Derivatives Trading Expert Joins Storm Exchange from Chicago Mercantile Exchange

Business Wire, Dec 10, 2007

Pioneer in Weather Derivatives Market, David Smith, Named Vice President of Sales for Weather Risk Firm

NEW YORK -- Storm Exchange, Inc., a market leader in helping companies and their end consumers hedge day-to-day weather risk, has announced the appointment of David Smith as Vice President of Sales. Having served as the associate director of day-to-day operations for the Chicago Mercantile Exchange's (CME) weather derivatives trading operation for the last eight years, Smith's experience dates back to the early, formative years of the market.

As Vice President of Sales, Smith plays a key role in helping Storm Exchange drive the expansion of the weather derivatives market beyond energy and into other similarly weather-sensitive industries, including the retail, manufacturing, agricultural, aviation, construction and outdoor entertainment markets.

"David knows this market inside-out. He was there when the CME was growing the weather derivative market in its early years; he's launched three different types of weather indices and he has been one of the central figures in the growth of the weather futures market," said David Riker, President and CEO of Storm Exchange. "He is the perfect addition to our management team and he will play a key role in helping us to expand our business."

Smith, 36, was previously Alternative Investments Manager at the CME, where he directed day-to-day operations for weather derivatives, growing that business eight fold over the last three years. While there, he launched 500 new weather products for 36 cities globally, along with three different weather indices, tracking the financial impacts of weather. An expert in trade execution and settlement, Smith played a key role in initiating the CME's electronic trading program that increased screen trading by 175 percent and overall trade volume by 10 percent.

Prior to the CME, Smith was a marketing manager at Draft Worldwide in Chicago, overseeing marketing and media buying initiatives for the firm's Coca-Cola and RJ Reynolds accounts. Smith started his career in marketing and promotions at Jam Productions in Chicago.

"Weather is the most exciting frontier of the financial markets right now. I've spent the last eight years building the infrastructure to help support this market; now I can't wait to start applying what I've learned to expand this market into every corner of corporate America," said Smith. "Storm Exchange clearly has what it takes to bring weather risk management into the mainstream; I look forward to working with them to make weather the precious commodity it can be."

Smith received a BA from University of Dayton and an MBA from Illinois Institute of Technology, where he was Valedictorian of his graduating class. Smith is an active member of various professional organizations, including the American Marketing Association, Toastmaster and the Project Management Institute. He resides with his family in Chicago.

About Storm Exchange, Inc.

Storm Exchange, Inc. operates an online financial market to help businesses (and in some cases their end consumers) better plan for and manage their weather-related risks.

Nearly one-third of the U.S. economy is sensitive to the weather. And while businesses routinely hedge risks such as currency and interest rate fluctuations, when it comes to the variability of the weather, most are operating blind. That's because until now most companies have not had the knowledge or tools to develop a clear understanding of the true measure and financial cost of their weather losses. Storm Exchange was founded to fill this large, but unmet, corporate need.

The company's innovative online platform gives corporations, governments and other clients the specialized industry knowledge, data-driven indices, analytical tools and capital market access they need to execute a contract to hedge their weather-related risks. The result is more control over uncertain forecasts, improved operating results and stronger, more predictable financial performance.

Find out more about Storm Exchange at www.stormexchange.com.