The Royal Bank of Scotland, Financial Markets to Provide Global Capital Markets Operations Processing on Calypso System

San Francisco, 03 February 2003 – Calypso Technology announced today that it has been selected by The Royal Bank of Scotland (RBS), Financial Markets for Capital Markets Operations processing globally.

The Royal Bank of Scotland is the fifth largest bank globally by market capitalization and has a significant Capital Markets business. Capital Markets originates, trades and researches vanilla and structured debt capital securities across a range of asset classes, industry sectors, maturities and currencies across the credit spectrum, from Gilts and Euro-government Bonds to High Yield Bonds.

"We looked for a system that would deliver core functionality 'out of the box' whilst also providing us with the potential to develop functionality using a toolkit. This will enable us to support any business expansion and improve STP in a cost effective manner " said David Hefford, Global Head of Risk and Operations Technology at RBS Financial Markets. "Calypso addressed most of our requirements out of the box and will be extending the product according to our specifications".

RBS wants to deliver a scalable solution to support the Capital Markets business and also integrate with the strategic application architecture across Financial Markets.
"We are developing a processing infrastructure that will serve Financial Markets well into the future," added Hefford. "Calypso has the technical features to be a core component of the processing infrastructure for Capital Markets business and fits in well with our technical architecture.

The initial project is planned to go live in the second half of 2003. Calypso will eventually process the full range of Capital Markets products that RBS Financial Markets trades, from Gilts and Euro-government bonds to high-yield.

"We are excited about working with The Royal Bank of Scotland," said Charles Marston, CEO of Calypso Technology. "We see this as the start of a long partnership. It is through relationships like this that we have built our growing presence in the market."

About The Royal Bank of Scotland Group
The Royal Bank of Scotland is a broadly based financial services group with operations spanning clearing banking, corporate banking, financial services, investment management and insurance, both in the UK and overseas. It is the second largest in bank in Europe and the fifth largest banking group in the world by market capitalisation. The Group serves over 18 million customers. Through its Financial Markets division it provides specialist services in global foreign exchange, currency and structured derivatives, money markets, together with a wide range of interest rate management services to The Royal Bank of Scotland and NatWest international corporate and institutional client base. For further information, please visit http://www.rbsmarkets.com/