Applications:

Insightful Corporation Announces S+FinMetrics

Technological advances have changed the rules for financial analysts who need to analyze portfolios and anticipate enterprise risk using real-time financial transaction data. Volatile markets, 24x7 market access and trading decimalization have created reams of data and new demand for sophisticated, powerful analytic tools to predict profitable business performance.

"Years ago S-PLUS was called the best kept secret on Wall Street," said Shawn Javid, president and CEO, of Insightful. "Now, S-PLUS is the leading financial quantitative analysis toolkit. S+FinMetrics further advances the predictive power of S-PLUS."

"As a leading provider of financial analytic software solutions we understand the importance of delivering high-quality, proven analytics to help our customers maximize profitability. Whether it's a customized solution for an industry-specific analytic need or a sophisticated analytic solution, we have the software and services to solve complex financial business problems quickly."

"S+FinMetrics is an invaluable econometric analysis tool offering a modern and flexible platform for financial data analysis," said Andrew Clark, senior research analyst, Lipper. "Unlike competitive packages, S+FinMetrics offers all of the essential analytics, from rolling regression and backtesting functions, to extreme value theory and time series analysis, in one environment. At Lipper, our customers rely on the depth and breadth of our mutual fund analysis to make the best investment decisions possible."

"It's mission critical that we provide accurate fund reports and analyses that our customers can use with confidence. Insightful has been delivering proven high-performance analytic software to financial analysts for more than 15 years, so we were confident that S+FinMetrics would provide us with an invaluable tool. It's a must have for anyone analyzing financial data."

Key features of S+FinMetrics include:

• Modern, Flexible Econometric Analysis

S+FinMetrics offers linear interpolation, cubic spline and other methods to address data errors created by time series data. Its time series aggregation and disaggregation capabilities support more predictive analysis. Available statistical summary and test statistics examine the unique statistical properties of time series data to predict future performance.

• Exploratory Data Analysis

Tests for normality, serial correlation, ARCH effects, unit root, cointegration and more allow you to explore your data to make important discoveries.

• Technical Indicators and Moving Average Operators

S+FinMetrics computes technical indicators and moving average operators easily. The software offers many popular indicators grouped under the categories of price, momentum, volatility, and volume.

• High-Performance Analytics

Other advanced analytics include vector autoregression and error correction models for reliable, efficient analysis of financial data.

• Fixed Income Analysis

The software includes the essential functions for fixed income analysis including computation of yield, conversion between spot rates, discount rates, forward rates, and a range of yield curve estimation options.

• Extreme Value Analytics

These analytics are required for value-at-risk analysis and excess-of-loss catastrophe modeling for the reinsurance industry. Generalized Pareto distribution to excesses over thresholds and generalized extreme value distribution to block maxima are included in this software.

• Sophisticated Modeling Optimizes Complex, Dynamic Trading Systems

S+FinMetrics includes functionality for estimating FARIMA models and other long memory models. Parametric modeling of multivariate time series analyses offers modern econometric models for improved financial performance. Volatility modeling includes univariate and multivariate GARCH models and long memory or fractional integrated GARCH models.

• State Space Modeling

S+FinMetrics allows you to use the most efficient implementation of state space modeling available to uncover latent information in financial markets easily.

• Multifactor Modeling.

S+FinMetrics includes statistical multifactor models providing greater accuracy and reliability for effective portfolio management and risk analysis.

• Rolling Estimate and Backtesting Strategies

S+FinMetrics supports rolling estimation and backtesting strategies adopted by leading quantitative analysts.

Availability

S+FinMetrics is available for S-PLUS Version 6 or higher. The software is supported on Windows, Linux, and Solaris platforms.

ABOUT INSIGHTFUL

Insightful provides enterprises with scalable data analysis solutions that drive better decisions faster by revealing patterns, trends and relationships. The company is a leading supplier of software and services for statistical data mining, business analytics, knowledge management, and information retrieval enabling clients to gain intelligence from nu merical data, text, and images.

Insightful products include InFact, S-PLUS, S+FinMetrics, StatServer, Insightful Miner, S-PLUS Analytic Server and VisiMine. Insightful consulting services provide specialized expertise and proven processes for the design, development and deployment of customized solutions. The company has been delivering industry-leading, high-ROI solutions for fifteen years to thousands of companies in financial services, pharmaceuticals, biotechnology, telecommunications, manufacturing, plus government and research institutions.

Headquartered in Seattle, Insightful has offices in New York City, North Carolina, France, Germany, Switzerland, and the United Kingdom with distributors around the world.

For more information, call 800-569-0123 or visit www.insightful.com.