Wendy's International (WEN)

Trading Purposes:

The sensitivity analysis of financial instruments held for trading purposes assumes (1) an instantaneous 10% adverse change in the equity markets in which we are invested, (2) an instantaneous one percentage point adverse change in market interest rates and (3) an instantaneous 10% adverse change in the foreign currency exchange rates versus the United States dollar, each from their levels at January 1, 2006 and December 31, 2006, with all other variables held constant. There were no debt securities included in the trading portfolio as of December 31, 2006, and, accordingly, there is no interest rate risk presented as of that date. The decrease in the amount of our trading securities and associated risks at December 31, 2006 from the prior year principally reflects the effective redemption on September 29, 2006 of our investment in the Opportunities Fund as discussed above under “Overall Market Risk.” The securities included in the trading portfolio as of December 31, 2006 were comprised only of equity securities and options denominated in U.S. dollars and, accordingly, there is no interest rate or foreign currency risk presented as of that date.

The interest rate risk as of January 1, 2006 with respect to our debt securities and our trading derivatives principally in the Opportunities Fund reflects the effect of the assumed adverse interest rate change on the fair value of each of those securities or derivative positions and does not reflect any offsetting of hedged positions. The adverse effects on the fair values of the respective securities and derivatives were determined based on market standard pricing models applicable to those particular instruments. Those models consider variables such as coupon rate and frequency, maturity date(s), yield and, in the case of derivatives, volatility, price of the underlying instrument, strike price, expiration, prepayment assumptions and probability of default.

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Trading Purposes:

       The sensitivity analysis of financial instruments held for trading purposes assumes (1) an instantaneous 10% adverse change in the equity markets in which we are invested, (2) an instantaneous one percentage point adverse change in market interest rates and (3) an instantaneous 10% adverse change in the foreign currency exchange rates versus the United States dollar, each from their levels at January 2, 2005 and January 1, 2006, with all other variables held constant. The securities included in the trading portfolio as of January 2, 2005 did not include any investments denominated in foreign currency and, accordingly, there is no foreign currency risk presented as of that date.

       The interest rate risk with respect to our debt securities and our trading derivatives reflects the effect of the assumed adverse interest rate change on the fair value of each of those securities or derivative positions and does not reflect any offsetting of hedged positions. The adverse effects on the fair values of the respective securities and derivatives were determined based on market standard pricing models applicable to those particular instruments. Those models consider variables such as coupon rate and frequency, maturity date(s), yield and, in the case of derivatives, volatility, price of the underlying instrument, strike price, expiration, prepayment assumptions and probability of default.

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