DPM Raises $4 Million in Equity Financing Led by Edison Venture Fund; Proceeds To Fund Aggressive Sales and Marketing Initiatives.

Business Editors

SOMERSET, N.J.--(BUSINESS WIRE)--May 8, 2002

Derivatives Portfolio Management LLC (DPM), with $10 billion under administration, announced today that the company has raised $4 million in equity financing from an investor group led by Edison Venture Fund and including Milestone Venture Partners, as well as other venture and private investors. DPM services the growing hedge fund management market with a suite of services that includes investment accounting, financial reporting, multiple broker and trader reconciliation, risk transparency and fund administration services.

According to Robert M. Aaron, DPM Chairman and CEO, "The alternative asset market has grown rapidly during the past three years with approximately 7,000 active funds now managing in excess of $500 billion--a number that is increasing 20% a year. This enormous growth has created a tremendous need for flexible, Web-based fund administration services that compress reporting times and expand disclosures."

Aaron continued, "In today's financial markets, accurate reporting is more vital than ever. Sophisticated investors are demanding the level of transparency that our platform delivers. With the emergence and our adoption of .Net, DPM is ideally positioned to maintain our leadership position and build market share in an expanding market."

Proceeds of the offering are earmarked for the development of an international sales and marketing team that will concentrate on specific channels in the alternative asset market. The company has instituted a national search to identify a sales and marketing executive to lead this effort.

"DPM's deep understanding of the hedge fund market has served as a catalyst for growth and provides a strong foundation for rapid market penetration," began Bruce Luehrs, general partner with Edison Venture Fund. "Growth of the alternative asset market is dramatically outstripping expansion of other sectors of financial services. That opportunity, coupled with Edison's previous successes in this market, offers us an exceptional opportunity to partner with DPM's industry-leading talent and help build a world-class organization that can come to quickly dominate the alternative asset administration market."

DPM expects to have more than $14 billion under administration by year-end 2002.

About DPM

DPM, headquartered in Somerset, New Jersey, offers a portfolio of integrated services that include: investment accounting, financial reporting, multiple broker and trader reconciliation, risk transparency and fund administration services for approximately $10 billion of assets. Established in 1993 by recognized investment industry professionals, DPM provides its services to fund managers, asset allocators, institutional investors, and proprietary traders whose portfolios cover almost all asset classes and instruments traded worldwide. DPM's management team, complemented by a large staff, provides the resources and expertise of a full service organization.

Banks and other institutions that act as trading manager rely on DPM to serve as commodity pool operator (CPO) for administrative functions.

About Edison Venture Fund

Established in 1986, Edison Venture Fund provides private equity and value-added services to growing information technology companies. Edison has more private equity investments in the Mid-Atlantic region than any other venture firm. In partnership with entrepreneurs, service providers and other financing services, Edison contributes to building successful companies. The firm's 110 investments include expansion financings, management buyouts, and secondary stock purchases. Edison invests in expansion stage ($5 to $20 million revenue) companies located in the New Jersey to Virginia corridor. Initial investments range from $2 to $6 million. Edison typically serves as a sole or lead investor.