Credit Suisse Subsidiary Found Liable to Exchange Fund Investor, Says Attorney Daniel R. Solin.

NEW YORK -- Tena Collins, an investor in the DLJ Emerging Growth Partners L.P. Exchange Fund, has been awarded approximately $1,400,000 (including interest) by an American Arbitration Association tribunal, according to her New York City attorney, Daniel R. Solin.

Collins, who is from Atlanta, invested $2,000,000 in the fund. Her investment had plummeted to $103,000.

In the majority decision, the arbitration tribunal found that Ms. Collins relied upon misrepresentations made by her Donaldson, Lufkin & Jenrette broker. In November, 2000, CSAM Capital, Inc., a subsidiary of Credit Suisse First Boston, became the successor to Donaldson, Lufkin & Jenrette.

The tribunal found that the broker represented to Collins that "active hedging" would be in place at the fund and that the active hedging would limit her losses to no more than 20% of the value of her investment. According to the tribunal "....there in fact was no way that the Exchange Fund was going to engage in the degree of hedging represented by (the broker)."

The fund's attorneys attempted to rely on disclaimers in the fund's offering materials as a defense to Collins' claims. The tribunal rejected that defense.

Ms. Collins' attorney, New York lawyer Daniel R. Solin, said that "This Award permits Ms. Collins to undo this transaction and to recover most of her losses. Clearly, she never would have invested in this Fund if the true facts had been disclosed to her."

An exchange fund -- which bears no relation to a mutual fund -- is a tax-advantaged investment that allows wealthy people to diversify their concentrated stock positions. Typically set up as limited partnerships or limited liability companies, and also known as "swap funds," the investments allow participants to exchange their large holdings of stock for an interest in the fund without paying capital gains taxes.

This is the second award finding wrongdoing by Credit Suisse in connection with its Exchange Funds. In December, 2003, a National Association of Securities Dealers arbitration panel ruled that Credit Suisse Asset Management was required to undo a complex investment and pay nearly $1 million in attorney's fees and expenses to two wealthy investors, William Levine and MK Link Investments Ltd. The panel in that case found that the Fund wrongfully failed to obtain Levine's and the Haberkorns' permission to "roll up" the fund into another Fund, and directed the investment bank to unwind their participation in the new fund. The Claimants in that case were represented by Mr. Solin and Maxwell Blecher of Los Angeles.