<PAGE>
LEXINGTON GLOBAL TECHNOLOGY FUND, INC.
Statement of Assets and Liabilities
December 31, 1999
ASSETS
Cash $100,000
Reimbursement receivable from Advisor 18,057
--------
Total Assets 118,057
--------
LIABILITIES
Organization costs payable 16,557
Accrued expenses 1,500
--------
Total Liabilities 18,057
--------
NET ASSETS (equivalent to $10.00 per share
on 10,000 shares outstanding) (Note 3) $100,000
========
NET ASSETS consist of:
Common stock-authorized 1,000,000,000 shares;
$.001 par value per share $ 10
Additional paid-in capital 99,990
--------
TOTAL NET ASSETS $100,000
========
The Notes to Financial Statements are an integral part of this
statement.
<PAGE>
LEXINGTON GLOBAL TECHNOLOGY FUND, INC.
Statement of Operations
December 27, 1999 (commencement of operations) to December 31, 1999
Expenses:
Audit fees $ 1,500
Organization costs 16,557
------
Total expenses 18,057
Less: expense reimbursement 18,057
------
Net expenses -
======
The Notes to Financial Statements are an integral part of this
statement.
<PAGE>
LEXINGTON GLOBAL TECHNOLOGY FUND, INC.
Statements of Changes in Net Assets
December 27, 1999 (commencement of operations) to December 31, 1999
Increase from capital share transactions $100,000
--------
Net increase in net assets 100,000
--------
Net Assets:
Beginning of period
End of period $100,000
========
The Notes to Financial Statements are an integral part of this
statement.
<PAGE>
LEXINGTON GLOBAL TECHNOLOGY FUND, INC.
Notes to Financial Statements
December 27, 1999 (commencement of operations) to December 31, 1999
1. Significant Accounting Policies
Lexington Global Technology Fund, Inc. (the "Fund") is an open-
end non-diversified management investment company registered
under the Investment Company Act of 1940, as amended. The Fund's
investment objective is to seek long-term growth of capital. The
Fund commenced operations on December 27, 1999. The following is
a summary of significant accounting policies followed by the Fund
in the preparation of its financial statements:
Federal Income Taxes It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to
"regulated investment companies" and to distribute all of its
taxable income to its shareholders. Therefore, no provision for
Federal income taxes is required.
Organization Expenses Organization expenses aggregating $16,557
will be borne by the Fund, but will be reimbursed by the Advisor.
2. Investment Advisory Fee and Other Transactions with Affiliate
Lexington Management Corporation ("LMC") has agreed to
voluntarily limit the total expenses of the Fund (excluding
interest, taxes, brokerage commissions, and extraordinary
expenses but including management fee and operating expenses) to
an annual rate of 2.50% of the Fund's average net assets. Total
reimbursement for the period ended December 31, 1999 was $18,057.
3. Capital Stock
Transactions in capital stock were as follows:
December 27, 1999
(commencement of operations)
to December 31, 1999
---------------------------
Shares Amount
----------- ---------
Shares sold 10,000 $100,000
Shares redeemed - -
----------- ---------
Net increase 10,000 $100,000
=========== =========
<PAGE>
Independent Auditors' Report
To the Board of Directors and Shareholders of
Lexington Global Technology Fund, Inc.:
We have audited the accompanying statement of assets and
liabilities of Lexington Global Technology Fund, Inc. (the
"Fund") as of December 31, 1999, and the related statement of
operations for the period from December 27, 1999 (commencement of
operations) through December 31, 1999. These financial
statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Lexington Global Technology Fund, Inc. as of December 31,
1999, and the results of its operations for the period from
December 27, 1999 through December 31, 1999, in conformity with
generally accepted accounting principles.
KPMG LLP
New York, New York
February 7, 2000
