NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF THE FUND. The Kalmar "Growth-With-Value" Small Cap Fund (the "Fund") is the first
series of Kalmar Pooled Investment Trust (the "Trust"), a Delaware business trust organized on September 30,
1996. The Fund is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end diversified management investment company. The investment objective of the Fund is long-term capital
appreciation. The Fund commenced investment operations on April 11, 1997.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the significant accounting
policies of the Fund.
SECURITY VALUATION. The Fund's securities, except short-term investments with remaining maturities of 60
days or less, are valued at their market value as determined by their last sale price in the principal market in which
these securities are normally traded. Lacking any sales, the security will be valued at the mean between the
closing bid and ask price. Short-term investments with remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value, unless the Trust's Board of Trustees determines that this does
not represent fair value. The value of all other securities is determined in good faith under the direction of the
Board of Trustees. There were no such securities valued by the Board of Trustees on December 31, 1998.
FEDERAL INCOME TAXES. The Fund intends to continue to qualify for treatment as a "regulated investment
company" under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Internal Revenue
Code"), and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision
has been provided.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions of net investment income and net realized gains will be
made annually. Additional distributions may be made to the extent necessary to avoid the payment of a 4% excise
tax. The amounts of dividends from net investment incom