PeopleSoft and IBM to Deliver Basel II Solution for the Financial Services Industry (email this article)

BARCELONA -- October 20, 2003 -- PeopleSoft (Company Profile, Past Stories, Case Studies), Inc. (Nasdaq: PSFT) today announced that it has teamed with IBM to provide an enterprise risk management solution that enables financial services organizations to comply with Basel II requirements. IBM will combine PeopleSoft® Enterprise Financial Management applications with IBM's core Risk and Compliance initiative to enable financial services firms to meet Basel II mandates and develop integrated risk management strategies. IBM and PeopleSoft will jointly market the Basel II solution.

"PeopleSoft and IBM have combined their strong industry expertise and proven technology leadership to develop a comprehensive Basel II solution," said Guillermo Kopp, director of the Financial Services Strategies & IT Investments practice at Tower Group. "In addition to satisfying compliance, this initiative will allow financial institutions to compete more effectively by adopting an enterprise-wide approach to risk management supported by a single, integrated technology platform."

IBM's Risk and Compliance initiative includes IBM's financial services consulting practice, middleware, hardware and integration services. The initiative enables financial organizations to gain a comprehensive view of how financial data will be gathered, enhanced, stored, calculated and reported.

PeopleSoft's Profitability Management products provide the analytic capabilities for the combined solution, including PeopleSoft Risk Weighted Capital, Asset Liability Management and Funds Transfer Pricing.

The complexities of Basel II compliance create additional pressure for banking organizations to monitor and manage risk, and provide more detailed reporting. Organizations must gather, analyze and monitor information from multiple systems, to ensure compliance with Basel II requirements. The IBM and PeopleSoft Basel II solution integrates real-time financial information with back-end analytics to provide enterprise-wide risk management analysis for better real time decision-making.

"Complying with Basel II can be a daunting task for any company," said Elaine Sullivan, Global General Manager of Financial Markets, IBM. "This joint initiative provides customers with the tools they need for Basel II compliance - robust, integrated applications from PeopleSoft, comprehensive consulting services from IBM, and the best joint technology infrastructure."

"Basel II has become the regulatory framework for developing a comprehensive and systematic approach to risk taking in banking. Organizations are adopting this new framework as a prerequisite to control and minimize their credit losses and increase the organization's overall effectiveness," said Jim Gahagan, vice president and global industry executive, Financial Services Industry Solutions, PeopleSoft. "The PeopleSoft-IBM solution provides the foundation for banks to create this new regulatory framework."

About PeopleSoft
PeopleSoft (Nasdaq: PSFT) is the world's second largest provider of enterprise application software with 11,000 customers in more than 25 industries and 150 countries. For more information, visit us at www.peoplesoft.com.

About IBM's Financial Services Sector
IBM is the world's largest information technology (IT) company and provider of IT services, as well as a preeminent technology partner to the world's financial services industry. Working directly with its financial services customers and with IBM certified Business Partners, IBM helps them become more competitive through the innovative deployment of high-impact, on demand solutions that enable financial institutions to achieve flexibility, scalability, variability, robustness and security in their IT architecture. These solutions comprise the full range of IBM capabilities including consulting, software, hardware, research and services. IBM offers solutions that strengthen customer relationships, streamline business processes, reduce costs and risks and enhance technical infrastructure. Additional information can be found at www.ibm.com/solutions/financialservices.


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