National Investment Managers Inc. Closes Acquisition of Cherry Hill, New Jersey's Benefits Dynamics, Inc.

NIM Now Administers Approximately 7,300 Plans with $7.2 Billion in Assets under Administration

Jo-Ann Massanova to Remain at BDI 

NEW YORK -- National Investment Managers Inc. (OTC BB: NIVM), a nationally-operated and regionally-based retirement plan administration and investment management company, announced today it has closed on the acquisition of Benefits Dynamics, Inc. (BDI) based in Cherry Hill, New Jersey. The acquisition is valued at $500,000, of which $300,000 is cash and $200,000 in promissory notes.

Benefits Dynamics administers roughly 200 retirement plans as well as approximately 100 Section 125 (cafeteria style) plans. The retirement plans assets are valued at approximately $200 million. This brings the NIM totals to approximately 7,300 administered plans and $7 billion under administration. This is the eighth acquisition NIM has made as part of its two-track expansion plan that relies on organic growth coupled with the acquisition of new plan administration and investment management companies.

Steven Ross, CEO of National Investment Managers, said, "We are very glad to start the New Year off with such positive news. Benefits Dynamics has expanded from its status as a local firm founded in 1979 to a well-respected national firm with a wide variety of clients. Located in central New Jersey, this enhances our footprint in the Delaware Valley region, bringing NIM further strength in the Mid-Atlantic states."

"We are also pleased that Jo-Ann Massanova, the woman behind Benefits Dynamics and a well-respected professional, will continue to lead BDI as part of NIM. In addition to building her company, Jo-Ann has demonstrated her knowledge and industry leadership as a past president of the ASPPA Benefits Council of the Delaware Valley. Her experience in running her company and her expertise in our industry make her and BDI welcome additions to National Investment Managers."

Massanova said, "I am very excited to take my company into NIM and to be able to take advantage of the opportunities it affords. BDI's success has been built because we pay attention to the outsourcing needs of businesses that employ between 50 and 5,000 employees, a segment of the market that is underserved. Our goal has been to fill this void so that small- to mid-size companies can expect the maximum level of services and expertise that larger companies have grown accustomed to. As part of NIM, we will be able to leverage our position to attract more accounts and to better serve our existing clients."

The Benefits Dynamics acquisition is the eighth since NIM began implementing its acquisition plans. Prior to this, NIM had announced the acquisition of National Actuarial Pension Services of Houston, Texas, a firm with 600 plans under administration. In October, NIM announced the acquisition of three subsidiaries of Florida's LAMCO group: Lamoriello & Co., Inc., Circle Pension, Inc. and Southeastern Pension Services, Inc. Collectively, the LAMCO acquisitions added approximately 1,000 plans to NIM's totals with 25,000 plan participants and have $1.1 billion in assets under administration.

The member firms of National Investment Managers provide pension administration services, retirement planning, defined benefit services, asset preservation, general insurance and asset management services. In addition to the Cherry Hill, New Jersey market that Benefits Dynamics serves, wholly-owned subsidiaries of National Investment Managers are also based in Orlando and Jacksonville, FL; Providence, RI; Horsham, PA; Haddonfield, NJ; North Attleboro, MA; Valley Forge, PA; Los Angeles, CA; Seattle, WA; Portland and Bend, OR; Houston, TX; and New York City and White Plains, NY.

About National Investment Managers Inc.

National Investment Managers Inc. is a holding company and a consolidator of pension plan administration, investment management and insurance businesses. Its strategy includes a custom-tailored acquisition formula for each acquired business, which allows local and regional entities to retain their autonomy while benefiting from the reach that a national presence offers. In addition, the Company's approach offers entrepreneurs in these businesses an exit strategy suited to their specific needs. National Investment Managers targets businesses with stable cash flows and high operating margins to ensure successful integration of operations once a sale is concluded. Acquired companies continue to operate under their own brands, usually with minimal staff turnover to ensure that relationships of many years' standing are not disrupted. At the same time, these formerly small businesses can cross-sell related financial services under the National Investment Managers umbrella and enjoy administrative and other support from around the country.

Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. They are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to raise capital, identify and complete acquisitions, integrate the acquired businesses, improve upon the operations of the acquired business units, and generate cash and profits. Further information about these and other relevant risks and uncertainties may be found in the Company's filings with the Securities and Exchange Commission.