Algorithmics Unveils Algo Suite 4.5

Enhanced Capital Measurement and Regulatory Compliance; Credit Workflow Management; Reduced Total Cost of Ownership

TORONTO, April 13 /CNW/ - Algorithmics Incorporated, a recognized leader
in enterprise risk management, today announced the general availability of
Algo Suite 4.5, the latest version of its industry-leading suite of enterprise
risk management solutions. Algo Suite 4.5 delivers advancements in the
integration of economic capital measurement and regulatory compliance,
introduces credit workflow functionality, and reduces the complexity and cost
of ownership. The choice of leading financial institutions worldwide, Algo
Suite is the only proven, enterprise-wide risk management suite of solutions
for market, credit, operational risk, and collateral management, across the
trading and banking books. Algorithmics serves over 200 clients
internationally including more than 60 of the 100 largest financial
institutions in the world.

"Our clients understand that Basel II is about better risk management and
better business practices, not just compliance," said Dr. Michael Zerbs,
President and Chief Operating Officer at Algorithmics. "Through Algo Suite
4.5 enhancements to Algo Capital, we are enabling our clients to meet Basel II
deadlines while supporting a longer term strategic risk management framework.
Algo Capital is already a key component in a number of Basel II initiatives
including extensive projects at two of the world's top 10 banks and several
leading regional banks. Meeting Basel II requirements is also a key benefit of
our Algo Credit Administrator product, yet its robust and proven credit
workflow process will also allow clients to do more credit business."

Algo Suite 4.5 key benefits include:

Supports enterprise-wide economic capital measurement and regulatory
Algo Suite 4.5 provides integrated risk tools to support enterprise-wide
economic capital measurement and regulatory compliance. The solution
enables the integration of economic and regulatory capital across the
trading, banking and retail books. It serves as the foundation for
addressing the requirements of Basel II by providing enhanced data
management across all asset classes, EAD calculations and risk-weighted
asset calculations. This ultimately enables firms to reduce complexity
and leverage their Basel II investment into real savings from improved
operational procedures, better capital management, and more informed
finance decisions.

Improves efficiency, transparency and decision-making through streamlined
Algo Suite 4.5 introduces the Algo Credit Administrator, to provide
workflow for credit request/proposal management, financial and non-
financial collateral handling, control of policy compliance, and risk-
entity and document management. Using the Algo Credit Administrator,
financial institutions can improve the quality and consistency of
information, benefit from efficient tracking and transparency, implement
effective processes to meet regulatory requirements, reduce operational
risk, and improve operations and customer service.

Reduces risk, cost and complexity of ownership
Algo Suite 4.5 includes packaged risk data services and integration-
enabling functionalities, such as improved installation processes,
comprehensive configuration of regulatory capital computation servers,
and enhanced documentation. These functionalities will enable cost-
efficient and easy integration, implementation and upgrades. Linux and
grid computing coverage has been extended, thereby lowering the cost of
ownership and allowing firms to fully utilize existing resources.

Enables increased usability and new reporting tools
Algo Suite 4.5 enhances usability through user-friendly interfaces, more
advanced APIs, a greater level of packaging for both new installations
and upgrades, and consistent static and web-based reports to reduce the
time and cost associated with day-to-day system operations and training.
Partnerships with third-party vendors will provide an easy upgrade path
as well as a comprehensive, robust and extensible reporting solution.

Algo Collateral

In conjunction with the launch of Algo Suite 4.5, Algo Collateral's
highly extensible nature and ability to include client-specific fields, tables
and code, has been further evolved to allow for the configuration and
communication of information - including netting exception status, collateral
balances by agreement and by product, eligible collateral definitions, and
lists of collateralised trades - from a client's collateral management system
to its credit management system. In turn, this information can be used to
determine the exposure, the level of collateralisation of that exposure, and
the resulting trading headroom available to each party based on their limits.
Algo Collateral also has made further advances in flexible web reporting
functionality to provide senior management with an immediate, intuitive web-
based overview of the status of key performance and risk indicators.

Algo Risk

Algo Suite 4.5 introduces the Algo Risk solution to embed risk management
into the core of the investment process by delivering powerful analytics,
portfolio modeling and risk management capabilities to portfolio managers and
traders via a user-friendly, flexible and configurable user interface. As a
result, risk managers and investment professionals can simultaneously enjoy
the full benefits of sophisticated decision-support tools without compromising
on ease-of-use or flexibility. Algo Risk is simultaneously available as an in-
house installed solution or as an outsourced solution delivered through its
partnership channels, Bloomberg as an ASP service and Cicada Risk as a managed
service. Algo Risk 1.7 offers a number of significant new features including a
multi-language interface, expanded report building capabilities, greater
graphing options, and an extended custom-equation builder. These enhancements
further enable end-users to customize the web application and its content to
better meet their specific business needs. Users can also automate the
reporting process to schedule distribution of risk reports to multiple
audiences. As well, Algo Risk has been ported to Linux Red Hat on Intel Xeon
64 bit processors in order to take advantage of the cost and performance
benefits associated with the Linux platform.

Algo OpVantage

In conjunction with the launch of Algo Suite 4.5, Algorithmics has
introduced Algo OpVantage. Following the Fitch Group's acquisition of
Algorithmics in January 2005, the operational risk businesses of both
companies were united under the Algo OpVantage brand. As a result, clients can
leverage the combined strength and practical experience of one of the largest
teams of operational risk experts in the world. Algo OpVantage represents the
evolution of proven methodologies and is an end-to-end solution for the
identification, collection, management and measurement of an organization's
qualitative and quantitative operational risk. The solution: offers the
ability to warehouse all of a firm's operational risk data; provides highly
configurable assessment, loss event data, structured scenarios and key risk
indicator templates; provides the ability to build sophisticated capital
models; and produces integrated management reports. Algo OpVantage will evolve
to meet current client requirements and leverage the expertise of
Algorithmics' industry leading team.

About Algo Suite

Algorithmics' suite of solutions meet the challenges of today's financial
environment with an integrated series of advanced solutions that set a new
standard in enterprise risk management. Algo Suite is the first software of
its kind to provide a consistent, proven platform for the integration of
market, credit, asset liability and operational risk functions. By calculating
the optimal risk and reward trade-off across the enterprise, Algo Suite
enables institutions to realize substantial business benefits, remain
competitive, meet regulatory requirements, and maximize shareholder value.
Algo Suite includes Algo Market, Algo Credit, Algo Capital, Algo Collateral,
Algo OpVantage, and Algo Risk.

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