Leading Financial Advisory Software Firm Financeware Raises $8 Million

The Northwestern Mutual Life Insurance joins all original investors in second round of institutional funding

MILWAUKEE, WI and RICHMOND, VA. (August 28, 2001) -- Financeware, Inc., a Richmond-based provider of probability analysis technology and marketing strategies for financial advisors and institutions, announced today the completion of a second round of institutional financing worth $8 million. The Northwestern Mutual Life Insurance Company led the round. Financeware is in discussion with several potential follow-on investors who may join the round in the next thirty days.

"Our investment in Financeware was driven by the company's success in the market, its strong alliances, and its position as a thought-leader in emphasizing the ever-increasing value of professional advice," Mark Kishler, Director of Investments in Northwestern's Securities Department, said.

Financeware has pioneered the concept of wealthcare, a new approach to financial advice that couples the design and deployment of knowledge-based software with a goals-oriented advising process. The company counts among its partners The Thomson Corporation and Advent Software. Proceeds from the round will be used to continue to grow its core business of empowering financial advisors to provide better advice to their clients.

"This latest round of financing validates Financeware's progress to-date in terms of technology deployed and, more importantly, market acceptance," David B. Loeper, Financeware CEO, said. "By participating in this round, all of our existing institutional investors demonstrated tremendous confidence in Financeware's business model and the team we have built to execute this model. Having one of the country's premier insurance companies join us in our vision is an endorsement of which we are very proud."

In addition to The Northwestern Mutual Life Insurance Company, the round included participation from all of Financeware's previous institutional investors, including TD Capital Technology Ventures, Mellon Ventures, L.P., and FBR Financial Services Partners, L.P. TD Capital Technology Ventures led Financeware's first institutional round. Keefe, Bruyette & Woods, Inc. served as the company's financial advisor and placement agent for the current financing round.

ABOUT FINANCEWARE:

Based in Richmond, Va., Financeware is powering the future of financial advice through a unique suite of online analysis and client collaboration tools for financial advisors. These tools, coupled with a goal-based advising approach called wealthcare, allow advisors to improve their clients' chances of succeeding financially. Information about the company is available online at www.financeware.com. Founded in 1999, the company is privately held. Prospective investors should contact Robert Wilson, CFO, at 804.644.4711.

ABOUT THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY:

Northwestern Mutual, the nation's leading provider of individual life insurance, has always received the highest possible ratings for financial strength from Standard & Poor's, Moody's, Fitch (formerly Duff & Phelps) and A. M. Best. Besides life insurance, the Company and its subsidiaries are also providers of annuities, mutual funds, long-term care insurance and disability income insurance. In its category, it was named the most admired company in the world in Fortune's latest corporate reputation survey. The Company is affiliated with the Northwestern Mutual Financial Network and its 7,500 Financial Representatives who provide expert guidance on insurance, investment products and services, retirement and estate planning, education funding and employee benefits. Among Northwestern Mutual's majority-owned subsidiaries are the Frank Russell Company, the investment management and advisory firm; Robert W. Baird & Co. Incorporated, the securities brokerage firm; and the Northwestern Mutual Trust Company. The Trust Company offers a full range of personal trust products and services, as well as investment management services. Further information on Northwestern Mutual, based in Milwaukee, Wisconsin, can be found at: www.northwesternmutual.com.

ABOUT TD CAPITAL TECHNOLOGY VENTURES:

Based in Boston, Massachusetts, TD Capital Technology Ventures, a division of Toronto Dominion Capital (USA) Inc., is part of TD Capital, the private equity arm of TD Securities. The newly launched TD Capital Technology Ventures fund seeks investments in early- and growth-stage companies with significant technology assets and invests in market opportunities spanning multiple industry sectors. Specifically, TD Capital Technology Ventures focuses on investments in enterprise software, IT infrastructure and communications software and hardware. Investments are also made in later-stage financial services opportunities. For more information, go to www.tdcapital.com.

ABOUT MELLON VENTURES, L.P.:

Mellon Ventures, Inc., an affiliate of Mellon Financial Corporation, makes equity-related investments of between $3 million and $25 million in rapidly growing operating companies. With offices in Atlanta, Los Angeles, New York, Philadelphia, and Pittsburgh, Mellon Ventures, Inc. invests at all stages of the growth cycle, from early-stage venture capital to later-stage growth financings and buyouts. Mellon Ventures currently has over $1.1 billion under management. Additional information is available at www.mellonventures.com.

Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of asset management, trust, custody, benefits consulting and administration, and shareholder services, and offers a comprehensive array of financial services for affluent individuals, institutions and corporations. Mellon has more than $2.8 trillion in assets under management, administration or custody, including more than $585 billion under management. Its asset management companies include The Dreyfus Corporation and Newton Investment Management Limited (U.K.).

ABOUT FBR FINANCIAL SERVICES PARTNERS, L.P.:

FBR Financial Services Partners, L.P. (www.fbr.com) 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 FBR Financial Services Partners, L.P. include major banks, insurance companies and financial services firms. The fund 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. FBR Financial Services Partners, L.P. 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.