FROLEY-REVY LAUNCHES NEW HEDGE FUND WITH DERIVATIVES.COM -- IMAGINE SOFTWARE'S RISK SOLUTION

NEW YORK, June x, 2004 – Froley-Revy, a $4.5 billion convertible bond manager, has had a dominant position in its field since it was founded in 1975. But when the firm decided to add a hedge fund to its product line, it started looking for a more robust, flexible risk management system.

After a thorough search, it chose Derivatives.com, Imagine Software's hosted trading and risk management system, to support the new Froley-Revy Convertible Arbitrage Fund, which is scheduled to launch in August 2004.

"When you start a new hedge fund, investors want to know how you look at risk, how you measure it, how its quantified, and how you're going to hedge it out," said principal Michael Revy. "Imagine does all that very quickly."

One of the key features for Revy was Imagine's hosted functionality. Other systems required elaborate technical installations and support, while Derivatives.com could be run on any system with a web client. Another was its power. Revy uses it to quantify delta, vega and other measures across his entire portfolio, as well as custom shock scenarios. "There's not a lot of things the system can't do," he said.

Revy also likes the way he can customize the user interface by using either the Imagine front-end or setting it up to run behind his own Excel spreadsheets. "It's nice to use my spreadsheets when I'm doing some special reports or when I'm looking for new ideas," he explained. "I don't have to call a programming team to do whatever unusual view I may want to look at. "

Steven Harrison, President and co-founder of Imagine Software, added: "We are pleased to be associated with Froley-Revy, one of the oldest and most highly regarded convertible managers in the United States. Derivatives.com is particularly well suited to the heavy demands of convertible arbitrage strategies. These strategies require vast terms and conditions data, modeling performance and lots of flexibility -- from slicing and dicing positions to ‘dollar neutral’ marking. They also need the ability to combine many types of securities in a portfolio: stocks, options, credit default swaps, interest rate hedges and convertibles.”

“We offer all of the above in one package that includes data, analytics, operational support and paperless straight-through processing. Because our product is delivered over the Internet, we can give companies like Froley-Revy the peace of mind to focus on their portfolios and not on operational logistics.”

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