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Penson Receives $25m Private Funding from Technology Crossover Ventures

Private Equity Funding Further Supports Penson’s Flexible Service Offerings as Penson Continues to Gain Market Share

Dallas, 17 September 2004 - Penson Worldwide, a leading provider of execution, clearing, custody and settlement services for the global securities markets, today announced that it has received an investment of $25 million from Technology Crossover Ventures (TCV), a prominent Silicon Valley-based provider of growth capital to technology-focused companies. As part of the transaction, which will give TCV a minority stake in the global securities processing firm, TCV General Partner John Drew has joined Penson’s Board of Directors.

TCV's investment focus on strong, privately held companies with significant growth potential, reinforces the increasingly prominent position Penson holds within the US, Canada and UK. The proceeds will be deployed throughout Penson’s companies, to help Penson continue to provide a high level of support and technology to its rapidly growing client base, primarily made up of broker/dealers, private client asset managers, high net-worth investors, wealth managers and volume proprietary trading firms.

Daniel P. Son, President, Penson Worldwide, comments: "TCV’s capital injection to the Penson group of financial services and financial technology companies brings more to the table than merely an increase in liquid assets that will support the growth of our correspondents’ activities. TCV’s investment is an endorsement of Penson’s flexible service offerings in the global financial markets, and in the quality of the technology solutions that underpin them."

John Drew, General Partner, TCV, says: "As a private equity firm that typically invests in technology enabled companies, we have found in Penson a rapidly growing company that has a leading-edge technology solution and flexible business operating in an oftentimes traditional market place. We were impressed with Penson’s growth pattern, the quality of its management team and the company’s ability to deliver services to existing and new clients."

Son adds: "As a relatively young company, just entering our 10th year, Penson has a history of rapid growth. Our success is rooted in the flexibility and superior services for which we are becoming increasingly well known. TCV’s investment will help us to continue along this path; delivering high-quality global securities processing services to our existing correspondents, adding new business to our North American and European clearing entities, and expanding the worldwide client base of Penson’s leading-edge trading solutions."