Berger to Acquire Bay Isle Financial.

Business Editors

DENVER--(BUSINESS WIRE)--Dec. 19, 2001

Berger LLC, investment manager for Berger Funds, today announced that it has agreed to acquire 100% of the stock of Bay Isle Financial Corporation.

Terms of the agreement were not disclosed.

Headquartered in San Francisco, Bay Isle Financial is a dynamic asset management firm, which currently manages approximately $1 billion in assets for mutual funds, individuals and institutions. The firm was co-founded by William Schaff and Dr. Gary Pollock in 1986.

Known for its expertise in the large cap value arena, Bay Isle Financial has been in the large cap value separate account business for over 15 years. In addition, the firm has managed a large cap value product for the institutional market through a successful joint venture with Berger and Schaff at the helm, since 1998.

Bay Isle has also managed Real Estate Investment Trust (REIT) products under the direction of noted industry expert Ralph Block since 1993. Block brings a long history in REITs with over 25 years experience and has authored books on REIT investing.

As investors have gravitated toward more conservative investments, Berger Funds expanded its value initiatives over the past year, with the launch of the Berger Large Cap Value Fund (BLCVX) on October 1, 2001, managed by Schaff and Steve Block.

"We believe the combined strength of Berger and Bay Isle will better serve our investors. Bill's extensive investment experience makes him a great addition to our firm and, in particular, our value investment team. His leadership will allow us to enhance our capabilities in this and other arenas," said Berger President and CEO Jack R. Thompson. "Extending our partnership further diversifies our firm and enables us to extend our successful value effort at Berger."

The newly combined firm will manage over $8 billion in assets under the Berger LLC umbrella. Products managed include mutual funds and separate accounts that encompass both value and growth strategies in the small-, mid-, large- and multi-cap categories.

"This combination will allow Bay Isle to focus on our primary strength, the asset management of our products, while leveraging the national distribution capabilities, client service and back office operations at Berger," said Schaff. "In the current competitive financial environment, it is more important than ever to be able to center attention on your best skill sets. I look forward to working with Berger's management team to help them deliver exceptional value products."

About Berger

With over $7 billion in assets under management (as of 11/30/01), Berger offers a variety of no-load equity funds that encompasses both growth and value styles. Berger LLC is an 87%-owned subsidiary of Stilwell Financial Inc.

The SEC requires that the following information be included in this news release: To obtain a prospectus for the Berger Funds that contains more complete information, including risks, fees and expenses, call 800/333-1001. Please read it carefully before you invest or send money. Berger Distributors LLC -- Member NASD (12/01)