Placemark's Managed Asset Total Tops $3 Billion

- Overlay manager raises new venture capital funding for expansion -

DALLAS and WELLESLEY, MA, September 7, 2006 – Placemark Investments, the investment industry's leading overlay manager, is pleased to announce that assets under management rose to over $3 billion at the end of August.

The increase in assets under management follows the launch of new Unified Managed Account (UMA) programs by financial institutions using Placemark Investments as overlay manager, and continued rapid new account growth and increased advisor adoption within established UMA programs. Placemark, based in Dallas, Texas, and Wellesley, Massachusetts, employs approximately 80 people.

To manage the company's growth as the industry's provider of choice for overlay management services, Placemark recently raised approximately $10 million in additional venture capital funding to expand operations. The capital will be used to make new investments in technology infrastructure to serve new and existing clients, expand Placemark's capabilities, and develop new distribution channels worldwide. IDG Ventures Boston, a new investor, led this latest round of funding, with participation also from existing investors Ascent Venture Partners, Boston; North Hill Ventures, Boston; and RBC Technology Ventures, Toronto.

"We are well-positioned to take advantage of the explosive growth in the unified managed account marketplace and are pleased that our investors see great opportunity in backing Placemark's expansion plans," said Lee Chertavian, Placemark's Chairman and Chief Executive Officer. "We're delighted to welcome our new investor, IDG Ventures, and are honored that Chip Hazard, a General Partner at IDG Ventures Boston, is joining Placemark's Board of Directors.''

Assets in UMA-type products – fee-based investment solutions that combine multiple investments such as separately managed accounts, mutual funds, and ETFs into customized portfolios – are projected to increase by 40-50% annually to $500 billion in assets by 2010, according to research published by the Washington, DC-based Money Management Institute, an industry association.

Placemark's overlay management services allow sponsors to develop custom UMA programs designed to meet the needs of high-net-worth advisors and their clients. Over 30,000 advisors and their clients in the US and Canada have access to UMA programs managed by Placemark. Placemark offers a robust UMA solution to financial institutions, working with their preferred separate account managers, mutual funds, ETFs, hedge funds, and other investment products. Placemark currently works with over 200 separate account investment styles provided by over 120 industry-leading investment managers.

The firm also offers highly customized investment solutions, implementing transition plans for clients in concentrated positions or portfolios with deeply embedded gains, and tailoring client portfolios for individual tax and risk requirements. Approximately 30% of Placemark's assets are managed using the firm's tax customization and transition services. The ability to integrate a sponsor's preferred roster of products and SMA managers, combined with flexibility in features and back-office systems support, has made Placemark the overlay manager of choice for sponsors developing custom UMA program.