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CAPIS Comments on SEC's Final "Soft Dollar" Guidelines
 

Dallas, TX - July 12, 2006 - Capital Institutional Services, Inc. (CAPIS), one of the industry's top agency-only institutional brokerages and independent research providers, today applauded the Securities and Exchange Commission's action on client commission arrangements ("soft dollars"). In an open meeting today, the SEC voted to issue final guidelines that uphold and clarify the use of client commissions to pay for research and brokerage services under Section 28(e) of the Securities Exchange Act of 1934. 

Kristi Wetherington, CAPIS President and Chief Executive Officer, stated, "After years of scrutiny and review, today's action by the SEC validates investment managers' use of client commissions to access research - proprietary as well as independent third party - that benefits their investors.  This affirms the proper use of client commissions to obtain valuable services that aid the investment decision-making process.

Today's action makes clear that independent, third party research should be treated the same as proprietary research under 28(e). Importantly, independent research is completely transparent and 'unbundled' - meaning that investment managers know exactly what they are getting for their commission dollars. We will continue to see increased demand for this type of transparency," she added.  "Having led the industry in providing fully disclosed commissions for over 25 years, we believe such disclosure is in the best interest of our clients and the institutional brokerage business."

The final guidelines are expected to be posted on the SEC's website shortly and will become effective in six months.

About Capital Institutional Services, Inc.
Capital Institutional Services, Inc. (CAPIS) is a leading U.S. institutional brokerage firm specializing in global agency trading and independent research distribution for asset managers and plan sponsors. CAPIS has successfully developed and provided an array of brokerage solutions specifically tailored to the institutional marketplace since 1977. CAPIS executes all trades on an agency basis, eliminating any conflict of interest; and plan sponsors, investment managers and broker-dealers have come to trust CAPIS for its expertise in directed brokerage, transition management and commission recapture relationships.

CAPIS is a member of the New York Stock Exchange, American Stock Exchange, the National Association of Securities Dealers, and SIPC. For more information, visit www.capis.com

Media Contact: Susan Hartzell/Alecia Pulman, Integrated Corporate Relations, 203/682-8200

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© 2006 Capital Institutional Services, Inc.