.5%):
              
28,500
   
Cardinal Health, Inc.
   
 
1,893,036
   
 
1,772,700
         
  
    
Insurance (3.5%):
              
48,500
   
American International Group, Inc.
   
 
647,333
   
 
2,652,950
36,600
   
Marsh & McLennan Companies, Inc.
   
 
1,351,976
   
 
1,524,024
         
  
         
 
1,999,309
   
 
4,176,974
         
  

BERGSTROM CAPITAL CORPORATION
Shares or Principal Amount
   
Common Stocks (Unaudited)—Continued
   
Cost
   
Value
    
Medical Supplies (2.2%):
              
21,500
   
Abbott Laboratories
   
$
1,082,172
   
$
868,600
25,400
   
Baxter International, Inc.
   
 
1,450,366
   
 
775,970
30,500
   
Wyeth
   
 
1,785,861
   
 
969,900
         
  
         
 
4,318,399
   
 
2,614,470
         
  
    
Petroleum Services (4.0%):
              
35,000
   
BP PLC Sponsored ADR
   
 
1,809,498
   
 
1,396,500
29,200
   
Baker Hughes, Inc.
   
 
1,101,385
   
 
847,676
17,700
   
ChevronTexaco Corp.
   
 
1,577,747
   
 
1,225,725
18,600
   
Schlumberger Ltd.
   
 
977,927
   
 
715,356
15,100
   
Weatherford International Ltd. (A)
   
 
731,002
   
 
560,814
         
  
         
 
6,197,559
   
 
4,746,071
         
  
    
Pharmaceuticals (4.5%):
              
5,800
   
Genentech, Inc. (A)
   
 
463,848
   
 
189,254
12,500
   
Lilly Eli & Co.
   
 
442,675
   
 
691,750
79,000
   
Pharmacia Corp.
   
 
3,976,250
   
 
3,071,520
46,000
   
Schering-Plough Corp.
   
 
2,194,647
   
 
980,720
6,400
   
Teva Pharmaceutical Industries Ltd. Sponsored ADR
   
 
358,450
   
 
428,800
         
  
         
 
7,435,870
   
 
5,362,044
         
  
    
Regulated Investment Companies (3.3%):
              
30,103
   
Dresdner RCM Global Technology Fund (B)
   
 
1,595,437
   
 
485,855
2,065,170
   
Dresdner RCM MidCap Fund, Inc. (B)
   
 
6,959,621
   
 
3,469,485
         
  
         
 
8,555,058
   
 
3,955,340
         
  
    
Retail Trade (10.4%):
              
50,000
   
Colgate Palmolive Co.
   
 
1,994,902
   
 
2,697,500
26,100
   
Costco Wholesale Corp. (A)
   
 
1,044,676
   
 
844,857
36,000
   
Home Depot, Inc.
   
 
730,583
   
 
939,600
4,000
   
Kimberly Clark Corp.
   
 
253,893
   
 
226,560
16,800
   
Lowe's Companies, Inc.
   
 
753,502
   
 
695,520
36,000
   
Sysco Corp.
   
 
886,478
   
 
1,022,040
80,000
   
Wal-Mart Stores, Inc.
   
 
3,416,305
   
 
3,939,200
64,700
   
Walgreen Co.
   
 
1,713,362
   
 
1,990,172
         
  
         
 
10,793,701
   
 
12,355,449
         
  

BERGSTROM CAPITAL CORPORATION
Shares or Principal Amount
   
Common Stocks (Unaudited)—Continued
   
Cost
   
Value
    
Software and Processing (6.0%):
              
10,000
   
Electronic Arts, Inc. (A)
   
$
523,396
   
$
659,600
118,000
   
Microsoft Corp. (A)
   
 
5,216,616
   
 
5,161,320
94,000
   
Oracle Corp. (A)
   
 
2,141,481
   
 
738,840
41,625
   
Veritas Software Co. (A)
   
 
1,017,500
   
 
612,304
         
  
         
 
8,898,993
   
 
7,172,064
         
  
    
Totals—Common Stocks
   
 
90,668,882
   
 
94,381,191
         
  
    
Totals—Investments
   
$
115,194,767
   
$
118,907,076
         
  
 
(A)
 
Non-income producing securities.
(B)
 
Regulated investment company advised by Dresdner RCM Global Investors LLC, the Corporation's investment adviser.
 
See also Notes to Financial Statements in the Company's 2002 Semi-Annual Report to Stockholders.

BERGSTROM CAPITAL CORPORATION

Per Share Record of Retained Long-Term Capital Gains and Federal Income Tax Paid Thereon
and the Resulting Addition to Basis For Shares Owned on December 31 of Each Year
 
Year
   
Realized Gain Retained
   
Federal Income Tax Paid
   
Addition to Cost Basis
1980
   
$
1.12202
   
$
0.31416
   
$
0.80786
1981
   
 
2.54730
   
 
0.71325
   
 
1.83405
1982
   
 
3.17322
   
 
0.88850
   
 
2.28472
1983
   
 
0.90205
   
 
0.25258
   
 
0.64947
1984
   
 
4.33021
   
 
1.21246
   
 
3.11775
1985
   
 
0.00000
   
 
0.00000
   
 
0.00000
1986
   
 
8.92561
   
 
2.49917
   
 
6.42644
1987
   
 
4.54443
   
 
1.54511
   
 
2.99932
1988
   
 
0.00000
   
 
0.00000
   
 
0.00000
1989
   
 
10.39050
   
 
3.53277
   
 
6.85773
1990
   
 
0.00000
   
 
0.00000
   
 
0.00000
1991
   
 
6.63253
   
 
2.25506
   
 
4.37747
1992
   
 
4.07776
   
 
1.38644
   
 
2.69132
1993
   
 
4.86668
   
 
1.70334
   
 
3.16334
1994
   
 
5.10839
   
 
1.78794
   
 
3.32045
1995
   
 
6.57985
   
 
2.30295
   
 
4.27690
1996
   
 
9.14813
   
 
3.20185
   
 
5.94628
1997
   
 
26.42722
   
 
9.24953
   
 
17.17769
1998
   
 
8.10292
   
 
2.83602
   
 
5.26690
1999
   
 
32.14513
   
 
11.25080
   
 
20.89433
2000
   
 
26.56522
   
 
9.29783
   
 
17.26739
2001
   
 
0.00000
   
 
0.00000
   
 
0.00000
    
  
  
    
$
165.58917
   
$
56.22976
   
$
109.35941
    
  
  
 
Per Share Record of Return of Capital Dividends and the Resulting Reduction of Basis For Shares Owned
on the Following Record Dates
 
Date
   
Return of Capital
   
Reduction of
Cost Basis
  
17-May-01
   
$
4.32098
   
($
4.32098
)
    
  
 
THE COST BASIS OF A SHARE OWNED CONTINUOUSLY SINCE THE DATES SHOWN
BELOW SHOULD BE INCREASED (OR DECREASED) BY THE NET AMOUNTS SHOWN:
 
December 31
     
1980
     
$
105.03843
     
December 31
     
1992
     
$
75.68362
 
December 31
     
1981
     
$
104.23057
     
December 31
     
1993
     
$
72.99230
 
December 31
     
1982
     
$
102.39652
     
December 31
     
1994
     
$
69.82896
 
December 31
     
1983
     
$
100.11180
     
December 31
     
1995
     
$
66.50851
 
December 31
     
1984
     
$
99.46233
     
December 31
     
1996
     
$
62.23161
 
December 31
     
1985
     
$
96.34458
     
December 31
     
1997
     
$
56.28533
 
December 31
     
1986
     
$
96.34458
     
December 31
     
1998
     
$
39.10764
 
December 31
     
1987
     
$
89.91814
     
December 31
     
1999
     
$
33.84074
 
December 31
     
1988
     
$
86.91882
     
December 31
     
2000
     
$
12.94641
 
December 31
     
1989
     
$
86.91882
     
January 1
     
2001
     
($
4.32098
)
December 31
     
1990
     
$
80.06109
     
May 18
     
2001
     
$
0.00000
 
December 31
     
1991
     
$
80.06109
                         

BERGSTROM CAPITAL CORPORATION

INFORMATION ABOUT DIRECTORS AND OFFICERS
 
Name, Address
and Age
   
Current Position(s) Held with the Company
   
Term of Office (3) and Length of Time Served
   
Principal Occupation(s)
During Past Five Years
     
Number of Portfolios in Fund Complex Overseen by Director
     
Other Directorships Held by Director
Erik E. Bergstrom (1)
221 1st Ave W., Suite 320
Seattle, WA 98119
(63)
   
Chairman of the Board of Directors (but not an officer)
   
Term expires November 2003. Chairman since October 1976.
   
Private Investor; officer of Federal United Corporation (a personal holding company); President and director of Erik E. and Edith H. Bergstrom Foundation, Inc. (a private foundation which makes grants to charitable organizations), all for more than five years; and President and director of Bergstrom Advisers, Inc. from June 1976 to November 1998.
     
One
     
None
William L. McQueen (1)(2)
221 1st Ave W., Suite 320
Seattle, WA 98119
(71)
   
Director, President and Treasurer
   
Term as Director expires November 2002. Term as officer expires annually. Director and President since November 1980 and Treasurer since January 1988.
   
Certified public accountant and sole proprietor of William L. McQueen & Associates for more than five years.
     
One
     
None
Norman R. Nielsen
221 1st Ave W., Suite 320
Seattle, WA 98119
(60)
   
Director
   
Term expires November 2002. Director since October 1976.
   
Independent consultant since November 2001; Director of AtomicTangerine (a venture consulting affiliate of SRI International) and its predecessors from June 1973 to November 2001.
     
One
     
None
George Cole Scott
221 1st Ave W., Suite 320
Seattle, WA 98119
(64)
   
Director
   
Term expires November 2003. Director since October 1976.
   
Account Executive and Investment Advisor Representative for Anderson & Strudwick, Inc. (a securities broker-dealer) for more than five years; President and Portfolio Manager of Closed-End Fund Advisors, Inc. (an investment adviser) since October 1996.
     
One
     
None
William H. Sperber
221 1st Ave W., Suite 320
Seattle, WA 98119
(68)
   
Director
   
Term expires November 2004. Director since November 1997.
   
Retired; Chairman, President, Chief Executive Officer and co-founder of The Trust Company of Washington from July 1992 to December 1999; Director and President of Manzanita Capital, Inc. (a holding company for a trust company and a securities broker-dealer and investment adviser) from January 1999 to December 1999.
     
One
     
None
Suzanne M. Schiffler (2)
221 1st Ave W., Suite 320
Seattle, WA 98119
(41)
   
Secretary
   
Term expires annually. Secretary since November 2000.
   
Certified public accountant for more than five years.
              
(1)
 
An "interested person" of the Company, as that term is defined in the 1940 Act. Mr. Bergstrom is an interested person by virtue of the magnitude of his stock ownership in the Company, and Mr. McQueen is an interested person by virtue of his status as President and Treasurer of the Company.
(2)
 
Suzanne M. Schiffler is the daughter of William L. McQueen.
(3)
 
Notwithstanding the expiration dates stated, the term of office of a director or an officer will continue until his or her successor is elected and qualified.

BERGSTROM CAPITAL CORPORATION

 
PRIVACY NOTICE
 
Bergstrom Capital Corporation (the “Company”) collects certain nonpublic personal information about its stockholders of record who are individuals. The Company collects information from forms its stockholders or their brokers provide (such as name, address and tax identification number) and information from its stockholders or their brokers about transactions in the Company’s stock its stockholders effect with third parties (such as date and number of shares purchased, sold, transferred or held). The Company may also collect such information through stockholder inquiries by mail, email or telephone.
 
The Company does not disclose any nonpublic personal information about its stockholders to anyone, except as permitted by law.
 
The Company restricts access to the nonpublic personal information of its stockholders to those employees and service providers (such as the transfer agent and fund administrator) who need to know this information in order to provide services to the Company’s stockholders. The Company maintains certain physical and procedural safeguards to help protect this nonpublic personal information.

 
 
 
 
BERGSTROM CAPITAL CORPORATION
221 First Avenue West, Suite 320
Seattle, Washington 98119-4224
(206) 283-0539
 
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