Eaton Vance Corp. is buying the assets of Managed ETFs LLC for an undisclosed sum. Managed ETFs LLC, founded by Gary Gastineau and Todd Broms, holds intellectual property assets, including issued patents, that could provide the foundation for more efficient trading of ETFs and help the development of active ETFs.

Eaton Vance officials said that commercialization of the acquired technology is subject to the SEC's approval.

The deal with Managed ETFs comes eight months after Eaton Vance filed papers with the SEC to launch actively managed bond ETFs.

Gastineau, who is also a principal of ETF Consultants LLC, will serve as a consultant to Eaton Vance. Gastineau, earlier in his career, worked at the American Stock Exchange, where he played a key part in advancing the development of the ETF market. He went on to join Nuveen Investments as managing director for ETF product development. Gastineau has also authored The Exchange-Trade Funds Manual, Someone Will Make Money on Your Funds -- Why Not You? and The Options Manual.

Company Press Release

Eaton Vance Corp. Announces Asset Purchase of Managed ETFs LLC

Acquires Intellectual Property relating to Exchange-Traded Fund Operations and Trading

BOSTON, Nov. 22, 2010 -- Eaton Vance Corp. (NYSE: EV) announces today that it has purchased the assets of Managed ETFs LLC ("Managed ETFs"), a developer of intellectual property in the field of exchange-traded funds ("ETFs"). Managed ETFs holds intellectual property assets, including issued patents, that could provide the foundation for more efficient trading of index-based ETFs and facilitate the development of non-transparent, actively managed ETFs. Commercialization of the acquired technology is subject to the approval of the U.S. Securities and Exchange Commission and market acceptance. Terms of the transaction are not being disclosed.

"Eaton Vance is pleased to acquire the intellectual property of Managed ETFs and to assume responsibility for its commercial development," said Thomas E. Faust Jr., Chairman and Chief Executive Officer. "Facilitating more robust ETF trading and expanding the scope of the ETF market to encompass non-transparent, active strategies is a vision we share with the principals of Managed ETFs."

Gary L. Gastineau and Todd J. Broms are co-founders and managing members from Managed ETFs. Mr. Gastineau is also principal of ETF Consultants LLC. He is a recognized expert on ETFs, author of The Exchange-Traded Funds Manual, Someone Will Make Money on Your Funds�Why Not You? and The Options Manual, as well as coauthor of the Dictionary of Financial Risk Management. Before founding his ETF consulting practice, Mr. Gastineau was Managing Director for ETF Product Development at Nuveen Investments and Senior Vice President in New Product Development at the American Stock Exchange, where he was instrumental in advancing development of the ETF market. Mr. Gastineau will provide ongoing consulting services to Eaton Vance related to the purchase.

Mr. Broms is Chief Executive Officer of Broms & Company LLC. He has over thirty-five years experience in senior management, financial engineering and merchant banking with an emphasis on financial services, technology, and emerging growth businesses.

Eaton Vance is one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $185.2 billion in assets as of October 31, 2010, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information about Eaton Vance, visit www.eatonvance.com.

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