Commerzbank Corporates & Markets (CBCM) Taps Reval’s Derivatives & IAS 39 Solution

London, 27 January, 2006 – Reval, a global leader in financial risk management solutions and services, is delighted to announce that the Commerzbank AG, one of Europe’s leading financial institutions, has selected Reval’s HedgeRx® solution.

Commerzbank selected Reval after a thorough review of several systems vendors and determined that HedgeRx ® was the best in the industry. HedgeRx will be deployed as a global application via the Internet for Commerzbank’s derivative desks in Frankfurt, London and New York. In addition to being able to leverage the analytics and independent valuations from HedgeRx, Commerzbank will be using it to support an increase in client demand to analyze pre-trade hedge effectiveness largely as a result of the impact of IAS 39.

Under IAS 39, derivatives are now on balance sheet and marked to market changes are recorded every period. In order to minimize P&L volatility, derivative users are finding the requirements to achieve hedge accounting challenging in terms of both the documentation and effectiveness requirements.

Thomas Deppe, Global Head of Corporate Risk Advisory at Commerzbank Corporates & Markets (CBCM), said: "Listed companies, now required to report in accordance with International Financial Reporting Standards, are finding the process of complying with IAS 39, in particular the requirements to qualify for beneficial hedge accounting treatment, onerous, expensive and time consuming. In some cases, these reporting requirements have already reduced the use of derivatives as a risk management tool. Commerzbank has chosen to include HedgeRx as part of a comprehensive service enabling us to support our clients in the hedge designation, documentation and effectiveness testing process. We believe that this will help to create real value for our corporate customers in establishing best practices for enterprise risk management."

"We are very pleased to be working with Commerzbank and look forward to a long term partnership" said Peter Reynolds, Director of European Sales of Reval. "The complicated hedge accounting standards both here in Europe and in the US have meant that banks need to adapt to the ever growing needs of the corporations that hedge."

About Commerzbank Corporates & Markets (CBCM)

Commerzbank Corporates and Markets (CBCM) is the integrated Corporate and Investment Banking division of Commerzbank AG.

CBCM provides a broad range of Commercial and Investment Banking products to its clients and incorporates capital markets activities in credit, equities, interest rates, foreign exchange and Alternative Investments with a strong focus on derivatives and structured products.

As a division of one of Europe’s leading financial institutions and with the backing of a Eur 458bn balance sheet (31.10.05), CBCM provides its clients with capital and debt raising solutions and access to a broad range of investment and risk management products across all major asset classes.

About Reval

Reval is a global SaaS provider for Treasury and Risk Management, helping enterprises better manage cash, liquidity and financial risk, and account for and report on complex financial instruments and hedging activities.

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