AdminServer adds ''Trade Auditor'' to their Policy Administration Solution to Monitor Market-Timer Late-Trading.

CHESTER, Pa. -- New functionality eliminates any chance of illegal late trading...a hot topic at the heart of recent mutual fund scandals involving variable annuities 

AdminServer, Inc. today announced the addition and immediate availability of Trade Auditor for its policy administration system. The new functionality encrypts and time stamps all trades during a specified window of time and has the ability to report all late trades to the user company's auditor or Chief Compliance Officer (CCO). With this added security and check-and-balance approach to late trades, no one has the ability to adjust the time stamp on a trade as a way to engage in illegal late trading.

SEC rules indicate that trades made after the market close, normally 4 p.m. Eastern, are to be sold at the next day's price. Unfortunately, some unscrupulous traders take advantage of material information received after the market closes that may impact the share price. In these situations an investor may have intentionally circumvented late trading restrictions by manually altering the system or the data to make a late trade appear as a trade made prior to the 4 p.m. market close. These improper late trading and market timing practices have resulted in massive investigations into abuses of mutual funds and variable annuities by both government and regulatory (i.e. NASD and SEC) agencies.

AdminServer's new Trade Auditor functionality monitors all trades and eliminates any temptation or ability to adjust the time stamp, thereby ensuring that no illegal or improper trading has taken place. With the additional option to automatically notify the company's auditor or CCO of all questionable trades, the company has the added check-and-balance to further scrutinize any suspicious trading activities.

Chris Prabhu, AdminServer's VP & CIO, commented, "Illegal late trading and market timing have become the talk of the variable annuity industry, fueled in large part due to the publicity surrounding investigations of the entire mutual fund industry by the New York Attorney General. Given the sense of urgency in the industry to look for a way to stop improper late trading practices, we responded with Trade Auditor. The AdminServer system is business rules driven, so it was fairly simple for us to add the Trade Auditor capability to automatically register and encrypt all late trades thereby ensuring that they couldn't be modified in any way."

Mr. Prahbu continues, "With Trade Auditor, late trading becomes one less thing to worry about as insurers continue to look to better protect their policyholders."

About AdminServer, Inc.

AdminServer, Inc. is a premier solutions provider for the insurance community. AdminServer has been delivering administrative system solutions, web services, and consulting since 1998. Today AdminServer specializes in fixed and variable annuities, pensions, immediate annuities, and life insurance. Currently AdminServer offers the only life insurance and administration system designed specifically as a web application employing Microsoft's .NET and IBM's J2EE strategies and technologies.

To learn more about AdminServer products and services, please call 972.715.2028, e-mail Ric Young ([e-mail]), or visit the website at www.AdminServer.com.