Tamarac Overview T3 Conference: Update on Rebalance SoftwareFebruary 27, 2009

Who we are

Leader in Portfolio Rebalancing Software and Services

• More RIA clients / assets than any other rebalancing system

• 265 client firms, increasing monthly

• Firms of all sizes ($25 million to $10 billion in AUM)

• Supports virtually all securities types and investment approaches

• Web based, SaaS business model

• Renewal rate exceeds 95%

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What we do

Tamarac enables advisory firms to increase profitability by automating critical operational functions

1. Portfolio monitoring

2. Rebalancing and cash management

3. Tactical trading

4. Tax management / loss harvesting

5. Trade order reconciliation and archiving

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Firms want to increase firm productivity and profit margin (especially today)

• Average Tamarac client sees 50% - 75% productivity increase

• Makes firm more scalable, more profitable and more competitive

• Increases compliance, minimizes human error

• Centrally stores important data and processes (models, rules, trade history)

Advisors want to serve their clients more effectively

• Apply a consistent portfolio management methodology to each client

• Manage more accounts with fewer resources

• Execute trades (incl. block) at the same time and price across accounts

• Focus on higher-value-added activities (client meetings, research, etc.)

Tamarac Overview

Why automate rebalancing?

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Tamarac serves advisory firms of all sizes and types

• Average Tamarac firm manages $300 million AUM (median $200 million)

• ~50 Tamarac firms manage over $500 million AUM

• Passive and active investment styles (equities, funds, bonds, alternatives)

• Advent, PortfolioCenter, Etelligent, dbCAMs+, Thomson, Black Diamond

Tamarac Overview

Tamarac clients

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Tamarac is committed to the SaaS business model

• High-value-added software must be continually supported and enhanced

• This is why SaaS firms charge recurring annual fees

• Tamarac re-invests ~50% of revenue into Development and Support

• Majority of Tamarac staff is in Development (12) and Support (10)

Tamarac clients benefit from these ongoing investments

• Formalized implementation process supported 18 new firms this month

• Tamarac University, Consulting Services, Help Center, User Conference

• Monthly feature enhancements (incl. webinars and online tutorials)

• 97% renewal rate, average contract term exceeds 3 years

Tamarac Overview

Software as a Service (SaaS)

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1. Compliance functionality

• Filtering capability for continuous compliance monitoring

• Multi-level trade approvals and customized roles/permissions

• Trade order reconciliation and archiving

2. Implementation process

• Process can support over 15 implementations per month

• Tamarac University for new and existing clients

• Consultative onsite implementation option

3. Tax-Managed Indexing (TMI) to run passive SMAs in-house

• Attract high net worth clients

• Run internally rather than outsource to subadvisors

• Significantly lower cost

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Facts you may not know

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Tamarac’s advantages are the result of a sound business approach

• Web-based, zero IT / hardware footprint, scales to multiple locations

• SaaS business model (monthly feature enhancements, ongoing service)

• Largest client community (100 advisors at 2008 User Conference)

• More established integrations (PMS, service bureaus and custodians)

• Professionally managed company, scalable business practices

• Tamarac team comes from industry leading firms (below)

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Why Tamarac is Different

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Tamarac User Interface

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Booth #9 in the Exhibit Hall Please visit us for a product demonstration

www.tamaracinc.com