CalPERS Makes Fourth Investment Under its Manager Development Program.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--April 3, 2001

Progress-Putnam Lovell Advisors LLC today announced its fourth investment under the California Public Employees' Retirement System Manager Development Program (CalPERS MDP). The CalPERS MDP is investing a total of $3.0 million in Philippe Investment Management, Inc., a New York based woman-owned firm specializing in international growth equity investment strategies. In addition, CalPERS MDP will allocate to Philippe $150 million in assets to manage as an International Equity portfolio.

Progress-Putnam Lovell Advisors LLC is a joint venture between Progress Investment Management Company, one of the country's leading multi-manager investment management specialists and a member of the Liberty Financial Companies, Inc. (NYSE: L) family of companies, and Putnam Lovell Capital Partners Inc., the private capital affiliate of investment bank Putnam Lovell Securities Inc.

Philippe is a firm with a long, unique 70-year history. The management and investment teams have worked together for over 12 years. The key professionals on the investment team, on average, have over 25 years of individual investment experience, providing them with a market perspective not usually found in a company of its size. Currently, the firm manages international, regional, and global assets for both institutional and high-net-worth private clients in the US and Europe. Philippe is one of the few firms experienced in global sector analysis, with complementary investment teams focused on North American equities in New York and international equities at Paris-based affiliate, PIM Gestion France. Philippe's combination of its U.S. and continental European offices and investment professionals provides a truly international viewpoint for its clients.

"It is exciting to see the Manager Development Program taking shape with a diversified group of global managers," said Mary Cottrill, Senior Principal Investment Officer for CalPERS. "Philippe Investment Management is an excellent addition to our line-up and we look forward to a long-term strategic relationship."

"We are very happy and proud to have been selected for CalPERS' Manager Development Program," stated Beatrice Philippe. "This gives us additional credibility and should serve as a catalyst to develop our institutional business both in the US and in Europe. The entire team, in Paris and New York, feels rewarded for its hard work. It is a new beginning. We are confident that we can add value on both sides of the investment and we look forward to a mutually profitable relationship."

"We are very pleased to make this investment in Philippe Investment Management" said Thurman White, President of Progress Investment Management Company. "Beatrice Philippe and Michel Raud are very experienced investment professionals, and they've assembled a top-flight team in both New York and Paris." White continued, "Philippe is a well-established firm with a good historical track record. With our assistance, we feel this firm is poised for rapid growth."

James E. Minnick, Managing Director of Putnam Lovell Capital Partners further commented, "Philippe has a long and rich history in international asset management. Their European perspective and strong track record make Philippe an attractive manager for institutional plan sponsors, their experience with tax sensitive accounts is of further value to individuals. We are very pleased to have an opportunity to work with the professionals at Philippe."

Last year, the CalPERS Board of Administration approved the establishment of the Manager Development Program and committed up to $4 billion in funding. The goal of the program is to achieve superior investment returns while providing opportunities to new and emerging money managers that typically do not have the long-time track record and marketing clout to compete against larger, more established firms.

As part of its partnership with CalPERS MDP, Progress-Putnam Lovell Advisors will invest up to $40 million of venture capital in new and emerging investment management firms. Firms in which the joint venture makes investments are eligible to receive asset allocations for management in one or more of their investment products. Progress-Putnam Lovell Advisors will allocate up to $1 billion in assets to MDP firms over the next three years. Candidates for the program include U.S.-based firms with less than $1 billion under management and which primarily manage portfolios of public equity and fixed income securities.

The pension fund expects to realize profits from its equity positions when a firm goes public, when the equity position in a firm is purchased by other partners, or when a firm is bought out by larger established firms.

Philippe Investment Management, Inc.

Philippe Investment Management, Inc. is an investment advisory firm specializing in global equity portfolio management. The Philippe Group has its heritage in an investment company established in 1931, by Raymond Philippe, grandfather of Beatrice Philippe, with investment offices in Paris and New York. Beatrice Philippe was instrumental in expanding the Philippe family's investment business into the institutional market, and in late 1998 she and Co-CIO, Michel Raud restructured the company to focus on developing the institutional investment management businesses in the US and Europe. Beatrice Philippe and Michel Raud are co-owners of both Philippe Investment Management and PIM Gestion France.

CalPERS

CalPERS is the nation's largest public pension fund with assets totaling more than $165 billion. The System provides retirement and health benefits to more than 1.2 million state and local public employees and their families. For further information on CalPERS, please visit the System's Web site at www.calpers.ca.gov.

Progress-Putnam Lovell Advisors LLC

Progress-Putnam Lovell Advisors LLC is a joint venture between Progress Investment Management Company, one of the country's leading multi-manager investment management specialists and a member of the Liberty Financial Companies, Inc. (NYSE: L) family of companies, and Putnam Lovell Capital Partners Inc., the private capital affiliate of investment bank Putnam Lovell Securities Inc. The joint venture was formed to participate in the Manager Development Program (MDP) of the California Public Employees' Retirement System (CalPERS). As part of their partnership, CalPERS and Progress-Putnam Lovell Advisors seek to achieve superior investment returns while providing opportunities to new and emerging money management firms. Progress-Putnam Lovell Advisors will assist MDP firms in managing the strategic and organizational issues many younger or smaller firms face as they develop and expand their businesses.

Progress Investment Management Company

Founded in 1990 and headquartered in San Francisco, Progress creates diversified, risk-controlled multi-manager investment funds in a variety of asset classes for institutional clients. Progress specializes in working with smaller, entrepreneurial money management firms with innovative investment strategies. Progress manages some $4.0 billion in assets and is the industry leader in funding emerging investment management firms. Progress is a member of the Liberty Financial Companies, Inc. family of companies.

Liberty Financial Companies, Inc.

Liberty Financial Companies, Inc. (NYSE: L) is an integrated asset accumulation and management organization. As of March 31, 2000, its operating companies manage over $67 billion of assets for approximately 1.8 million investors worldwide through an array of fixed, indexed and variable annuities, private and institutional accounts and 95 mutual funds. Its operating companies include Crabbe Huson Group, Independent Financial Marketing Group, Keyport Life Insurance Company, Liberty Asset Management Company, Liberty Funds Group, Newport Pacific Management, and Progress Investment Management Company.

Putnam Lovell Capital Partners Inc.

Putnam Lovell Capital Partners Inc. is the private capital affiliate of Putnam Lovell Securities Inc. Putnam Lovell Capital Partners was formed to provide capital to developing companies active in the financial services industry and it sponsors and manages the Putnam Lovell partnerships of private and institutional investors totaling over $145 million. Putnam Lovell Securities Inc. is an investment bank focused on the financial services industry with a global practice in mergers and acquisitions, structured finance, equity research, equity sales and trading, and private capital.