Fundtech Introduces TRADEplus(TM) - Entry into Securities Transaction Processing; New Technology Improves STP - Reducing Cost and Risk.

JERSEY CITY, N.J. -- Fundtech Ltd. (NASDAQ: FNDT), a leading provider of end-to-end corporate banking and securities processing software and services, today announced its entry into the securities transaction processing marketplace with the introduction of TRADEplus(TM). The product offers a new standard in progressing towards full automation of Delivery versus Payments (DVP). TRADEplus(TM) addresses the industry's most vexing challenges of reducing cost and risk, while guaranteeing timely settlement completion.

Fundtech is leveraging its success in developing sophisticated payments clearing and FX Payments versus Payments (PvP) Settlement processing systems for banks. Fundtech is applying its expertise to similar challenges facing the securities industry to enhance its DVP capabilities. These systems deliver high Straight Through Processing (STP) rates and tailored services to clients. With clients such as Citi, HSBC and Deutsche Bank, Fundtech systems have been installed in some of the most complex financial processing operations.

TRADEplus is an SOA compliant, J2EE-based software solution that enables broker dealers and custodian banks to integrate internal systems (OMS, PMS, Accounting, Reconciliation systems) and automate their DVP capabilities.

Fundtech plans to market TRADEplus to broker/dealer and custodian banks, targeting organizations that require robust in-house middle/back office infrastructure to improve straight through processing.

Fundtech has teamed with Radius Partners in the development of TRADEplus. Located in Pembroke, MA, Radius Partners has significant domain expertise and product development experience in securities processing.

Reuven Ben Menachem, Fundtech CEO said: "The move into the securities marketplace with the introduction of TRADEplus is part of our long-term growth strategy. With the help of partners, we are leveraging our significant expertise in automating complex financial transaction processing. Our goal is to provide systems that enable our clients to lower their cost and enhances their customer service."

Christopher Walsh, CEO of Radius Partners said: "Combining Fundtech's expertise in banking transaction processing with Radius' deep domain knowledge of the securities industry has produced an innovative system that offers a new standard for automation."

About Fundtech

Fundtech (www.fundtech.com) is a leading provider of software solutions and services that facilitate payments, settlement and cash management by enabling businesses and their banks to electronically manage cash, process payments and transfer funds. The Company's products are designed to increase efficiency while enabling banks to better serve their corporate clients. Fundtech operates the world's largest SWIFTNet service bureau through its Swiss subsidiary bbp; and the company is the leading developer of CLS systems having been selected by 20 of the CLS Settlement Members Banks. Fundtech was established in 1993 and is a public company listed on the NASDAQ and the Tel Aviv Stock exchange.

About Radius Partners

Radius Partners provides straight through processing (STP) solutions to financial institutions and service providers in the global securities industry. We combine innovative applications with specialized expertise and leadership to deliver STP solutions that improve operational efficiency, strengthen client relationships, increase volumes and bring new products and services to market - quickly, securely and profitably. Beyond connectivity, our applications provide the transaction, data and interactive capabilities required for financial institutions to effectively manage the trade process - from start to finish.

Forward Looking Statements:

This news release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, plans for growth and future operations, competition and regulation. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified. When used in this Release, the words, "estimates," "expects," "anticipates," "believes," "plans," "intends," and variations of such words and similar expressions are intended to identify forward-looking statements that involve risks and uncertainties. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. The factors that could cause actual results to differ materially from those discussed or identified from time to time in Fundtech's public filings, including its Annual Report on Form 20-F for the year ended December 31, 2004, including general economic and market conditions, changes in regulations and taxes and changes in competition in pricing environment. Undo reliance should not be placed on these forward-looking statements, which are applicable only as of the date hereof. Fundtech undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this Release or to reflect the occurrence of unanticipated events.