AFA TO PROVIDE SOFT DOLLAR REPORTING AND COMMISSION MANAGEMENT SOLUTION

New York - 13 February 2007

Advanced Financial Applications (AFA), a leading strategic vendor of technology solutions to buy and sell side firms, today announced the second in a series of strategic moves this month, designed to enhance the company’s value to clients.

AFA will now offer a soft dollar reporting and commission management solution called IMPACT Pro SD. This solution will provide broker-dealers the ability to easily supply their institutional clients with real time access to detailed reports of commission activity. Money managers and broker-dealers can use these reports as the basis for detailed information on the handling of brokerage commissions to auditors and regulators. The offering enables broker-dealers to be fully compliant with the January 24 SEC deadline for new guidelines on soft dollar commissions.

The soft dollar offering is consistent with AFA's goal to simplify the trade management process and through an ASP delivery, make technology cost-effective for clients. The reporting system, known as IMPACT Pro SD, is flexible and easily customized to every client’s specific needs. It can also be used on a stand-alone basis or as a complementary offering along with AFA’s IMPACT Pro™ application. IMPACT Pro SD is a total top-to-bottom reporting and management solution providing:
• A detailed account of a money manager’s use of a client’s brokerage commissions.
• A consistent presentation of information for the client, broker and other parties involved in the relationship for a clear understanding of the manager’s brokerage practices.
• Clear and concise disclosure and record keeping, enabling clients to have a detailed account of the brokerage activities.
• The ability for investment managers to provide descriptions of the products or services they have received through commissions generated from a client’s account.
• A stronger flow of information from the broker-dealers to fund advisors and boards to facilitate disclosure to investors.
• The ability to meet and exceed today’s strict compliance issues such as full disclosure. The solution will also provide concise detailed reports which demonstrate how every penny is spent and what research product of brokerage services they are getting in return.

This latest announcement reflects AFA’s commitment to its clients and a plan to expand its position in the marketplace. The planned move also further reflects the organic evolution of AFA from its previous position as a provider of an integrated order processing solution to a strategic vendor. AFA’s goal is to provide a suite of integrated technology solutions designed to help clients manage and grow their business.

In October 2006, AFA recruited Patrick Lynch as CEO. Lynch is largely credited with the firm’s enhanced offerings and he plans to pursue aggressive growth in 2007, buttressed by the new product suite. As the firm moves forward, Lynch is examining both opportunities for growth and is simultaneously aligning the company to its clients’ strategies.

Said Patrick Lynch AFA’s CEO: “2007 is a critical year for the industry, and AFA will play an important role in enabling both the buy and sell sides to grow by leveraging our expertise and technology. This latest offering is the second in a series of moves that will enable our clients to achieve their goals with comprehensive and cost-effective tools, all delivered on one platform. As clients are experiencing increasing costs related to compliance, we have integrated a reporting mechanism that shifts the burden away from clients so they can focus on their business. We look forward to continuing to offer such need-based solutions.”

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