Report of Independent Registered Public Accounting Firm

The Board of Directors
Sit Large Cap Growth Fund, Inc.
Sit Mid Cap Growth Fund, Inc.
Sit Mutual Funds, Inc.

In planning and performing our audits of the financial statements of Sit
Large Cap Growth Fund, Inc., Sit Mid Cap Growth Fund, Inc., Sit
Balanced Fund (a series of Sit Mutual Funds, Inc.), Sit International
Growth Fund (a series of Sit Mutual Funds, Inc.), Sit Small Cap Growth
Fund (a series of Sit Mutual Funds, Inc.), Sit Science and Technology
Growth Fund (a series of Sit Mutual Funds, Inc.), Sit Dividend Growth
Fund (a series of Sit Mutual Funds, Inc.), and Sit Developing Markets
Growth Fund (a series of Sit Mutual Funds, Inc.) (collectively, the
Funds) as of for the year ended June 30, 2006, in accordance with the
standards of the Public Company Accounting Oversight Board (United States),
we considered their internal control over financial reporting,including
control activities for safeguarding securities, as a basis for designing
our auditing procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form N-SAR, but
not for the purpose of expressing an opinion on the effectiveness of the
Funds internal control over financial reporting. Accordingly, we express
no such opinion.
The management of the Funds is responsible for establishing and
maintaining effective internal control over financial reporting. In
fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of controls.
A companys internal control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes
in accordance with U.S. generally accepted accounting principals. Such
internal controls include policies and procedures that provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of a companys assets that could have a
material effect on the financial statements.
Because of inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
A control deficiency exists when the design or operation of a control does
not allow management or employees, in the normal course of performing their
assigned functions, to prevent or detect misstatements on a timely basis.
A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the companys ability to initiate,
authorize, record, process or report external financial data reliably in
accordance with U.S. generally accepted accounting principles such that there
is more than a remote likelihood that a misstatement of the companys annual or
interim financial statements that is more than inconsequential will not be
prevented or detected. A material weakness is a significant deficiency, or
combination of significant deficiencies, that results in more than a remote
likelihood that a material misstatement of the annual or interim financial
statements will not be prevented or detected.
Our consideration of the Funds internal control over financial reporting was
for the limited purpose described in the first paragraph and would not
necessarily disclose all deficiencies in internal control that might be
significant deficiencies or material weaknesses under standards established
by the Public Company Accounting Oversight Board (United States).  However,
we noted no deficiencies in the Funds internal control over financial
reporting and its operation, including controls for safeguarding securities
that we consider to be a material weakness as defined above as of June 30,
2006.
This report is intended solely for the information and use of management, the
Board of Directors and Shareholders, and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone other
than these specified parties.

/s/ KPMG LLP
Minneapolis, Minnesota
August 23, 2006