INVESTTECH CTO ROUNDTABLE FINDS RENEWED SYSTEMS SPENDING BY BUY-SIDE FIRMS INCLUDING EXPANDED INITIATIVES TO ADDRESS REGULATORY ISSUES

Woodland Hills, CA June 28, 2004 – InvestTech Systems Consulting, a leading provider of investment systems consulting and professional services for institutional investors, today announced the findings from its Third Annual CTO Roundtable. The meeting, held in New York City earlier this month, was attended by some of the largest global money management firms and insurance investors.

InvestTech’s CTO Roundtable attendees noted increased spending in 2004 to support new regulations, including the Sarbanes Oxley Act (SOX) and the evolving SEC regulations, with 64% of the attendees spending between 1-10% of their budgets and 36% spending between 10-20% of their budgets supporting these regulations. The majority of these costs came from analyzing and documenting existing workflows to ensure compliance with SOX.

Noted one participant, "SOX looks a lot different when your signature is on the document. It takes on a lot more importance from the top-down than from the bottom-up", which reinforces the intent of the legislation to encourage executive management to set the proper culture and processes to ensure the accuracy of financial reporting.

All of the participants agreed that consolidation of investment information was important, with 100% of the attendees having some such databases in place, ranging from full enterprise data warehouses to data marts and operational data stores to meet specific user requirements such as fixed income portfolio management, equity portfolio management, marketing and distribution. Stated another participant, "Most portfolio managers would prefer a silo (their own specific solution), but the requirements to support balanced funds, client reporting, and risk management necessitate a centralized data warehouse."

InvestTech held the round table meeting at the Roosevelt Hotel in New York City where senior technology representatives from money management firms ranging in size from $40 billion to more than $1 trillion assets under management discussed trends in regulatory environment and rightsizing data warehouses. CTO Roundtable attendees included representatives from Alliance Capital; BlackRock; ING Investment Management; J. & W. Seligman & Co.; and State Street Research and Management.

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