GlobeOp Financial Services Makes Interim Management Statement

GlobeOp Financial Services S.A., a leading independent provider of business process outsourcing, financial technology services and analytics to the hedge fund industry and other targeted sectors of the financial services industry, today publishes its Interim Management Statement covering the period since 30 June 2008.

Business performance has remained strong at the start of the second half of 2008. Highlights include:

* Continued increase in Assets under Administration (AuA) to US$108 billion(1) at 30 September 2008 from $104 billion at 30 June 2008
* Strongest quarter of the year with over $5 billion of AuA from new fund launches from both new and existing clients
* GlobeOp client fund performance exceeding market averages and indices
* $5.5 million investment in data center and office facility in Yorktown Heights, New York

Hans Hufschmid, Chief Executive Officer, said:
"I am pleased to report that we have continued to grow revenues and AuA against a background of turbulent markets and a challenging environment for our clients. The three-month period to September has been the strongest quarter this year for fund launches from new clients as well as launches from existing clients. In addition, similar to the first half of 2008, client funds grew organically during the period.

As a leading provider of middle-, back-office and administration services to over 180 clients representing hundreds of distinct hedge funds with total assets of $108 billion, GlobeOp is uniquely placed to identify trends and potential future hedge fund industry service requirements. While it is too early to determine the full impact of recent events on the hedge fund market, we have already seen clear short term effects on our clients and identified emerging shifts in industry fundamentals.

As a group, our clients appear to have out-performed the industry. Even though leverage remained unchanged at about 8 to 1, our clients significantly reduced their notional OTC exposure from $11.4 trillion at year-end to $6.6 trillion today. Preliminary data show performance for September of approximately -3% (which includes any exposure to Lehman Brothers) and year-to-date our clients show negative returns of around -5.5%. This contrasts very positively with performance reports from the Barclays Hedge Fund index and the HFRX index which both show year to date returns of more than -11% through September.

Our view of the new market fundamentals leads us to believe the events of the past few months will generate good opportunities for GlobeOp. Many hedge funds are below their high water marks and are struggling to maintain their in-house operations and technology. Outsourcing their middle- and back-office can lower their cost base and enable them to scale their expenses as their net asset values decrease or increase.

Recent events have made it clear no one is immune from credit deterioration. Hedge funds are no longer able to take the credit of counterparties for granted, and that has led to a change in behavior. We should see a continuing trend of using multiple, rather than single, prime brokers reflecting prudent business practices for hedge funds. Our platform facilitates this shift in behavior as it gives clients access to a multitude of prime brokers and facilitates seamless movements from one to another. This proved key for many clients during recent turbulent times such as the build up and aftermath of the Lehman Brothers bankruptcy. In addition, hedge funds will seek to diversify risk and exposure by working with independent administrators - separate from their prime broker, bank or other hedge funds.

Similarly, the practice of OTC give-ups to a single counterparty should become much less prevalent as hedge funds diversify that risk over multiple banks. To operate successfully under this new model, a hedge fund will require a solid OTC infrastructure that includes pricing, payments, reconciliations and collateral management. GlobeOp is well positioned to benefit from these specialist service requirements.

We believe the continuing turmoil in global markets will hamper the financial sector in the short-term, but we also expect the new market fundamentals to yield mid- and long-term opportunities for top-tier hedge funds and administrators alike. Investors and fund managers will place a sharper focus on risk analysis, collateral management, multiple prime broker and counterparty arrangements, as well as operational cost controls. Historically, periods of market dislocation have produced value-creation opportunities for investors and hedge funds. Now, with diminished competition from investment banks seeking alpha or leverage for their proprietary trading activities, nimble hedge funds will move swiftly to access those opportunities."