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Tamarac Chosen By Tarpley & Underwood

CPA Firm Affiliate Recognizes Tamarac's Ability to Enhance Client After-Tax Returns

SEATTLE, WA, August 6, 2002 - Tamarac Inc. (www.tamaracinc.com), a leading provider of separate account management tools renowned for their unique abilities to provide tax efficiency and handle low basis stock, today announced the licensing of its product to Tarpley & Underwood Financial Advisors, LLC. Tarpley & Underwood Financial Advisors, LLC is an affiliate of Tarpley & Underwood PC, an Atlanta, Georgia based CPA firm with a 24 year history of providing tax and business advisory services to a wide range of individuals and closely held business.

"The Tamarac solution provides us with an efficient means to construct separate account portfolios for our affluent clients," said Roger Ward, CPA/PFS, CFP, director of the Tarpley & Underwood's financial advisory practice. "The portfolio construction methodology complements the primary areas in which we add value � strategic asset allocation for the achievement of a client's financial objectives and optimization of a client's after-tax returns. The ability to outsource the quantitative portfolio construction while controlling the portfolio implementation allows us to provide our intensely client focused services in a customized yet cost-effective manner."

"Our initial customers have been institutional money managers, TAMPs, RIAs and bank and trust departments," said Matt Springer, Tamarac CEO. "We are pleased now to have as a customer a CPA-affiliated financial advisory firm with such a strong awareness of the tax considerations of portfolio construction for individual clients. We know we are the only automated separate account management tool on the market right now that can optimize accounts to harvest tax benefits. This is a value added service that most other financial firms and money managers � even ones that offer separate accounts � simply do not offer their clients."

Earlier this summer, Tamarac announced the release of Version 3.0 of its product. The new release includes "pre-analysis" and "post-analysis" reporting features, allowing the user to easily view the differences between an existing portfolio and one that is "optimized" to generate tax benefits for clients. The reporting features also include a summary of tax information for a given portfolio encompassing tax rates, unrealized/realized gains and losses, calculation of tax cost or credit, and the top 10 gains and losses by tax lot.

In terms of scalable efficiencies, Tamarac 3.0 also 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.

"Everyone by now knows that separate accounts are the product of choice for the future of the financial services industry. This is true for both the big brokerage firms and program sponsors as well as the independent advisory firm," said Kevin Britt, Tamarac Vice President of Sales and Business Development. "The beauty of Tamarac is that we permit the firm or individual professional to automate the construction of separate accounts for clients, and thereby vastly scale their businesses. And Tamarac alone permits you to do this with automated tax efficiencies."

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