Lehman Brothers Licenses Spectrum from Financial Software Systems

Horsham, Pennsylvania - 20 July 2007

Lehman Brothers, the New York-based investment bank, has licensed the Spectrum System from FinancialSoftware Systems. Lehman Brothers will initially use Spectrum in its New York and London offices to managecollateralized trading of foreign exchange instruments, and to publish position and profit-and-loss data to itsclients over its highly regarded LehmanLiveÃ’ internet platform.

Lehman Brothers is one of the world's premier investment banks, maintaining leading positions in global equityand fixed income sales, trading and research, investment banking, asset management, and private equity.Lehman Brothers is headquartered in New York, with regional headquarters in London and Tokyo. The firmoperates from over 50 principal offices in over 20 countries around the world, with assets of over USD 560billion, and over 27,000 employees.

Spectrum provides a complete Client Relationship Management solution for foreign exchange and preciousmetals trading. Lehman Brothers will use Spectrum to manage the trading of FX spot, deliverable and nondeliverableforward, and swap contracts, as well as vanilla options and exotic options. The margin tradingmodule of Spectrum provides seamless management of client collateral, calculation of clients' margin positions,and preparation of margin calls for collateralized FX trading.

Spectrum is distinguished by a middle-tier calculation engine and middle-tier data distribution service. TheSpectrum data engine provides instantaneous calculation of clients' limits and/or margin requirements andmakes possible real-time limits and margin checks for electronic foreign exchange trading. Spectrum's datadistribution service connects the Spectrum data engine to a wide variety of position management tools andallows Spectrum to scale globally. Lehman Brothers intends to rely on cash collateral for its clients, butSpectrum also supports bonds, equities and physical assets as collateral.

Leigh Ann Wolfe, Financial Software Systems’ Director of Sales for the Americas commented, "We are verypleased that after an extensive review of its alternatives, Lehman Brothers selected Spectrum to provide bothmargin trading and web publishing capabilities. Implementing Spectrum will allow Lehman Brothers to veryquickly offer its FX trading clients -- including its Prime Brokerage clients -- margin trading and near-real-timeupdates of positions, P&L and a wide selection of risk measures. In addition to margining and web publishing,Spectrum will immediately deliver to Lehman Brothers the capability to produce multi-lingual client statementsand correspondence, and internal and external alerts of credit and/or collateral impairment."

Spectrum is built on Microsoft's .NET technology, utilizing either an MS SQL Server database or a Sybasedatabase. Spectrum's middle-tier engines run on Windows 2003 servers, and the Spectrum applications run onWindows desktops. Spectrum will connect to a number of Lehman Brothers' internal systems through standardimport and export interface APIs offered by Financial Software Systems.

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