CALYPSO LAUNCHES CALYPSO XSP SOLUTION

San Francisco, 4 April 2005 - Calypso Technology, Inc. (Calypso) a leading provider of cross-asset front to back trading and trade processing software systems, today announced the launch of Calypso XSP, its exotic structured products trading solution. The solution enables structuring and processing of deals with cashflows indexed to underlyings, spanning any combination of interest rates, foreign exchange, equity, bond or commodity prices and indices.

The growth of hybrid structures has been driven by a need to cater to clients in a low interest rate environment. Historically, these instruments have been structured and managed in spreadsheets, outside of other trading systems a bank may be using, and then booked as individual components. This creates challenges for banks to impose controls, accurately manage risk and process the products and their hedges efficiently. Calypso has created the new solution to address these issues, while maintaining the flexibility needed for users as the instruments get increasingly complex in nature. Importantly, new structures can be entered without requiring any code changes to the system, eliminating the need for IT departments to program each structure individually.

Kwong Li, Senior Business Analyst for Calypso Technology, Inc. said: "Yield enhancing instruments are becoming more necessary in low interest environments and hybrid products which combine various underlyings are growing in popularity. Target Redemption Notes, Range Accruals, Power Reverse Dual Currency Notes and Snowballs are just a few of the products that are gaining tremendous popularity as a result. Pricing and processing of hybrids has proved challenging in the past and has been a deterrent for some banks who are looking to produce complex instruments themselves for distribution to their clients."

"The market for hybrid products that are linked to a number of different asset groups has enormous potential as banks are becoming more creative when serving their clients," Kishore Bopardikar, President of Calypso Technology, Inc. explained. "It is essential that technology is able to keep pace with this creativity and, as a modern purpose-built solution, Calypso XSP is well-positioned to meet the demands of this market."

Calypso XSP is fully integrated within Calypso's cross-asset front to back software system.

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