Competitive Challenges 10th Edition Outlines Asset Management Industry Trends/Best Practices; Competitive Challenges 2000 Report Available to Media.

Business/Technology Editors

NEW YORK--(BUSINESS WIRE)--Sept. 27, 2000

The 10th annual edition of Investment Counseling, Inc.'s Competitive Challenges study, released today at their annual Client Conference, charts the most critical competitive issues confronting the asset management industry today and examines the best business practices of 100 leading asset managers, many of whom attended this week's two-day conference in New York. An overriding conclusion of the year long analysis reveals that demographic changes, technological innovation and increased competition from myriad sources are rapidly altering the asset management industry.

"Asset managers are facing a competitive maelstrom from multiple channels," said Paul Schaeffer, managing partner of Investment Counseling, Inc., an established knowledge and consulting solutions provider for the industry, and an authority on best practices in money management. "Today, more than ever, consumers are presented with a wide array of investment choices. Differentiation and technological advances are integral to success. Financial firms must also hone more efficient, scaleable business models in this highly competitive environment," he added.

Speaking to executives from such leading financial firms as Delaware Investments, Goldman, Sachs & Co., Invesco Funds, Morgan Stanley Dean Witter and Strong Capital Management, Schaeffer said the rising bull market has lulled many firms into falsely believing an increase in assets under management automatically yields a higher level of production. "In reality, productivity has declined, and will continue to do so," Schaeffer confirmed. Schaeffer also foresees changes ahead in the competitive landscape, adding, "The competitor you know today could very likely be your business partner tomorrow."

The technology portion of the study, a joint collaboration between NewRiver, Inc., the leading provider of complete, end-to-end electronic business and communications solutions for financial institutions, and Investment Counseling, Inc., reveals that while technology is indeed a key driver of competitiveness, it is still viewed defensively by many segments of the asset management business.

"We're finding the high-net worth market is poorly served by the Internet," said Darlene DeRemer, managing director, NewRiver, Inc. "Institutional and HNW asset management firms can no longer focus solely on investment performance. Private clients are typically well informed and technologically advanced investors, with access to robust Internet services through a variety of sources. This market segment wants both high tech and high touch services. Firms must reach their intermediary and end-user customer through multi-dimensional formats and new service models via laptops, cell phones and PDAs," DeRemer added.

NewRiver determined that businesses which leverage an integrated, strategic e-business model will differentiate themselves in today's highly competitive marketplace. "Technological breakthroughs allow old economy companies to build upon their legacy systems, bringing customers the best of both the old and new economy models," DeRemer said. "Companies must continue to reinvent themselves. The process is never over," she stressed.

About Investment Counseling

Founded in 1989, Investment Counseling, Inc. is a major source of business knowledge, providing consulting solutions for the asset management industry. Since its beginning, Investment Counseling has successfully developed and implemented competitive strategies for more than 200 firms, ranging from independent boutiques with a domestic focus to some of the world's largest financial institutions. Its consulting practices cover strategy, marketing & distribution, compensation, and business process analysis. Its clients include Deutsche Bank, Fiduciary Trust, Key Bancorp, Whittier Trust, First Union, PIMCO, SG Cowen Asset Management, Blackrock, Strong Capital Management and The TCW Group. For more information on Investment Counseling, visit www.investcounsel.com, and for more information on Competitive Challenges, visit www.competitivechallenges.com.

About NewRiver

Headquartered in Andover, MA, NewRiver is the financial services industry's leading provider of electronic business and communications solutions. Serving brokerage houses, mutual fund complexes, banks, institutional asset managers and insurance companies, NewRiver brings its clients a series of ASP-hosted products and service solutions allowing them to best meet the needs of their online customers. NewRiver currently serves more than 100 top financial service customers, including American Express, Aetna, Charles Schwab & Co., Dreyfus, E*TRADE, GE Financial, INVESCO, Janus Funds, Morningstar, Nvest, SalomonSmithBarney, T.Rowe Price and Zurich-Kemper. To learn more about NewRiver, please visit www.newriver.com.

Please Note: To obtain copies of the Competitive Challenges 2000 report, and to schedule an interview with conference presenters, please contact Jeanne Murphy at 617-437-7722, ext. 346.