RS Investments Announced that Jim Callinan has been Named Manager of the Year by Morningstar

SAN FRANCISCO, January 31, 2000 - RS Investments (RS), previously known as Robertson Stephens Investment Management, is pleased to announce that Jim Callinan, portfolio manager of the RS Emerging Growth Fund, was named 1999 Manager of the Year (domestic stock category) by Morningstar. Morningstar, Inc., is a mutual fund research firm that tracks and analyzes fund performance.

"In making our selection," writes Morningstar, "we chose managers who have demonstrated the investment skill, courage to differ from the consensus, and commitment to shareholders necessary for outstanding long-term performance."*

Mr. Callinan has been portfolio manager of the RS Emerging Growth Fund since 1996. Established in 1987, the fund invests in rapidly growing emerging companies. RS Emerging Growth Fund had an annual return of 182.51% in 1999 and an average annual return of 62.45%, 44.36%, and 28.52% for the three-, five-, and 10-year periods respectively ending 12/31/99. The fund has $3.6 billion in assets as of year-end.

In its commentary, Morningstar also noted: "RS Emerging Growth's 1999 return wasn't the only thing that caught our attention. Callinan's fund has been remarkably consistent, even when expensive small-cap stocks haven't had a strong tailwind. For example, in 1997 and 1998, lean years for most small-growth investors, RS Emerging Growth put up strong absolute numbers."

Mr. Callinan continues to be positive in his outlook for the small-cap sector. "While we enjoyed a banner year in 1999, we remain cautiously optimistic on the prospects for small emerging growth stocks as we enter the new year. At the fundamental level, we see many new companies and emerging industries with very compelling revenue growth opportunities and with capabilities in place to succeed in the market. The volume of IPOs continues to provide us with an ample supply of investment ideas. It is not unreasonable, however, to expect continued volatility and as part of our investment style, we will take advantage of dips in the market to purchase stocks of companies we believe will produce exceptional results for investors of the fund."

Jim Callinan, managing director and chief investment officer of the firm's Growth Equity Group, joined RS in 1996. Prior to joining the firm, he was a portfolio manager and equity analyst at Putnam Investments. He also manages emerging growth separate accounts and is Co-manager of the RS Internet Age Fund®.

"We're pleased and gratified that Jim has received this honor by Morningstar," Randy Hecht, CEO of RS, said. "It's a tribute to his skill as a fund manager, but also a recognition of our firm's strengths: a commitment to rigorous fundamental research, a nimble style, and an ability to leverage our long association with Silicon Valley executives and venture capitalists. This investment approach has served investors well over the long term. Of our four small- and mid-cap growth funds rated by Morningstar, three have received a four or five star rating."