Fidelity Transitions Leverages Business Transitions, Berkshire Capital Corp., Practice Merger Consultants and Others to Help Advisors Realize Maximum Value for Their Practices

BOSTON, March 30, 2005 - When the financial services industry thinks of Baby Boomers, thoughts typically turn toward the massive wave of Americans poised to retire; however, given that nearly half of principals in independent advisory firms are over age 50, the baby boom effect also has significant implications among advisors themselves -- as their retirements will significantly increase the transfer of investment practices.

With this in mind, Fidelity Investments today announced that it will be launching a comprehensive transition program designed to assist advisors in the various stages of their practice life-cycle build and realize the maximum value for their business.

Fidelity Transitions will offer advisors information and education on the broad array of transition options available to them, access to recognized industry consultants at reduced fees to assist in various aspects of transition, a confidential transaction platform for buyers and sellers to engage in negotiation, and resources to support continuity/succession planning, as well as benchmarking and valuation data.

Supporting both internal successions and external acquisitions, Fidelity Transitions has established strategic relationships with a number of widely respected industry consultants, including Berkshire Capital Corporation, Business Transitions, Practice Merger Consultants and MarketCounsel. These firms have come together to provide advisors with comprehensive information and counsel on strategic planning, mergers and acquisitions, financing, tax strategies, as well as organizational and systems integration issues.

"While the common perception of transition has revolved around retirement and exit strategies, that is only part of the equation," said Scott Dell'Orfano, executive vice president, Fidelity Registered Investment Advisor Group. "Our program is designed to help advisors evaluate and execute the best transition strategy and approach for their unique situation, whether selling to phase into retirement, buying for growth, or restructuring a practice.

"Unlike other programs in the marketplace, we've developed a transition program that offers advisors direct access to objective advice from widely respected industry consultants, as well as the means to identify interested parties both through an online service as well as through traditional investment banking M&A search capabilities," said Dell'Orfano.

Fidelity Transitions Program Overview

Fidelity Transitions, which will be available through the Fidelity Advisor CHANNEL^TM web site, is designed around four key transition objectives: buying for growth, selling to an insider, selling to a third-party and succession/continuity planning.

Whichever avenue an advisor wishes to pursue, in keeping with Fidelity's commitment to offer flexible solutions grounded in choice, the program will provide a suggested process framework as well as a selection of resources to help advisors meet their distinct needs to build, retain and realize the value of their practice.

"In theory, the conventional wisdom of grooming a junior person to take over and eventually buy a practice sounds terrific," says David Drucker, President of Practice Merger Consultants. "The practical reality, however, is that for many firms, particularly smaller ones, that just isn't a viable solution. Fidelity Transitions has grasped this reality and will provide the information and resources to go beyond succession planning if the situation calls for it."

How the Program Works

Which services advisors access will depend on not only their objectives but also the complexity of their needs, which are often influenced by the size of the potential acquisition or sale. Firms interested in buying or selling practices with assets under management of less than $400 million will have access to an online platform developed by Business Transitions exclusively for Fidelity, as well as off-line deal support consulting services and deal financing assistance.

The online platform will provide advisors with start-to-finish assistance by Business Transitions in buying or selling their practices, including benchmarking and valuation data, detailed industry-specific form contracts, a confidential communication platform for advisors interested in buying or selling all or a portion of their practices, and even an "unplanned transition" functionality for advisors to plan for the continuity of their business in the event of death or disability.

"With more advisors than ever on the verge of retiring and still others positioned to purchase new businesses for growth, advisors have a significant opportunity before them to both build and realize the value of their practices - but only if they are prepared," said David Grau, president, Business Transitions. "The Fidelity Transitions site is the culmination of years of experience in buying and selling financial services practices. It will ensure that Fidelity's clients have the opportunity to access professional assistance when it comes to looking out for their own futures, and the well-being of their clients."

For advisors interested in acquiring or selling practices with assets under management in excess of $400 million and above, a more consultative approach will be offered to support the added complexity, that includes investment banking and transition consulting services available through Berkshire Capital Corporation.

"Fidelity Transitions isn't about selling valuations, it's about delivering results," said Bruce Cameron, president, Berkshire Capital. "It's built on a foundation of years of experience in addressing advisor needs by very successful companies."

Following a detailed review of transition objectives, an initial valuation and market assessment, Berkshire Capital will work with the advisor to review a list of the likely structural approaches to a transaction, compiles and in many cases contacts target companies, and works with the advisor in evaluating proposals and deal negotiations.

Additional Transition Resources

Fidelity Transitions also will offer legal and due diligence services available through MarketCounsel, client retention and organizational/technology integration support from Practice Merger Consultants, and strategic planning consulting services. Fidelity also will continue to offer a transition planning breakout session during its no-cost, daylong BestPractices workshops, which are held throughout the year at venues across the country.

About Fidelity Registered Investment Advisor Group

Fidelity is the second largest provider of custody and brokerage services to the registered investment advisor marketplace, with $128 billion in assets on behalf of more than 2,575 advisors as of January 31, 2005. Fidelity provides access to a flexible, open technology environment, extensive practice management resources, and wealth management investments and services--all backed by the long-term commitment of a private company. Dedicated relationship professionals work consultatively to help advisors choose the products and services that are in the best interests of their clients and make the most sense for their business. For more information about Fidelity's services for advisors, please visit http://ria.fidelity.com.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $2.1 trillion, including managed assets of $1.1 trillion as of January 31, 2005. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 19 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.Fidelity.com.

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Berkshire Capital Corporation, Business Transitions, Practice Merger Consultants and MarketCounsel are independent companies and are not affiliated with Fidelity Investments.

Clearing, custody or other brokerage services may be provided by National Financial Services LLC, or Fidelity Brokerage Services LLC, Members NYSE, SIPC.