Press Release

FUND MANAGER PREDICTS 45 PERCENT RETURN FOR STOCKS IN 2003

SAN FRANCISCO, Calif., Jan. 15, 2003-Ian Fraley, managing principal of hedge fund management company Financia Capital predicted in a private newsletter to investors that the S&P 500 would rise 45% in 2003. After advising investors to stay out of the stock market for most of 2002, Mr. Fraley recommended a 33 percent stock allocation in July and increased his allocation recommendation to 60 percent in October. He points out that surprises move markets, not what everyone expects, and that the lowered expectations of analysts and investors therefore increase the odds that surprises will be positive and will push stocks higher. In addition, he observes that only once, during the Great Depression, has the stock market suffered four consecutive negative years.

"Attention is focused on the struggling economy, the threats posed by Iraq and North Korea, and continued questions about corporate accounting. The optimism that was so prevalent at the start of 2002 has given way to cynicism and lowered expectations. As a result, the odds favor stocks surprising on the upside," observed Mr. Fraley. "Although most analysts are approaching 2003 with extreme caution, history suggest that a very strong year is likely. There have only been three multi-year bear markets in the U.S. prior to the 2000-2002 period, and the average return in the year following these bears was nearly 40 percent. Based on my analysis of the gaps in the consensus estimates of analysts and economists today, my expectation is that the S&P 500 will rise 45 percent in 2003, proving most of the expert predictions wrong yet again."

His bullish outlook notwithstanding, Mr. Fraley is currently waiting for the major market indices to find support above their 200-day moving averages before recommending a 100 percent equity allocation to investors. He continues to expect an extremely volatile market in which out-of-favor investments such as technology and telecom stocks will continue to outperform, as they have since the October market bottom.

About Financia Capital:
Financia Capital, LLC is a San Francisco-based global macro hedge fund management company. The firm follows a theme rotation, timing investment strategy, utilizing Contrarian Gap Analysis™, fundamental macro-analysis and technical analysis. Ian Fraley is the CEO and managing principal of Financia Capital. Mr. Fraley has been a member of The Executive Committee (TEC) , an international organization of CEOs, since 1998, and he holds a Bachelor of Arts degree magna cum laude in American History from Harvard University and the series 3 and 65 securities licenses. Stephen Brennan, Chief Investment Officer and principal, holds a bachelor's degree in Political Economy from the University of California at Berkeley and a series 65 license. Mr. Brennan is the 'Market Watch' columnist for Semiconductor Magazine.