PeopleSoft Announces First Enterprise Treasury Management Solution to Address Financial Accounting Standards Board Statement No. 133

Business Wire, August 26, 1999

PLEASANTON, Calif.--(BUSINESS WIRE)--Aug. 25, 1999--

Comprehensive Solution to Manage Derivative and

Hedging Activities

PeopleSoft (Nasdaq:PSFT) today announced PeopleSoft Treasury Management, a comprehensive solution enabling organizations to track, manage and report derivatives and related hedged items.

Developed by PeopleSoft with assistance by PricewaterhouseCoopers LLP, PeopleSoft Treasury Management is the first enterprise treasury solution to enable companies to interpret and comply with Financial Accounting Standards Board Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities" (FAS 133). PeopleSoft will deliver this functionality in the second quarter of the year 2000.

FAS 133 applies to all entities and to all type of derivatives and is effective for all fiscal quarters of fiscal years beginning after June 15, 2000. The new standard creates a need for software systems that properly identify, measure and link derivatives and hedged items. As a result, FAS 133 may require organizations to re-evaluate hedging strategies and to make extensive changes to information systems and business processes to ensure FAS 133 compliance.

PeopleSoft Treasury Management will deliver a flexible system that will support compliance with FAS 133 including the identification, measurement, linkage and reporting of derivatives and related exposures, as well as the documentation and effectiveness testing required by the standard. In addition to its FAS 133 capabilities, PeopleSoft's Treasury Management solution provides enhanced cash management, deal capture, and risk management functionality and analytics.

"PricewaterhouseCoopers has played a critical role in aiding us to design a flexible solution for implementing FAS 133 standards regulations and aligning and integrating an organization's treasury activities with its business operations," said Mark Stapleton, Treasury product strategy manager at PeopleSoft. "PeopleSoft's Treasury Management solution is designed to streamline our customers' varied accounting needs and provide them with a powerful tool for managing and reporting corporate finances."

About the Financial Accounting Standards Board and

Statement No. 133

Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting and reporting to govern the preparation of financial reports. FASB is recognized as authoritative by the Securities and Exchange Commission and the American Institute of Certified Public Accountants.

The mission of the FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. FAS 133 requires all companies to adhere to a comprehensive framework of rules that standardizes the accounting for all derivatives.

"Faced with a global business climate with rapidly changing rules, companies need a treasury management solution that will simultaneously accomplish two very different objectives: effectively manage risk under dynamic market conditions, and provide consistent accounting," said Fred Cohen, Partner, PricewaterhouseCoopers.

"PeopleSoft Treasury Management is a solution flexible enough to enable customers to achieve both of those goals, while also providing customers with a comprehensive reporting solution that adheres to the latest standards."

As a leader in treasury consulting and risk management, PricewaterhouseCoopers has been actively working with clients on strategy, process and infrastructure changes required for the implementation of FAS 133.

In addition, Mark Stapleton of PeopleSoft and Doug McKibben of PricewaterhouseCoopers will be co-presenting on the topic of PeopleSoft Treasury Management and how organizations can leverage the FAS 133 solution on Wednesday, Sept. 1 at 2 p.m. at the PeopleSoft 1999 Conference in New Orleans, La. at the Ernest N. Morial Convention Center. For more information on the conference, visit http://www.peoplesoft.com/en/news_events/events/user_conf/.> PeopleSoft Treasury Management

PeopleSoft Treasury Management, which has been generally available in PeopleSoft release 7.5 since March 1998, provides cash management, risk management, and deal management capabilities to support all types of treasury management organizations from centralized global operations to decentralized local units. Suited to a variety of operations -- high-volume cash transaction traffic, complex foreign exchange risk hedging, or trading multi-instrument debt or investment portfolios -- PeopleSoft Treasury Management helps organizations synchronize their entire money management chain.

About PricewaterhouseCoopers

PricewaterhouseCoopers is the largest provider of PeopleSoft consulting services worldwide with $320 million in revenue and more than 1,700 consultants. To date, PricewaterhouseCoopers has helped over 250 clients "go live" with PeopleSoft business solutions.