Boston, Mass., December 14, 2001 - Great Hill Partners ("Great Hill") today announced the final closing of the Boston-based private equity firm's second investment fund, Great Hill Equity Partners II, L.P> ("GHEP II"). GHEP II received commitments totaling $460 million from new and existing limited partners, comprised of many of the country's most respected financial institutions, pension funds, investment manager and college endowments.

"We are gratified to receive the continued support of our long term limited partners, and to have attracted so many new investors in this difficult capital-raising environment," said Christopher S. Gaffney, a Managing Partner at Great Hill. "We believe that the current environment will provide opportunities for substantial gains in our target sectors.

The latest fund brings capital under management to over $1 billion. The firm invests in service providers in the communications, information technology, media, education and business services industries. Great Hill invests across all stages, from startup to recapitalization, typically investing between $10 to $40 million per company.

"Our long term, consistent focus on attractive market segments and world-class executives is what gives Great Hill our advantage, " said Stephen F. Gormley, Managing Partner. "We have seen a variety of capital market conditions over the past twenty years, but the fundamental drivers of success have not changed."

Great Hill's portfolio includes companies like SmartMail, a national flat mail and small parcel delivery company; High-Tech institute, a post-secondary education provider; and Medical World Communications, a healthcare periodical and professional education provider.

"We believe that this is an exciting time to invest," added John G. Hayes, Managing Partner. "While we will continue to work closely with our existing portfolio companies, we are focusing the majority of our resources on seeking new opportunities."

Great Hill Partners was formed in 1998 by Stephen F. Gormley, Christopher S. Gaffney and John G. Hayes, who have worked together for 15 years in the private equity industry. Together, the three have overseen investments in 44 companies, and have participated in total transactions exceeding $5 billion.