The Bank of New York Company, Inc. to Acquire Alcentra Group Limited; Expands Alternative Investment Offerings with Structured Credit Products; Alcentra Management Team to Retain 20% Interest

The transaction is expected to close by year-end, pendingregulatory approval and other customary conditions of closing. Thepurchase price and terms were not disclosed.

"The acquisition of Alcentra will further strengthen our positionin alternative investments, leveraging the significant success we'vehad with Ivy Asset Management, our fund of hedge funds manager," saidThomas A. Renyi, Chairman and Chief Executive Officer of The Bank ofNew York Company, Inc. "Sub-investment grade debt fund management andstructured credit are highly attractive, fast-growing market segments,and Alcentra has developed a significant profile in these areas."

Steven Pisarkiewicz, head of BNY Asset Management and ExecutiveVice President of The Bank of New York, said, "The Alcentra team has aproven track record and investment model and we believe they are wellpositioned to continue to deliver strong performance to investors.Through Alcentra, we gain access to sophisticated, structured creditproducts for our institutional and high net worth clients whileincreasing the global distribution opportunities for Alcentra.Together, we will be at the forefront of helping insurance companiesas well as pension, endowment and foundation managers use credit-basedinvestment services to support their asset allocation strategies."

The Alcentra management team, led by founders Stephen Bruce,Christopher Damico and David Forbes-Nixon, will retain a 20%shareholder interest in the company.

"Over the past few months our team has worked closely with theprofessionals at The Bank of New York to agree to a transaction whichbrings significant strategic benefits to both parties," saidChristopher Damico, Alcentra's Chief Executive Officer. "The Bank ofNew York has a well developed global business base which our companywill be able to access and leverage. Therefore, we look forward to thefuture of Alcentra under The Bank of New York's sponsorship."

Ivy Asset Management, acquired by The Bank of New York Company,Inc., in 2000, now has more than $15 billion in assets undermanagement.

BNY Asset Management offers corporations, public funds,Taft/Hartley plans, nonprofit organizations and high net-worthindividuals and families a broad range of equity, fixed-income andalternative investment products. With more than $107 billion in assetsunder management as of Sept. 30, 2005, BNY Asset Management is one ofthe largest investment managers in the United States. BNY AssetManagement also has affiliates and offers investment servicesthroughout Europe and Asia.

The Bank of New York Company, Inc. (NYSE: BK) is a global leaderin providing a comprehensive array of services that enableinstitutions and individuals to move and manage their financial assetsin more than 100 markets worldwide. The Company has a long traditionof collaborating with clients to deliver innovative solutions throughits core competencies: securities servicing, treasury management,investment management, and individual & regional banking services. TheCompany's extensive global client base includes a broad range ofleading financial institutions, corporations, government entities,endowments and foundations. Its principal subsidiary, The Bank of NewYork, founded in 1784, is the oldest bank in the United States and hasconsistently played a prominent role in the evolution of financialmarkets worldwide. Additional information is available atwww.bankofny.com.