Cypriot bank to meet Basel II accord through Temenos and TLC Solutions alliance

11 May 2005

GENEVA, Switzerland – 11 May, 2005, TEMENOS Group (SWX: TEMN), a provider of integrated core banking systems, today announced that Universal Bank in Cyprus, a listed company at the Cyprus Stock Exchange and member of one of the largest financial services groups in Cyprus, is the first customer of the TEMENOS and TLC Risk Solutions alliance, which provides Basel II compliant credit and operational risk banking solutions. The alliance, formed in October 2004, allows banks to integrate TLC’s Basel II product with TEMENOS’ core banking systems.

Andreas Theodorides, manager banking operations & information technology, Universal Bank, says: “To satisfy the Basel II Capital Accord, we needed a supplier with extensive knowledge of operational, market and credit risk as well as the technology to enable us implement the requirements. As a customer of TEMENOS since 1999, we can benefit from TLC’s expertise in this area and easily integrate the barracuda software with TEMENOS’s core banking system.”

Universal Bank will implement the Basel II requirements by using the barracuda software to calculate current exposure, apply transaction, facility and counterparty level mitigation, and calculate Risk Weighted Assets (RWA) for the Standardised, Foundation or Advanced approaches as well as the operational risk capital requirements using Basic Indicator Approach, Standardised Approach and the Advanced Measurement Approach.

Through the alliance, TLC can extract transactional and historical data directly from TEMENOS’ core banking systems, including TEMENOS T24™, which is then imported into the barracuda software. barracuda provides a predefined, Basel II specific, data taxonomy and acts as the data ‘concentrator’ for all the data from disparate source systems required to properly calculate RWA under Basel II.

TEMENOS T24 is a functionally rich, thin client, scalable, integrated, modular banking system. It is built on an open architecture, and uses established standards such as HTTP, XML and J2EE. It offers a single client view across the enterprise and can support huge numbers of users with true non-stop resilience. It offers multiple application server support and is the only system available with no end-ofday batch processing and so can genuinely boast of providing real-time 24/7 non-stop banking.

Stuart Holman, sales director, TLC Risk Solutions, says: “TEMENOS has extensive experience of the banking industry and an excellent product portfolio. We are delighted to be able to integrate our software with its core banking systems and reach a broader market.”

Andreas Andreades, CEO, TEMENOS, says: “The deal is an excellent example of how the alliance has worked to deliver integrated systems that fulfil a need in the market for core banking systems with integrated credit risk. In addition to benefiting our existing customers, our partnership with TLC will enable us to expand our offering to future customers.”

-ENDS-

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 TLC Risk Solutions
TLC is a software product company serving the banking sector. The TLC approach is distinguished by a combination of deep business knowledge and experience and technology expertise enhanced by rigorous methodologies and disciplines. TLC’s primary focus lies in the areas of Credit, Operational and Market Risk for Basel II compliance.

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