Phoenix Systems Successfully Ports FUNDS Mutual Fund Transfer Agent System And FundTrader Mutual Fund Sub-Accounting System To LINUX Operating System.

Contact: Alex Monica, Vice President of Sales (404) 633-6465 x276

Atlanta, GA.: Phoenix Systems is pleased to announce the successful completion of portability testing for Phoenix’ FUNDS™ Mutual Fund Transfer Agent System and FundTrader, a mutual fund sub-accounting system, onto the RedHat LINUX 3.2 operating system. The implementation of LINUX adds to the operating systems utilized by Phoenix’ FUNDS and FundTrader systems which already includes Microsoft (NT, 2000, Advanced Server), Novell, HP UNIX and SUN Solaris. “Phoenix realizes a growing number of financial services companies are electing to use the LINUX operating system for its many advantages including open source code and cost-effectiveness, and we have chosen to provide FUNDS and FundTrader on LINUX to address these needs” states Mr. Monica.

About Phoenix Systems Inc.
Phoenix Systems Inc. is an Atlanta-based software development firm that caters to the financial services industry. Phoenix’ solutions include FUNDS -- a mutual fund transfer agent system, FundTrader -- a mutual fund sub-accounting, trading and reconciliation system and MPACS -- a mutual fund portfolio/fund accounting system. To learn more about Phoenix Systems please call (404) 633-2466 or visit the website www.phoenix-systems-inc.com.
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PHOENIX SYSTEMS ANNOUNCES PARTNERSHIP WITH HYLAND SOFTWARE FOR IMAGING AND WORKFLOW

Contact: Alex Monica, Vice President of Sales -- (404) 633-6465 x276

Atlanta GA.: Phoenix Systems Inc. today announced it has entered into a new partnership with Cleveland-based Hyland Software to incorporate Hyland’s OnBase® imaging and document management software into the Phoenix FUNDS Package. The FUNDS Package is a family of totally interactive shareholder record keeping and accounting systems for the mutual funds industry.

The FUNDS Package, now powered by Hyland Software’s OnBase, will provide enhanced account record keeping and administration to mutual funds and their shareholders. “Leveraging a track record of more than 20 years of experience in providing software for the mutual funds industry, we were able to add essential new functionality that will help mutual funds be more accurate and efficient in operating their businesses,” said Judy Koch, vice president of Phoenix. “OnBase has a strong presence in the financial services market. In keeping with our dedication to providing our mutual fund customers with what they need, when they need it, we are bringing our customers the benefits that the leading imaging and workflow software can bring to the shareholder record keeping process.”

Bill Priemer, vice president of sales and marketing for Hyland, added, “Phoenix Systems offers the mutual funds industry a much-needed solution. Our strategy has been to partner with firms where OnBase can add value to proven vertical solutions, and we are excited to work with Phoenix to bring this new capability to mutual fund record keeping.”

About Phoenix Systems
Since 1981, Phoenix Systems has provided back-office solutions to the financial services industry in the form of FUNDS/NET™ shareholder record keeping system for domestic and off-shore funds, and MPACSä a totally interactive, mutual fund portfolio accounting system, able to process funds of every type. Headquartered in Atlanta, Georgia, Phoenix has a client base encompassing the United States and ten countries worldwide. Visit www.phoenix-systems-inc.com for more information.

About Hyland Software
Hyland Software, established in 1991, is a recognized leader in the document technologies industry. As a customer-driven organization committed to providing world-class service and support, the company is dedicated to developing integrated document management solutions that are deployable at both the departmental and enterprise levels.

Hyland develops OnBase, software that offers the full spectrum of document management capabilities in a single, web-enabled application. OnBase is used by thousands of commercial organizations and government agencies worldwide to streamline operations, reduce costs and share information with employees, partners and customers. Headquartered in Cleveland, Ohio, Hyland has offices located throughout the United States, Latin America and Europe. Visit www.onbase.com for more information.

PHOENIX SYSTEMS IMPLEMENTS WEB INTERFACE

Contact: Alex Monica, Vice President of Sales (404) 633-6465 x276

Atlanta, GA: Sandra Perkowitz, President of Phoenix Systems Inc., has announced the full implementation of Phoenix’s brandable web interface (FUNDS/E™) that facilitates straight-through processing directly from the Internet into their FUNDS/NET™ shareholder recordkeeping system. FUNDS/E™ utilizes the next generation of JAVA web development that has become the standard in the industry for financial service firms wishing to provide superior shareholder service and operational efficiency. Two versions of FUNDS/E™ -- the Retail model and the Institutional model -- make this interface useable by funds, brokers, and service providers, as well as individual shareholders. Either version is available on LAN and UNIX platforms and will soon be available for ASP clients as well. Several of Phoenix’s current FUNDS/NET™ clients have implemented FUNDS/E™ and report their success has far exceeded expectation. Ms. Perkowitz says that since many of Phoenix’s clients contributed their expertise in developing the content and structure of this interface, it was developed as a “real-world” approach to the process that reflects today’s market requirements. Remote demonstrations of the interface are being held upon request.

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Mutual Fund Administration
In-house or outsource-which is right for you?

By Sandra Perkowitz
President, Phoenix Systems Inc.

Before your company makes the decision to outsource its mutual fund administration, ask yourselves this important question: Why are we willing to pay “ABC Administrators” so much money every month, when the tools exist in our industry to help us handle it ourselves? Anyone who is in the back-office operations end of a financial services business has surely faced this question. Be warned: This is one of those areas where the grass always appears greener on the “other” side. Before you make this important decision, take a moment to consider the case for in-house. Quite simply, it usually comes down to two major factors – cost and control. In my experience, while cost-savings is always a justification for changing from outsourcing to in-house or for selecting in-house in the first place, it’s rarely sufficient by itself. In fact, it’s the intangibles associated with control that make the difference in the end. Let’s examine some of those intangibles in more detail.Security – The data is more secure in-house than it would be when residing on a huge database available to dozens of people. In these days of all too common corporate scandals, can you afford to leave yourself that vulnerable?Accessibility – In-house affords immediate access to your data rather than calling and asking someone else to look something up for you, which can take two or three days. Remember the old adage that time is money. When you need information, you need it right away – not when someone gets a chance to find it for youQuality – Control over the hiring and training of your own people means control over the quality of your operations. The people doing the work report to you, not to someone else with a variety of other priorities.Shareholder Communications -- You can offer personalized shareholder services that can be more responsive to individual shareholder needs. You can go that extra mile, while a third-party administrator can’t even enter the race.Errors – All too often, companies relying on third-party administrators find too many errors cropping up in the administration process. But your customers won’t be blaming the third-party you hired to take care of their accounts – they’ll be blaming YOU. Marketing – You can customize your own product line in a timely manner and at a reasonable cost. Nobody understands your products as well as you do. No one can market them to your customers like you can. What fund managers worry about most is the quality of the operation, the speed of response when something goes wrong and the ability to keep shareholders happy. Taking charge of your own operations provides a level of control and flexibility not available from even the most accommodating of service providers. The most effective level of control means having the ability to: - Design your own statements; - Handle your own shareholder communications; - Analyze shareholder data from any perspective you wish; - Provide statistical information to brokers and their reps (as well as to your own fund management); - Analyze trading information, portfolio income and expenses, and other investment related information from many different angles.Those who have chosen to outsource develop a wide range of coping mechanisms. Some run duplicate record keeping as a safety net, while others deal with the access-to-the-data problem by obtaining a copy of the database every day and loading it into an in-house database. Still others take transaction entry away from the service provider and do it themselves. These solutions may be the worst of both choices – the work and expense of an in-house operation crippled by the expense of outsourcing. Having control over your mutual fund admini-stration is a good thing. Control brings efficiency, flexi-bility, security and cost-effectiveness. The case is made for in-house when you understand one thing: Only when the information is totally in your hands will you find that it is totally under your control.

* Ms. Perkowitz is President of Phoenix Systems Inc., a U.S. company based in Atlanta, Georgia. Phoenix Systems supplies back-office software to the financial industry. You can reach Phoenix at www.phoenix-systems-inc.com