PeopleSoft Chooses FEA's VaR and Derivatives Libraries To Enhance PeopleSoft's Treasury Management Solution

Business Wire, March 29, 1999

PeopleSoft To Embed FEA's VaR and Derivatives Class Libraries to

Deliver Comprehensive Value at Risk and Derivatives Pricing

Capabilities

PeopleSoft, Inc. and Financial Engineering Associates (FEA) today announced that PeopleSoft will embed FEA's VaRlib(tm) to deliver comprehensive Value at Risk reporting for PeopleSoft's Treasury Management solution. PeopleSoft will also embed FEA's analytics libraries to enhance the derivatives pricing capabilities of the PeopleSoft Treasury Management solution. This alliance will offer PeopleSoft Treasury Management users a seamless solution for measuring, evaluating and analyzing financial market risk. Companies will now be able to manage market volatility and measure potential exposures of their portfolios.

Corporate treasury departments need Value at Risk and derivatives pricing capabilities, due to Securities Exchange Commission (SEC) disclosure rules and Federal Accounting Standards Board (FASB) guidelines. The volatility of the global financial market and the complexity of derivative instruments available today further increase the need for risk management tools.

"By providing Value at Risk reporting and derivatives pricing to our customers, PeopleSoft delivers a comprehensive approach to risk measurement and analysis. All companies, especially global companies have the need to successfully manage the risks associated with the changing market conditions," said Paige Cattano, product strategy manager. "PeopleSoft chose FEA due to the firm's established history in financial modeling, its reputation for quality customer service and complete product."

FEA, founded in 1989, is the premiere provider of financial analytics to the financial services and energy trading communities. VaRlib provides rapid Monte Carlo VaR, analytic (RiskMetrics) VaR and VaRdelta, a technique for quickly determining the incremental effect of a new transaction on VaR without recalculating portfolio-wide VaR. Its analytics libraries deliver pricing and "greek" analytics for spot contracts, forward contracts, options, and exotic options on currencies, commodities, equities, and interest rates. FEA's libraries are designed to allow systems integrators to easily add advanced financial analytics to large-scale, multi-user systems.

"We are very pleased to be a PeopleSoft Alliance Software Partner, and we look forward to an ongoing, productive relationship that will facilitate both firms' growth. We serve systems integrators and application solutions providers by delivering `plug-and-play' libraries that offer comprehensive, proven analytic functionality," said Mark Garman, Ph.D., chairman and founder of FEA. "FEA's libraries reduce the cost and time associated with large-scale systems integration and enhancement projects."

PeopleSoft plans to ship FEA's products embedded in an update to the generally available PeopleSoft Treasury Management solution in the third quarter of 1999.

About FEA

Financial Engineering Associates (FEA) is a Berkeley, California-based software developer founded in 1989 and headed by Mark B. Garman, Ph.D., emeritus professor of finance at the University of California at Berkeley. FEA supplies the financial trading and investment community with precision analytical tools for the valuation and measurement of derivative products. FEA is also a leading player in the development and deliver of valuation and risk management tools for the energy industry. To meet its clients' needs, FEA offers library software, spreadsheet add-in functions, scientific financial applications, and consulting services related to derivative securities and risk management. In addition, FEA also offers seminars and consultations on the applications of financial theory and computational theory to trading practice ("financial engineering"). Since its founding, FEA has enjoyed continuous growth and profitability, high customer satisfaction, and an expanding list of clients numbering over 500 money-center financial institutions, international banks, Fortune-500 treasuries, trading houses, and energy firms in North and South America, Asia/Pacific, Africa, and Europe. For more information, see http://www.fea.com.

About PeopleSoft

PeopleSoft (NASDAQ: PSFT) is a global supplier of enterprise application software for business, education, and government. PeopleSoft solutions for manufacturing, supply chain, financial, project and human resource management are used by more than 2,900 customers worldwide. Headquartered in Pleasanton, California, PeopleSoft employs more than 6,600 people and had 1998 revenues of $1.3 billion. PeopleSoft is on the World Wide Web at www.peoplesoft.com.

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