3C Financial Partners Report, ''Platform Made Perfect'', Provides a Road Map for Banks Seeking to Improve Their Position in the High Net Worth Market.

NEWARK, N.J. -- Prudential Financial Commissions the Study to Help Banks Navigate the Competitive Landscape and Make Effective Investment Platform Decisions

Prudential Financial, Inc. (NYSE:PRU) announced today the release of Platform Made Perfect, a 3C Financial Partners study that addresses trends in the high net worth market and provides insights and tools for banks to more effectively capture and service this market. Prudential commissioned the report, recognizing the challenges banks are facing in developing effective, profitable wealth management platforms in servicing high net worth clients. Prudential has been offering its managed accounts services to the bank marketplace since 2003, focusing on establishing relationships with national and mid-sized regional banks. It is currently evaluating opportunities to service the smaller regional and community bank market, and continues to support multiple national broker-dealer clients.

The report is a result of over 1,000 hours of interviews with financial services industry executives, extensive industry research and in depth quantitative analysis. In addition to providing an overview of the "millionaire market," the report delves into the profitability implications of different types of investment platforms, methods to determine the appropriate mix of products and services in a bank platform and opportunities to leverage the services of a third party provider to improve platform efficiency and quality. The report includes a seven-part questionnaire that a bank can apply to its own business to help shape its investment platform. An executive summary for the report is attached, which highlights key findings.

"As banks face increased competition for high net worth clients, the decisions wealth management executives make about their investment platform become more and more critical," Peter Green, head of business development for Prudential's Managed Accounts Consulting Group, said. "These executives are looking for tools and insights to help them make those decisions, and Platform Made Perfect provides a terrific foundation."

"It is not easy for private banks to develop the product and service platforms required for leadership in today's competitive marketplace", notes Dan Seivert, a Managing Director at 3C Financial Partners and the principal author of the report. He adds that "firms who successfully employ the strategies outlined in this report have the potential to significantly increase their financial success and in the process create hundreds of millions in additional shareholder value."

About Prudential Financial

The Prudential Financial companies, with approximately $454 billion in total assets under management as of March 31, 2004, serve individual and institutional customers worldwide. They include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com.

About 3C Financial Partners

3C Financial Partners (3C) provides merchant banking services to visionary financial services companies and the executives that manage them. The firm was founded in 2001 and is headquartered in Southern California. 3C's merchant banking services consist of three components: investment banking, strategy consulting, and private equity services. 3C delivers these services through customized engagements, research reports, executive seminars, and conference presentations. These services have been specifically designed to help executives conduct transactions and implement new and innovative strategies.

3C is the only merchant bank focused exclusively on the developers and distributors of investment products and services as well as the related technology and service companies. 3C's clients range from small investment advisory practices to global financial institutions and from startups to firms with more than 100 years of history. Their clients share one common bond--the desire to work with a firm that has a deep and thorough understanding of their Company, their Clients, and their Competitors.

Executive Summary

Historically, private bank and trust companies have experienced problems understanding, evaluating, and implementing Third-Party Platform solutions to serve high-net-worth clientele. In creating Platform Made Perfect, 3C Financial Partners now offers these firms a guide to help them take advantage of and offer optimal product and service platforms to improve profitability and raise assets. Each section of the report details specific strategies and solutions to help firms find this success.

Finding Success with the Millionaire Market

Firms often fail to appropriately segment the HNW market and this section provides this framework and background to help them target this very attractive group of investors. Key findings include:

--The top 1% of HNW investors account for only 18% of HNW assets.

--The number of HNW investors is projected to eclipse 11 million and total $44 trillion by 2010--each experiencing dramatic annual growth.

--Private Banks need to take a more aggressive approach to platform development and architecture to attract and gain market share.

--Third-Party product and service platforms have evolved and now offer valuable elements to help deliver wealth management solutions to HNW clients.

--These platforms will help firms offer the right number of products and services to complement proprietary offerings.

Platform Specifications and Profitability Metrics 

The section details the optimal model to best match products and services with the entire range of HNW investors. Key findings include:

--Firms need to develop a new model to balance the right mix of products and services to each HNW market segment.

--There is a huge pool of potential revenue ($300 billion) for firms that serve the HNW space.

--First-tier millionaires ($1-5 million in assets) represent 71% of the total HNW revenue pool.

--Economies of scale offered by a Third-Party Platform can increase profits by 30-50% and can help to improve margins for each HNW market segment.

--For a firm with $100 billion in assets, implementing a 65% proprietary and 35% third-party product and service mix can boost enterprise value by $236 million and can increase margins by over 11%, adding an additional $22.5 million in profits.

Platform Benefits, Evaluation, and Implementation

The section walks firms through the key value drivers of Third-Party Platforms and offers insight into how to appropriately evaluate and implement the right platform solution. Key findings include:

--A Third-Party Platform will deliver significant value to product and service depth, breadth, and quality.

--The right platform will help firms overcome gaps in current product and service line-ups, providing valuable protection and tools for risk management.

--Firms that are too heavily weighted in proprietary products and services open themselves to additional fiduciary risk, reduced competitiveness, and lower levels of profitability.

--Private banks often fail to perform adequate internal due diligence in evaluating third-party vendors--a detailed analysis will help firms find the right partner.

--Successful Third-Party Platform implementation requires the support and involvement a wide range of departments within the firm.

Private bank and trust companies that are able to find the right Third-Party Platform partner will find additional success and profitability in serving HNW investors. The process involves performing significant internal analysis, client segmentation, and developing the right target marketing strategies, but offers powerful benefits to innovative and forward-thinking firms. A Third-Party Platform will help firms to get more involved with the powerful industry trends towards true wealth management. Firms that implement the solutions offered in Platform Made Perfect will take valuable strides towards offering optimal products and services to HNW investors.

IFS-A109571 Ed. 09/05