Algorithmics™ Licenses 'Willow' Lattice Class Software from RiskCare™

Toronto, Canada - May 24, 2000 -

Algorithmics Inc., the leading vendor of financial risk management solutions, today announced an agreement with RiskCare to offer RiskCare's advanced Willow lattice models as a standard component of Algo Suite.

Developed as a C++ toolkit, Willow is based on a new mathematical approach for efficient lattice construction. Consequently, Willow delivers cutting edge power, accuracy and stability for the trading and risk management of options.

The speed of Willow is fully complementary to the powerful scenario-based risk management tools provided within Algo Suite and the Mark-to-Future framework. Willow also broadens the range of instruments and interest rate models available within Algo Suite.

"We are delighted to conclude this agreement. The speed and accuracy of Willow for pricing a wide range of derivatives adds significant value to Algo Suite," said Michael Zerbs, Vice President, Research and Product Marketing for Algorithmics. "The structured development environment provided with Willow makes it easy for us to incorporate the product within Algo Suite."

Richard Haddow, Director, RiskCare said: "Mark-to-Future provides an ideal framework for Willow to extend into the Risk Management environment. Up to now, we have provided Willow as a Front Office development platform for sophisticated analytics. For customers of RiskCare and Algorithmics, the deal will provide full consistency and integration between Front Office and Risk Management."

Algorithmics has been testing Willow extensively since November last year, looking both at the underlying modelling approach and benchmarking the performance. Integration work commenced in February, with RiskCare providing consultants to Toronto to support the process. For several years previous to this, RiskCare has been a consulting partner of Algorithmics, providing development and integration expertise to Algorithmics' customers worldwide.

It is anticipated that the first release of Algo Suite incorporating Willow will be in August 2000.

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

©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.

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Heather Smith
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