Criterion Investment Management Company Chooses Applied Financial Technology, Inc.’s Prepayment Model and Analytic Calculators

San Francisco, February 2000 -- Applied Financial Technology, Inc. (formerly Espiel, Inc.) announced today that Criterion Investment Management, Inc. has purchased its Prepayment Model and Analytic Calculators.

Criterion, a division of WestDeutsche Landesbank, joins several other leading money management firms including Delphi Capital Management, Millenium Partners and INVESCO Management & Research in using the model.

Michael Bykhovsky, CEO of Applied Financial Technology and a veteran of Wall Street, has spent more than 10 years developing prepayment models. He said, “Unlike most available models, we try to understand the underlying processes that go into the prepayment decision and build our models from there. Then we use historical market data to test our hypothesis.”

Applied Financial Technology, a privately held company headquartered in San Francisco, California, counts a number of leading financial institutions and regional investment banks and institutional investors among its clients.