FIDELITY INVESTMENTS CHOOSES ALGORITHMICS RiskWatch

Algorithmics Inc announced that Fidelity Investments, the world's largest mutual fund company and a leading provider of financial services, has installed Algorithmics' RiskWatch, Algo Credit and Risk++ for use by its money market group. The Algorithmics solution will help Fidelity's money market fund managers analyze market and credit conditions that affect global money markets, using an effective, forward-looking methodology.

Fidelity will be combining the RiskWatch and Algo Credit capabilities with existing internal decision support tools used by its Fixed-Income Division, based in Merrimack, N.H. The highly technical modeling capabilities created by Fidelity's internal analytics group will be integrated with Algorithmics' software to form a unified data environment. As a result, the Algorithmics solution will enable Fidelity's portfolio managers to access existing databases more effectively, enhancing their ability to make better investment decisions on behalf of their shareholders.

"The forward-looking Mark-to-Future? paradigm utilized in Algorithmics' product suite fits well with our mutual fund management tools," said Boyce Greer, executive vice president, head of the Money Market Group at Fidelity. "Running alongside our existing systems, the Algorithmics solution will set new standards for money market analysis. And by using Algorithmics' software, our portfolio managers will be better positioned to manage and compensate for changes in the money markets, eventually having the ability to assess and report these changes on a daily basis."

When the installation is complete, Fidelity will be better able to quantify exposure to money market issuers in both the taxable and municipal markets, helping to better manage trading volumes and portfolio positions. In addition, the organization will be able to provide competitive analyses on the fund management processes of Fidelity's rivals.

"Fidelity's innovative approach to managing its money market group gives the company a tremendous competitive advantage. As a result of using Algorithmics' software, which incorporates our forward-looking Mark-to-Future standard, Fidelity will be able to make more informed decisions in the markets," said Ron S. Dembo, president and chief executive officer of Algorithmics. "Our success at Fidelity demonstrates not only the scalability but also the flexibility of our software products."

With the implementation of the Algorithmics' solution, Fidelity joins a leading group of asset managers who have adopted sophisticated risk management software previously used only at large banks.

About Algorithmics

Algorithmics was founded in 1989 in response to the complex issues surrounding financial risk management for the enterprise. Today, as a leading provider with the largest and most experienced team in the industry, Algorithmics continues to focus its efforts on creating and implementing enterprise risk management software that meets the evolving needs of its customers. Continuing its tradition of leading the way in risk measurement and management tools and processes, Algorithmics recently introduced Mark-ToFuture (MtF), an open and comprehensive framework for measuring risk and reward. Headquartered in Toronto, with 14 offices around the world, Algorithmics serves more than 90 global financial institutions with 140 installations worldwide. Website: www.algorithmics.com.

About Fidelity

Fidelity Investments is the nation's largest mutual fund company and a leading provider of financial services. Fidelity offers investment management, retirement, brokerage and shareholder services directly to individuals and institutions, and through financial intermediaries. The firm also is the No. 1 provider of 401(k) retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans for not-for-profit institutions in the United States. At December 31, 1999, Fidelity had total managed assets of $955.1 billion. Website: www.fidelity.com.

Contact David Paolini, PR Manager of Algorithmics Incorporated 416-217- 4210, dpaolini@algorithmics.com.