Federal Home Loan Banks of Seattle & Pittsburgh and Des Moines join other FHLB's in using Applied Financial Technology, Inc.'s Espiel Prepayment Model

San Francisco, May, 2003 – Applied Financial Technology, Inc. (formerly Espiel, Inc.) announced today that in 2003 the Federal Home Loan Banks of Seattle, Pittsburgh and Des Moines have purchased its prepayment model for use in the valuation of prepayment risk in their portfolios.

"We continue to be pleased with our outstanding relationship with the Federal Home Loan Bank System and these three Banks are a welcome addition to our very sophisticated list of clients" said Michael Bykhovsky, Chief Executive Officer of Applied Financial Technology and a veteran of Wall Street who has spent more than 12 years developing prepayment models. "Our analytics are designed to be open and flexible enough to meet the needs of any institution that faces prepayment risk. Our expanding relationship with the Federal Home Loan Banks responds to the growing demand to more accurately value that risk. The availability of our Dynamic Aggregation Software and the ESP Score this year provides an even more precise level of prepayment risk analytics to the industry."

Applied Financial Technology, a privately held company headquartered in San Francisco, California, counts a large number of leading broker/dealers, institutional investors, and mortgage banks among its clients.

The Federal Home Loan Banks consist of twelve regional banks and are an essential source of stable, low-cost funds to financial institutions for home mortgage, small business, rural and agricultural loans. With their members, the FHLBanks represent the largest source of home mortgage and community credit. For more information go to www.fhlbanks.com