Algorithmics Accelerates Application Service Provider (ASP) Initiatives with Appointment of Justin Forrest as Director, ASP Solutions

Toronto, Canada - October 12, 2000 -

Algorithmics Incorporated today announced the appointment of Justin Forrest, formerly with NatWest Global Financial Markets (GFM), to the new position of Director, ASP Solutions. Leveraging recent successes within the Application Service Provider (ASP) market , Mr. Forrest and his team will drive the delivery of Mark-to-Future™-based risk management solutions over the Internet to a host of end users, including financial services firms, investment advisors and retail investors. These solutions will be based on business partnerships with leading financial services, information technology and consulting companies to leverage Algorithmics' technologies in to new market segments.

Prior to joining Algorithmics, Mr. Forrest held positions of increasing management responsibility with, most recently, NatWest Global Financial Markets, IBM UK Ltd. (EMEA Capital Markets) and Digital Equipment Corporation (wholesale banking). While at NatWest, he led the design of a consolidated global risk architecture, as well overseeing the derivative-processing capability of the firm's middle and-back-office operations. At IBM, as a senior consultant, IBM Capital Markets, Mr. Forrest's responsibilities included the development of the capital markets consulting group. His IBM customer engagements included ING Barings, South African Reserve Bank (SARB), and Deutsche Bank (Hong Kong, London). Mr. Forrest will be located in the Toronto headquarters of Algorithmics.

International Data Corporation (IDC) declared that ASPs accounted for $300 million in revenue in 1999, and this is expected to increase to $7.5 billion by 2004. Dataquest forecasts that the ASP market will account for $23 billion by the end of 2003, while Forrester Research estimates that the ASP hosting market will represent a $10 billion opportunity in 2001.

Mark-to-Future Makes ASP Risk-Delivery Attractive
Mark-to-Future (MtF) is a powerful risk/reward management framework that integrates various sources of risk and reward. It is based on a framework and not a formula. The interaction of market, credit and liquidity risk is contained in one consistent methodology. As MtF explicitly incorporates the passage of time, the evolution of scenarios over time and the dynamics of portfolio holdings over time, it provides a platform for assessing future uncertainty that captures the impact of settlements, maturity dates, trading and investment strategies. Today, the Mark-to-Future framework lies at the heart of 140 enterprise risk management (ERM) solutions at more than 100 leading financial institutions.

Since Mark-to-Future de-couples the computationally intensive simulation stage from the post-processing stage, an ASP solution can be established that distributes risk services to clients without requiring them to divulge their holdings. Because Mark-to-Future models instruments and not portfolios, Mark-to-Future values need only be calculated once and not for each investor's portfolio separately. Thus, Mark-to-Future is efficient and the results can be leveraged to support multiple clients. Application service providers that can benefit from having Mark-to-Future as the framework for scalable risk reports include financial institutions, brokers, exchanges and private wealth management advisors. Credit Suisse First Boston uses the Mark-to-Future framework to power its Prime World electronic trading platform.

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.

©2000 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
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email: Heather.Smith@algorithmics.com