FINANCIAL SOFTWARE SYSTEMS AND PFS TRADERTOOLS LLC ANNOUNCE A STRATEGIC ALLIANCE TO PROVIDE TRADETRAC TM

Financial Software Systems, a leading provider of quality Treasury management software, and PFS TraderTools ("PFS"), a leading provider of web-based order management technologies, announce the joint development and deployment of a seamless solution to allow banks and brokerages to deliver web-based FX trading services to their clients. The integrated solution, branded TradeTrac, provides web-based order input, real-time margin checks, automated order execution, transaction management, and risk management services.
TradeTrac is the result of a 7-month joint development effort between FSS and PFS. TradeTrac was installed at an initial client site -- a global brokerage firm and major participant in global FX markets - in January, and should be placed in production within the next two months.

TradeTrac combines the strengths of two established companies and two well-established software systems. FSS had previously developed MarginTrac, a complete front-office to back-office solution for FX margin trading and collateral management. MarginTrac provides straight-through-processing of collateralized spot, forward and option trades from deal capture - including margin dealing over the internet - to the generation of general ledger accounting entries in the back-office.

PFS had previously developed OrderTrac, a comprehensive, global order management solution. OrderTrac allows traders to capture and efficiently manage a wide range of order types for spot, forward, futures, and option FX trading, and for a variety of money market transactions. Clients of a bank or brokerage firm can place orders into OrderTrac through an attractive web interface, or the bank's and brokerage firms' traders can enter the orders directly into OrderTrac. OrderTrac provides a complete order management solution, including the ability to manage and track orders as they are passed around the world.

The tight integration of MarginTrac and OrderTrac resulted in TradeTrac. TradeTrac utilizes a data engine that in production environments has proven capable of processing over 10,000 foreign exchange transactions per day. In addition to providing a global solution in high volume environments, TradeTrac provides true Straight Through Processing, from client-initiated orders over the web, to a collateral-checked order fill, to position in real-time trader blotters, to Confirmations, Payments, and General Ledger Accounting in the back-office.

Yaacov Heidingsfeld - Chief Operating Officer, PFS, commented: "We are pleased to be a partner with FSS in developing TradeTrac. In the fast moving worlds of FX trading and technology, banks need to offer their clients a web-based trading capability while at the same time closely managing their counterparty and settlement risks. TradeTrac is the answer to those requirements. With TradeTrac, banks and brokerage firms can offer their clients the flexibility to control risks through leaving orders, while at the same time assuring that the bank is insulated from counterparty risk through the efficient management of collateral. I believe that collateralized trading will be an increasingly important risk management tool for banks and brokerage firms, and that TradeTrac will make an important contribution in pushing collateralized trading forward."

Gerald Thurston, President of Financial Software Systems, stated, "The teaming of PFS and FSS is a natural progression in that each firm brings a unique perspective and expertise to the problems that banks and brokerage firms face in managing their client business. FSS brings to the partnership expertise in margin trading gained through working with some of the leading FX margin trading institutions in the world. Likewise, PFS has worked with some of the largest banks in the world to develop expertise in the global management of order books. The topics of FX order management and FX margin trading are tightly coupled. Solving the problems of order management and margin management with a Straight Through Processing solution like TradeTrac should be a very attractive proposition for any bank that wants to increase its profile in the foreign exchange market."

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