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THE TIMEI?NVEST IN E?RGING GROWTH STOCKS IS NOW; POLICIES TO SPUR JOB CREATION SHOULD BE FAVORABLE TO EMERGING GROWTH STOCKS, EXPERT SAYS

 NEW YORK, March 10 /PRNewswire/ -- In equity investments, small is beautiful, and getting more attractive as the recession ends and a new administration emphasizes job expansion, says Elizabeth B. Dater, president of Warburg Pincus' Emerging Growth Fund and regular panelist on Maryland Public Television's Wall Street Week with Louis Rukeyser.
 "Emerging growth companies -- companies with average market capitalizations of approximately $500 million (price times number of shares outstanding) and growth prospects in excess of 20 percent per annum -- should significantly outperform the overall market over the next three to five years for many reasons," says Dater.
 "First, these stocks have led the way out of the past five recessions, outpacing the performance of larger companies," she continues. "Therefore, current signs of economic recovery are very positive for the smaller sector of the market."
 "Further, as President Clinton and his team focus on getting people back to work, they will have to recognize that small companies have always been leaders in job creation and will therefore be inclined to implement policies favorable to their growth," continues Dater.
 Dater points out that while prices of emerging growth issues have increased over the past twelve months, there is a great deal of room for continued appreciation. "These companies typically grow at twice the rate of larger companies, yet their prices relative to earnings are flat to modestly higher," Dater notes. "This means you are only paying a 10 percent to 20 percent premium on average for twice the growth potential."
 Investing in small stocks may present greater risk than investing in larger, more established companies. However, Dater's focus on emerging growth stocks has paid off for Warburg Pincus' investors; individuals who have invested in the no-load Warburg Pincus Emerging Growth Fund. Since the Fund's inception in 1988, its total return has exceeded both the S&P 500 and the Russell 2000 Index of small capitalization stocks by a substantial margin.
 In addition to managing the Warburg Pincus Emerging Growth Fund, Dater also manages over $275 million in post-venture capital assets for institutions who have received stock as distributions from venture capital pools around the world.
 "Since investing in emerging growth companies is a main business at Warburg Pincus, we're constantly evaluating companies from start-up to venture capital, to the post-venture capital stage and beyond," says Dater.
 Warburg, Pincus is a money management and venture banking firm that has been serving the financial needs of prominent high net worth individuals and institutions for over 20 years. Assets under management total over $5 billion. More than $1 billion of assets are in Warburg Pincus Funds, which include the Warburg Pincus Emerging Growth Fund, the Warburg Pincus International Equity Fund, and six other no-load mutual funds.
 -0- 3/10/93
 /CONTACT: Dawn Dover or Mickey Mandelbaum of Kekst and Company, 212-593-2655, for Warburg Pincus Emerging Growth Fund/


CO: Warburg Pincus Emerging Growth Fund ST: New York IN: FIN SU: ECO

WB-OS -- NYWFNS3 -- 4758 03/10/93 07:31 EST
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Publication:PR Newswire
Date:Mar 10, 1993
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