Fundtech Bank Survey Reveals Customer Issues Ranked Far Ahead of Cost Concerns; 78 Banks Rate Cyber Security and Identity Theft as Most Vexing Security Issues for Next Five Years

Business Wire, June 22, 2004

JERSEY CITY, N.J. -- Fundtech Ltd. (NASDAQ:FNDT), a leading provider of payments, cash management and settlement software and services, today announced the results of a live interactive survey conducted with its clients that found concerns about customer acquisition and retention were well ahead of concerns about cost reduction and efficiency. Concerns about security, especially cyber security and identity theft were also highly rated.

The survey was taken at Fundtech's annual US Client Conference held in Hilton Head, South Carolina in late May. This event is used as a platform for Fundtech to better understand its customer's opinions on industry challenges and trends. One hundred and thirty clients attended the event representing 78 banks of all sizes. Almost half of those responding to the survey had 15 or more years experience in banking.

Key findings of Fundtech's survey show that:

--When asked to prioritize drivers for technology spending, bankers gave "meeting customer expectations" 45% of the votes versus 21% to "regulatory demands" and 16% to "cost reduction".

--When asked to prioritize the drivers for their bank's business strategy, respondents gave "customer retention" 33% of the votes, "new customer acquisition" 23%, and "cost reduction" 15%.

--The most important concern in the funds transfer area of the bank is regulatory compliance and risk mitigation. When asked whether these concerns would increase or decrease over the next five years, those surveyed predicted that cyber security issues would remain a top concern and that identity theft would become an even larger problem in the future.

"These results provide us with excellent insight into our clients' concerns and help us better understand their most pressing issues," said George Ravich, chief marketing officer of Fundtech. "We have long thought that providing solutions that enable banks to provide more valuable client services while delivering improved efficiencies was a winning combination. These results support our strategy."

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 19 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.

Forward Looking Statements:

Statements included in this Release may contain forward-looking statements. Such forward-looking statements are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may relate, but are not limited, to projections of revenues, income or loss, capital expenditures, plans for growth and future operations, competition and regulation as well as assumptions relating to the foregoing. 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 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.