National Asset To Be Acquired

March 1, 2001 ( - AMVESCAP PLC has signed a definitive agreement to acquire National Asset Management Co., a US institutional investment manager based in Louisville, Kentucky.

National Asset Management had more than $17 billion in assets under management, principally in US growth-oriented equity as well as US fixed income products.

Under the agreement, which is expected to close in the second quarter 2001, National Asset Management will become part of AMVESCAP’s US institutional division, INVESCO Inc.

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INVESCO manages more than $93 billion in assets for institutional investors.

The purchase is subject to regulatory approval and is expected to close in the second quarter of 2001.

The purchase price will be an upfront payment of $200 million paid in equal amounts of cash and AMVESCAP ordinary shares.

The transaction includes additional contingent earn out payments of up to $75 million and retention payments payable over five years totaling $25 million. The maximum earn out payment of $75 million will be payable if National Asset Management achieves a compound annual revenue growth rate of 40% over the next three years.