Progress Investment Management Company Announces Buyout of Outside Investor; Introduction of New "Emerging Manager" White Papers.

SAN FRANCISCO -- Progress Investment Management Company, LLC ("Progress"), a pioneering manager of emerging managers and one of the largest minority-owned investment management firms in the country, announced today that it recently completed a buyout of the minority (40%) equity interest of its outside investor, the Massachusetts Bay Transportation Authority Retirement Fund. With the close of this transaction in June, Progress now becomes a 100% employee-owned business. Progress specializes in crafting multi-manager strategies featuring emerging managers -- talent often overlooked and underutilized by institutional investors. The firm's strategies are in U.S. and non-U.S. equities, fixed income and private equity fund of funds investments. Progress manages $7 billion in assets for many of the largest pension plans in the United States.

"We're pleased to have partnered with Progress senior management in June 2004 to help management return the firm to its roots as an independently owned firm," said Michael H. Mulhern, executive director of the Massachusetts Bay Transportation Authority Retirement Fund ("MBTARF"). "We're even more satisfied four years later with this win/win transaction -- a very attractive financial return from our investment to benefit our plan's beneficiaries, and Progress becoming a 100% employee-owned firm. We also continue to be pleased with the investment returns that Progress provides us, as well as the access to firms owned by women and minorities.

Thurman V. White, Jr., Progress president and CEO, stated, "In closing this transaction, we achieve an outstanding strategic goal: to be a 100% employee-owned firm. We feel this ownership structure greatly benefits Progress clients, employees and even our sub-managers in the long run, resulting in an even closer alignment of economic interests, greater accountability and firm stability." White continued, "We're grateful to the MBTARF board and its management for having the foresight to believe in our work and invest with our management team, and we are pleased that now they are able to reap the benefits of our success. Again, this transaction illustrates how emerging firms add value in multiple dimensions. We're building a firm that can be a model for others within the industry."

Colchester Partners, Boston, Massachusetts, a financial advisory firm specializing in working exclusively with financial services and asset management firms, advised Progress in its transaction with the MBTARF. Specific terms of the deal were not disclosed.

White also announced that Progress has recently authored two new white papers. The first paper, entitled "From Diversity to Diversification -- the Evolution of the Term 'Emerging Manager,'" has been released and is available on the Progress website at www.progressinvestment.com. The companion paper, entitled "Successful Emerging Manager Strategies for the 21st Century," will be released next month and will also be available on the Progress website.

"These new white papers on emerging-manager policy issues and best practices in many ways capture the 'non-investment alpha' we've generated over the past 18 years from our experiences working with sophisticated institutional investors and investing in emerging and minority-owned investment firms," White explained.

Mona Williams, executive vice president at Progress, noted, "As a pioneer investor in this space, Progress continues to be a thought leader. We've worked with more emerging managers and clients in more different emerging manager investment strategies than any other multi-manager. We want to make our experiences and insights available to all within the industry so emerging manager investing can become institutionalized. We want the next generation of investors to leverage the emerging manager advantage to access the alpha, innovation and the passion to succeed resident in this largely untapped universe of investment talent."

Progress Investment Management Company, LLC

Founded in 1990 and headquartered in San Francisco, Progress Investment Management Company, LLC, is a registered investment adviser and manager of emerging managers. Progress creates diversified, risk-controlled, multi-manager investment funds in a variety of asset classes for institutional clients. Progress specializes in working with smaller, entrepreneurial money management firms with innovative investment strategies. Progress manages $7 billion in assets in public equities and fixed income securities as well as private equity and hedge funds. The firm is recognized as a leader in emerging manager investing.

Massachusetts Bay Transportation Authority Retirement Fund

The Massachusetts Bay Transportation Authority Retirement Fund is one of the nation's leading defined benefit retirement plans, providing pension benefits for its members and their qualified beneficiaries.

Colchester Partners

Colchester Partners is a Boston-based investment banking and strategic advisory firm organized to serve the needs of investment organizations and their professionals. The firm's services include investment banking, mergers and acquisitions, strategic advice and liquidity planning.