Washington State Investment Board poised to select new active value and growth international equity investment managers (April 7, 2004) Olympia - The Washington State Investment Board (WSIB) next week will consider recommendations by its Public Markets Committee that, if approved, will finalize a complete restructuring of the WSIB’s International Public Equity Program. The Committee met yesterday and today to interview and select final candidates to be recommended to the Board for active value and growth international equity investment managers. The Committee is recommending the Board approve Delaware International Advisers Ltd. and Causeway Capital Management LLC as the fund managers for active value international equity developed markets. In addition, the Committee is recommending William Blair & Company and Julius Baer Investment Management Inc. as the active growth international equity investment managers. The WSIB’s international equity program represents $7 billion of the state defined benefit retirement portfolio that, as of March 31, 2004, totaled approximately $43 billion. In July 2003 the Board approved a plan to restructure and strengthen the entire program, shifting to a higher percent of active management to capture investment opportunities that could result in better returns. The most significant changes to the program include:

Invest 95 percent of the retirement fund in developed markets and 5 percent in emerging markets. The previous mix was approximately 92 percent developed markets and 8 percent emerging markets. The emerging markets allocation is to be 100 percent actively managed and developed markets managers will be allowed to invest up to 15 percent in emerging markets on an opportunistic basis. Shift the developed markets component to a 60 percent/40 percent mix between active and passive management. The previous structure was 50/50. Invest half of the 40 percent passive allocation in an enhanced strategy.

Since the restructuring process began last July, the Board made the following decisions to fulfill the new International Equity mandate:

Named Arrowstreet Capital, L.P, Capital Guardian Trust Company, and Fidelity Management Trust Company as the core managers for the WSIB’s active international equity developed markets program. Approved Barclays Global Investors, N.A. and Goldman Sachs Asset Management to manage 50 percent of the total international developed markets passive equity allocation in enhanced index strategies. Selected State Street Global Advisors as the successful offeror for the international developed markets equity index investment allocation.

As of March 31, 2004, approximately $1.2 billion is targeted for the total allocation to each of the growth and value mandates. If the Board approves the Committee’s recommendations for the value and growth international the final outcome will be subject to continuing due diligence and successful negotiation of acceptable terms and conditions.