For Immediate Release                                     

Financeware Secures $8 Million in First Institutional Financing Round; TD iCapital Leads Investment

NEW YORK and RICHMOND, Va., June 13, 2000 – Financeware, Inc. (www.financeware.com), a leading application service provider for the financial services industry, today announced the completion of the company’s $8 million first round of institutional financing.  The company’s initial funding occurred in the fourth quarter of 1999 primarily from individual investors.  

TD iCapital, a venture fund launched by TD Capital and TD Waterhouse, is leading the round. TD Capital and TD Waterhouse, a leading online financial services firm and the world’s second largest discount broker, are both affiliates of TD Bank. Also participating in this financing are Mellon Ventures, Inc. and FBR Financial Fund II, LP.

Financeware will use these funds to continue product development and increase business development and marketing efforts. The company plans to offer an expanded suite of online tools that empower financial advisors by providing:

      ·        Presale & Practice Management
·        Planning
·        Implementation and Portfolio Accounting & Monitoring
·        Utility products that span the client cycle

The company’s first product, FinancialPlanAuditors.com, is one of the most powerful financial planning tools designed to answer the question: “Will I outlive my money?” The product is unique in that it uses probability theory not only to provide information, but also the likelihood of meeting stated goals. The product also allows real-time online collaboration between investors and their financial advisors. The product has nearly 6,000 registered users and represents advisors with nearly $4.0 billion in client assets under management.  

David Grossman, PhD of TD iCapital and John Adams of Mellon Ventures, Inc., will serve on the company’s Board as a result of the funding.

“With such strong financial backers, Financeware is now positioned to dominate the application service provider business for professional financial advisors,” said David Loeper, president and CEO of Financeware, Inc.  “This capital infusion will allow us to expand rapidly and the strategic partnerships that come with it will be invaluable to our company’s continued success.”

“We were attracted to Financeware’s strong management team and vision,” said David Grossman of TD iCapital.  Today over 600,000 professional advisors manage accounts for 34 million individual investors, and according to Forrester Research by 2003 will manage almost $14 trillion of household financial assets. “These advisors will need to use technology effectively to compete and provide the high level of service that high-net worth individuals require. The result is that we are very bullish on the company’s prospects of building on its leadership position to serve this rapidly growing market.”

About TD iCapital:

In early 2000, TD Capital and TD Waterhouse, launched TD iCapital, a venture fund targeting online-oriented financial-services investments.  By leveraging the strategic asset of TD Waterhouse, the second largest discount brokerage in the world, and the venture capital investment abilities of TD Capital, the fund is both a strategic and financial investor.  The fund has made commitments to 11 companies and is active in helping entrepreneurs build first-rate businesses.  For more information see www.td-icapital.com.

About Mellon Ventures, Inc.:

Mellon Ventures, Inc., (www.mellonventures.com), is the private equity partnership of Mellon Financial Corporation that invests in venture capital, leveraged buyouts and growth buildups.  Mellon Ventures currently employs twenty-eight investment professionals, and maintains offices in Atlanta, Los Angeles, New York, Pittsburgh, and Philadelphia.  Since its founding in 1995, Mellon Ventures has invested more than $444 million in 76 companies.

Mellon Financial Corporation (NYSE: MEL) is a global financial services company.  Headquartered in Pittsburgh, Mellon offers a comprehensive array of banking services for individuals and corporations and is one of the world’s leading providers of asset management, trust, custody and benefits consulting services.  Mellon has more than $2.8 trillion in assets under management, administration or custody, including more than $500 billion under management.  Its asset management companies include The Dreyfus Corporation and Newton Management Limited (U.K.).

About FBR Financial Fund II, LP:

FBR Financial Fund II, L.P. ("Fund II") is a private equity fund whose sole investment objective is to provide strategic, medium-term equity capital to growing financial services companies.  The institutional investors committed to Fund II include major banks, insurance companies and financial services firms. Fund II currently has 10 portfolio companies in stages ranging from venture capital to buyout.  Current areas of investment interest include finance technology, outsourcing and business services related to the financial services industry.  Fund II actively works with its portfolio companies post-closing to recruit talented management members, locate potential channel partners, implement operational efficiencies and recruit additional financial partners to fund future growth or acquisitions.

The fund is an independently operated affiliate of Friedman, Billings, Ramsey Group, (NYSE:FBR), Arlington, Virginia, an institutional brokerage, research and investment banking firm.

About Financeware, Inc.

Based in Richmond, Va., Financeware.com is a privately held company formed to develop and market online financial planning tools for professional financial advisors and their clients.  FinancialPlanAuditors.com (www.financialplanauditors.com), Financeware’s first Web-based financial planning tool, has had more than 4.5 million hits since its April 1999 launch and recently earned the Forbes Best of the Web designation.  Currently, more than 6,000 financial advisors are registered to use the site and assets on the system exceed $4.6 billion.  For more information see www.financeware.com.

Contact:

Shannon Jackson or Amy Greene
Financeware.com
(804) 644-4711  

Melissa Gitter
TD iCapital
(212) 806-3522

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