PLEASANTON, Calif., Dec. 8, 2004 -- PeopleSoft Inc. (Nasdaq:PSFT) today announced a software alliance with Algorithmics that will deliver an enterprise risk and profitability management solution for the banking and capital markets industry. The combination of PeopleSoft's profitability management applications and Algorithmic's enterprise risk management products will deliver a comprehensive solution that will enable financial institutions to better analyze risk, allocate investment capital, and comply with Basel II regulatory requirements.

"Savvy institutions realize that enterprise risk management is not just a matter of compliance with Basel II but is something they need to survive," said Virginia Garcia, senior analyst in the Financial Services Strategies & IT Investments practice at TowerGroup. "Given today's risk and compliance requirements, customers need insight into risk across their enterprise to address their compliance obligations, improve business planning, and enhance decision making capabilities. Companies such as Algorithmics and PeopleSoft have made a great deal of progress in providing more integrated solutions that serve these needs."

PeopleSoft's industry-leading profitability management solutions offer robust analytic applications, including Financial Warehouse, Funds Transfer Pricing, Risk-Weighted Capital, Enterprise Scorecard, Activity Based Management, Planning & Budgeting, and Global Consolidations. Algorithmics offers an integrated enterprise view of economic and regulatory capital through Algo Capital, the company's Basel II compliance solution. The solution provides the functionality banks need to manage capital and the requirements for all Basel II pillars, risk types, business lines, and asset classes.

The combination of PeopleSoft's profitability management applications and Algo Capital will enable financial services firms to seamlessly combine economic and regulatory capital data, and financial reporting. As a result, financial services companies can gain greater visibility into their customers' credit risks, decrease capital charges through advanced methods and stress testing, and compute risk adjusted capital allocations.

"This partnership meets the strategic needs of financial institutions wanting to integrate risk and finance functions for more informed decisions," said Michael Zerbs, Algorithmics chief executive officer. "Our goal is to deliver a solution that enables financial institutions to use consistent risk and performance information in their daily management decisions as required by Basel II."

"Risk management and compliance are at the top of every global financial services firm's IT agenda," said Jim Gahagan, vice president and global industry executive, financial services industry, PeopleSoft. "The PeopleSoft-Algorithmics partnership breaks down the traditional barriers between financial and risk management and will help customers tackle these issues across the enterprise."

Algorithmics is a leader in enterprise risk management for financial institutions, serving more than 150 global clients in 31 countries with proven solutions that continue to meet the evolving needs of its clients and deliver significant return on investment.

About PeopleSoft

PeopleSoft (Nasdaq:PSFT) is the world's second largest provider of enterprise application software with 12,750 customers in more than 25 industries and 150 countries. For more information, visit us at www.peoplesoft.com.

PeopleSoft and the PeopleSoft logo are registered trademarks of PeopleSoft, Inc. All other company and product names may be trademarks of their respective owners. Copyright (C) 2004 PeopleSoft, Inc. All rights reserved.

PeopleSoft, Inc.
Lorna Fernandes, 925-694-5451
lorna_fernandes@peoplesoft.com
or
Algorithmics Incorporated
Kevin Ellis, 416-217-4321
Kellis@algorithmics.com