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New TamaracT Release Enables Distribution of SMAs, MSAs, MDAs on a Mass Scale

Tax-Efficient and Customized Separate Accounts in All Flavors Can Now be Delivered by Large Brokerage, Sponsor and Institutional Money Management Firms

SEATTLE, WA, July 11, 2002 - Tamarac Inc. (www.tamaracinc.com), a leading provider of tax-efficient separate account management tools renowned for their unique abilities to provide tax efficiency and handle low basis stock, today announced the availability of Tamarac Version 3.0. Tamarac 3.0 introduces functions that make the product suitable for brokerage houses, sponsors and money managers seeking to distribute separately managed accounts, multi-strategy accounts and multi-disciplinary accounts on a mass commercial scale.

"Our initial customers have been institutional money managers, TAMPs, RIAs and bank and trust departments," said Matt Springer, Tamarac CEO. "Most of the new functionality and features in 3.0 were designed to satisfy the demands of brokerage firms, separate account sponsors and other large firms we are now talking to who want to use Tamarac to power SMA, MSA and MDA programs and asset management initiatives. These firms need to be able to process dozens, hundreds or even thousands of portfolios at the same time."

Of particular interest to large institutional clients, Tamarac 3.0 introduces portfolio filtering functionality and batch optimization capability. A portfolio filter allows the user to aggregate and work with a user-defined subset of portfolios. The user can define the filter based on various characteristics (such as, for example, a particular benchmark common to various accounts, tracking error parameters, or specific equity holdings different accounts have in common). Batch optimization capability allows the user or the firm to select any number of portfolios to be optimized all at once with the click of a button. If a user has previously created a portfolio filter, he or she can simply choose that set of portfolios to run in a batch.

"Our product has already well served professionals who manage numerous accounts and want to manage many more at a sophisticated level beyond what can be done without our technology," said Joe Snell, Chairman of Tamarac. "Tamarac Version 3.0 now shows that we serve not just those who manage a lot of accounts, but entire enterprises that manage people who manage a lot of accounts." The filtering and batch optimization characteristics introduced by Tamarac Version 3.0 complement the rebalancing functions, tracking error reporting, block trade capability, and compliance checking functions already inherent in prior versions of the product. These back end features are useful at both the individual broker and firm administrative levels.

"With the new features in this release, managers will increase the back office efficiencies in managing separate accounts on scale," said Kevin Britt, Tamarac Vice President of Sales and Business Development. "Given our recent integration with current industry leading back-office accounting and reporting systems such as those offered by Advent Software and other companies we will be announcing in coming weeks and months, we think Tamarac will emerge as the value-add engine of choice for large scale, brand name SMA, MSA and MDA-type offerings as those vehicles take off and take asset-share away from traditional mutual funds. And I include in this the forward thinking mutual fund complexes that see the writing on the wall and are moving into SMA-style products themselves."

Of further interest to Tamarac customers, including existing institutional money manager, TAMP, RIA and bank and trust clients, are the enhanced reporting features also now available in Version 3.0. The new release included "pre-analysis" and "post-analysis" reporting features, allowing the user to easily view the differences between an existing portfolio and an optimized one. This includes summary of tax information for a given portfolio including tax rates, unrealized/realized gains and losses, calculation of tax cost or credit, and the top 10 gains and losses by tax lot.

Tamarac Version 3.0's enhanced reporting features also introduce a new set of graphs which show the maturity of a portfolio's gains and losses, that is, the time it will take for the short term gains/losses to mature into long term gains/losses. Other visual features include: visual representations of how diverse a portfolio is, comparing the industry sector allocation to that of its benchmark as well as presenting information about the portfolio's top 10 holdings; and a display showing sectors, securities and restrictions that are out of compliance.

About Tamarac Inc.

Founded in 2000, Tamarac focuses on web-based portfolio rebalancing and trading software and consulting services for investment professionals that enable them to grow their business by automating critical portfolio management tasks. Tamarac is the leading portfolio rebalancing software provider with a collective client AUM in excess of $100 billion. Tamarac maintains over a 95% client renewal rate by working with each client to implement its technology and providing continuous support.

Tamarac is headquartered in Seattle, WA. Its website address is: http://www.tamaracinc.com