PROSPECTS FOR GROWTH AND NEW WAVE OF REGULATION TO DELIVER “ONE-TWO PUNCH” FOR FUND ADMINISTRATION IN 2011

Confluence Predicts Transformation of Hedge Fund and Mutual Fund Back Offices as Technology Becomes a Prerequisite for Success

Pittsburgh, PA -- January 5: Confluence, the leading provider of automated data management technology for the investment management industry, today announced a strategic investment partnership with Polaris Venture Partners, which has become a private equity investor in the company.

“Our private equity investment strategy is to seek out high growth middle market companies like Confluence,” said Polaris general partner Dave Barrett, who focuses on investment opportunities in information management. “They are an impressive company with superior technology and a remarkable commitment to operational excellence. We believe that tremendous market potential exists for their platform and that Confluence is poised to emerge globally as the leading brand for data management and reporting automation of managed investments.”

Confluence is a privately-owned company which provides technology to consolidate and automate back-office performance and financial data management and reporting for the managed account industry. Founded in 1991, Confluence has enjoyed a track record of success and profitability. Confluence was named to the Inc. 500 in 2000 and has been included in the Pittsburgh Business Times annual list of fastest growing companies six times—most recently in 2006.

“Our partnership with Polaris encompasses much more than their financial commitment to our company,” says Mark Evans, Confluence President and CEO. “They are a strategic partner who shares our vision and has the expertise to help Confluence achieve its goals at all stages of our market development.”

Polaris is a national private equity firm of experienced investors, operating executives and entrepreneurs. With offices in Boston and Seattle, they invest in businesses throughout the United States and selectively in Europe and Asia. Their private equity efforts are focused on high growth middle market companies in industries including technology, healthcare, digital media, consumer products and services, and business services. Polaris has over $3 billion under management, more than 20 investment professionals, and current investments in more than 90 companies.

About Confluence

Confluence, the global investment management industry’s leading provider of fully automated data management solutions, offers FundStation® for performance measurement and Clear Portfolio™ for holdings and financial statement reporting. These products, and Confluence’s reporting services, enable investment management firms to reduce costs and eliminate risk through automation and consolidation of critical business processes. Confluence products automate every step of the process—collection, creation, confirmation and delivery—for investment product data. Over 60% of U.S. mutual funds rely on Confluence to solve a wide range of problems from performance measurement to customized reporting for mutual funds, variable products, alternative investments and other instruments.

About Polaris

Established in 1996, with offices in Waltham and Seattle, Polaris has over $3 billion under management. Polaris Venture Partners have helped build numerous market leading companies, including Accordant Health Services, Advanced Inhalation Research, Akamai Technologies, Allaire, Alnylam Pharmaceuticals, American Superconductor, Aspect Medical Systems, Avici Systems, Centra Software, Classifieds2000, deCODE genetics, Exchange.com, Matrics, Microbia, Momenta Pharmaceuticals, Paradigm Genetics, Powersoft, PSCI, SolidWorks and TransForm Pharmaceuticals.

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