Applied Financial Technology Expands Integration With Wall Street Analytics' Software

AFT Two-factor Interest Rate Process and Third-party data and cashflow engines now available to WSA Customers

San Francisco, January 18, 2001 - Applied Financial Technology, Inc. today announced an expanded strategic relationship with Wall Street Analytics. In an effort to address a request from a mutual client, Nationwide Insurance Company of Columbus, Ohio, Wall Street Analytics recently added the Applied Financial Technology Interest Rate Process as an option in their system, and, through Applied Financial's Calculators, expanded their client's access to any third-party CMO cashflow generator to extend market coverage criteria and enhance information provided to WSA clients.

Through the expanded integration with the AFT libraries, WSA clients may now choose a leading third-party data and cashflow engine provider. Additionally, Wall Street Analytics clients now have the option of choosing the AFT two-factor Interest Rate Model for use within the Wall Street Analytics software. Future development will include giving WSA clients access to underlying rules that are used to calculate prepayment factors. Users will be able to review, modify or delete computational components of the prepayment model.

"Applied Financial Technology supplies one of the industry’s leading prepayment models, Espiel," said Adrian Cooper, President of Wall Street Analytics. "This highly respected model has achieved remarkable penetration with leading buy-side investors. Our expanded relationship will add choices for our clients unparalleled in any other portfolio management system."

"Wall Street Analytics provides an excellent opportunity for us given their position in the area of portfolio management and asset securitization," said Michael Bykhovsky, Chief Executive Officer of Applied Financial Technology and a veteran of Wall Street who has spent more than 10 years developing prepayment models. "With today’s announcement, Applied Financial and Wall Street Analytics have joined forces to provide clients with more choices in analytics and data. Our analytics are designed to be open and flexible enough to meet the needs of any institution. This relationship with Wall Street Analytics responds to the growing demand for more options within analytical tools."

About Wall Street Analytics
WSA is the leading provider of systems for fixed income portfolio management and asset securitization. The systems handle all fixed income instruments. Features include: cashflows, interest rate scenarios, prepayment/default analysis, and OAS. The company's Web site address is www.wsainc.com

About Applied Financial Technology
Applied Financial Technology, formerly Espiel, Inc., is a privately held corporation that provides state of the art prepayment models and other mortgage finance analytics. The powerful open system architecture of the Applied Financial Technology prepayment system offers trading-quality models that integrate directly with proprietary or third party trading, portfolio management or servicing valuation systems.