Lovell Minnick Partners Acquires ALPS Financial Services

Lovell Minnick Partners Acquires ALPS Financial Services

Denver, August 9, 2005- ALPS Financial Services Inc. (“ALPS”), parent of ALPS Mutual Fund Services Inc. and a leading provider of outsourced back-office administration and distribution services to the fund management industry with approximately $10 billion in client assets under administration, today announced that it has entered into a definitive agreement to be recapitalized by Lovell Minnick Partners LLC, a private equity firm specializing in the global financial services industry. Financial terms for this transaction, which is expected to close in September 2005, were not disclosed.

Established in 1985, Denver-based ALPS provides administration, distribution, accounting and transfer agency services for open-end and closed-end mutual funds, as well as active distribution of Exchange-Traded Funds (ETFs) and closed-end funds. ALPS’ clients include the WestCore funds, Clough closed-end funds, and Select Sector SPDR Trust.

ALPS’ approximately 90 employees, led by President Edmund (“Ned”) J. Burke, a 20-year mutual fund industry veteran, will continue to operate the company in Denver. In addition, Thomas A. Carter and Jeremy O. May, both Managing Directors, will continue in their current roles. The three will maintain a significant equity interest in the re-capitalized company. With Lovell Minnick’s acquisition of a controlling interest, W. Robert Alexander, Chairman and Founder of ALPS, plans to retire from active management of the company. Mr. Alexander will remain on the ALPS Board of Directors and continue to serve as a trustee on a number of mutual fund Boards for which ALPS provides services.

“Although relinquishing ownership of the company is difficult after 20 years, I’m very pleased that, except for me, the company and its staff will remain intact and continue to operate and manage ALPS in the future,” said Mr. Alexander. “The recapitalization and our relationship with Lovell Minnick provide us with additional resources to expand our business in the core mutual fund market as well as in the fast-growing ETF and closed-end fund markets,” said Mr. Burke.

“We believe ALPS has an exciting future and many growth opportunities and we look forward to supporting management in pursuing them,” said Jeffrey D. Lovell, Chairman and Managing Director of Lovell Minnick Partners.

Green, Manning & Bunch, Ltd., a Denver-based middle-market investment banking firm, served as ALPS’ exclusive financial advisor on the transaction.

About ALPS Financial Services
Established in 1985, Denver-based ALPS Financial Services, through affiliates ALPS Mutual Funds Services Inc. and ALPS Distributors Inc., is responsible for over 100,000 shareholder accounts and approximately $10 billion client mutual fund assets under administration, and approximately $120 billion in client assets under distribution. For more information about ALPS Financial please visit www.alpsinc.com.

About Lovell Minnick Partners
Lovell Minnick Partners is an independent investment firm providing buyout and growth capital to developing companies in the global financial services industry. From offices in Los Angeles and New York, Lovell Minnick manages partnerships totaling $240 million for qualified private and institutional investors. Portfolio companies of Lovell Minnick operate in various areas of financial services including asset management, financial product distribution, securities brokerage, and financial consulting services. Limited Partners of Lovell Minnick and its predecessor include Aegon U.S.A Inc., AXA S.A., CalPERS, and National Bank of Canada. For more information about Lovell Minnick Partners please visit www.lovellminnick.com.

Office Locations
PHILADELPHIA • LOS ANGELES • NEW YORK