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Money Managers with More Than $2 Trillion in Assets Using Cogent's Broker Review Systems to Allocate Trading Commissions

SUMMIT, NJ, May 22, 2006

Compliance with new "soft dollar" regulations among institutions and hedge funds in the US and the UK is accelerating, according to Cogent Consulting LLC.

The Company announced today that 40 institutional and hedge fund money managers, with a combined total of more than $2 trillion in assets under management, are now using Cogent's broker review and commission management systems. This number represents 100% growth in clients, 33% growth in average assets per client, and a 167% growth in combined assets under management.

Money managers employ Cogent's web-based ResearchTrak(tm) or
HedgeTrak (tm) systems to document, justify and measure the value of proprietary and bundled brokerage and research services, as well as third party research services, which are paid through trading commissions.

"In line with new SEC guidelines in the US and FSA regulations in the UK, the quarterly broker review process is providing investors with real transparency on how their trading commissions are being spent," said Robin Hodgkins, President and CEO of Cogent. "Broker scorecards generated by Cogent systems are also helping money managers to improve productivity by identifying their best performing brokerage and research firms."

Consulting firm Aite Group, LLC, of Boston, in a recent report, estimated that US money managers last year paid more than $11.4 billion in commissions for proprietary or bundled services, plus an additional
$1.8 billion for third party services.

Buyside portfolio managers, analysts and traders use Cogent systems to "vote" and comment on the quantity and quality of service from more than 400 brokerage and research firms. In many cases, Cogent helps design the review, based on Cogent's database of metrics that buyside firms use to measure sellside performance (see table below).

Cogent runs the responses through a "rules engine" customized for each buyside firm, producing scorecards on every broker and research provider a firm uses. The scorecards are used as the basis for allocating commissions. To date, Cogent has processed approximately 350,000 "votes".

Cogent has further enhanced its broker review systems. ResearchTrak(tm) and HedgeTrak(tm) now feature StarMine Corporation's objective data on the accuracy of sellside analyst research. More than 100 brokers use Cogent's BrokerTrak(tm) to document and upstream information about their services directly to clients' ResearchTrak(tm) or HedgeTrak(tm) systems.

To make it easier for smaller hedge funds to review their brokers, Cogent is offering a free version of ResearchTrak on the FutureTrade direct access equity and options trading platform.