Press Releases

Mellon's U.K. Subsidiary To Buy Henderson's Private Asset Management Business
—Newton's share of core U.K. charities and private client investment management market to be bolstered by Henderson's successful niche business—

PITTSBURGH, May 8, 2002—Mellon Financial Corporation [NYSE: MEL] today announced that Newton Investment Management Limited, its primary U.K.-based asset management subsidiary, has entered into an agreement to acquire Henderson Global Investors' private clients and charities asset management business, which is branded Henderson Private Asset Management (HPAM). It is expected that the transaction will be completed in August 2002 and that HPAM staff will transfer to Newton in the third quarter of this year. Terms of the agreement were not disclosed.

"Mellon has a long and deep commitment to the private client investment market. This agreement is a wonderful opportunity for Newton to further consolidate its position in the U.K. market and underlines Mellon's commitment to continue to grow its successful, core asset management businesses in Europe," said Ronald P. O'Hanley, Mellon vice chairman and president of Mellon Institutional Asset Management.

HPAM manages approximately $1.366 billion on a discretionary basis on behalf of more than 1,000 high net worth individuals, private trusts and charities. All HPAM staff will transfer to Newton's Private Investment Management (PIM) division on completion.

The transaction combines two of the U.K.'s leading private client investment management operations and will result in Newton's private client and charities funds under management rising by 25 percent to approximately $7.4 billion. The acquisition marks a significant step in the development of Newton's private investment management business, which has won the top awards for service quality among affluent investors in the prestigious U.K. Private Asset Managers survey for four consecutive years.

"We're delighted that Henderson chose us as their preferred buyer for the business. Each of us enjoys strong reputations for client service and investment returns, and the synergies were clear from the moment we began our discussions with Henderson," said Mark Rayward, managing director of Newton PIM. "The acquisition underlines Newton's long-term commitment to growing our share of the private client and charities asset management market on the back of award-winning service."

"While our private asset management business is a successful U.K.-based niche business, Henderson does not believe it is a capability which we can leverage internationally. We are confident that Newton has the commitment, resources and reputation to grow the business and that the transition will not in any way affect the investment management service which is provided to private asset management clients," said Roger Yates, managing director of Henderson.

Henderson is the investment management subsidiary of AMP, the international financial services group, and manages more than $151 billion in assets and employs more than 1,600 people worldwide. It provides a wide range of investment products and services to institutions and individuals in Asia Pacific, Europe and both North and South America. News and other information about Henderson is available at www.henderson.com.

AMP provides wealth management products and services to approximately 8 million customers worldwide. Principal activities include retirement savings, funds management, life insurance, financial planning and banking services. AMP operates in 16 markets around the world with a significant and efficient domestic presence in Australia, New Zealand and the UK. AMP has some 15,000 employees and planners worldwide, manages assets of more than $156 billion and has a market capitalization of approximately $11.87 billion.

Newton Investment Management Limited has assets of almost $32.3 billion and provides a broad range of award-winning investment products and services to individuals, pension funds, charities and corporations. Newton is based in London and has offices in Edinburgh, Leeds, Guernsey and the Isle of Man. News and other information about Newton is available at www.newton.co.uk..

Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and affluent individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, human resources services and treasury services. Mellon has approximately $3 trillion in assets under management, administration or custody, including $610 billion under management. Its asset management companies include The Dreyfus Corporation and U.K.-based Newton Investment Management Limited. News and other information about Mellon is available at www.mellon.com.