CalPERS Approves $175 Million to Three New Funds.

SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 5, 1999--The California Public Employees' Retirement System (CalPERS) has approved three new alternative investments totaling $175 million. The new funds will target investments in emerging technology, telecommunications and troubled and distressed middle market companies.

The following investments have been approved pending negotiation of fees and satisfactory investment terms and conditions. The commitments include: -0-

--   a $75 million investment to TL Ventures IV, L.P., based in Wayne,
     Pennsylvania. The fund will make privately negotiated equity
     investments in emerging technology, life sciences and
     communications companies in California, the Northeast and
     Southwest.

     The new investment increases CalPERS exposure to TL Ventures. In
     1997, CalPERS invested $75 million in TL Ventures Fund III, which
     has earned an estimated 86 percent rate of return.

--   a $25 million investment to the Boston, Massachusetts-based Media
     Communications Venture Partners IV, L.P. The fund is being
     established to make equity investments in early stage
     telecommunications growth companies in the United States, Latin
     America and Western Europe.

     CalPERS previously invested $25 million to Media Communications
     Venture Partners Fund II in 1992 and $50 million to Fund III in
     1996. Fund II has earned upwards of a 38 percent rate of return.

--   a $75 million investment to Questor Partners Fund II, L.P., based
     in Michigan. The new fund will invest in underperforming and
     distressed companies in a diverse range of industries and will
     seek controlling interests in the companies and apply turnaround,
     restructuring and bankruptcy expertise. Questor will invest in
     troubled companies with revenues between $100 million and $2
     billion in North America.

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The new funds represent the most recent investments in CalPERS Alternative Investment Management (AIM) Program. Currently, CalPERS is invested in 108 partnerships totaling more than $6.5 billion in investment commitments, of which $3.2 billion has been invested.

CalPERS is the nation's largest pension fund with assets totaling approximately $145 billion. The System provides retirement and health benefits to more than 1 million state and public employees and their families. For additional information about CalPERS, please visit the System's web site at http:www.calpers.ca.gov.