Fundtech Generated Positive Revenues And 98 New Deals In 2008

Fundtech, a provider of electronic payment, settlement and cash management applications, announces financial results for the fourth quarter and full year ended 31 December 2008. Fundtech posted quarterly revenues of $29.8 million, a 1% increase year over year, compared to

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Fundtech, a provider of electronic payment, settlement and cash management applications, announces financial results for the fourth quarter and full year ended 31 December 2008.

Fundtech posted quarterly revenues of $29.8 million, a 1% increase year-over-year, compared to fourth quarter revenues of $29.4 million in 2007, and a 5% decline compared to third quarter 2008 revenues of $31.5 million.

On a GAAP (Generally Accepted Accounting Principles) basis, Fundtech reported a net loss of ($2.2) million or ($0.14) per diluted share, for the fourth quarter of 2008 compared with net income of $2.7 million, or $0.16 per diluted share, in the fourth quarter of 2007, and net income of $1.5 million, or $0.09 per diluted share, in the third quarter of 2008.

For the year ended December 31, 2008, revenues increased 16% to $121.0 million from $104.6 million in 2007. GAAP net income in 2008 was $1.2 million, or $0.08 per diluted share, compared with net income of $7.1 million or $0.43 per diluted share, in 2007.

Other highlights:

-During the fourth quarter excluding Accountis Fundtech closed 98 new deals and added 7 new bank customers.

-During the fourth quarter Fundtech closed 10 new system sales including 6 U.S. Payments, 1 Global CASHplus, 1 CLS and 2 at BBP.

-During the quarter Fundtech closed a sale of Global PAYplus system to a large European bank.

-During the fourth quarter Fundtech recorded financial expenses of approximately $800,000 due to a decline in the value of balances of cash and accounts receivables denominated in non-dollar currencies.

-During the fourth quarter Fundtech recorded a $2 million one time charge due to the impairment of goodwill and other intangible assets recorded in connection with the acquisition of Radius Partners.

Also Fundtech elects Avi Fischer to the position of Chairman of the Board of Directors. Gideon Argov will remain in the company as Vice Chairman.

“Despite the uncertain market conditions and the slow down in the fourth quarter we posted double digit revenue growth in 2008 and generated cash flow from operations of $13.7 million” says Reuven Ben Menachem, CEO.

“Looking towards 2009, we believe that the slow down will continue at least during the first six months of the year. Despite the weakness with the global banks we continue to have good success selling Global PAYplus to large regional banks. We have also taken steps to control costs and I believe that we are well positioned for renewed growth when market conditions improve.”

L.D.

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