FINANCIAL INSTITUTIONS MIGRATE TO LATEST MAJOR RELEASE OF FRS ORM/SOX COMPLIANCE SOLUTION

Littleton, Mass. – 23 October 2006

-- Customers to Capitalize on RiskResolve 5 Advancements --

FRS, a leading global provider of enterprise risk and regulatory compliance solutions, announced today that a broad spectrum of financial institutions, such as Calyon, Greater Bay Bancorp, Zions Bancorporation and others, are building upon the success they have achieved utilizing FRS’ RiskResolve by migrating to version 5, the latest major release of the Company’s operational risk management (ORM) and Sarbanes-Oxley (SOX) compliance solution.

For years, institutions have relied upon the proven FRS RiskResolve solution to sustainably support their evolving ORM and SOX compliance programs. Customers will deploy FRS RiskResolve 5 to leverage its advanced capabilities as a unified, consistent framework for defining, measuring and managing risks, internal controls, loss events and regulatory compliance mandates. The solution provides customers with a unique ability to systematically improve internal processes and reduce operational losses. RiskResolve will also continue to serve as a critical element in institutions’ – U.S.-based banking corporations and European institutions trading on the NYSE and NASDAQ – strategies for addressing SOX, Basel II, the Capital Requirements Directive and other compliance objectives.

“Unlike analytical ORM products that focus on complex mathematical routines to build capital loadings, FRS RiskResolve 5 provides financial institutions with a means to ‘operationalize’ risk management,” said Alain Tayenne, Chief Executive Officer, FRS. “The solution will enable our customers to monitor and measure operational risk on an ongoing basis, week-in, week out, month after month. It will supply them an auditable infrastructure to demonstrate to the regulators tasked with ‘supervisory oversight’ and help them achieve enterprise-wide, consistent risk and controls environments as required under the Basel II Accord.”

Through RiskResolve, customers have been able to successfully manage their risk and control self-assessment environments, identify where losses are concentrated within their organizations and understand the origin of those losses. The solution has given institutions the ability to identify ineffective controls that elevate risk in their operating units, and identify costly control redundancies. As a result, FRS customers have been able to effectively predict and proactively reduce risk. With version 5, institutions will be able to take advantage of numerous product and industry advancements that will further equip them to achieve sustained risk management and compliance programs by actively and continuously managing operational risks, controls and losses across all lines of business, legal entities and processes.

“RiskResolve has been at the core of our enterprise risk management (ERM) initiative for more than two years. Utilizing the FRS solution, we’ve created a consistent, effective approach to risk and control self-assessment and established a repeatable process across our lines of business – community banking, specialty finance, trust and insurance brokerage,” said Debborah S. Knowles, Senior Vice President and Director of Risk Management, Greater Bay Bancorp. “With version 5, we expect to gain a greater ability to measure the results of our risk assessments, interpret these results and produce comprehensive reports, such as enterprise dashboards, that provide executive management with enhanced visibility and strategic insight into the business.”

Enhancements in RiskResolve 5 include a risk and control self-assessment dashboard that streamlines the delivery and management of risks and controls across institutions, and advanced issues tracking and reporting enhancements for monitoring control testing that can greatly facilitate SOX compliance efforts.

• Active Guidance Framework (AGF) – With this release, FRS uniquely meets the industry’s need for a solution that accelerates the enterprise-wide adoption of a consistent self-assessment process. The AGF module empowers institutions to create a robust foundation of “best practices” for compliance and deployment as defined by standards bodies, such as COSO, FFIEC, UBPR, OCC and PCAOB, while adhering to regulatory requirements and mitigating risks.
• Enhanced Oversight Functionality – RiskResolve 5 enables customers to more easily and efficiently document, monitor and report on testing activities. This latest release provides improved issues tracking capabilities and greatly facilitates communication between testers and business units.
• SOX Reporting Advancements – The solution offers a full set of reports specifically designed to meet the needs of SOX compliance reporting; users will be able to reply upon RiskResolve to validate 404 compliance and to substantiate attestations.

“We expect to take advantage of the many advances within RiskResolve 5 and capitalize on the unique benefits of the Active Guidance Framework. Building a risk and control self-assessment framework from the ground up can be arduous and time-intensive, and few resources exist for defining risk and controls across multiple initiatives,” said Bob Angarola, Managing Director and Chief Internal Control Officer, Calyon Americas. “FRS AGF addresses this void as a tool for defining and consistently classifying objectives, risks, controls and actions and organizing databases. We expect the AGF module to help us improve our existing RiskResolve environment, evaluate risk across information silos and obtain an accurate view of risks and controls enterprise-wide.”

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