CorrectNet Web-Enables 750th Client; Mass Deployments of Web-Based Solution for Financial Services Enterprises and Their Partners Drive Company's Fast Growth.

Business Editors/Hi-Tech Writers

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 8, 2002

CorrectNet, Inc., (www.correctnet.com), the rapidly growing provider of Web-based solutions for financial services enterprises and their independent business partners, announced today that it has Web-enabled its 750th customer, setting the stage for rapid expansion at the Long Island technology firm. CorrectNet, which formally re-launched itself at year-end 2001, increased sales nearly 40% last year and projects a doubling of sales in 2002.

Key to the company's success is a unique technology platform that allows CorrectNet to mass deploy highly sophisticated, customizable Web-based solutions for financial services companies and their networks of independent agents and advisors. Strategically, the technology allows CorrectNet to transform a single relationship with a major financial services company into hundreds, if not thousands, of distributed Web applications for their independent agents and representatives.

To introduce their technology, CorrectNet is conducting a live Web seminar - "Whose Client Is It Anyway? How Internet Technology Is Transforming the Relationship Between Financial Intermediaries and Their Clients" - on Wednesday, May 22, 2002 at 2PM EST. The event will include a commentary from Meridien Research analyst Karen Prest, where she will discuss financial services highlights from her recent study, "Integrated Advice: Are Your Customers Listening To You?" For more information, please visit www.correctnet.com.

"Our 750th milestone serves as a proof case of our ability to mass deploy sophisticated solutions, in essence, allowing companies that rely on networks of independent business people, to light up their entire market, virtually overnight," says Robert J. Miller, President, CEO and Founder of CorrectNet.

Fostering Interdependency in Financial Services

Worldwide, there are thousands of financial services companies that depend on over 500,000 independent financial advisors, insurance agents and planners to market their products.

"These companies live symbiotically with one another," says Miller, "The enterprise depends on the independent channel to connect with the ultimate consumer, and independent agents and advisors rely on the enterprise for products, services and the sophisticated back office functionality. CorrectNet's technology provides the platform for the enterprise to help their advisors and agents build their business through a sophisticated online presence in their local markets, at a fraction of the cost of developing one on their own."

Unique to CorrectNet's offering is an ability to aggregate, repurpose and utilize the enterprise's current reservoir of technology, as well as other online tools and utilities, and then syndicate and distribute these assets to their independent networks for these agents to build their online Front Office.

"Major players in financial services have a wealth of their own online resources to draw upon. We act as a technology bridge, allowing local advisors and agents to choose the precise tools and content they want to share with their customers, all the while building a Web site that serves as a financial destination for their clientele."

For a number of leading Fortune 500 firms, the CorrectNet offering has become a strategic tool to grow the business derived from their independent channel. For instance, a Fortune 50 financial powerhouse uses CorrectNet to empower hundreds of hedge fund extranets. In the case of a top 10 broker dealer, the CorrectNet platform is powering an industry-leading solution to serve the Front Office needs of thousands of its independent financial advisors.

CorrectNet in Action

Out in the field, the CorrectNet solution has given independent financial planners and advisors the best of all online worlds, according to Kim D. H. Butler, CFP, owner of Partners for Prosperity, (www.partners4prosperity.com), a non-traditional financial planning firm in Phoenix, AZ. The firm, which she manages along with partner Nancy Ogilvie, focuses on long-term, strategic wealth building for high net worth individuals. The firm's Web presence, through CorrectNet, has helped the partners build their business, and dramatically expand it outside of the Phoenix market. In fact, nearly 95% of the firm's business now comes from a national client base.

"And CorrectNet has played a large role in helping us gain that foothold," says Butler. The firm benefits from a range of sophisticated online tools, some of which are drawn from LEAP Systems, the financial services company for which she is a licensee. For instance, when clients come to the firm's Web site, they undergo the complete LEAP process, the content for which is drawn from LEAP's online resources.

"The entire client service process is now online, from initial interview and discovery, building the financial plan, implementing and executing that plan, and regular evaluation and updating," says Butler.

The partners also rely heavily on the Site's online meeting function to interact with their clients for planning meetings, strategy walkthroughs and plan reviews, tracking and calculating. "In fact, we're doing as many as 20 online meetings a week, which saves a tremendous amount of time and expense for both us and our clients, and allows us to interact with clients, regardless of their location. We are no longer confined to only serving clients who have the luxury of meeting face to face."

For Butler, CorrectNet has proven to be both a powerful sales and marketing tool, as well as an essential strategy to running and growing the partner's business.

"We believe that using CorrectNet is not an option for LEAP licensed agents, its a necessity" says Butler. "They need this type of Web site functionality to run and grow their business. And as we add more functionality, we're discovering that our clients are using the Site more often, and the more often they use the Site, the more our business grows."

Butler's experience is made even more powerful by the enterprise-wide implications.

"For the enterprise, our solution allows them to build stronger, closer relationships with partners, while still respecting their need for independence in the marketplace," says CorrectNet's Miller. "In that respect, it truly is a win-win for both sides of the business, which accounts for much of our initial success."

Re-launched with new investors in late 2001, CorrectNet's core software applications are the result of the company's more than 15 years experience in developing major collaborative solutions for financial services companies. In December 2001, CorrectNet announced it had completed its first round of institutional investment. The $5.25 million equity investment included Edison Venture Fund, NewSpring Ventures and The Charles Schwab Corporation.

"In many respects, we are a brand new, old company," says Miller. "We think this positioning gives us a terrific advantage in understanding that great technology is worthless if there is no market and no revenue. Our 750th installation verifies that the market and revenues are there and provides the springboard for jump starting our sales and quickly emerging as the premier player in our market."

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, including Morgan Stanley and Charles Schwab & Co. 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.