Tyco Capital goes live with the Principia System to support treasury operations-Principia Partners wins on customer service and commitment to FAS 133accounting regulation

Jersey City, New Jersey, November 5, 2001 - Principia Partners LLC, a leading provider of full front-to-back office systems for global capital markets, today announced that Tyco Capital (formerly known as CIT), has successfully implemented the Principia System to support its treasury operations and to meet FAS 133 accounting regulations.

The installation and implementation of the Principia System consolidates Tyco Capital's treasury management and replaces several software products with one fully integrated straight-through-processing system. This includes deal capture, portfolio management, valuation, risk management and accounting for all asset classes.

Steve Kaufhold, assistant treasurer, Tyco Capital, states: "We selected the Principia System after extensive evaluation of many software vendors and their products. Principia Partners gave us the confidence that its solution could support our existing vanilla products, as well as more complex structured instruments as our business evolves. FAS 133 compliance, flexibility and reliable customer support were key to our decision. The Principia System has greatly reduced manual operational costs and provided us with a robust system that can manage all our treasury requirements. The implementation of the system was quick and painless with all deliverables on schedule and under budget. We look forward to working with Principia on all future assignments."

Theresa Adams, one of Principia's founding partners, says: "We are delighted to be associated with Tyco Capital. Our focus has always been to provide highly-effective support for innovative financing with comprehensive FAS 133 compliance that can be fully customized to reflect each client's individual needs. This implementation is a tremendous endorsement of both the Principia System and our team. We look forward to working with Tyco Capital as a partner, helping it to meet future strategic needs."

The derivatives accounting standard, FAS 133 was established by the Financial Accounting Standards Board (FASB) and became effective from the first quarter of 2001. The Principia system enables Tyco Capital to produce internal and external derivatives reporting in compliance with the new accounting standards. The Principia System is used to analyze potential transactions, value derivatives and related cash items, summarize the accounting entries and assess the effectiveness of hedging relationships. It also allows the firm's treasury and risk managers to identify and hedge potential risk.

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