Credit Suisse Group and Warburg, Pincus & Co Expand Strategic Relationship.

NEW YORK and ZURICH, Switzerland--(BUSINESS WIRE)--Feb. 15, 1999--

Credit Suisse Group To Acquire Warburg Pincus Asset Management.

Union Will Greatly Enhance Both Firms' Depth And Resources

In Critical U.S. Domestic Market.

Credit Suisse Asset Management and Warburg, Pincus & Co. today jointly announced an agreement to expand their strategic relationship initiated in June 1998. Credit Suisse Asset Management will acquire Warburg Pincus Asset Management Inc., a leading U.S. asset manager with 260 employees and US$22 billion in assets under management, thus raising the combined firm's global assets under management to over US$230 billion. The relationship will also include an investment by Credit Suisse Group in the private equity activities of Warburg, Pincus & Co.

The price of the asset management transaction was fixed at US$650 million, including an initial US$450 million and an additional US$200 million earn-out over three years. Subject to regulatory approvals, the agreement is expected to close by mid-1999.

Clients will benefit from broadened capabilities in global research, investment management and client service. The combination allows the two firms to leverage their complementary investment strengths and product lines, thus capitalizing on the strong working relationship they developed following the June 1998 mutual fund distribution alliance.

In the coming months, the firm will evaluate a number of strategic issues, including U.S. brand and product identification, recognizing that the Warburg Pincus name is strong in the retail and high net worth market segments. Warburg Pincus mutual fund clients can look forward to receiving the same high level of service to which they have become accustomed.

William W. Priest, Chief Executive Officer of Credit Suisse Asset Management / Americas, will head the merged firm in the U.S. Arnold Reichman, currently Chief Operating Officer of Warburg Pincus Asset Management, will become the merged firm's U.S. Chief Operating Officer, and John Furth of Warburg Pincus Asset Management will become the merged firm's U.S. Vice Chairman.

Lukas Muhlemann, Chief Executive Officer of Credit Suisse Group, said, "We are extremely enthusiastic about the acquisition of Warburg Pincus Asset Management and its superb team of professionals. It is a critical strategic move to complete our product capability, expand our U.S. presence and better address client needs. The result will be greater service to clients, opportunity for employees and value for shareholders."

Lionel Pincus, Chairman and Chief Executive Officer of Warburg, Pincus & Co., stated, "Warburg Pincus Asset Management and Credit Suisse Asset Management have worked together for the past year. We look forward to the opportunity to combine two world-class asset management businesses to create a greater whole. We believe that access to Credit Suisse Group's worldwide network and the leveraging of Credit Suisse Asset Management's products through Warburg Pincus' retail, institutional and high net worth base will greatly accelerate the growth of the new organization. This linkage combines our strengths in the United States with those of Credit Suisse Group around the world, in line with our belief that scale and global reach are critical strategic requirements for financial services firms."

Phillip Colebatch, Chief Executive Officer of Credit Suisse Asset Management, added, "The acquisition of Warburg Pincus Asset Management provides an extraordinary opportunity to grow our U.S. asset management business while strengthening the range of products that we can offer globally. It addresses our goals of building up our assets under management, high net worth clientele and institutional business."

Credit Suisse Group's investment in Warburg, Pincus & Co. includes the purchase of a 19.9 percent passive minority equity stake in its private equity arm. Lionel Pincus stated, "We welcome Credit Suisse Group as an investor in our private equity business, which will continue to be owned and managed by its partners. Warburg, Pincus & Co., as an independent entity, will benefit substantially from this investment by an organization with a preeminent global reach." Warburg, Pincus & Co. manages over US$7 billion in private equity, with an additional US$5 billion of committed capital available for investment. This transaction will have no impact on the private equity business of Credit Suisse First Boston.

Credit Suisse Group is a global financial services company, providing a comprehensive range of banking and insurance products. Active on every continent and in all major financial centers, Credit Suisse Group comprises five business units, each geared to the requirements of specific customer groups and markets. The Group has about US$680 billion of assets under management and employs about 62,000 staff.

Credit Suisse Asset Management is the institutional asset management and mutual fund arm of Credit Suisse Group. Credit Suisse Asset Management employs about 1,600 people worldwide and has global assets under management of approximately US$210 billion as of December 31, 1998.

Warburg, Pincus & Co. manages more than US$30 billion in assets. Based in New York, the firm also has offices in London, Hong Kong, Tokyo, Singapore and Sao Paulo. Warburg, Pincus & Co. is privately owned by its partners. Warburg Pincus Asset Management Inc. is separately managed and staffed, and provides investment counseling for institutions and individuals, as well as managing the Warburg Pincus mutual funds.