Legacy Reserves Selects Triple Point to Ensure FAS 157 Compliance

Business Wire, Oct 15, 2008

Comprehensive FAS 157 solution covers energy derivative hedges and transactions

WESTPORT, Conn. -- Triple Point Technology([R]), the leading global provider of multi-market commodity and enterprise risk management software solutions, announced today that Legacy Reserves LP (NASDAQ: LGCY), an independent oil and natural gas limited partnership with proved reserves of 32.1 MMBOE, has selected Triple Point's Commodity XL for Fair Value Disclosure[TM] to perform independent, credit-adjusted mark-to-market (MTM) and fair value level assignment for its energy commodity derivative transactions.

Headquartered in Midland, Texas, Legacy focuses on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin and Mid-Continent regions of the United States. Formed in October 2005 to own and operate oil and natural gas properties acquired from the Moriah Group, the Brothers Group, H2K Holdings Ltd. and MBN Properties LP, Legacy has grown rapidly through the acquisition of oil producing and natural gas properties and the exploitation of proved properties.

Legacy uses financial collars and swaps to hedge price movements in natural gas, crude oil and NGLs (Natural Gas Liquids). Triple Point's fair value disclosure software provides the company with the tools and systems to ensure consistency and comparability of fair value measurements and the disclosure of credit-adjusted mark-to-market assumptions and valuations for both assets and liabilities by counterparty. Additionally, Commodity XL for Fair Value Disclosure provides Level 3 roll-forward activity and schedules and enables Legacy to track position by counterparty and perform sensitivity analysis.

"Today's unforgiving regulatory environment requires a higher level of business transparency and verifiability of accounting figures," said Elie Zabal, Triple Point's senior vice president of treasury management and regulatory compliance solutions. "Commodity XL provides Legacy with the framework to produce the consistent and transparent disclosures of its mark-to-market techniques and worth of hard-to-value instruments that regulators demand."

Triple Point's Commodity XL for Fair Value Disclosure is based on mature, well-tested software solutions obtained in its acquisition of INSSINC. INSSINC, now the treasury management and regulatory compliance division of Triple Point, serves premiere energy and commodity industry leaders throughout North America and Europe including such notable companies as: PacificCorp, TransAlta, TransCanada, SUEZ Energy, Southern Company, Ameren Energy, Scottish Power and Campbell Soup Company.

About Triple Point Technology

Triple Point Technology([R]) is the leading global provider of multi-market commodity and enterprise risk management software solutions. Triple Point's Commodity XL[TM] profitably integrates physical and financial markets on a real-time, service-oriented architecture (SOA) platform for commodities including power, oil, gas, coal, base and precious metals, agricultural products, biofuels and freight. In addition to Triple Point's award-winning commodity and energy trading software being used by more than 25 percent of both Global 500 commodity trading and Global 500 energy companies, other organizations with large raw material and energy exposure, including consumer packaged goods (CPG), discrete manufacturers and big box retailers, are quickly adopting the Triple Point solution. Named to the Deloitte Technology Fast 50 for ten straight years, Triple Point added to its record-breaking organic growth in 2008 with the acquisitions of INSSINC, the leading provider of hedge accounting and fair value level software and ROME Corporation, the industry leader in credit risk software solutions. Triple Point, headquartered in Westport, Connecticut, USA, was founded in 1993 and serves clients from nine development and support centers located around the globe. More information is available at www.tpt.com.