American Stock Exchange Chooses Talarian's SmartSockets for Next Generation Infrastructure for Market Data Systems.

Business Editors/High-Tech Writers

NEW YORK--(BUSINESS WIRE)--June 19, 2001

SIA Conference

Talarian(R) System to Sustain More than 25,000 Messages Per Second

This Year, And Expected to Exceed 72,000 Within Two Years

Talarian Corporation (Nasdaq:TALR), a leading provider of infrastructure software solutions for real-time information exchange, today announced the American Stock Exchange (Amex) has joined the growing list of financial institutions that have selected Talarian's SmartSockets(R) communications infrastructure solution. Talarian's product-set and consulting services will provide the underlying mission-critical software infrastructure upon which Amex will base its next generation options exchange.

Like others on Wall Street, Amex chose Talarian for its clear expertise in financial data markets, where decimalization, straight through processing, T+1, round-the-clock trading, and internationalization are dramatically increasing the messages-per-second (mps) requirements. Amex chose Talarian over other infrastructure vendors because of Talarian's ability to meet Amex's stringent performance conditions, including sustained rates of more than 25,000 messages per second.

Talarian is seeing a significant increase in financial industry customers. "As our customers are seeing for themselves over and over again, we have been able to demonstrate that our product is the highest performing, most reliable, and has the scalability that is far beyond what our competitors have been able to achieve," said Steve Gimnicher, vice president of marketing for Talarian. "Our fundamental product architecture combined with our expertise in creating market data systems, results in significant competitive advantages now that message volumes are increasing so dramatically."

The technology that makes Wall Street work

As a result of Talarian's industry-leading infrastructure market data systems, consulting expertise and technology, Wall Street is increasingly turning to Talarian Corporation when speed, reliability, and scalability are important. At the core of Amex's most fundamental business activities is a system responsible for generating, displaying and distributing real-time quotes internally and externally, routing orders to traders' electronic order books, and executing and reporting trades. "To effectively maintain our position in our increasingly competitive financial field," said Bob Rendine, senior vice president, Amex, "we needed to re-architect our system to provide scalable real-time performance, accelerated application development cycles and mission-critical fault tolerance. Talarian was the only company with the in-house consultant knowledge as well as a robust product capable of meeting our revenue-critical demands."

The American Stock Exchange Options Trading Floor moves at a speed few businesses can match, requiring that Amex's new system be capable of handling high-performance applications that exchange messages in real-time at the same extraordinary speed as the trading floor itself. Speed and scalability will become even more critical as industry initiatives such as decimalization begin driving quote volumes to record highs. Mission-critical reliability is essential in the world of financial options trading, where the direct and indirect costs of downtime are enormous. If Amex's Options Trading System experiences a significant failure that impacts trading and quoting for longer than 15 minutes, for example, notice to the Securities and Exchange Commission (SEC) is required.

The American Stock Exchange evaluated many leading software infrastructure solutions to find the one that would provide the critical reliability, scalability and high performance necessary to meet its increasing volumes of traffic. One key to Talarian's ability to win this multi-million dollar opportunity was SmartSockets' innovative ability to select either point-to-point or reliable multicast messaging, which Talarian calls "Adaptive Multicast(TM)."

The unprecedented increase in trading volumes currently faced by the major options exchanges around the world has significantly raised the awareness of messages per second. Amex presented Talarian with its scalability challenge: the need to grow from the 25,000+ mps required this year to the anticipated 72,000 mps expected within two years. With the help of its SmartSockets real-time publish-subscribe and multicast communications infrastructure, coupled with its significant consulting expertise, Talarian not only met that challenge, but is helping Amex develop its vision of creating one of the most innovative market data systems in the business.

"With industry message volume continuing to explode and communication networks becoming faster and more efficient," continued Gimnicher, "it is absolutely critical that our products ensure interprocess communications be stable, fast and efficient."

For additional information on Talarian or its communications solutions provided to the American Stock Exchange, visit www.talarian.com/amex

About The American Stock Exchange

The American Stock Exchange(R) (Amex(R)) a subsidiary of the National Association of Securities Dealers, Inc. (NASD(R)), is the only primary exchange that offers trading across a full range of equities, Exchange Traded Funds (ETFs), including structured products and HOLDRS(sm), and options. In addition to its role as a national equities market, the Amex is the leader in ETF listings, listing 100 ETFs to date, and is the second-largest options exchange in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, visit www.amex.com.

About Talarian

Talarian Corporation is leading the real-time revolution. With its complete infrastructure software products, Talarian is arming businesses with the ability to instantly distribute and exchange information internally and with their partners, suppliers, and customers -- regardless of platform, location or network type. Talarian products are deployed by hundreds of the world's largest organizations in their most demanding applications. Customers include Credit Suisse First Boston, Hewlett Packard, Lockheed Martin, MCI WorldCom, the New York Stock Exchange, Nortel Networks, Novell, Philadelphia Stock Exchange and Southwest Airlines. Talarian is headquartered in Los Altos, California. Additional company and product information is available online at www.talarian.com.

This news release contains forward-looking statements, including statements about the functions, features, and benefits derived from Amex's use of Talarian's products, the expected increase in volumes of data at Amex, and the expected increase in the need for speed and scalability across the financial industry. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors, including, without limitation, the acceptance and market growth for infrastructure software within the financial industry, the market acceptance of Talarian's products, the impact of competitive products and technologies, the rapidly changing nature of the industry in which we operate, the uncertainty of current economic conditions and their affect on customer purchase decisions, and the risk factors described in Talarian's filings with the Securities and Exchange Commission, including Registration Statement on Form S-1 dated July 20, 2000 the Talarian Annual Report on Form 10-K for the period ended September 30, 2000, and the Form 10-Q for the period ended March 31, 2000. The forward-looking statements made herein are made only as of the date of this press release, and the Talarian undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Note to Editors: Talarian and SmartSockets are registered trademarks, and Adaptive Multicast is a trademark of Talarian Corporation, Los Altos, California. All other trademarks are the property of their respective owners.