Monday 22nd of December 2003

Here are some local points of interest about the attached global media release about the acquisition of global private equity specialists Pantheon by Russell Investment Group and the incorporation of Pantheon's services into Russell's global and local investment solutions. The news means New Zealand investors will enjoy greater access to private equity opportunities. Pantheon currently manages US$7 (approx. NZ$12 billion) of private equity fund-of-funds assets. The agreement demonstrates the growing global appetite for private equity funds-of-funds. In New Zealand, Russell Investment Group is a leading investment services firm; it advises on more than NZ$13 billion in assets and invests over NZ$1.0 billion for New Zealand investors in Russell's multimanager funds. Dr Ed Schuck, Director of Business Operations for Russell in New Zealand, says the announcement is a reflection of the increasing importance of alternative assets as investors seek other sources of return. “Managing private equity investments is a specialist activity and by far the best course for most clients is a fund of funds approach through a commingled pool or separate account,” says Dr Schuck.“While Russell’s services in this area have a fine reputation, the acquisition of Pantheon will provide Russell's New Zealand investors with a much broader, well-resourced investment process. It will enable us to offer a wider range of products and will give us a leadership role in this increasingly important area of investment.” Please note the announcment is of an agreement, which is subject to regulatory approvals before it takes effect. Any further queries, or to talk to Ed Schuck, call me on 021 2177 114 or email me at clementj@ihug.co.nz Regards Jane NEWS RELEASE FOR IMMEDIATE RELEASE: 22 December 2003 Russell to acquire Pantheon; Global private equity specialist joins leading multi-manager firm Russell Investment Group, a leader in multi-manager investing, and Pantheon, the global private equity fund-of-funds specialist, have agreed to an acquisition incorporating Pantheon’s premier private equity services into Russell’s global investment solutions. Pantheon is to become Russell’s solution for global private equity funds-of-funds. The agreement is jointly announced by both firms and demonstrates the growing global appetite for private equity funds-of-funds. Pantheon will become Russell’s solution for private equity services, providing an enhanced and specialised capability within Russell’s broader range of investment services. Pantheon will remain exclusively focused on private equity services and clients, and will continue to serve clients from the firm’s offices in London, Brussels, San Francisco and Hong Kong. Russell, which has its own private equity fund-of-funds business, will integrate services with Pantheon to deepen its private equity capabilities as part of a complete range of multi-manager investment solutions. Pantheon currently manages US$7 billion of private equity fund-of-funds assets. “We are thrilled to have found such an ideal strategic fit between Russell and Pantheon,” said Hal Strong, managing director of alternative investments at Russell. “This agreement represents our increased commitment to private equity, and we absolutely believe in Pantheon as the premier provider of this specialised service. Our goal is for Pantheon to continue to offer excellent private equity investment services to its clients, and this acquisition will allow Russell’s private equity business to be organised and managed under Pantheon’s leadership.” “This relationship marks the beginning of a new and exciting phase in Pantheon’s development at a time when we see tremendous potential in private equity,” said Rhoddy Swire, founder and senior partner of Pantheon. “We are delighted to find a firm that shares our vision and commitment to the private equity business. We look forward to working closely with Russell for the benefit of our clients and employees.” The transaction is due to be completed once statutory approval is received. The respected Pantheon brand name will remain in use, and management of Pantheon will remain unchanged. Both Russell and Pantheon share a common vision for the development and potential of the private equity business, and have a mutual commitment to client service and the multi-manager approach to asset management. Both firms have been pioneers and leaders in multi-manager offerings. “Our move to be a part of the Russell organisation will, above all, enhance the services we provide to our clients,” said Swire. “Our expertise is and will remain focused on private equity. We are enhancing our business with Russell’s quality of research, scale of resources and leadership position in the multi-manager marketplace.” “We have been advising clients for several years that private equity should be a component of institutional investment portfolios,” said Strong. “In the long run we believe that private equity will provide higher returns than listed equities, and these excess returns are an important part of helping investors to achieve their overall return targets.” ****** Pantheon was advised on the transaction by Hawkpoint Partners and SJ Berwin and Russell by Goldman Sachs and Debevoise & Plimpton. Financial details of the transaction will not be disclosed. The transaction is subject to regulatory approvals and will take effect once these are received. About the Companies Pantheon (www.pantheonventures.com) is a leading, independent global provider of private equity investment products and services. Within a global staff of more than 60, its 34-strong team of investment professionals combines more than 300 years’ private equity experience. Since 1982, the firm's stable management team has remained disciplined and focused on the proactive screening, selection and management of private equity fund programmes. Pantheon has produced a long-term track record of superior returns over numerous economic cycles. It develops and implements private equity investment strategies for over 150 global institutional investors; its product and service offerings include regional funds-of-funds in the USA, Europe and Asia, customized separate account programmes and global secondary funds. Pantheon also acts as manager to Pantheon International Participations PLC (“PIP”), the world’s first quoted private equity fund of funds, launched in 1987 and listed on the London Stock Exchange. With investment teams strategically located in the USA, Europe and Asia, Pantheon actively manages investment relationships with approximately 500 private equity partnerships in 30 countries. This existing fund portfolio provides access to some of the world's leading buyout and venture capital partnerships. Russell Investment Group (www.russell.com/au), a global leader in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages more than $130 billion in assets and advises clients worldwide representing more than $3.0 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Washington USA., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland, Tokyo, Johannesburg, Amsterdam, Geneva and Madrid. Russell provides full-range investment services to retirement plans, foundations, endowments and investment plans of all types. Clients include the pension plans of global corporations such as AT&T, Compaq, BHP Billiton and General Motors. More than 40 million individual investors have access to Russell's services through a network of alliances that includes many of the world's top banks, brokers, insurance companies and independent investment advisors. CONTACTS: Russell Investment Group Jane Clement – Auckland 021 2177 114 clementj@ihug.co.nz Pantheon Rhoddy Swire - London +44 20 7484 6200 Carol Kennedy – London +44 20 7484 6200 David Braman – San Francisco +1 415 249 6200 Russell Investment Group is a registered trade name of Frank Russell Company, a Washington USA corporation, which operates through subsidiaries worldwide. This news release is issued by Russell Investment Management Ltd ACN 068 338 974. Frank Russell Company is a subsidiary of The Northwestern Mutual Life Insurance Company. MKT 691 1203