Christine Baxter Appointed Managing Director Of Pilgrim Baxter Private Equity Group; Erin Piner To Manage PBHG Emerging Growth Fund.

Business Editors

WAYNE, Pa.--(BUSINESS WIRE)--Dec. 23, 1999

Pilgrim Baxter & Associates, Ltd., today announced that Christine M. Baxter, portfolio manager of the PBHG Emerging Growth Fund, has been named a managing director of Pilgrim Baxter's private equity group, effective January 1, 2000. Erin Piner will assume management of the PBHG Emerging Growth Fund.

"Erin Piner has led our microcap research efforts over the past three years, and since October 1998 she has managed the PBHG Limited Fund. Erin's strong performance has been instrumental in placing the Fund highly among its Lipper category peers as well as earning the Fund a Morningstar rating of four stars. Erin is a natural fit for the PBHG Emerging Growth Fund," said Ms. Baxter.

Ms. Baxter will join Carol Proffer and James Smith as managing directors of Pilgrim Baxter's expanding private equity business. The firm manages Pilgrim Baxter Hybrid Partners I, L.P., a private equity fund that was closed in 1996. Ms. Proffer, formerly the Chairperson of William M. Mercer Investment Consulting, Inc., joined Pilgrim Baxter in June 1999 to expand the firm's private equity investment offerings, including the launching of Pilgrim Baxter Hybrid Partners II, L.P. and the firm's venture capital initiatives.

"Investment interest in private equity has risen dramatically during the past two years," said Ms. Proffer. "Typically, private equity investments involve young, dynamic companies, and Pilgrim Baxter's expertise in small and micro cap companies leads naturally to private equity investing." Private equity is seen as a significant contributor to the future growth of Pilgrim Baxter.

"Christine's experience in the small cap growth arena has given her much insight into the challenges and opportunities that often face young, freshly public growth companies," said Ms. Proffer. "As an active investor in the new issue market, she brings to our venture capital initiatives an understanding of the elements necessary for a successful Initial Public Offering (IPO)."

Since joining Pilgrim Baxter in 1991, Ms. Baxter has focused on researching and investing in young, rapidly-growing companies, spanning both the public and private equity sectors. She was the original manager of the PBHG Emerging Growth Fund, which began in 1993 to focus exclusively on small growth companies. In 1996, Ms. Baxter helped launch and manage the PBHG Limited Fund, a mutual fund which invests in micro cap companies. Further pursuing her investment interests in earlier stage companies, Ms. Baxter contributed to the conceptualization of Pilgrim Baxter Hybrid Partners and to the establishment of the investment process that has been instrumental to its success.

"I'm excited to be working in the private equity marketplace," said Ms. Baxter. "Over the last six years, my portfolios have had significant exposure to venture-backed companies, and I am looking forward to working with private growth companies and the venture capital community."

Erin Piner has worked at Pilgrim Baxter since 1995 as an analyst and assistant portfolio manager before taking over the PBHG Limited Fund in 1998. Since June 1996, working closely with Christine Baxter, Ms. Piner has been responsible for the quantitative and fundamental company analysis within the Pilgrim Baxter micro cap universe. She is a graduate of the College of the Holy Cross.

Ms. Baxter received her Chartered Financial Analyst designation in 1994. She received her MBA from the Wharton School of the University of Pennsylvania and her BA from the University of Pennsylvania.

About Pilgrim Baxter & Associates, Ltd.

Pilgrim Baxter & Associates, Ltd., manages over $17 billion in mutual fund and institutional assets. The firm is the investment adviser to The PBHG Funds, a family of 16 no-load mutual funds. Founded in 1982, Pilgrim Baxter & Associates, Ltd., a wholly-owned subsidiary of United Asset Management Corporation (NYSE: UAM), is an SEC-registered investment advisory firm established to provide specialized equity management for mutual funds, pension and other institutional accounts.

Morningstar Ratings

Morningstar ratings are as of November 30, 1999. PBHG Limited Fund (inception July 1996) received four stars for three years (3,039 funds). Morningstar proprietary ratings reflect historical risk-adjusted performance through November 30, 1999. Ratings are calculated from the funds' three-, five-, and 10-year average annual returns (when applicable) in excess of 90-day Treasury bill returns (with appropriate fee adjustments) and a risk factor that reflects fund performance below 90-day T-bill returns. Ratings for other share classes will be different. Ratings are subject to change monthly. The top 10% of the funds in an investment category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the bottom 10% receive one star.