DOMESTIC FUNDS
Principal Investment Strategy of the Domestic Funds

Each of the Micro-Cap, Emerging Growth and Mid-Cap Funds (each, a “Domestic Fund” and collectively, the “Domestic Funds”) invest principally in the common stocks of companies that the investment adviser, Oberweis Asset Management, Inc. (“OAM”), believes have the potential for significant long-term growth in market value.

Each Domestic Fund in particular seeks to invest in those companies which OAM considers to have above-average long-term growth potential based on its analysis of eight factors, which OAM calls the “Oberweis Octagon.” These factors are:

Rapid Revenue Growth - Extraordinarily rapid growth in revenue. OAM prefers this to be generated from internal growth as opposed to acquisitions of other businesses. At least 30% growth in revenues in the latest quarter for companies in the Micro-Cap and Emerging Growth Funds and at least 20% growth in revenues in the latest quarter for companies in the Mid-Cap Fund.

Rapid Earnings Growth - Extraordinarily rapid growth in pre-tax income. At least 30% growth in pre-tax income in the latest quarter for companies in the Micro-Cap and Emerging Growth Funds and at least 20% growth in pre-tax income in the latest quarter for companies in the Mid-Cap Fund. There should also be rapid growth in earnings per share.

Low Relative Price/Earnings Ratios - There should be a reasonable price/earnings ratio in relation to the company’s underlying growth rate. In order to be considered for investment, companies in the Micro-Cap and Emerging Growth Funds must generally have a price/earnings ratio not more than one-half of the company’s growth rate, and companies in the Mid-Cap Fund must generally have a price/earnings ratio of not more than the company’s growth rate.

Future Growth Potential - Products or services that offer the opportunity for substantial future growth. Such growth generally either stems from products in newer, high growth markets or products with the potential to grow market share within an existing market. In the latter case, such products typically grow market share due to competitive advantages over other market offerings. Examples of such advantages include new technologies, patents and niche market positions with high barriers to competitive entry.

Earnings Acceleration - Favorable recent trends in revenue and earnings growth, ideally showing acceleration.

Low Relative Price/Sales Ratios - Reasonable price-to-sales ratio based on the company’s underlying growth prospects and profit margins.

Quality of Earnings - A review of the company’s financial statements, with particular attention to footnotes, in order to identify unusual items which may indicate future problems.

Top Quartile Relative Strength - High relative strength in the market, in that the company’s stock has outperformed at least 75% of other stocks in the market over the preceding twelve months.

OAM considers these eight factors as guidelines for evaluating the many companies it reviews to identify those companies that have the potential for above-average long-term growth. Such factors and the relative weight given to each will vary with economic and market conditions and the type of company being evaluated. No one factor will justify, and any one factor could rule out, an investment in a particular company.

Although securities of a particular company may be eligible for purchase by more than one Fund, OAM may determine at any particular time to purchase a security for one Fund but not another.

INTERNATIONAL FUNDS
Principal Investment Strategy of the International Funds

Each of the China Opportunities, International Opportunities, and Asia Opportunities Funds (each, an “International Fund” and collectively, the “International Funds”) invests principally in the common stocks of companies that OAM believes have the potential for significant long-term growth in market value.

Each International Fund seeks to invest in those companies which OAM considers to have above-average long-term growth potential. OAM selects companies which meet this criteria based on, among other things, fundamental analysis of individual securities, and for the China Opportunities and Asia Opportunities Funds, many of the companies also meet the Oberweis Octagon investment criteria described above. OAM’s fundamental analysis entails an evaluation of an individual company’s future growth prospects. OAM’s evaluation may be based on, among other things, financial statement analysis, stock valuation in relation to OAM’s estimate of future earnings, evaluation of competitive product or service offerings, future research and development pipeline and management interviews. There are no restrictions on the capitalization of companies whose securities the Funds may buy; however, the Funds generally invest in the stocks of small to mid-size companies. OAM generally considers companies with a market capitalization of less than $1.5 billion as smaller companies and those companies with a market capitalization between $1.5 billion and $8 billion as medium size companies.