2. Meeting the Basel II Challenge with Microsoft Dennis Vanderlip Financial Services Industry Manager Eastern Europe Microsoft Corporation

3. Microsoft Value Proposition for Basel II Compliance Implement solutions with lower Total Cost of Ownership Implement solutions with lower Total Cost of Ownership Reduce development time and costs Reduce development time and costs Improve flexibility and agility in IT infrastructure Improve flexibility and agility in IT infrastructure Leverage open industry standards (XML and web services) Leverage open industry standards (XML and web services) Choose Best of breed solutions from Microsoft partners Choose Best of breed solutions from Microsoft partners

4. Microsoft Global Industry Solutions Financial Services Retail Banking Retail Banking Payments Automation Payments Automation Insurance – Claims Processing Insurance – Claims Processing Basel II / Compliance Basel II / Compliance

5. Microsoft and Basel II View Basel II as an opportunity to reduce costs and improve efficiencies to gain competitive advantage View Basel II as an opportunity to reduce costs and improve efficiencies to gain competitive advantage Tackle the challenge with partners that have in-depth subject matter expertise Tackle the challenge with partners that have in-depth subject matter expertise Select a solution that fits your individual needs Select a solution that fits your individual needs Leverage previous investments in technology through integration Leverage previous investments in technology through integration Harness the power of the desktop Harness the power of the desktop

6. Microsoft Basel II Solutions Combine the value of the Microsoft platform and ease of integration with best of breed partner solutions for the most cost effective and comprehensive solution.

7. Comprehensive Basel II solution including credit, operational, and market risk Comprehensive Basel II solution including credit, operational, and market risk Focus on overall risk analysis Focus on overall risk analysis System to feed marketing management, audit, and cost management systems System to feed marketing management, audit, and cost management systems Microsoft.NET based solution Microsoft.NET based solution MS Visio, Excel, Windows 2003, SQL Server MS Visio, Excel, Windows 2003, SQL Server Cad-IT Basel II

8. Focus on Operational risk internal audit, corporate governance Focus on Operational risk internal audit, corporate governance Emphasis on managing identified risks Emphasis on managing identified risks Microsoft based solution on.NET technology Microsoft based solution on.NET technology MS Windows Server 2000, MS SQL, and Internet Explorer MS Windows Server 2000, MS SQL, and Internet Explorer Comit Gruppe Sword

9. Focus on credit risk Focus on credit risk Well-developed data model Well-developed data model Risk Engine with flexible rule- based classification Risk Engine with flexible rule- based classification Scenario Analysis Scenario Analysis Flexible reporting Flexible reporting Financial Architects Financial Studio

10. SAP, HP, and Microsoft Solution SAP, HP, and Microsoft Solution Complete Basel II / IAS compliance solution Complete Basel II / IAS compliance solution Focus on larger financial institutions, > 5TB, integration with 50 systems+ Focus on larger financial institutions, > 5TB, integration with 50 systems+ SQL 2000, Windows 2003 SQL 2000, Windows 2003 SAP Bank Analyzer

11. Basel II Partner References

12. Leverage the cost advantage of the Microsoft platform and best of breed solutions Leverage the cost advantage of the Microsoft platform and best of breed solutions Combine ease of integration with subject matter expertise of partners with deep experience Combine ease of integration with subject matter expertise of partners with deep experience Develop a flexible infrastructure for responding to future compliance challenges Develop a flexible infrastructure for responding to future compliance challenges Meeting the Basel II Challenge with Microsoft

13. © 2002 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.