VRS Selects CAMG Rock Creek
as Hedge Fund Advisor

RICHMOND, Va. August 21, 2003—The Virginia Retirement System(VRS) announced today that it has selected CAMG Rock Creek as its second hedge fund advisor. VRS will invest $200 million with the firm, beginning this month.

After extensive research, we selected CAMG Rock Creek to help us further diversify the portfolio, in particular the new hedge fund allocation,” said VRS Chief Investment Officer Nancy Everett.

In June, the VRS Board of Trustees voted to invest up to $1 billion or about 3 percent of the fund in hedge funds over the next year. VRS will initially invest in three types of hedge fund strategies: equity market neutral, equity long/short and distressed/event driven. These strategies were selected since they are among the most risk-controlled in the industry. VRS began investing in hedge funds in June with the first adviser selected, Ivy Asset Management. VRS allocated up to $300 million for investment by Ivy.

VRS’ philosophy regarding hedge fund investments will follow those established for other portfolios. We follow a prudent methodology centered on diversification as the most effective form of risk control,” added Everett.

Contact: Jeanne Chenault 804-697-6665

VRS is the 29th largest public or private pension fund in the United States with a $35 billion portfolio.

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