Prudential Securities Acquires Volpe Brown Whelan

Business Wire, Dec 13, 1999

NEW YORK--(BUSINESS WIRE)--Dec. 13, 1999--

- Combines Volpe's Technology Banking Expertise with Prudential's

Global Reach

- Expands Prudential's Banking Capabilities for Emerging Technology

Companies

Prudential Securities Incorporated announced that it has acquired Volpe Brown Whelan & Company, a leading technology investment bank. The acquisition expands greatly Prudential Securities' presence in the technology sector, and the new unit will be known as the Prudential Volpe Technology Group. It follows Prudential Securities' July acquisition of Vector Securities International, a leading healthcare investment banking firm, which resulted in the creation of Prudential Vector Healthcare Group.

"The Volpe Brown Whelan acquisition establishes us as a key player in the vital technology business," said Hardwick Simmons, President and Chief Executive Officer of Prudential Securities.

"Volpe Brown Whelan's focus on small and mid-size companies facing rapid growth fits in perfectly with our `middle-market' strategic focus. Not only does the acquisition augment our technology practice, it also greatly expands our presence in northern California, which is critical for any investment bank competing for technology business today."

"By combining resources with Prudential Securities, we will be able to maintain and expand our focus on emerging technology companies, preserve our entrepreneurial operating style and deliver superior global distribution, after-market support and expanded product opportunities to our clients," said Thomas Volpe, the firm's Founder, President and Chief Executive Officer. "Our team is excited by the opportunity to become the financial partner of choice to the best, and most exciting, emerging technology companies."

The new entity, the Prudential Volpe Technology Group, will be managed by Thomas Volpe and Robert Whelan, who will report to Paul Scura, Executive Vice President and head of investment banking at Prudential Securities. The Prudential Volpe Technology Group will incorporate Prudential Securities' existing technology banking group and be headquartered in San Francisco. Additionally, the private equity arm of the combined business will operate as Prudential VBW Asset Management. The entire entity will be part of Prudential Securities' Capital Finance Group, run by Vincent T. Pica, II, within which the firm operates its investment banking, institutional equity trading and sales and global equity research businesses.

"The combination of Volpe Brown Whelan, with its deep product knowledge, highly focused technology and internet research and highly regarded investment banking expertise with Prudential Securities' capital, banking strength and research capabilities creates a very formidable presence in the marketplace," Mr. Pica said. "The acquisition gives Volpe's clients access to Prudential Securities' global distribution reach, encompassing institutional, retail, international and, now via PrudentialSecurities.com, Internet investors."

Volpe Brown Whelan offers investment banking, research, institutional equity sales and trading, and money management to technology companies. Since 1992, the firm has lead or co-managed more than 220 public offerings with an aggregate value of more than $12 billion. During the same period, Volpe Brown Whelan has provided financial advisory and M & A services to over 70 companies with an aggregate transaction value of more than $8 billion. Volpe Brown Whelan and its partners have also raised over $500 million of private equity for early and late-stage private companies. Volpe Brown Whelan also manages private equity investments.

On a proforma basis, Volpe Brown Whelan and Prudential Securities have been the lead or co-manager on 64 technology public offerings year-to-date in 1999 with an aggregate value of nearly $6 billion.

Volpe Brown Whelan was one of the last remaining independent investment banks dedicated to emerging growth companies. It has approximately 220 employees with offices in San Francisco, Boston and Seattle.

Volpe Brown Whelan focuses on companies involved in the Internet (including consumer content, consumer e-commerce, e-finance, e-marketing, e-business platforms and applications, business-to-business infomediaries, and e-business services), Communications (including Internet infrastructure, wireless technology, communications software and communications services) and Enterprise Software (including enterprise infrastructure management, information security, information services and business intelligence software).

Volpe Brown Whelan was founded in 1986 by Thomas Volpe, former President and Chief Executive Officer of Hambrecht & Quist. Paul W. Brown joined the firm from Hambrecht & Quist in 1989 to establish and run the firm's healthcare group. He is a founding partner of Volpe Brown Whelan's Bedrock Capital Partners and concentrates on private investments in early-stage healthcare and technology companies. Robert M. Whelan, Jr. joined the firm in 1992, having been a Managing Director at Prudential Securities and head of the corporate finance department of Hambrecht & Quist.