LANDESBANK BADEN-WÜRTTEMBERG TAKES ALGO COLLATERAL LIVE

TORONTO, CANADA / STUTTGART, GERMANY - March 3, 2005 - Algorithmics Incorporated, a world leader in enterprise risk management solutions, today announced that Germany's largest public sector bank, Landesbank Baden-Württemberg (LBBW), has gone live with Algo Collateral for managing all their OTC derivatives margining requirements.

LBBW, rated earlier this year as the best among the country's landesbanks by Standard & Poors, cites upcoming changes to regulatory requirements for credit lending and credit worthiness in 2005 behind the decision to use Algo Collateral as the foundation for all future banking activities. The solution ensures LBBW will remain competitive in a consolidated marketplace once state liability guarantees are eliminated.

"Implementation was completed on time, on budget and the solution is enabling us to scale operations dramatically," says Andreas Beck, Head of Back Office OTC Derivatives. "Algo Collateral has already allowed the bank to expand both trading volume and counterparties on a collateralized basis, and we're planning for added business in the future."

Also announced was the successful integration of Algo Collateral's automated interface to the LeDIS legal database application. LeDIS is developed in part by VöB-Service GmbH, a service provider for the German public financial institutions sector and strategically partnered with Algorithmics. Using LeDIS, LBBW can import agreement terms and create the appropriate master and collateral agreement necessary for controlling margining processes.

"The implementation of Algo Collateral and LeDIS at LBBW is a result of the cooperation and excellent working relationship we've enjoyed with Algorithmics," says Holger Heuschen, Head of Legal Services at VöB-Service GmbH. "The LeDIS application ensures the operational as well as legal aspects of LBBW's collateral management programme, and fulfils the firm's foreseeable requirements for Basel II to achieve capital relieve through netting and collateral."

"LBBW is universally recognized for having taken key measures to improve their overall creditworthiness and top rankings among the landesbanks, while continuing to diversify and expand their business," says Michael Zerbs, Chief Operating Officer and President at Algorithmics. "The go-live of Algo Collateral is a key element to LBBW's long-term strategy and profitability."

About Landesbank Baden-Württemberg (LBBW) LBBW is an international wholesale and retail bank, as well as being the central banking institution for the savings banks in Baden-Württemberg. It is also a savings bank in the territory of the state capital of Stuttgart.
LBBW was formed following the merger in 1999 of Südwestdeutsche Landesbank Girozentrale, Landesgirokasse and the commercial banking business of Landeskreditbank Baden-Württemberg.

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