Invesmart Completes Series-B Funding With $71 Million Investment Led by Investor AB and Including Softbank Venture Capital, Crosspoint Venture Partners and Mellon Ventures

Business Wire, July 11, 2000

Business Editors

PITTSBURGH--(BUSINESS WIRE)--July 11, 2000

Invesmart (www.invesmart.com), the nation's largest independent, full-service retirement financial services company, today announced that it has received funding of $71 million of its Series-B Preferred Stock.

Funding has been provided by Investor AB, SOFTBANK Venture Capital, Crosspoint Venture Partners, and Mellon Ventures. The lead investor in the private placement of Invesmart Series-B Preferred Stock is Investor AB in conjunction with its wholly owned subsidiary Investor Growth Capital. This placement of equity securities follows Invesmart's placement of Series-A Preferred Stock in the amount of $25 million that was closed and received during the last four months of 1999.

This investment positions Invesmart to continue its national growth and acquisition strategy, enhance the development of its web-based technology and expand its marketing and branding efforts. The Series-B funding primes Invesmart to be a leader in the retirement financial services space with a complete offering unmatched in the industry.

"We have been working hard to create a solid business model that investors will find appealing," said Jeb Britton, Co-Founder and CEO of Invesmart. "The fact that we were able to raise significant capital without the assistance of an investment banker and in a time when investors are evaluating companies on stricter standards attests to the fact that we have a solution that works."

Through the simplification of retirement plan design and administration, Invesmart offers a new approach to the retirement financial services industry. This innovative approach combines the best of traditional and online retirement services to create the first comprehensive and fully customizable retirement plan design and administration offering -- without investment bias.

"Invesmart has a remarkable understanding of this market and the opportunities that exist for innovation and modernization," said Scott Russell, principal managing director of SOFTBANK Venture Capital. "Additionally, the management team brings incredible depth and breadth of experience to the company. Their intimate knowledge of retirement financial services gives them the insight needed for success."

"We view Invesmart as a high-growth financial services company, not strictly an Internet play," said David Lee, Investor AB. "Invesmart is out in front of any other player in this arena and we believe their strategy would be difficult to replicate for anyone entering this market. Their thinking on unbiased advice and flexible investment options makes them a real innovator in this space."

Invesmart solves the dilemma that retirement plan sponsors have traditionally faced: sacrificing personalized service from a local provider in exchange for the resources a large national retirement services firm can provide. To alleviate this problem, Invesmart has designed a retirement plan solution that provides complete services to clients: blending comprehensive, objective choice, unbiased advice and advanced technology to create a client-focused solution. Each client receives the level of service and individual attention they require as well as the option of working with a retirement consultant in their local Invesmart office, using the call center and/or accessing the online planning tool -- iGuide(TM).

"Invesmart has demonstrated remarkable innovation in a market demanding it," said Chuck Billerbeck, Mellon Ventures. "As a result, the company has acquired more than 300,000 participants and over 3,600 plans within nine months of its inception. We are excited to help fund this technically-advanced company as it transforms this market by fundamentally changing the retirement services industry."

"Invesmart is a model for the new economy -- a company using technology to change the basic fundamentals of an old economy structure," said Bob Hoff, Crosspoint Venture Partners. "They provide the thought-leadership to address these current problems and deliver a comprehensive, Internet-based retirement solution that is beneficial and easy for both plan sponsors and participants to use."

"Invesmart is a powerful example of how traditional businesses can be revolutionized as they leverage the Internet as a foundation of their business. This company has an unprecedented opportunity to redefine the way retirement investing is done," said Bruce Gilpin, Principal at Intend Change and member of the Invesmart Board of Directors. "Through its unique approach, Invesmart will be able to continue its strategy to create a national infrastructure, and quickly establish a compelling and efficient way for individuals and companies to manage retirement investments on the Internet."

About Invesmart

Invesmart is the nation's largest independent, full-service retirement financial services company. By offering an unmatched selection of independent investments and unbiased advice products, combined with innovative Internet technology, Invesmart enables employers and employees to invest smart so they can retire right. The company, which has offices nationwide, is headquartered in Pittsburgh, PA, and has over $4.5 billion in assets under administration and represents over 3,600 plans and over 300,000 participants. Invesmart is backed by Investor AB, SOFTBANK Venture Capital, Crosspoint Venture Partners and Mellon Ventures and has an agreement with Morningstar Associates, LLC to provide investment advice services through Morningstar ClearFuture(SM). To learn more about the company, please visit www.invesmart.com.