WESTLB AG SELECTS IMAGINE SOFTWARE’S DERIVATIVES.COM FOR REAL TIME DERIVATIVES TRADING AND RISK MANAGEMENT

Leading German Bank Deploys Web-Based Risk Management Solution to Manage Internal Multi-Strategy Proprietary Trading Desk

NEW YORK, June 14, 2005- Imagine Software, the leading provider of full-service hosted derivatives trading and risk management solutions for the global financial industry, today announced that WestLB AG, a leading commercial bank in Germany, has selected Derivatives.com to optimize the equities and convertible arbitrage trading operations of its Proprietary Trading Desk. WestLB has replaced non-integrated vendor applications and spreadsheets with Derivatives.com to rapidly execute trading strategies, enable real time risk monitoring and fully adhere to internal compliance requirements.

WestLB AG is one of Germany’s leading financial services providers, with group total assets of € 253.8 billion as of December 31, 2004. Its Prop Desk manages cross asset portfolios of traded instruments and employs a range of trading strategies including equity long/short, volatility arbitrage, convertible arbitrage and risk arbitrage.

After piloting Derivatives.com in a live trading environment, WestLB decided to deploy the system to support the growth of its Proprietary Trading operation while reducing time and resource intensive costs to maintain multiple vendor systems and data management initiatives. Through its scalable architecture, Derivatives.com meets the requirements of WestLB with real time Value at Risk and P&L calculations, credit spread modeling, portfolio stress testing and mark-to-market reporting. The system advances WestLB's ability to assess and execute strategies by providing their traders with access to independently maintained data such as Volatility Surfaces, Term Volatility Curves and Dividend tables. Providing secure and reliable market data coupled with market proven analytics and intra day risk management functionalities, Derivatives.com allows WestLB to make informed trading decisions.

"We selected Imagine because it is an industry leader with market-proven web-based software that can support our current and future growth," said Markus Bolder, Executive Director for WestLB. "With Derivatives.com, I now have 100% of my group's positions housed in one comprehensive application that fully integrates my front and middle office. I am now able to make more informed trading decisions, including which strategies to allocate additional capital risk to, because Derivatives.com calculates Value at Risk across all strategies and traders in real-time."

"We are delighted that WestLB, one of Germany’s premier banking institutions, has selected Imagine as its technology partner of choice to address both its immediate and long term strategic challenges," said Steven Harrison, President of Imagine Software. "This is a milestone win for Imagine as we continue to increase our presence in the Western European region. It highlights our ability to provide a cost efficient, yet highly sophisticated web-based trading and risk management solution to European trading organizations of all size. We are excited to provide WestLB with the outsourced software, services and support that will help its trading unit continue to grow and succeed in the competitive European financial markets."

Imagine continues to be the only derivatives trading and risk management vendor that offers a full-service hosted solution, which provides the benefits of software on demand, data and processing services. It ensures immediate global accessibility and rapid time to market at minimal cost.

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