Fundtech and Union Bank of California go Live with EPN STP 820, Enabling SMEs to Benefit from Automated Electronic Payments.

JERSEY CITY, N.J. -- Fundtech's Cash Management System Combines Payment and Remittance Data, Delivering Straight Through Processing of ACH payments

E[acute accent]Fundtech Ltd. (NASDAQ:FNDT), a leading provider of end-to-end corporate banking and securities processing software and services, today announced the successful deployment of EPN STP 820 with Union Bank of California (UBOC). Fundtech's webBANKER is the first cash management software to have this capability, allowing banks to offer companies an easy way to create electronic payments that include invoice and remittance data. UBOC is offering this feature to its entire business customer base, and has already deployed it with Mark Company and Makita Corporation of America. E[acute accent]By integrating EPN STP 820 with webBANKER, corporate users are able to transmit payment information along with invoice number, purchase order, discounts, and adjustments. This enables the electronic payment to flow seamlessly between the buyer's cash management system to the seller's accounts receivable system, all without human intervention. This can significantly reduce processing cost and speed reconciliation for both buyer and seller. Both parties' banks act as intermediaries in these transactions. E[acute accent]The capabilities of EPN STP 820 were once only available to large corporations willing to implement sizable and usually expensive electronic data interchange (EDI) systems. EPN STP 820 now offers these powerful capabilities at an affordable price for small and medium sized enterprises (SMEs). As more large suppliers are requesting electronic payments and are even offering discounts for payments that include remittance data, demand for this service has been growing among SMEs. E[acute accent]"Vendors and Utilities have been among the earliest adopters of electronic payments, successfully converting their consumer and large corporate customers from paper to electronic," said Jesse Sandoval, Vice President, Union Bank of California. "However, SMEs have been unable to take advantage of the electronification of payments and remittance information due to cost and the complexity of EDI. The advent of EPN STP 820 and its integration into ACH services make EDI affordable and easy. The billers who offer electronic payment options can receive this payment and invoice information seamlessly. UBOC is extremely pleased to be the first bank to offer this service to our customers." E[acute accent]"As the leading enabler of the financial supply chain, Fundtech is proud to be the first cash management provider to deploy the EPN STP 820 specification," said Brian Jou, Senior Vice President of US Products for Fundtech. "UBOC is further able to differentiate their ACH payment services, providing SME clients with the most streamlined and cost effective features in the marketplace." E[acute accent]"This solution provides a very easy way to not only initiate an electronic payment, but to define multiple invoices being paid with a single payment," said Peggy Walker at Makita Corporation of America. E[acute accent]"We look forward to making our payments electronically with UBOC's new service, satisfying our vendors' requests to be paid electronically and enhancing the control of our payables process," said Mindy Curtis at Mark Company.

E[acute accent]More Information on webBANKER and EPN STP 820

E[acute accent]Fundtech's webBANKER aggregates all payment and remittance data to create a complete EDI transaction and then bundles this information to generate a NACHA file. The file is automatically routed through the UBOC infrastructure to the receiving bank, which posts the payment. The receiving bank then forwards the EPN STP 820 remittance information to the receiving company, which can post the payment automatically to their accounts receivable application or may request that its financial institution interpret the file and provide a remittance report. E[acute accent]Billers receiving electronic payments with EDI today can receive the EPN STP 820 without any change to their accounts receivables or ERP systems. Today, accounts receivable and ERP systems, which can post from standard X12 820, are also able to post from the EPN STP 820, which is a proper subset of X12 820. In addition, small and mid-tier accounting software providers have been implementing the EPN STP 820 in their AP and AR systems, enabling a solution which now allows SMEs to post from the EPN STP 820 remittance information. E[acute accent]The EPN STP 820 standard was developed as an initiative of the Electronic Payments Network and is supported by NACHA, BITS and the Association for Financial Professionals (AFP). For more information about the EPN STP 820 initiative, please visit www.epaynetwork.com.

E[acute accent]About Fundtech

E[acute accent]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.

E[acute accent]About UBOC

E[acute accent]Based in San Francisco, UnionBanCal Corporation (UB: NYSE) is a bank holding company with assets of $49.4 billion at December 31, 2005. Its primary subsidiary, Union Bank of California, N.A., had 315 banking offices in California, three in Washington, one in Oregon, and 20 international facilities, at December 31, 2005. The company's Web site is located at www.uboc.com.

E[acute accent]About EPN

E[acute accent]The Electronic Payments Network (www.epaynetwork.com), a payments business of The Clearing House Payments Company, is the only national private sector ACH operator in the United States. Its membership consists of more than 1,400 commercial banks, credit unions and savings banks. EPN processed 5 billion payments in 2005. The Clearing House (www.theclearinghouse.org) is a private sector, global payment systems infrastructure that clears and settles more than 48 million payments for $1.9 trillion per day. The Clearing House manages payment services that span the entire spectrum of paper, paper-to-electronic and electronic payments.

E[acute accent]Forward Looking Statements:

E[acute accent]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, projections of revenues, income or loss, capital expenditures, 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.