Excelergy and Algorithmics Combine to Deliver Advanced Trading and Risk Management System to Energy Industry.

Business/Technology Editors

TORONTO, Ontario and LEXINGTON, Mass.--(BUSINESS WIRE)--Feb. 13, 2002

Best of breed systems unite to integrate top trading and

transaction operations with sophisticated financial risk management

Excelergy Corporation, the world's leading provider of high performance software products in the global energy and utility industry, and Algorithmics Incorporated, a leader in enterprise risk management with more than 120 global clients in 26 countries, today announced a strategic alliance that will deliver the industry's most advanced energy trading and risk management system to energy traders and generators.

"Algorithmics is known in the financial and energy industries for its risk management expertise and accuracy. Excelergy is known for its energy sector expertise in automating vital business processes like trading, scheduling and settlement. Together, our best of breed products will present energy companies with a single view of risk across their entire enterprise, which will enable traders and generators to make the best decisions possible," said Michael Zerbs, chief operating officer of Algorithmics. "Given the increasing financial risk, volatility, time and regulatory pressures in world energy markets, having a single risk engine tightly coupled with a transaction engine at the core of operations will be critical for companies to meet and surpass their business goals."

Excelergy will integrate its Excelergy Energy Trading(TM) product, which provides straight-through processing of trading, scheduling and settlement business processes, with Algorithmics' Algo Energy(TM), which delivers comprehensive physical and financial risk management from modeling market, credit and liquidity risk to generating forecasts, analysis, decision support and reporting. The offering will be utilized by companies needing to communicate and collaborate with multiple system operators and market partners - while managing skyrocketing volumes of increasingly complex commodity trading transactions - to make optimal business decisions in real-time energy markets around the world.

"We searched for the most advanced and reliable risk management system to complement our trading, scheduling, and settlement product, and we determined that Algo Energy outpaces anything currently available in the energy and utility industry. Together, our products will provide an unprecedented enterprise view of risk, encompassing not only market and counterparty volatility, but also visibility into physical assets and retail portfolios," said Bill Mahoney, Excelergy's president and chief executive officer. "Given Algorithmics' tremendous reputation and reach in global financial and energy markets, we feel this is a rock-solid alliance, one from which our current and future wholesale clients will benefit tremendously."

The Excelergy-Algorithmics offering is expected to improve and stabilize a company's mission-critical processes by integrating trading operations with sophisticated financial risk management. Scalable to millions of trades with sub-second response times, the combined offering will deliver key analytics directly to the screens of traders and generators, who can then execute trades or plan and schedule generating facilities. Robust audit trails will be provided for all activities, while data duplication and re-entry will be reduced or eliminated. By extending key decision-making information to market partners as well, it is also expected to speed settlement and accelerate cash flow, while fast, reliable deployments and out-of-the-box integrations will deliver lower overall cost of ownership to clients.

About Algorithmics

Algorithmics was founded in 1989 in response to the complex issues surrounding financial risk management for the enterprise. Today, as a leading provider with one of the largest and most experienced teams in the industry, Algorithmics continues to focus its efforts on creating and implementing enterprise risk management software that meets the evolving needs of its customers. Continuing its tradition of leading the way in risk measurement and management tools and processes, Algorithmics has introduced Mark-To-Future(TM) (MtF(TM)), a new risk-reward management framework, which won Risk magazine's Technology Development of the Year award for 2001. Headquartered in Toronto, with 15 offices around the world, Algorithmics serves more than 120 global clients with 150 installations in 26 countries. More information is available at www.algorithmics.com.

About Excelergy

Excelergy is the world's first provider of open co-action software products - putting "action" at the heart of "collaboration" - to meet restructuring market needs worldwide. Excelergy delivers open co-action through its three core product lines: Excelergy eXACT(R) for inter-company collaboration, the Excelergy Advanced Business Package(TM) for intra-company collaboration, and Excelergy Energy Trading(TM) for straight-through processing of wholesale energy business processes. These products are based on an open, object-based, Web-architected, native XML technology platform. Excelergy's North American headquarters are located in Lexington, MA, with its European headquarters in Bristol, England and its Asia-Pacific operations based in Melbourne, Australia. More information is available at www.excelergy.com.