BearingPoint Report Cites the Need for Data Convergence; Explains Excessive Spending on Risk and Compliance

Responds to Survey Identifying Reactionary Spending and Duplication of Compliance Efforts as the Root Cause of Overspending on Risk

MCLEAN, Va., May 11, 2004 -- BearingPoint, Inc. (NYSE: BE), one of the world's largest business consulting and systems integration firms, today issued a new white paper, "The Return on Investment Behind a Converged Approach to Data," which details the way financial institutions can start using current initiatives, such as Basel II, customer relationship management (CRM), or Sarbanes-Oxley, to build a platform for converged data standards.

The paper covers a fundamental issue, which is that by not addressing data issues first, the financial services industry could struggle to successfully complete mergers or acquisitions as well as achieve overall growth of any kind. By building a platform for converged data standards, and by rationalizing and prioritizing current initiatives, the paper concludes financial institutions can identify millions of dollars in savings in a manner that yields a higher return on investment (ROI). A copy of the paper can be found at http://www.bearingpoint.com/dataconvergence.

"Data convergence is the key component of many companies' strategies this year and it is focused on leveraging data assets across multiple applications, as well as updating the architectures of data governance and data management processes," said Jeffrey Brashear, a Managing Director with BearingPoint and leader of the company's Financial Services Information Architecture group. "To achieve this level of convergence, leading industry practices and techniques need to be applied from the previously disconnected disciplines of data architecture and management, risk management, finance, and marketing, while at the same time taking advantage of advances in technology and information security."

Brashear also noted that this convergence strategy typically involves development of cross project architecture and data management processes combined with approaches for data mart sun setting and data storage reconciliation. In doing so, cost savings can be increased while disruption to the current project portfolio can be decreased.

Analysis of cross customer industry trends shows that there is significant overlap of data required for Basel II, USA Patriot Act and Sarbanes-Oxley II compliance. This underlying data can also be readily applied to meet the requirements of non-compliance CRM and risk management related initiatives, resulting in an opportunity to better utilize that data to achieve greater value from these data resources at reduced cost.

BearingPoint also recently announced the findings of a survey of leading financial institutions, conducted by the Economist Intelligence Unit, that together with the conclusions of the white paper, found excessive spending and duplication of efforts around risk management and financial transparency, due to the absence of data standards.

"Companies facing the challenge of trying to balance multiple regulatory timelines and requirements with the demand for growth, realize they must look at their data issues and find a way to converge elements related to risk, finance and customers, along with related governance, process and technical designs," said Christopher Hamilton, a Senior Vice President with BearingPoint and leader of the Global Risk Management group. "New data requirements now include previously not captured attributes, such as transaction and collateral detail, identity credentialing and entitlements, security protection, encryption, integrity validation, and digital signatures. Documenting and demonstrating compliance can incur additional costs into the millions. In particular, access and retrieval costs have become onerous."

The results of the BearingPoint survey released on April 6, indicated other possible problems for companies seeking to halt excessive spending on risk and compliance caused by the lack of data convergence, including:

    * The participants agreed that the two biggest obstacles to effective
      integration are cost and a lack of standardized data models.

    * Only 18% say their risk solutions link up with their CRM systems.

    * Just 37% say their risk solutions link with customer data repositories.

    * Less than 50% say their risk solutions link up with enterprise-wide
      financial general ledger and management information systems.

More than 190 executives responded to the survey from across the globe, representing the following regions: Western Europe 26%, Eastern Europe 6%, Asia-Pacific 22%, North America 25%, and Latin America 9% with 11% from the Middle East and Africa. To obtain a copy of the survey, please go to http://www.bearingpoint.com/riskstudy

About BearingPoint, Inc.

BearingPoint, Inc. (NYSE: BE) is one of the world's largest business consulting, systems integration and managed services firms serving Global 2000 companies, medium-sized businesses, government agencies and other organizations. We provide business and technology strategy, systems design, architecture, applications implementation, network infrastructure, systems integration and managed services. Our service offerings are designed to help our clients generate revenue, reduce costs and access the information necessary to operate their business on a timely basis. Based in McLean, Va., BearingPoint has been named by Fortune as one of America's Most Admired Companies in the computer and data services sector. For more information, visit the Company's website at http://www.BearingPoint.com.

This press release may contain forward-looking statements, the accuracy of which is necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed in our most recent Form 10-Q. We undertake no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.v SOURCE BearingPoint, Inc.

Web Site: http://www.bearingpoint.com