Algorithmics Signs on RBC Dominion Securities (RBC DS) to Algo Credit eValuator™ (ACV) Program

Toronto, Canada - October 4, 2001 -

Algorithmics Incorporated, a worldwide leader in enterprise risk management solutions, today announced that RBC Dominion Securities, Inc. (RBC DS) had joined the Algo Credit eValuator (ACV) beta program. Designed to mark loan portfolios to 'market conditions,' determine risk-adjusted profitability for a variety of loans, bonds and credit derivatives and assess detailed structural features, the ACV program was recently launched, with RBC DS as a key participant in the program.

"We're very pleased to welcome RBC DS to our program, in light of the strength and skills that the firm's portfolio management unit brings to the project. The overall objective of the group is to work closely with key leading institutions to develop a superior credit valuation software solution that directly supports their 'mark-to-market' business objectives," said Scott Aguais, Director, Credit Risk Solutions at Algorithmics. "The firm brings some unique perspectives on valuation, portfolio management and the extensive effort needed to calibrate a model like ACV to support mark-to-market for loans instruments in markets with limited trading. The credit data requirements needed to support calibration of ACV are substantial, requiring multiple credit vendors and data sources and RBC DS has some clear ideas on how to develop some of this cross-vendor integration with ACV."

"Understanding transfer pricing and achieving best of breed 'mark-to-market' methodologies are important to us, and realizing these objectives begins with marking our loan portfolio to model using benchmark calibrations developed from various sources of market prices," said Allan Yarish, Head, Global Banking Credit Risk Portfolio for RBC DS. "The solution we are working on with Algorithmics is consistent with our commitment to be a leader in enterprise-wide risk management."

"As a key component of our overall credit solution to support the banking book, the advanced ACV software application is designed to serve multiple business objectives across both front and middle-office credit risk functions. RBC DS realizes that the values of their loans fluctuate with the market, so that managing credit risk needs to become a much more dynamic process to support links between origination, 'market-based' transfer pricing and portfolio management. The ACV application will help RBC DS realize its goal of implementing a framework that supports ongoing monitoring of the value of their borrowers' loans, including stress testing as ratings, and credit and market conditions change," said Aguais, who emphasized that "the ACV capability leverages Mark-to-FutureÔ in conjunction with Algo CreditÔ to deliver enterprise level credit risk management solutions."

About RBC Dominion Securities
RBC Dominion Securities www.rbcds.com, a business unit of Royal Bank Financial Group, is Canada's leading corporate and investment bank. Founded in 1901, RBC Dominion Securities has evolved to its current position as the country's premier provider of financial services to corporations, governments and institutions. Largely through a series of mergers and acquisitions, it has steadily built its capability in investment banking and debt and equity research, sales and trading to market-leading levels in Canada, as measured by industry league tables. The firm leverages the expertise of its three divisions - Corporate and Investment Banking, Global Markets and Global Equity - on behalf of its clients. In a climate of entrepreneurial partnership, framed by the firm's reputation for quality and leadership, the people at RBC Dominion Securities deliver unsurpassed value to their clients worldwide.

About Algorithmics
Algorithmics Incorporated is the leading provider of enterprise risk management solutions that enable financial institutions to effectively understand and manage their financial risk. Algorithmics' clients include more than 150 of the world's leading financial institutions. Its Algo Suite of enterprise risk management solutions are in use in 31 countries by over 50 of the 100 largest financial institutions in the world.

©2001 Algorithmics Incorporated. All rights reserved. ALGORITHMICS, ALGO SUITE, MARK-TO-FUTURE, MtF and the Ai logo are trademarks of Algorithmics Incorporated and/or its affiliates.

Press Contact

Heather Smith
Senior Communications Manager
Tel:  +44 (0)20 7392 5820
Mobile: +44 (0) 7515 974 223
Fax: +44 (0)20 7395 5701
email: Heather.Smith@algorithmics.com