STANFORD NEWS: Stanford University Reports FY 2007 Financial Results

STANFORD, Calif.--(Business Wire)--Stanford University reported growth of 10 percent in revenues and
6 percent in expenses for fiscal year 2007 (FY 2007), which ended Aug.
31. Revenues were $3.2 billion, up from $2.9 billion in FY 2006.
Expenses totaled $2.9 billion, compared with $2.7 billion in FY 2006,
resulting in an excess of revenues over expenses of $250 million in FY
2007 and $141 million in FY 2006.

In addition, revenues for the Stanford Hospital and Clinics were
$1.3 billion and expenses were $1.2 billion. The Lucile Packard
Children's Hospital had total revenues of $503 million, with expenses
totaling $482 million. Together, the hospitals reported operating
results of $134 million, excluding investment returns.

The consolidated operating results, along with investment
performance and donor support, contributed to an increase in
consolidated net assets of $4.1 billion in FY 2007 to end the year at
$24 billion. Consolidated net assets includes the value of the
endowment, expendable funds, plant facilities and other assets, less
debt and other liabilities for the university and hospitals. The
university's endowment was valued at $17.2 billion as of Aug. 31,
2007.

University officials are pleased with the strong financial
performance this year and the support it offers for the university's
many activities. The financial performance of the university and
hospitals enables Stanford to advance its mission of teaching and
research, while providing a solid financial foundation for future
generations. In particular, Stanford continues to invest in
multidisciplinary approaches to address global challenges, focusing on
human health, environmental sustainability and international peace and
security. The university also continues to offer outstanding
health-care services at its widely recognized hospitals and clinics.

Randy Livingston, vice president for business affairs and chief
financial officer, said, "Despite the favorable results over the last
few years, we remain mindful of maintaining the long-term health of
the university in our management of day-to-day operations. We continue
to monitor the climate around federal research funding and the
volatile financial markets in an effort to manage any significant
reductions in our most significant revenue sources in future years."

FY 2007 results were reported to the university's Board of
Trustees on Dec. 10. The results will be summarized on the Stanford
bondholder web pages (http://bondholder-information.stanford.edu) and
distributed through Stanford's annual report, which is scheduled to be
published in February.

Information in this press release contains statements that, to the
extent they are not recitations of historical fact, may constitute
"forward-looking statements." In this respect, the words "estimate,"
"project," "anticipate," "expect," "intend," "believe" and similar
expressions are intended to identify forward-looking statements. A
number of important factors affecting the university's business and
financial results could cause actual results to differ materially from
those stated in the forward-looking statements.

RELEVANT WEB URLS:

STANFORD UNIVERSITY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AT AUGUST 31, 2007 AND 2006 AND STATEMENTS OF ACTIVITIES AS OF AUGUST
31, 2007 AND 2006

http://cgi.stanford.edu/dept/businessaffairs/bondholder/cgi-bin/
php/downloadpdf_v3.php?file=SU_FY_06_07_cons_fin.pdf (Due to its
length, this URL may need to be copied/pasted into your Internet
browser's address field. Remove the extra space if one exists.)

Stanford University
Kate Chesley, 650-725-3697
University Communications
kchesley@stanford.edu

Copyright Business Wire 2007