The 451 Group Acquires Tier 1 Research; Tier 1 Research - a Minneapolis-Based Technology Industry Research Firm - Becomes an Independent Division of the 451 Group

NEW YORK--()--Aug. 4, 2005--

  New Division Blends Traditional "Wall Street" Investment Research with Deep Industry Analysis to Deliver Dynamic Market and Financial Intelligence  



The 451 Group has acquired privately held, Minneapolis-based Tier 1 Research - an independent technology industry research firm. Tier 1 Research analyzes the financial and industry implications of developments impacting public and private companies within the IT, communications and Internet commerce sectors. Through this acquisition, Tier 1 Research has become a wholly owned, independent division of The 451 Group - a privately held, New York-based technology industry analyst company focused on the business of enterprise IT innovation.

"We are pleased to continue the expansion of our Company through the addition of the forward-thinking, insightful and dynamic analysts now joining us within our Tier 1 Research division," said Martin V. McCarthy, CEO of The 451 Group. "We are already investing in and accelerating the profitable growth of the Tier 1 Research brand. We look forward to supporting the expansion of Tier 1 Research's independent equity research and its participation in the global research settlement on Wall Street."

This acquisition is part of The 451 Group's plan to continue expanding the Company's research coverage and services for its existing client base, as well as to develop capabilities to target additional opportunities in technology industry research and in the broader financial markets. The core mission of The 451 Group - delivering timely analytical insight for clients involved in the business of technology innovation - is unchanged. Tier 1 Research's analytical focus and services are non-overlapping and complementary to those currently offered by The 451 Group, and therefore represent a key expansion of the Company's capabilities. Tier 1 Research also has a distinct and complementary client base - bringing the cumulative number of client organizations served by The 451 Group and its Tier 1 Research division to more than 600 firms across North America, EMEA and Japan.

Clients of both organizations will benefit from this acquisition as the expanded Company will be in an even stronger position to:

-- Assess the complete lifecycle of technology companies - from early-stage private companies to mature public companies - and technology markets - from the edge of commercial innovation to mature, consolidating markets.

-- Cover the complete continuum of IT, communications and Internet commerce sectors within the technology marketplace.

The 451 Group will continue to invest in the strong, well-recognized and distinctive analytical brand of Tier 1 Research, which has particular strength in collocation and hosting, IT services, enterprise applications, communications and Internet content/services. For the near term, there are no plans to merge the core operations of the two organizations, and their respective analytical activities and client bases will remain separate. The expanded management team of The 451 Group believes that over the coming months this acquisition will create opportunities for targeted collaboration across the Company - collaboration that will ultimately result in improved and expanded service offerings for both sets of clients and for the technology marketplace at large.

"We believe that Tier 1 Research's acquisition by The 451 Group is important validation of the unique and independent approach we've taken to publishing relevant and timely industry analysis alongside independent and insightful equity research and financial market commentary," said Andy Schroepfer, founder of Tier 1 Research and now President of the Tier 1 Research division.

"We're excited about the new expansion opportunities we will be pursuing as a growing division of The 451 Group - a company which is rapidly being recognized in the market for establishing itself as a key independent voice within the technology industry analysis arena," continued Schroepfer. "We are particularly looking forward to The 451 Group's support in continuing to build an expanded and innovative information delivery model for the institutional investor, or 'buy side,' community with unbiased, timely and actionable opinions. And it's a pleasure to be able to join a team we admire and which can help us realize the full potential of our holistic vision for independent technology research."

About Tier 1 Research

Tier 1 Research - an independent division of The 451 Group - analyzes the financial and industry implications of developments impacting public and private companies within the IT, communications and Internet commerce sectors. The Tier 1 Research division blends traditional "Wall Street" investment research with industry analysis to deliver dynamic market and financial intelligence. The division's clients include institutional investors and technology vendors, along with end users and venture capitalists. These clients leverage T1R analytical insight for idea generation, trend identification, due diligence and grounded opinions, as well as metrics and forecasts on companies and industries covered. Since its founding in August 2000, the Tier 1 Research division's coverage has spanned the largest publicly held technology companies, as well as smaller, pioneering public and privately held companies, to provide comprehensive assessments of all companies impacting the technology marketplace in a meaningful way.

The Tier 1 Research division of The 451 Group is headquartered in Minneapolis. For additional information on its research coverage and services, visit: www.tier1research.com.

About The 451 Group

The 451 Group is an independent technology industry analyst company focused on the business of enterprise IT innovation. The company's analysts provide critical and timely insight into the market and competitive dynamics of innovation in emerging technology segments. Clients of the company - at vendor, investor, service-provider and end-user organizations - rely on 451 insight to support both strategic and tactical decision-making for competitive advantage.

The 451 Group is headquartered in New York, with offices in key locations, including San Francisco, London and Boston. For additional information on the company or to apply for trial access to its services, visit: www.the451group.com.

Contacts

The 451 Group
Kim Kent, 617-261-0566
Boston
kim.kent@the451group.com

Contacts

The 451 Group
Kim Kent, 617-261-0566
Boston
kim.kent@the451group.com