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TRI-CONTINENTAL CORPORATION
(Name of Registrant as Specified in Its Charter)

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September 28, 2006


Jack Cunningham

Portfolio Manager



Investment Review

2006 Year-to-Date Equity Market Review

Investment Results

Investment Philosophy and Strategy

Portfolio Overview

Outlook


2006 Year-to-Date Equity

Market Review


Excluding the NASDAQ, Equities Have
Shown Solid Returns through August

7.90%

-0.43%

7.85%

5.80%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

S&P 500 Index

Russell 2000 Index

NASDAQ Composite
Index

Dow Jones Industrials
Average

Source: Bloomberg

Through August 31, 2006


Until Recently, The NASDAQ Has
Lagged For A Number of Reasons

Throughout much of this year, investors remained
focused on energy and other commodity-related
stocks

Macroeconomic concerns regarding Fed policy and oil
prices caused investors to shy away from higher-beta
sectors

Concerns about excess inventories last spring in
several product areas (PCs, handsets, flat panels) kept
investors on the sidelines

However, since the Fed paused on August 8, through
last week (Sept. 22), the NASDAQ has significantly
outperformed other indices


Oil Prices Have Remained High
Throughout 2006

30

40

50

60

70

80

$90

12/04

2/05

4/05

6/05

8/05

10/05

12/05

2/06

4/06

6/06

8/06

Crude Oil

Source: FactSet, data through 9/15/06.


Oil Prices Have Remained High For
Myriad Reasons

Strong Demand

Global gross domestic product (GDP) growth
remains robust, particularly in emerging market
countries

Supply Disruptions

Militant attacks in Nigeria

Closing of Alaska’s Prudhoe Bay Field

A slow return of production in Iraq

Expectations for a strong US hurricane season


Oil Prices Have Remained High For
Myriad Reasons

Geopolitical Concerns (The Risk Premium)

Israel’s invasion of Lebanon

Continued tension in Iraq and Iran

Unrest in Nigeria

Distrust of Chavez in Venezuela


Through August, Telecom Has Led the S&P 500, but
Energy and Utilities Remain Strong

20.9%

14.9%

12.7%

10.5%

6.9%

6.4%

4.6%

2.8%

1.2%

-1.9%

-10%

0%

10%

20%

30%

40%

Source: FactSet; data year-to-date through 8/31/06.

Health

Care

Materials

Consumer

Staples

Industrials

Information

Technology

Consumer

Discretionary

Telecomm-

unications

Services

Financials

Utilities

Energy

Composition of S&P by Sector


Despite High Energy Costs, Economic
Fundamentals Remain Sound

U.S. consumer spending still healthy

Corporate profits still growing

Capital expenditures are accelerating

Core inflation remains stable

Long-term interest rates have eased


After 17 Consecutive Rate Increases, the
Fed Has Paused . . .

0

1

2

3

4

5

6%

1/28/04

6/30/04

11/10/04

3/22/05

8/9/05

12/13/05

5/10/06

8/8/06

Source: Bloomberg; data from 1/28/04 through 8/8/06.


. . . And Longer-Term Interest Rates
Remain Stable

3.0

3.5

4.0

4.5

5.0

5.5

6.0%

9/21/01

2/21/02

7/21/02

12/21/02

5/21/03

10/21/03

3/21/04

8/21/04

1/21/05

6/21/05

11/21/05

4/21/06

8/30/06

Source: FactSet


Investment Results


Tri-Continental (Market Price and NAV) vs. S&P 500
Investment Results

Source: FactSet; Bloomberg

Year-to-Date

9/26/06

Three-Year Annual Returns

9/26/03 – 9/26/06

One-Year Annual Return

9/26/05 – 9/26/06


Investment Philosophy
and Strategy


Tri-Continental’s
Investment Management Team

Jack Cunningham – Portfolio manager

Michael McGarry – Co-portfolio manager  
Financials, Telecommunications

Chris Boova – Technology

Chris Kagaoan – Consumer Discretionary

Ed Mehalick – Industrials, Materials,
Consumer Staples

Brian Turner – Health Care, Energy, Utilities


An All-Encompassing Approach
to Portfolio Management

Bottom-up, fundamental research

Sector allocation

Diversification

A focus on the long-term

Dividend income


Fundamental Analysis is the Core
of Our Investment Process

Daily research meetings

Bi-weekly sector strategy sessions

Portfolio company visits and management
meetings

Interaction with other Seligman investment
teams

Discussions with buy-side and sell-side
analysts


Our Stock Selection is Closely Tied to
Fundamental Research

Focus on strength of a company’s franchise:

Market position

Competition

Management

Determine appropriate valuation metrics

Identify favorable entry points

Buy securities with a catalyst for price
appreciation


Risk Management is an Important Part of
Our Investment Process

Evaluate individual company and security risks:

Business risk

Valuation risk

Manage risk through position size:

Weightings increase/decrease as our
judgment of risk factors changes

Monitor industry and sector allocations


Portfolio Overview


Tri-Continental Has Broad Representation
Across All Sectors

Consumer

Discretionary

Consumer

Staples

Financials

Health

Care

Industrials

Information

Technology

Materials

Telecom

Services

Utilities

Cash

Energy

As of 8/31/06

21.4%

21.2%

13.1%

9.7%

8.3%

4.0%

3.8%

0.6%

4.0%

10.8%

9.9%

9.9%

3.5%

6.4%

7.5%

12.9%

0.0%

3.4%

2.9%

9.8%

15.1%

21.7%

0%

5%

10%

15%

20%

25%

TY

S&P 500


Top Ten Holdings Help
Anchor the Portfolio

General Electric                                                  

Microsoft                                                                          

Citigroup                                                                          

Altria Group                                                             

Bank of America                                              

Pfizer                                                                                         

Exxon Mobil                                                              

IBM                                                                                               

J.P. Morgan Chase                                      

AIG                                                                                              

Total                                                                                  24.4%

Bank of America                                                             

General Electric                                                                 

Altria Group                                                                             

Exxon Mobil                                                                            

Citigroup                                                                                         

J.P. Morgan Chase                                                      

Microsoft                                                                                         

Pfizer                                                                                                       

American International Group        

Chevron                                                                                              

Total                                                                                23.3 %

as of  8/31/06

as of  12/31/05


Outlook



The Market is Facing Some Headwinds. . .

Oil prices remain high

Inflation has been trending upward

The housing sector is retreating

Corporate profit growth is slowing

GDP growth is easing


. . . But Valuations and Fundamentals
Appear Attractive

Corporate balance sheets in excellent shape

Capital expenditures increasing

Interest rates remain low, corporate credit
spreads tight

Merger and acquisition activity accelerating


Tri-Continental:
An Investment for Long-Term Investors

High-caliber investment team

In-depth fundamental analysis

Careful attention to risk management

Commitment to long-term results


September 28, 2006