Causeway Capital Management LLC Begins Operations.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--June 11, 2001

The longtime investment team of Sarah Ketterer and Harry Hartford, formerly with Merrill Lynch Investment Managers and Hotchkis and Wiley, today announced that Causeway Capital Management LLC has begun operations.

Ms. Ketterer, chief executive officer, and Mr. Hartford, president, will serve as co-chief investment officers for the new enterprise and manage international equity assets with the general strategy employed by Ms. Ketterer since 1990 at Los Angeles-based Hotchkis and Wiley, which was acquired by Merrill Lynch in 1996.

"In the years Harry and I have worked together, we've set top priority on assembling a great team and maintaining the stability of the team," said Ms. Ketterer. "We've established Causeway Capital because we believe we can best ensure continuity and consistency in our investment strategy in a structure that allows for significant employee ownership of the firm. Everyone in our new group sees outstanding prospects for our investment style, and we want to provide team members the opportunity to benefit from a long-term commitment to the firm and the hard work that will be required to be successful."

Ms. Ketterer and Mr. Hartford, who emphasize in-depth fundamental research and analysis of individual companies in their value-oriented approach, have worked together since Mr. Hartford joined Hotchkis and Wiley in 1994. At Merrill Lynch, the two led a team which managed approximately $3.5 billion in international equity assets, including the Mercury HW International Value Fund (formerly the Hotchkis and Wiley International Fund), which Ms. Ketterer had managed since its inception in October 1990. The two submitted their resignations to Merrill Lynch last week.

Ms. Ketterer and Mr. Hartford have a combined 35 years of investment experience. Ms. Ketterer holds a BA from Stanford University and MBA from the Amos Tuck School at Dartmouth College, and Mr. Hartford a BA from the Trinity College of the University of Dublin and MSc from Oklahoma State University.

Joining Ms. Ketterer and Mr. Hartford as principals of the firm will be Gracie Fermelia, chief operating officer, and Mark Cone, chief marketing officer, both of whom also served previously with Merrill Lynch Investment Managers and Hotchkis and Wiley. James Doyle, who served as co-portfolio manager with Ms. Ketterer and Mr. Hartford at Merrill Lynch Investment Managers beginning in 1997, has also joined the firm.

The firm's principals took their inspiration for the company's name from Giant's Causeway on the northern coast of Mr. Hartford's native Ireland. Geologists attribute the formation of the Causeway, a mass of thousands of basalt columns extending from the northern Ireland coastline into the Atlantic, to the cooling of multiple lava flows upon contact with the sea in the prehistoric Paleogene Period. Local legend has it that the Causeway was built by giants forging a path through the sea from Ulster to the Scottish Hebrides Islands.

Causeway Capital Management will focus primarily on managing assets for institutional investors, including corporate and Taft-Hartley ERISA plans, endowments, and foundations, in the United States and abroad.