CorrectNet Announces Expansion of its International Hedge Fund Solution Business.

Business Editors/Hi-Tech Writers

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 23, 2002

CorrectNet, Inc. today announced an aggressive program to expand its international base of Hedge Fund clients. The company's growing investments in technology, infrastructure and global marketing are designed to tap the burgeoning hedge fund administration sector's increasing demand for real-time information from both domestic and overseas investors. The announcement accompanies CorrectNet's launch of a new generation of Web-based services designed to enable financial services companies to deliver sophisticated front-office solutions to their hedge fund clients.

CorrectNet (www.correctnet.com) is a rapidly growing provider of Web-based solutions for financial services enterprises and their network of clients and business partners.

"We deeply understand the needs of sophisticated investors and their relationship with the hedge fund," says Robert J. Miller, President, CEO and Founder of CorrectNet. "Whether obtaining performance information, accessing their fund managers or exchanging documentation, these individuals and financial institutions require 24/7 electronic access to their investments. Across more than a hundred major hedge funds, we have deployed solutions which balance the efficient use of technology and the unique features of highly secure, confidential communications to enable these firms to transform their businesses."

Central to CorrectNet's success is its ability to work with large financial enterprises to affordably provide sophisticated solutions to its business partners. These solutions focus on enhancing the relationship between asset management firms and their investors.

Worldwide, some 7,000 hedge funds are now managing more than $500 billion--a market that is increasing 20% annually. To serve the fast growth and worldwide demand, CorrrectNet has expanded its technology facilities in London.

Here in the U.S. and Europe, CorrectNet already counts a number of leading financial services companies among its clients, including Morgan Stanley. "Our hedge fund clients are our most valued asset, and we continually invest in strategies to help them grow," says Mark Rice, Executive Director of the Prime Brokerage Division at Morgan Stanley. "CorrectNet was able to assemble and deliver what we consider the industry-leading hedge fund investor services Web solution for nearly a hundred of our clients quickly, professionally, and at a price which drove rapid adoption."

Overseas, for instance, London-based Marshall Wace Asset Management, Ltd. was among the first hedge fund to adopt CorrectNet as the technology backbone for its industry-leading Web site. The site's analytics, secured behind a password-protected interface, offer investors daily Net Asset Values, sector and geographic exposure analysis, historical return data and liquidity banding. "The content has continued to ensure greater levels of transparency for our investors, without increasing our maintenance workload," says Archie Scott, Fund Manager. "This enables us to concentrate on improving the content and styles of delivery to keep the investors abreast of the issues affecting the Fund." For Scott, those delivery styles include video clips synchronized to PowerPoint presentations, providing investors with clear insight into the Fund and its performance. "We have received many positive comments (about the site) and the requests for meetings are fewer," says Scott.

CorrectNetworks seamlessly integrates with a number of leading analytic software packages, investor reporting systems and fund performance databases. Additionally, the service offers a suite of tools for publishing and graphing almost any back-office data.

About CorrectNet, Inc.

CorrectNet (www.correctnet.com) develops and deploys Web-based business solutions designed to empower the independent networks of financial services organizations. The company serves some of the world's leading financial, insurance, and investment institutions. CorrectNet's technology platform, CorrectNetworks, draws from an enterprise's existing tools and resources to syndicate and distribute them to the company's business partners. The independent channel can then customize and use these assets to build their businesses and drive more revenue to the sponsoring enterprise.