Temenos sells 20% stake back to Finantix shareholders

23 February 2005

GENEVA, Switzerland – 23 February, 2005: TEMENOS Group (SWX:TEMN), a provider of integrated core banking systems, and Finantix, a provider of wealth management and branch automation software, today announced the continuation of their joint partnership following the termination of TEMENOS’ 20% equity stake in Finantix. The decision was a joint agreement and acknowledgement that the companies’ core strategies are progressing in different markets. However, both parties will continue to support each other on mutually beneficial commercial ventures in the retail banking and wealth management areas.

Ralf Emmerich, CEO, Finantix, says: “The termination of TEMENOS’ financial interests will not impact on our commitment to effectively serve our shared customers. Our future partnership will enable us to continue to offer TEMENOS T24™ integrated with our Finantix Components™ product suite under a more suitable arrangement.”

Andreas Andreades, CEO, TEMENOS, says: “Through mutual agreement we decided to end our minority interest in Finantix as it was of limited benefit to both companies. By working under a pure partnership model, we will better serve the interests of our shareholders and our customers. Significant opportunities still exist for us to combine our core processing products with Finantix’s wealth management suite.”

TEMENOS invested US$2. 5 million in Finantix, in January 2002. TEMENOS was granted an option to acquire the remaining equity for a combination of equity and cash, which must have been exercised by the end of 2002. But, Andreades says: “Given the economic climate within the banking industry at that time, the exercise of the option would have been unacceptably dilutive to TEMENOS shareholders. Therefore, we decided not to proceed and accepted a buyback offer from the Finantix shareholders.”

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 large numbers of users with true non-stop resilience. It offers multiple application server support and is the only system available with no end of day batch processing and so can genuinely boast of providing real-time 24/7 non-stop banking.

Finantix Components is a suite of innovative, reusable, J2EE-compliant building blocks that covers most client-facing processes and functions required by a sales-oriented financial institution.

-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 Finantix
Finantix is a leading provider of component-based software solutions that enable financial institutions to better service clients, increase sales and optimise multi-channel delivery. Finantix provides process-oriented and sales - driven component based solutions in the areas of branch automation, retail advice and financial planning, wealth management, mortgage and loan origination, insurance services, business banking, and internet banking and brokerage.Leading financial institutions - such as Abbey, Banca Intesa, Bank of China, Banca Popolare di Milano, Credit Suisse, Kookmin Bank, Standard Chartered Bank - selected Finantix Components to improve advice capability, sales productivity, client satisfaction and the quality of branch services. Finantix has offices in Helsinki, Hong Kong, London, Milan, Munich, Singapore and Venice.

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