The First MicroFinanceBank Goes Live on TEMENOS eMerge™

17 November 2004

GENEVA, Switzerland – November 17th, 2004 – TEMENOS Group (SWX:TEMN), a
provider of integrated core banking systems, today announced that The First MicroFinanceBank (FMFB), one of the first banks in the post-conflict country, has gone live on TEMENOS eMerge™ in Kabul, Afghanistan. This is the first bank to use TEMENOS eMerge™ in central Asia.

TEMENOS eMerge™ provides a full portfolio of banking and related financial services, keeping all the information about a client accessible from a single screen. Derived from the TEMENOS GLOBUS™ banking software, which has been adopted by many leading banks around the globe, TEMENOS eMerge™ was developed to serve medium to large microfinance institutions with teller operations and ten to fifteen or more concurrent users. The system has been rated highly by the Consultative Group for Assisting the Poorest (CGAP), a consortium of 28 public and private development agencies working together to expand access to financial services for the poor in developing countries.

A full service financial institution, FMFB provides credit and saving products as well as domestic and international payment services. It focuses on micro-enterprises and small businesses and on the creation of productive sources of income and employment, reaching out to the underserved and to isolated rural populations in mountainous areas. Beginning in Kabul and urban centres in the north-east of the country, FMFB plans to achieve wide national coverage within a few years.

The Aga Khan Fund for Economic Development (AKFED), an international development agency which promotes entrepreneurship and sustainable economic development in the private sector, is the sponsor and majority shareholder in The FirstMicroFinanceBank . AKFED received a banking licence for The First MicroFinanceBank (FMFB) in September 2003, the first of its kind to be established under the country's new regulatory structure.

The establishment of FMFB strengthens AKFED's regional microfinance presence, adding to similar institutions licensed in Tajikistan and Pakistan. The International Finance Corporation (IFC) is a shareholder in the microfinance bank, and the German KfW is expected to join this consortium soon.

“Rebuilding confidence in the banking system and developing adapted financial institutions and instruments is key to the revival of entrepreneurial activity in Afghanistan," says Iain Cheyne, director of AKFED and chairman of the board of FMFB. "With TEMENOS as our technical partner, we hope to bring to this market our experience in financial services, microfinance, institution-building and poverty alleviation.”

Jacques Toureille, head of micro-finance for the Aga Khan Development Network (AKDN), based in Geneva, Switzerland, says:”We selected TEMENOS eMerge™ after a comprehensive review of alternative options in the world. Our microfinance network is growing fast, and spans by now close to twenty countries in Asia, Africa and the Middle-East. Given our breadth of activities and large geographical outreach, we needed a performing system that could provide management with accurate timely information. Andreas Andreades, CEO of TEMENOS says: “We are pleased to work with AKFED in The First MicroFinanceBank project. TEMENOS eMerge™ is designed to give financial institutions the flexibility and capacity to deliver on and exceed the needs of the complex and changing community banking environment in emerging markets.”

The implementation of the project was jointly undertaken by DBS Global Solutions (Pty) in Cape Town, TEMENOS’s strategic partner for microfinance projects, and Horus, a Parisbased consulting company specialising in banking in emerging markets.

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About Temenos
Founded in 1993, Temenos Group AG is a provider of integrated modular core banking systems to over 590 financial institutions in 110 countries worldwide. Temenos software provides banks with a single, real-time view of the client across the enterprise, enabling banks to maximize returns while streamlining costs. Whether providing 24/7 functionality to the wholesale, retail and private or universal banking sectors, partnering with central banks on core system replacement, or working with the World Bank on solutions for the emerging markets, Temenos knows banking. The company has a transparent approach to its operations and brings to bear its experience, expertise, commitment and professionalism on every project. Headquartered in Geneva, Switzerland, the company has 43 offices in 33 countries and is listed on the main segment of the SWX Swiss Exchange (TEMN). For more information please visit www.temenos.com

About The First Micro Finance Bank
The First MicroFinanceBank was established at the initiative of the Aga Khan Development Network to help alleviate poverty and combat economic exclusion. The generally-accepted rationale for establishing microfinance banks is that commercial banks are not motivated, and not equipped and staffed to deal with the poor. Microfinance banks are therefore established to fill a gap in the banking system. At the same time, they are expected to be operated along principles of financial discipline and efficiency similar to those of commercial banks, and they are often regulated by the same regulatory agencies. AKDN abides by these principles for its microfinance banks, and also its microfinance programmes, which are generally established as a first step towards the establishment of microfinance banks.

About Aga Khan Fund for Economic Development (AKFED)
AKFED is the commercial arm of the AKDN, a group of private, international, nondenominational agencies working to improve living conditions and opportunities for people in specific regions of the developing world. AKDN has been a significant contributor to the reconstruction of Afghanistan, through a multi-disciplinary programme aimed at fostering social, economic, and cultural change.

For more information, contact:

Max Chuard
Temenos Director
Corporate Finance & IR
Member of the Executive Board
Tel: +41 (0) 22 708 1157
Email: mchuard@temenos.com

Ben Robinson
Temenos Investor Relations Manager
Tel: +44 (0) 207 290 3012
Email: brobinson@temenos.com

Bianca Morgan
Temenos PR Manager
Tel: +44 (0) 207 423 3751
Email: bmorgan@temenos.com

Chris Patmore
Team 660
Metia for TEMENOS
Tel: +44 (0) 20 3100 3596
Email: chris.patmore@metia.com