$53,000,000*PENNSYLVANIA COLLEGE OF TECHNOLOGY

Fixed Rate Revenue Bonds - Series 2016Lycoming County Authority

Rated “A” by Standard & Poor’s

SALE DATE: August 9, 2016

Questions: Underwriter – George K. Baum & Company

Linda Eremita: 412-419-8437 / eremita@gkbaum.com Gary Nowicki: 412-922-4484 / nowicki@gkbaum.com

* Preliminary, Subject to Change

Series 2016 Overview & Timing

2

Issuer: Lycoming County Authority

Borrower: Pennsylvania College of Technology

Rating: “A” by Standard & Poor’s (Stable Outlook)

Borrowing Size: Approximately $53,000,000*

Use of Proceeds: Advance Refunding of the Series 2008

Rate Covenant: 1.00x

Security Pledge: Revenue Pledge

Final Maturity: October 1, 2037

Principal Amortization: Begins October 1, 2016

Fixed Rate Optional Redemption: October 1, 2026 at Par

Planned Sale Date: August 9, 2016

Planned Dated Date/Closing Date: August 24, 2016

* Preliminary, Subject to Change

Pennsylvania College of Technology & Underwriter Representatives

Borrower: Pennsylvania College of Technology Dr. Davie Jane Gilmour

President

Suzanne StopperVice President for Finance / CFO

Underwriter Linda Eremita

Executive Vice PresidentGeorge K. Baum & Companyph. 412-419-8437eremita@gkbaum.com

Gary NowickiFirst Vice PresidentGeorge K. Baum & Companyph. 412-922-4484nowicki@gkbaum.com

3

Overview of Pennsylvania College of Technology

5

Relationship with Penn State University

On July 1, 1989, the Pennsylvania state Legislature enactedthe Pennsylvania College of Technology Act (P.L. 132, No.27), which transformed The Williamsport AreaCommunity College into Pennsylvania College ofTechnology, a wholly controlled affiliate of TheCorporation for Penn State (the “Corporation”). As aspecial mission affiliate of Penn State, committed toapplied technology education, Penn College maintains itsown mission, goals, and board of directors. Neither ThePennsylvania State University nor the Corporation has anyobligation in respect to the Loan Agreement or the Bonds.

Source: Lycoming County Authority College Revenue Bonds, Series of 2016 (Pennsylvania College of Technology) Preliminary Official Statement Dated August 1, 2016 Page A-1

Center for Business & Workforce Development

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GRIER STREET

PARK STREET

SUSQUEHANNA STREET

RoutesI-180/Rt. 220

I-80/Rt. 15

CAMPUSENTRANCE

Historic District

Susquehanna River

Downtown Wil l iamsport

M A I N C A M P U SPennsylvania College of Technology

One College Avenue • Williamsport, PA • 800-367-9222

Penn College® encourages qualified persons with disabilities to participate in its programs and activities. If you anticipate needing any type of accommodation or have questions about the physical access provided, please contact Disability Services at 570-320-5225, TTY: 570-321-5528, or fax: 570.327.4501 in advance of your participation or visit.

Map and directions also are available at www.pct.edu

An affiliate of The Pennsylvania State University

BowmanField

&Elm Park

BUILDINGS ON MAIN CAMPUS

Klump Academic CenterParkes Automotive Technology CenterBreuder Advanced Technology & Health

Sciences CenterCarl Building Technologies CenterCenter for Business &

Workforce DevelopmentCollege Avenue LabsBush Campus CenterConstruction Masonry BuildingAutomotive Engine Repair CenterElectrical Technologies CenterField HouseGeneral Services WarehouseBardo GymnasiumHager Lifelong Education CenterMadigan LibraryLe Jeune Chef RestaurantMachining Technologies

CenterAvco-Lycoming Metal

Trades CenterPhysician Assistant CenterThompson Professional

Development CenterPolice Office/Penn's LoftStudent & Administrative

Services Center Victorian House

ACC

CAL

BTC

CMB

ATC

ATHS

CC

BWD

GYM

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ETC

LEC

LIB

FH

GSW

MAC

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MTC

PAC

SASC

PDC

VH

PARKING Permit required for all parking - except visitor/special events

� Visitor/Special Events (V1-V6) Do not park in numbered spaces

PARKING Permit required for all parking - except visitor/special events

� Faculty, Staff (E1-E14)

PARKING Permit required for all parking - except visitor/special events

� Commuter Student (C1-C8) � Faculty, Staff (E1-E14) � Handicapped

� � On-Campus Housing � Reserved � Visitor/Special Events (V1-V6)Resident (R1-R5) Numbered spaces Do not park in numbered spaces

PARKING Permit required for all parking - except visitor/special events

� Commuter Student (C1-C8)

� � On-Campus Housing Resident (R1-R5)

PARKING Permit required for all parking - except visitor/special events

� Handicapped

R-3

E-9

E-8

E-10

E-6

E-4

E-5

E-3

E-2

R-1

V-2

V-1

C-1

E-1

C-3

C-2

E-14

E-7

E-13

E-12

E-11

V-6

C-8R-5

R-2

R-4

C-6

V-4

V-3

V-5

C-7

C-5C-4

Rescue Assistance Automatic Doors

DISABILITY ACCOMMODATIONS

Emergency Call Box

POLICE

Police Office

Police Substation

POLICE

ACC

POLCAL

MTC

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BTC

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PAC

LEC

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Student HousingCampus View Apartments

Student HousingThe Village at Penn College

Student HousingRose Street Commons

Delaware

ClintonJuniata

Dauphin

LancasterYork

Workforce Development & Continuing Education (WDCE)

andShale Training & Education

Center (ShaleTEC)

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Center for Business & Workforce Development From the Maynard Street Exit, travel North on Maynard Street. Continue North on Maynard Street past the main entrance to the College and through the West Third Street traffic light. At the end of Maynard Street, turn left onto West Fourth Street. Follow West Fourth Street for .4 miles (approximately two to three blocks). The Center for Business & Workforce Development will be located on your left. (A black fence surrounds the parking lot and building.)

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Center for Business & Workforce Development

Free Parking

Source: https://www.pct.edu/visit/campus/campusMap.pdf

7

Admissions Statistics

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

FALL 2011 FALL 2012 FALL 2013 FALL 2014 FALL 2015

92.6% 91.3% 89.9% 88.2%87.1%

52.7% 51.0% 52.7%53.9% 54.1%

Acceptance Rate Matriculation Rate

Source: Lycoming County Authority College Revenue Bonds, Series of 2016 (Pennsylvania College of Technology) Preliminary Official Statement Dated August 1, 2016 Page A-15

8

Enrollment History

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2011-12 2012-13 2013-14 2014-15 2015-16

5,520 5,262 5,290 5,262 5,122

FTE

Fall FTE Enrollment

Source: Lycoming County Authority College Revenue Bonds, Series of 2016 (Pennsylvania College of Technology) Preliminary Official Statement Dated August 1, 2016 Page A-13

9

Retention Rate – First Year to Second Year

68% 69% 70%

75% 75%

61% 60%62%

65%

70%

30%

40%

50%

60%

70%

80%

90%

Fall 10 to 11 Fall 11 to 12 Fall 12 to 13 Fall 13 to 14 Fall 14 to 15

Bachelor Associate

Source: Lycoming County Authority College Revenue Bonds, Series of 2016 (Pennsylvania College of Technology) Preliminary Official Statement Dated August 1, 2016 Page A-16 and the College

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Total Net Assets

Fiscal Year 2011 2012 2013 2014 2015

Unrestricted $87,715,719 $79,014,165 $78,725,176 $81,844,614 $85,458,730

Unrestricted as % of Total 92.99% 92.21% 91.03% 88.79% 88.64%

Temporarily Restricted $1,973,801 $1,531,907 $2,174,310 $2,820,361 $2,775,760

Permanently Restricted $4,635,510 $5,142,340 $5,584,420 $7,512,988 $8,177,015

Total $94,325,030 $85,688,412 $86,483,906 $92,177,963 $96,411,505

Source: Pennsylvania College of Technology, Consolidated Financial Statements

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$0

$25,000

$50,000

$75,000

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

$39,841 $36,379 

$41,549 

$50,957 $54,725 

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Cash & Investments

Source: Pennsylvania College of Technology, Consolidated Financial Statements

Annual State Appropriations by Fiscal Year

12

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Fiscal Year '11‐12 Fiscal Year '12‐13 Fiscal Year '13‐14 Fiscal Year '14‐15 Fiscal Year '15‐16

$12,905$13,584

$15,584

$17,584$19,584

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• $2.0 million increase each year for the last three years for a total increase of $12 million cumulatively.

Source: Lycoming County Authority College Revenue Bonds, Series of 2016 (Pennsylvania College of Technology) Preliminary Official Statement Dated August 1, 2016 Page A-20

13

$83,560  $81,865  $83,570 $88,476 

$92,271 

$2,218  $1,603  $1,273  $1,410  $1,733 

$81,342  $80,263  $82,297 $87,066 

$90,539 

$0

$15,000

$30,000

$45,000

$60,000

$75,000

$90,000

$105,000

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

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Gross Tuition Revenue Financial Aid Net Tuition Revenue

Gross and Net Tuition & Fee Revenue Compared to Institutional Financial Aid

Source: Pennsylvania College of Technology, Consolidated Financial Statements and the College.

Note: Of the 1.9% tuition discount in FY15, .8% is unfunded and 1.1% is funded through the Foundation & other scholarships.

14

Total Tuition and Fees

$13,590 

$14,370 $14,940 

$15,450 $15,810 

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

$17,000

$18,000

$19,000

$20,000

2011‐12 2012‐13 2013‐14 2014‐15 2015‐16

Total Tuition and Fees

Source: Lycoming County Authority College Revenue Bonds, Series of 2016 (Pennsylvania College of Technology) Preliminary Official Statement Dated August 1, 2016 Page A-17

Series 2016 Pro Forma Indebtedness

Aggregate Fiscal Debt Service

Overview of Pro Forma Indebtedness

16

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

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Series 2011 Series 2012 Series 2015 Series 2016 Existing Indebtedness

Estimated Refunding Objectives

NPV Savings: $11.2 Million

Borrowing Size: $52.965 Million

All-In Cost: 2.80%

Cash Flow Savings:2017 $623,4672018 $624,6752019 $625,7842020 $625,8132021 $623,800