Athilon Structured Investment Advisors Selects the Principia System to Manage its Structured Credit Business

Jersey City, NJ – January 25, 2005 -- Principia Partners LLC, a leading technology provider of comprehensive front-to-back office solutions for managing highly complex, structured financial assets, liabilities and derivatives, today announced that Athilon Structured Investment Advisors has licensed the Principia System to manage the complete trade lifecycle of its credit trading operation. The system will manage transactions from deal capture to risk management to reporting and accounting.

Athilon Structured Investment Advisors act as advisor to Athilon Capital Corp. and Athilon Asset Acceptance Corp. (collectively, "Athilon"). Athilon is one of the first financial firms of its kind, providing credit protection on a portfolio basis to investment banks, commercial banks, insurance companies and other institutions. Athilon will apply its proprietary multi-disciplinary and highly sophisticated techniques to assess risk and monitor performance of portfolios of structured credits, which are managed and processed in the Principia System. These cover a wide range of credit derivatives, including credit default swaps, basket products and synthetic CDOs.

"Initially, our business will be highly focused on writing protection on structured credit risk," states Paul Sclafani, CEO of Athilon Structured Investments Advisors. "However, given our experience and skill sets, we expect to expand into related businesses such as asset management and CDO management. We selected Principia because the system provides the advanced, proven portfolio management, risk management, administration and accounting capabilities that can be rapidly implemented and scaled with our business in terms of volume and product breadth."

"We are excited to be working with Athilon," states Harvey Rand, EVP – Sales & CRM at Principia Partners. "They are pioneers in applying innovative credit arbitrage strategies that bridge opportunities between the converging insurance and capital markets industries." Principia Partners is a leading provider to insurance companies who manage derivatives and structured products, using capital market valuation and risk management methodologies.

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