Paladyne Sees Increased Demand for Its Hosted Technology Platform

New York, San Francisco, and London - 30 July 2008

Paladyne Introduces the PALADYNE Networkâ„¢ for Hedge Funds

Paladyne Systems, Inc., a leading provider of hedge fund software and services, today announced an increased demand for its hosted, ASP software solution and full service IT platform, with 15 additional clients going into production this year. The addition of these clients coincides with Paladyne’s introduction of the PALADYNE Network™, an integrated combination of Paladyne software, best-of-breed third-party applications including Advent Geneva® and Sungard VPM™ portfolio accounting, prime broker and fund administrator interfaces and reconciliation tools, and leading data vendor feeds for pricing, corporate actions and terms and conditions all within a fully hosted platform.

“Paladyne attributes much of the increased demand to current market conditions as hedge fund managers face intense cost pressure, yet still require comprehensive, flexible technology solutions to remain competitive,” said Sameer Shalaby, CEO of Paladyne Systems. “Our new PALADYNE Network is also driving demand as customers see tremendous value in tailoring a technology solution to their exact requirements combined with full service IT and 24x7 support infrastructure.”

Paladyne offers an integrated front- to back-office solution known as the PALADYNE Suite which includes order management, real-time P&L, portfolio accounting, security master, data analytics, pricing and valuation, compliance, and custom reporting. Paladyne has combined its suite of products with a fully managed IT service including hardware, technical support, quality assurance, and high availability, mirrored disaster recovery. The Paladyne products are available either as part of the fully hosted ASP platform or as individual modules which may be installed locally at the client site.

“Paladyne’s ASP platform has proven to be an ideal solution for our firm,” said John Gordon, Chief Financial Officer of Chicago Fundamental Investment Partners, one of the first production customers on the platform. “The tight integration of the PALADYNE Suite with our accounting system, data vendors, and prime brokers has streamlined our operations and significantly minimized our firm’s operational risk and costs.”

“Our decision to use Paladyne was based on a combination of superior functionality, and a significant cost savings versus building an in-house technology platform,” said Richard Horton, Chief Financial Officer of Courage Capital. “Paladyne’s ASP offering provides us with centralized data management and integration between our trading and back-office operations at a very competitive total cost of ownership compared to all other alternatives we considered.”

“Paladyne’s ASP platform has provided a ton of scale for our trading and operational infrastructure,” said Jamie Mai, President of Cornwall Capital, Inc. “The Paladyne product suite enables us to trade more complex instruments, leverage multiple custodians and counterparties, and maintain tighter operational control. Paladyne gives us the reach of a much larger organization, without compromising the flexibility which we see as critical to our competitive edge.”

Mr. Shalaby concluded: “The economies of scale that we have achieved in our hosted platform combined with the growing network of integrated data vendors and third-party products make the PALADYNE Suite and Network an extremely compelling solution for hedge fund managers. We are investing heavily in our products, hosted platform, and services teams as we continue to expand our mission-critical functionality and superior service levels for all of our customers.”

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