The London-based asset management subsidiary of Mellon Financial Corporation, Newton Capital Management Limited, will make its investment strategies available to institutional investors in the U.S. in the first quarter of 2006. A specialist in global equity, global fixed income, European equity and EAFE mandates, Newton has approximately $47 billion in assets under management, with global portfolios accounting for more than 70% of total institutional assets*.

Despite dramatic changes in market conditions over the last five years, Newton's EAFE (Europe, Australasia & Far East) equity composite has had strong performance. Newton has achieved a similar success in global equities and global fixed income. (Full disclosure information is available on request). In addition, Newton also ranks first in risk-adjusted performance in the Mercer global equity database against all global equity managers since inception**.

"A major reason that Newton is able to deliver strong performance is that we have successfully combined a bottom-up stock selection process within a clear global thematic framework," said Helena Morrissey, Newton's chief executive officer. Themes are Newton's interpretation of the major forces of global change, which results in a flexible approach to identifying areas likely to yield the best performing securities."

"Mellon has grown into one of the world's most successful asset managers as a result of strong performance, a variety of investment styles and a broad distribution platform under the Mellon umbrella", said Ronald P. O'Hanley, a Mellon Financial Vice Chairman and President of Mellon Asset Management "Now with Newton offering its strategies to the U.S. market, we are building on our efforts to offer the widest range of investment options across styles, disciplines and asset classes in the industry."

Morrissey added that Newton has structured its organization to think globally at all levels, from the macro forces of change, through to markets, sectors and companies. "Our analysts have global, not regional, sector responsibilities and work in an open plan environment to facilitate interaction and swift decision-making," she said.

Morrissey said Newton is firmly committed to the U.S. market. "We have a great performance story to tell U.S. institutional investors, we have hired a very high calibre professional to build our relationships and we intend to provide a genuine alternative to those seeking a different, yet highly effective, investment style."

To drive the client servicing and sales effort locally, Ciarán Spillane has been appointed as head of the U.S. business. Based in New York, Spillane will be responsible for developing relationships with leading U.S. investment consultants and institutional investors and driving the growth of Newton in the U.S. Spillane was educated in Ireland and has almost a decade's experience in managing relationships with U.S. institutional clients including prominent public and corporate pension funds, endowments and foundations as well as subadvisory relationships. He joins from Bank of Ireland Asset Management Group where he was most recently Director of Client Service at its U.S. subsidiary, Iridian Asset Management. He will report to Mark Scott, Head of the Institutional Business at Newton. A second U.S.-based relationship manager will be announced shortly.