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Toronto/London - December 6, 2007 -

Algorithmics has announced today a groundbreaking 'Right Time' risk management approach to support the measurement, analysis and integration of risk and return in the business decision making process. Using a combination of existing and innovative new software components, 'Right Time' offers financial institutions the ability to measure and manage risk 'on-demand' and in a continuous simulation setting, both at the enterprise and at the desk level.

The breadth and capability of the 'Right Time' approach enables banks to use the most appropriate technology for their business objectives. Complementing a proven architecture that enables strategic decision-making at the enterprise level, the 'Right Time' continuous simulation framework now allows financial institutions to better support considered risk-taking, financial product development and effective control in dynamic and evolving financial markets.

Dr. Michael Zerbs, President & COO of Algorithmics, said 'Turbulent markets have demonstrated that it is essential for financial institutions to proactively measure and manage risk quickly and accurately. The 'Right Time' approach enables evaluation of market and credit risk 'on-demand', at a transaction, counterparty or portfolio level. As the trend to transform credit risk into tradable market risk grows, the ability to accurately price and comprehensively understand the risk and return at the time of the transaction becomes paramount.'

Dr. Andrew Aziz, Executive Vice President, Risk Solutions at Algorithmics added, 'Clients increasingly want access to greater analytic flexibility at the individual desk level and to be able to make trading decisions based on full knowledge of the risk profile of the transaction and counterparty. Through event-driven simulation, combined with a dramatic increase in the speed of calculation, we are able to deliver a radical advance that is especially relevant for counterparty credit risk in the trading book. This is what we call 'Right Time' risk management.'

The 'Right Time' approach builds on Algorithmics' successful Mark-to-Future framework (see Notes to Editors) and on other significant innovations recently introduced as discrete products. Together they offer a truly interactive risk management solution, ultimately leading to a comprehensive financial engineering workbench. Already available are:

• A powerful user application which supports the analysis of portfolios and a variety of what-if capabilities including proposed transactions and changes, real or hypothetical in market conditions,
• An Accelerated Analytics programme (see Notes to Editors) and 'on-demand' continuous simulation, which revolutionises the calculation time for a variety of financial instruments, massively reducing hardware requirements for large counterparty credit simulations and reducing processing to a fraction of the time otherwise required,
• A high volume, real-time trading, counterparty exposure simulation solution with full netting and collateral, and excess management for e-commerce platforms,
• A collection of excess, limit management and business process tools which prompt end users when events occur that impact credit controls, allowing them to take timely and appropriate action.

The 'Right Time' approach has been developed with interoperability as a major architectural consideration. It can be deployed alone or together with third party application components, proprietary client systems and other Algorithmics products to provide customers with a comprehensive solution to their specific requirements.

The 'Right Time' approach offers the ability for end users to take control, delivering access to the most up to date information on which to base decisions. By incorporating a 'Choose As You Go' dynamic configuration, users can decide how, what and when they calculate; each user can trigger 'on-demand' simulations using user-defined Monte Carlo simulations, stress tests, and what-if scenarios for their own book, at the portfolio, or even at the enterprise level. The full power of Algorithmics' analytical and simulation engines is being brought to the desks of end users in new ways. The 'Right Time' architecture will provide risk managers and analysts with interactive tools to be able to model products, construct scenarios, and perform wide-ranging what-if tests.

Notes to Editors:

Algorithmics is the world's leading provider of enterprise risk solutions. Financial organizations from around the world use Algorithmics' software, analytics and advisory services to help them make risk-aware business decisions, maximize shareholder value, and meet regulatory requirements. Supported by a global team of risk experts based in all major financial centers, Algorithmics offers proven, award-winning solutions for market, credit and operational risk, as well as collateral and capital management. Algorithmics is a member of the Fitch Group.

Fitch Group is the parent company of Fitch Ratings, a global rating agency dedicated to providing the world's credit markets with independent and prospective credit opinions, research and data. The Fitch Group also includes Derivative Fitch, an independent provider of a suite of ratings and comprehensive services for the credit derivatives market; Algorithmics, the world's leading provider of enterprise risk solutions; and Fitch Training, which offers high-quality analytical training for financial professionals. The Fitch Group is a majority-owned subsidiary of Fimalac, S.A., headquartered in Paris, France. For additional information, please visit www.fitchratings.com www.algorithmics.com www.fitchtraining.com and www.fimalac.com

Accelerated Analytics is a collection of high speed simulation capabilities, including Algorithmics' software components and Detica FPGA-based hardware simulation (see press release www.detica.com/indexed/NewsItem_highspeedriskanalysisrevealedincannes.htm).

Mark-to-Future is a forward-looking framework that links disparate sources of risk and provides a means for calculating the risk-reward trade off based on full valuation for all scenarios and time steps, within a single, unified framework.

© 2007 Algorithmics Software LLC. All rights reserved. ALGO, ALGORITHMICS, Ai & design, ALGORITHMICS & Ai & design, KNOW YOUR RISK, MARK-TO-FUTURE, RISKWATCH, ALGO RISK SERVICE, ALGO CAPITAL, ALGO COLLATERAL, ALGO CREDIT, ALGO MARKET, ALGO OPVANTAGE, ALGO OPVANTAGE FIRST, ALGO RISK and ALGO SUITE are trademarks of Algorithmics Trademarks LLC.

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