CalPERS Makes Third Investment Under its Manager Development Program.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--April 3, 2001

Progress-Putnam Lovell Advisors LLC today announced its third investment under the California Public Employees' Retirement System Manager Development Program (CalPERS MDP). The CalPERS MDP is investing a total of

$1.5 million in Shenandoah Asset Management, LLC, a Virginia based firm specializing in traditional growth equity and alternative investment strategies. In addition, CalPERS MDP will allocate to Shenandoah $100 million in assets to manage under the firm's mid-cap growth equity portfolio.

Progress-Putnam Lovell Advisors LLC is a joint venture between Progress Investment Management Company, one of the country's leading multi-manager investment management specialists and a member of the Liberty Financial Companies, Inc. (NYSE: L) family of companies, and Putnam Lovell Capital Partners Inc., the private capital affiliate of investment bank Putnam Lovell Securities Inc.

Shenandoah, with over $100 million under management, offers institutional investors a select range of traditional risk-controlled, long-only and alternative investment strategies. Shenandoah provides domestic growth equity investment strategies to sophisticated institutional investors and currently offers a market neutral product.

"Shenandoah is a choice addition to the line-up of managers in our Manager Development Program," said Daniel Szente, Chief Investment Officer of CalPERS. "We look forward to a long-term relationship that will enable them to become significant players in the institutional marketplace."

"We are extremely pleased to have this opportunity," said Robert F. Hill, Jr., CEO of Shenandoah. "This transaction will enable Shenandoah to operate at a new level by allowing us to immediately add staff and infrastructure to what is already a solid foundation. We are fortunate to have such excellent partners, and we look forward to working closely with them toward our common goals of serving our clients and growing our business."

"We are excited about making this investment in Shenandoah Asset Management. We have known the principals in the firm for several years and are confident in their capabilities in providing competitive investment management services to pension funds and other investors," commented Clayton C. Jue, CIO of Progress Investment Management Company. James E. Minnick, Managing Director of Putnam Lovell Capital Partners, added, "We look forward to working with Shenandoah's strong management team and proven investment approach. They have the people, process and products to become a leading investment management firm."

Last year, CalPERS Board of Administration approved the establishment of the Manager Development Program and committed up to $4 billion in funding. The goal of the program is to achieve superior investment returns while providing opportunities to new and emerging money managers that typically do not have the long-time track record and marketing clout to compete against larger, more established firms.

As part of its partnership with CalPERS MDP, Progress-Putnam Lovell Advisors will invest up to $40 million of venture capital in new and emerging investment management firms. Firms in which the joint venture makes investments are eligible to receive asset allocations for management in one or more of their investment products. Progress-Putnam Lovell Advisors will allocate up to $1 billion in assets to MDP firms over the next three years. Candidates for the program include U.S.-based firms with less than $1 billion under management and which primarily manage portfolios of public equity and fixed income securities.

The pension fund expects to realize profits from its equity positions when a firm goes public, when the equity position in a firm is purchased by other partners, or when a firm is bought out by larger established firms.

Shenandoah Asset Management LLC

Shenandoah Asset Management LLC is an investment advisory firm specializing in US equity portfolio management and alternative implementation techniques for institutional clients. Shenandoah manages a market neutral strategy as well as risk-controlled, long-only portfolios based on a disciplined, growth-at-a-reasonable-price stock selection methodology powered by earnings expectations and insider trading. The firm, headquartered in Richmond, Virginia, was founded in 1998 by Robert F. Hill, Jr., formerly the Director of Equity at the Virginia Retirement System, together with Russell J. Brooks and Michael P. Painchaud, co-founders of Market Profile Theorems, Inc., a Seattle-based quantitative equity research boutique.

CalPERS

CalPERS is the nation's largest public pension fund with assets totaling more than $169 billion. The System provides retirement and health benefits to more than 1.2 million state and local public employees and their families. For further information on CalPERS, please visit the System's Web site at www.calpers.ca.gov.

Progress-Putnam Lovell Advisors LLC

Progress-Putnam Lovell Advisors LLC is a joint venture between Progress Investment Management Company, one of the country's leading multi-manager investment management specialists and a member of the Liberty Financial Companies, Inc. (NYSE: L) family of companies, and Putnam Lovell Capital Partners Inc., the private capital affiliate of investment bank Putnam Lovell Securities Inc. The joint venture was formed to participate in the Manager Development Program (MDP) of the California Public Employees' Retirement System (CalPERS). As part of their partnership, CalPERS and Progress-Putnam Lovell Advisors seek to achieve superior investment returns while providing opportunities to new and emerging money management firms. Progress-Putnam Lovell Advisors will assist MDP firms in managing the strategic and organizational issues many younger or smaller firms face as they develop and expand their businesses.

Progress Investment Management Company

Founded in 1990 and headquartered in San Francisco, 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 some $4.0 billion in assets and is the industry leader in funding emerging investment management firms. Progress is a member of the Liberty Financial Companies, Inc. family of companies.

Liberty Financial Companies, Inc.

Liberty Financial Companies, Inc. (NYSE: L) is an integrated asset accumulation and management organization. As of March 31, 2000, its operating companies manage over $67 billion of assets for approximately 1.8 million investors worldwide through an array of fixed, indexed and variable annuities, private and institutional accounts and 95 mutual funds. Its operating companies include Crabbe Huson Group, Independent Financial Marketing Group, Keyport Life Insurance Company, Liberty Asset Management Company, Liberty Funds Group, Newport Pacific Management, and Progress Investment Management Company.

Putnam Lovell Capital Partners Inc.

Putnam Lovell Capital Partners Inc. is the private capital affiliate of Putnam Lovell Securities Inc. Putnam Lovell Capital Partners was formed to provide capital to developing companies active in the financial services industry. It sponsors and manages the Putnam Lovell partnerships of private and institutional investors totaling over $145 million. Putnam Lovell Securities Inc. is an investment bank focused on the financial services industry with a global practice in mergers and acquisitions, structured finance, equity research, sales and trading, and private capital.