i-flex to Acquire Capco's Operational Risk Product

BANGALORE, India, June 21/PRNewswire/ --

- Agreement Strengthens Reveleus' Basel II Solution; Capco and i-flex Consulting to Jointly Pursue Consulting Practice

Capco, the global financial services consultancy and IT solutions
provider, and i-flex(R) solutions (Reuters: IFLX.BO/IFLX.NS), a leading IT
solutions provider to the global financial services industry, today announced
an alliance which leverages joint competencies to help financial institutions
better measure and manage their enterprise risk. Through the alliance, Capco
and i-flex intend to leverage their collective strengths in operational risk
thought leadership, consulting, and product development, as well as their
extensive global sales and delivery networks.

Following the agreement;

- i-flex will acquire the intellectual property rights for Capco's
Operational Risk Tool Suite -- ORTOS -- and i-flex plans a two pronged
approach for its use. It will merge the modular tool with its Reveleus
Risk Analytics to create a complete Enterprise Risk Management suite.
i-flex will continue to sell and implement ORTOS independently and
Capco will serve as its reseller and distributor through its global
sales network.

- Capco will be i-flex's preferred Operational Risk consultancy partner.
Capco and i-flex Consulting will collaborate to offer consulting in
Operational Risk strategy, product selection, implementation and
process advisory services.

i-flex considers the area of risk management strategically important and
one that complements its experience and strength in transaction processing.
In recent years, iflex has built an advanced risk suite in Reveleus and has
expanded i-flex Consulting's risk management practice.

ORTOS satisfies Basic, Standardized as well as Advanced Measurement
Approaches for operational risk management under Basel II and complements and
strengthens Reveleus' current Basel II Solution. Combined with Reveleus'
Basel II credit risk and capital calculation engine, the solution will enable
financial institutions to rapidly meet Basel II compliance.

i-flex will continue to support and enhance ORTOS for existing customers
(among them Dresdner Bank and ABN AMRO). i-flex will also take over the
delivery, support and future product growth of ORTOS.

"Together, Capco and i-flex have the capability to build exceptional
products and provide specialized consulting -- a combination that will
greatly benefit our customers given the changing dynamics of the regulatory
environment. Additionally, this agreement enhances i-flex consulting and
Reveleus' range and depth of risk capabilities" commented R. Ravisankar,
CEO - International Operations and Business Development, i-flex solutions.

"I applaud i-flex for thinking out of the box, as this acquisition truly
leverages the complementary strengths of i-flex and Capco to reach customers
through a potent combination of professional expertise, IT product
management, and global reach. As the need for institutions to manage
operational risk compliance increasingly matches that of credit and market
risk, we see a 12-18 month window to take the level of sophistication and
flexibility of ORTOS to the next level and accelerate the delivery of
advanced functionality to greatly enhance its benefits to customers," said
Predrag Dizdarevic, Executive Vice President, Capco, and Head of Capco
Solutions.

ORTOS includes all components needed to fully cover the regulatory and
management operational risk mandates for all banking institutions, regardless
of size. Its modular framework addresses loss data collation, self
assessment, monitoring of risk indicators, tracking of issues and action
plans, and calculation of economic capital along the Advanced Management
Approach (AMA) (both on the basis of loss data and scenario based
self-assessment) as well as fulfilling the requirements for both Standard and
Basic Approaches. In addition, ORTOS includes a fully integrated mechanism
for ad hoc management and regulatory reporting.

In full synergy to ORTOS, Reveleus' analytical applications enable
financial institutions to manage enterprise risk and meet compliance
requirements by providing banks with a set of rules, computation engines,
business definitions and underlying data structures. Reveleus recently won
orders from Bank of Montreal in Canada and from Ta-Chong Bank in Taiwan for
its Basel II solution.

i-flex Consulting, through its established Risk and Basel II Practice,
assists financial institutions during all stages of the Basel II compliance
continuum right from the initial gap analysis, through implementation
roadmap, to complete implementation of the software solution.

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