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LANDESBANK BADEN-WÜRTTEMBERG LICENSES ALGO COLLATERAL FOR OTC DERIVATIVES

TORONTO, CANADA / STUTTGART, GERMANY - July 7, 2004 - Algorithmics Incorporated, a world leader in enterprise risk management solutions, continued to build on its strong market position in Germany by announcing that Landesbank Baden-Württemberg (LBBW) has selected Algo Collateral to manage their current and future OTC derivatives margining requirements. LBBW has also licensed Algo Collateral's automated interface to the LeDIS legal database application, developed in-part by VöB-Service GmbH, a service provider for the German public financial institutions sector and strategically partnered with Algorithmics.

The decision to choose Algo Collateral was of significant strategic importance for LBBW. Collateral management has assumed a high profile in Germany, as public sector banks search for ways to remain competitive in the new market environment stemming from their evolving relationship with local governments. "The redevelopment of our capabilities to collateralize OTC Derivatives is a strategic initiative to maximize and keep our business lines open, reduce any reliance upon credit lines, and ensure better market pricing," said Andreas Beck, Head of Back Office Operations at LBBW. "We've been designing the policy behind a collateral program and believe this is the solution to take the bank forward. Algo Collateral will allow us to expand trading on a collateralized basis and provide the operational structure to automate our procedures efficiently."

LBBW chose Algo Collateral following an extensive evaluation with a local consultancy firm of available systems. Algo Collateral's reputation for low project risk and extensive global client base, with 8 clients from Germany alone, factored heavily in LBBW's final decision. Implementation begins immediately at LBBW's headquarters in Stuttgart.

Algo Collateral's automated interface to the LeDIS legal application allows LBBW to import agreement terms and create the appropriate master and collateral agreement necessary for controlling margining processes. Algo Collacteral was selected by VöB-Service GmbH as the collateral management solution of choice for their members. "We are very pleased with LBBW's decision," said Holger Heuschen, Head of Legal Department, VöB-Service GmbH, "and we're expecting continued success in our joint sales and marketing efforts with Algorithmics."

"Algo Collateral is a complete collateral management solution that will allow LBBW to scale its operations dramatically and address key strategic concerns," said Michael Zerbs, Chief Executive Officer at Algorithmics. "The relationship with LBBW builds upon Algo Collateral's market position within the landesbanken and demonstrates Algorithmics's continued leadership inside the greater German banking community with our enterprise risk solutions used by more than a dozen institutions."