Municipal Bond New Issues

Preliminary pricing subject to change.

RE: $35,052,468.60*
HUNTINGTON BEACH UNION HIGH SCHOOL DISTRICT
CERTIFICATES OF PARTICIPATION
(2007 CAPITAL PROJECT)

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**** THIS ISSUE WILL BE IN BOOK ENTRY FORM THROUGH THE FACILITIES OF DTC ****

THIS IS A PRELIMINARY PRICING.
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MOODY’S: Aaa S&P: AAA
(CONFIRMED) (CONFIRMED)
UNDERLYING: A2 UNDERLYING: A

FSA INSURED

DATED: 10/10/2007 FIRST COUPON: 03/01/2008

DUE: 09/01

TAKEDOWN
MATURITY AMOUNT* COUPON PRICE (pts)

09/01/2011 10M 4.00 % 3.55 3/8
09/01/2012 35M 4.00 % 3.60 3/8
09/01/2013 65M 4.00 % 3.65 3/8
09/01/2014 95M 4.00 % 3.71 3/8
09/01/2015 130M 4.00 % 3.76 1/2
09/01/2016 165M 4.00 % 3.84 1/2
09/01/2017 205M 4.00 % 3.92 1/2
09/01/2018 250M 4.00 % 4.04 1/2
09/01/2019 295M 4.00 % 4.13 1/2
09/01/2020 340M 4.125 % 4.21 1/2
09/01/2021 2,730M 4.25 % 4.31 1/2
09/01/2022 2,985M 4.30 % 4.40 1/2
09/01/2023 3,260M 4.375 % 4.48 1/2
09/01/2024 3,550M 4.50 % 4.56 1/2

CALL FEATURES: Optional call in 09/01/2017 @ 100.00

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Capital Appreciation Bonds

DATED (zeros): Date of Delivery

APPROX.
$ PRICE
PRINCIPAL MATURITY YLD TO PER TAKEDOWN
MATURITY AMOUNT* VALUE MAT $100 (%)

09/01/2025 1,627,605.9 3,870M 4.90 42.057 3/4
09/01/2026 1,604,921.25 4,035M 4.94 39.775 3/4
09/01/2027 1,580,575.4 4,205M 4.98 37.588 3/4
09/01/2028 1,559,569.1 4,385M 5.01 35.566 3/4
09/01/2029 1,536,982.4 4,570M 5.04 33.632 3/4
09/01/2030 1,517,986.05 4,765M 5.06 31.857 3/4
09/01/2031 1,499,101.1 4,970M 5.08 30.163 3/4
09/01/2032 1,478,786.4 5,180M 5.10 28.548 3/4
09/01/2033 1,462,212 5,400M 5.11 27.078 3/4
09/01/2034 1,445,671.4 5,630M 5.12 25.678 3/4
09/01/2035 1,427,892.9 5,865M 5.13 24.346 3/4
09/01/2036 1,411,219.7 6,115M 5.14 23.078 3/4
09/01/2037 1,398,420 6,375M 5.14 21.936 3/4
09/01/2038 1,386,525 6,650M 5.14 20.85 3/4

CALL FEATURES: No optional call

* - APPROXIMATE SUBJECT TO CHANGE

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PRIORITY OF ORDERS AS FOLLOWS:
1. Member

PRIORITY POLICY:

The bonds will be blue skyed in all states.

Order period until 12:00 Noon, E.D.T., today, Wednesday, 09/26/07.
Please enter orders on 212-713-2880.

The manager reserves the right to terminate or extend the order period prior to
or later than the above mentioned time and date and to confirm bonds at their
discretion.

The compliance addendum MSRB Rule G-11 will apply.

Delivery is expected on October 10, 2007.

This issue is book entry through DTC.

A reasonable number of preliminary official statements are available from
Elabra by calling (415) 289-5000 or by faxing (415) 289-5001.

UBS Securities LLC