PKO Bank Polski selects Algorithmics for market and credit risk management

Toronto, Canada / Warsaw, Poland - December 16, 2003 -

Algorithmics Incorporated, a world leader in enterprise risk management solutions, announced today that PKO Bank Polski SA, Poland's largest bank, has selected Algorithmics' Algo Market and Algo Credit solutions in a move to establish industry leading enterprise-wide risk management capabilities.

"Enhancing our risk management capabilities is an important part of our institution-wide modernization program," said Roman Maszczyk, Managing Director for Risk Management at PKO BP SA. "Integrated risk solutions are best because they provide consistent, advanced analysis over all risk types. Our goal is to increase the bank's risk taking capacity in a very competitive Polish market."

"Algo Market is the solid platform to build on our integrated market risk architecture. It is a proven solution that will provide a comprehensive understanding of our portfolio risk," remarked Krzysztof Dresler, Director for Market Risk at PKO BP SA.

"Central European banks are facing new regulatory challenges in an increasingly demanding economic climate. Banks are turning to risk management solutions that deliver enhanced decision making during business opportunities for greater competitive advantage," said Michael Zerbs, Chief Executive Officer at Algorithmics. "PKO has taken a strategic approach towards building a solid foundation that will enhance both their business profitability and transparency as well as improve credit efficiencies as it moves towards privatization."

Algo Market is a true enterprise solution for measuring and managing the market risks of a financial institution, across all asset classes and product types. The robust and flexible architecture, built on Mark-to-Future, enables a firm to integrate market, credit, ALM and liquidity risk across the enterprise.

Algo Credit's proven limits and exposure functionality provides a consistent, integrated framework for managing credit risk across the enterprise, covering global limits and counterparty exposures for both trading and banking book products. Algo Credit also provides significant Basel II compliance functionality.

About PKO Bank Polski SA
Founded in 1919, PKO Bank Polski SA is the leading bank in Poland, with a balance-sheet ranking among the largest banks in Central Europe. The bank currently holds 35% of Polish savings and giro accounts and 31% of the country's household deposits. With approximately 40,000 employees, PKO SA also leads in both the Polish corporate banking and residential property finance markets and runs a significant money and capital markets business. PKO BP cooperates with foreign banks in area of foreign currency settlements with 33 active nostro accounts in 18 countries.

To support its continued market leadership and ensure it is well positioned for future growth, PKO BP has adopted an aggressive Modernization Strategy scheduled for completion in 2005. An important element of this strategy is technological upgrade through the implementation of an industry leading Integrated IT System.

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.

©2003 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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