Press Releases

Newton Appoints New Managers to Lead Newton Income & Growth Strategies

LONDON, 20 December, 2005 — Newton Investment Management Limited has appointed Nick Clay and Rob Marshall-Lee as joint managers of the Newton Income Fund and Richard Wilmot as manager of the Newton Growth fund. Glen Pratt will be leaving the company.

The Newton Income (£1.1bn**) and Newton Growth (£71m**) funds have followed a consistent investment strategy for some time. The change reflects Newton's desire to create greater differentiation between the two strategies. The Newton Income fund will retain its longstanding focus on income and capital growth. The Newton Growth fund will return to its original focus on capital growth across the full spectrum of the UK equity market.

Nick Clay has over 15 years as a fund manager and joined Newton in November 2000 as a specialist benchmark manager. As senior fund manager he heads a team of three managing 12 funds with a combined value of £1.8bn; predominantly pension funds with a high UK content. He is also the lead manager on Newton Managed Fund.

Rob Marshall-Lee joined Newton in 1999 as a global industry analyst. He has had responsibility for, among others, the Mining, Paper, Steel, Utilities and Tobacco sectors, with coverage of all on a global basis.

Richard Wilmot joined Newton in 1999 and has managed the Newton UK Smaller Companies Exempt fund since 2001.

In addition Newton is pleased to announce that Paul Stephany has joined the UK equity team as assistant fund manager. Stephany is a Chartered Accountant and joins from PricewaterhouseCoopers.

Newton's investment process is research-driven and based on the best ideas of Newton's 22 analysts and strategists. As one of the pioneers of thematic investing, Newton's approach identifies themes and trends that are influencing, or are likely to influence, economies or stock markets across the globe. It is not an approach that can be successfully achieved by individuals. The collegiate culture at Newton encourages this ideas-based approach, which is crucial in identifying the companies that offer the very best prospects for growth.

Commenting on the change, Jeff Munroe, Chief Investment Officer at Newton Investment Management, said:

"We have been examining the recent performance of these two funds and looking at ways in which we could produce consistently strong returns for investors whilst re-establishing the capital growth orientation of the Newton Growth fund. These new internal appointments achieve this aim and we are excited about the opportunities this new focus will bring."

Newton Investment Management Limited is a London-based UK asset management subsidiary of Mellon Financial Corporation. With assets under management of almost £27 billion, the company provides a broad range of award-winning investment products and services to individuals, pension funds, charities and corporations. Newton has operations in London, Edinburgh, Leeds and Jersey. 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 high net worth individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, payment solutions and investor services, and treasury services. Mellon has approximately $4.5 trillion in assets under management, administration or custody, including $766 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.

Newton Income Fund & Newton Growth Fund are sub-funds of the Mellon Investment Funds ICVC (Investment Company with Variable Capital) and the investment adviser is Newton Investment Management Limited. The Authorised Corporate Director is Mellon Fund Managers Limited which is authorised and regulated by the Financial Services Authority and a member of the IMA.

*Subject to FSA approval.  **As at 30 November 2005.