Foundation Source Ends 2005 with 403 Private Foundation Clients, Representing $1.3 Billion in Assets Under Administration; Increasing Demand by Private Foundations for Outsourced Support Services Continues in 2006.

FAIRFIELD, Conn. -- Foundation Source(R), the nation's leading provider of support services for private foundations, today announced 74% growth in the number of foundations that the company supported in 2005 and 129% growth in assets under administration. The company ended the year with 403 private foundation clients, representing $1.3 billion in foundation assets under administration.

During the year, the company processed 4,325 grants and distributed over $46 million to domestic and international charities on behalf of its clients. In addition, many clients took advantage of Foundation Source's Emergency and Hardship Assistance programs to deliver aid swiftly and directly to the victims of the Tsunami, Hurricane Katrina and the earthquake in South Asia.

The company also launched Foundation Source Requests(R), a major addition to Foundation Source Online(R), the company's flagship Internet service for private foundations. Foundation Source Requests thoroughly transforms the grant application and review process, turning what has traditionally been a manual, paper-intensive procedure into a dynamic, fully automated and streamlined process. Foundation Source Requests accepts, organizes, tracks and prioritizes every grant application through a customized Internet portal specifically designed for each foundation.

In 2005, Foundation Source also announced several partnerships and alliances, among them Abercrombie & Kent, Clark Nuber, Ensemble Capital Management, First Interstate Bank, Jewish Funders Network, Social Venture Partners (SVP) and Young Presidents' Organization (YPO). The company also expanded its physical presence around the country, opening regional offices in Los Angeles, New York City, Philadelphia and Atlanta.

"2005 was a watershed year for Foundation Source," said Daniel M. Schley, Foundation Source chairman and CEO. "With over 400 foundations on our platform and $1.3 billion in assets under administration, I believe we solidified and extended our position as the nation's leading provider of support services for private foundations. Other important milestones in 2005, such as the debut of Foundation Source Advisory Services and the product launch of Foundation Source Requests(R), should factor significantly into continued growth in 2006 - particularly with larger foundations for which these new services are targeted. As we build out our geographic presence, and enter into strategic partnerships with the nation's leading wealth managers, trust & estate law firms and accounting firms, I fully anticipate that 2006 will be another exceptional year for the company."

About Foundation Source (www.foundationsource.com)

Foundation Source is America's leading provider of outsourced services for private foundations. The company's back-office systems, online services and experts on-call provide clients with Professionally Administered Foundations that solve the traditional problems of complexity, compliance, community and cost. Foundation Source foundations are stronger, more secure and deliver greater social impact, allowing families to focus on mission, strategy and family priorities rather than back-office administration and compliance tasks.

Foundation Source works in partnership with leading law firms and over 60 financial institutions, which include Atlantic Trust, Bear Stearns, City National Bank, JP Morgan Private Client Services, Mercantile Bank & Trust, TD Waterhouse and Wilmington Trust. The company is headquartered in Fairfield, CT with regional offices in Boston, New York, Philadelphia, Atlanta, Palm Beach, Chicago, Denver, Salt Lake City, Los Angeles, San Francisco and Seattle.

Foundation Source, Foundation Source Online and Foundation Source Requests are registered trademarks of Foundation Source Philanthropic Services Inc. All rights reserved.