Will Now Offer Investment Advisory Services to Third-Party Institutions ST. LOUIS, Nov. 22 /PRNewswire-FirstCall/ -- With the creation of Gallatin Asset Management, Inc., St. Louis-based financial services firm A.G. Edwards, Inc., is marketing its existing in-house investment management capabilities to third parties -- such as mutual funds and insurance companies -- in a subadvisory capacity. Composed of the firm's investment and advisory research professionals, Gallatin operates as a stand-alone enterprise and will continue to serve the brokerage firm's retail client base while providing services for outside institutions. The firm will earn management fees for the asset management and advisory services it provides third parties as a subadvisor. In this capacity, Gallatin Asset Management will oversee the investments within certain programs offered by outside companies by managing portfolios, providing asset allocation models or selecting portfolio managers. For example, Gallatin recently initiated its first subadvisory relationship with Met Investors Advisory LLC -- an offering through MetLife Investors, an affiliate of MetLife -- agreeing to provide investment advisory services for two of the exchange- traded fund portfolios within one of the insurance company's variable annuity products. "Our new Gallatin subsidiary will grow our assets under management in our advisory programs and enable us to broadly offer our asset management expertise to the institutional market," said Peter M. Miller, chairman of Gallatin Asset Management, Inc. "By extending our managed money platforms, we will be able to add assets under management without adding significant incremental costs to the firm. At the same time, the management fees generated from these subadvisor relationships will add a new source of income to help us expand our overall revenue stream." Over the past several years, A.G. Edwards' fee-based advisory services have grown significantly, with asset-management and service-fee revenues accounting for 38 percent of the firm's total net revenues today, compared with just 19 percent in fiscal-year 2000. In addition, nearly 10 percent of A.G. Edwards' total client assets today are held in fee-based accounts, versus just more than six percent in fiscal 2000. Through its brokerage subsidiary, A.G. Edwards & Sons, Inc., the firm will continue to provide its clients with a wide array of portfolio offerings and will look for opportunities to expand its current selection. Gallatin will provide asset management or select portfolio managers for the brokerage firm's client accounts, and the structural changes involved in creating the Gallatin subsidiary will not interfere with the service provided to the firm's existing retail client base. About A.G. Edwards Drawn to the firm's client-first philosophy, individuals and businesses have turned to A.G. Edwards & Sons, Inc., for sound advice and access to a wide array of investment products and services that can help them meet their financial goals and objectives. Founded in 1887, A.G. Edwards and its affiliates employ nearly 7,000 financial consultants in more than 700 offices nationwide and two European locations in London and Geneva. More information can be found on http://agedwards.com/ . How we do business Gallatin Asset Management provides investment management services. A.G. Edwards & Sons, Inc.'s obligations may vary depending on whether it acts as investment advisor or broker-dealer. Please consult "Important Information About Your Relationship With A.G. Edwards" on http://agedwards.com/disclosures for a discussion of the differences between brokerage and advisory services. A.G. Edwards & Sons, Inc. Member SIPC DATASOURCE: A.G. Edwards & Sons, Inc. CONTACT: Byron Goodrich of A.G. Edwards & Sons, Inc., +1-314-955-3235, Web site: http://www.agedwards.com/

Copyright