Fitch to Acquire Algorithmics

- Acquisition of Enterprise Risk Management leader reinforces Fitch's commitment to develop world-class risk management services; strengthens Algorithmics' business lines and extends depth in new markets

- Acquisition complements Fitch's core credit ratings business; extends quantitative capabilities

NEW YORK, Dec. 17 /CNW/ - Fitch Group, a Fimalac SA company, today
announced that it has executed a definitive agreement to acquire Algorithmics,
a leading solution provider, innovator and thought leader in enterprise risk

The transaction, valued at $175 million, is expected to close in January
2005. The transaction is subject to customary regulatory approvals.

Algorithmics, a privately held Canadian based company founded in 1989,
provides some of the most advanced enterprise risk management solutions to
financial institutions around the world to help them better understand their
financial risk.

The acquisition will expand the customer base and product offerings of
Fitch's current risk management services. Algorithmics will benefit from the
new ownership, strengthening its ability to invest in product development and
expand its geographic reach. Fitch Risk's operational and credit risk data,
software and consultative tools complement Algorithmics' Algo Suite enterprise
risk management solutions.

Marc Ladreit de Lacharrière, founder and CEO of Fimalac, and chairman of
Fitch said, "The purchase of Algorithmics is the latest in a series of
business and technology initiatives furthering our goal of creating
world-class risk management products. This will undoubtedly enhance Fitch's
overall value proposition to the market."

Stephen W. Joynt, President and CEO of Fitch added, "Together, Fitch and
Algorithmics can further the technological development of enterprise risk
management solutions, bringing them to a wider array of global organizations.
Additionally, the expertise of Algorithmics enhances Fitch's core ratings
business by extending its quantitative capabilities."

Dr. Michael Zerbs, the President and Chief Operating Officer of
Algorithmics, said: "By teaming up with Fitch, we join an organization with a
solid reputation for developing high quality risk and credit analysis. We will
continue to focus on producing the best quality enterprise risk management
solutions, solidifying our leading market position."

Recent market events and market volatility have made the need to measure
and manage market, credit, asset and operational risk an imperative for
financial institutions and asset managers. Algorithmics has been effectively
meeting this market demand, providing more than 150 of the world's leading
financial institutions with enterprise risk management solutions, and has
completed over 170 installations in 31 countries around the globe.

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