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For Immediate Release

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Castek Teams with IBM on Enterprise Software Solutions for Insurance Companies

Customer-centric solutions cut development time, risk and cost

Toronto, Ontario (October 25, 1999) - Castek today announced that IBM will market Castek’s flexible, customer-centric enterprise software solutions for the insurance industry.

The Castek solution covered under this agreement will help insurers compete more aggressively in the new economy, improving product launches and bolstering customer loyalty in an e-business driven economy.

Both companies will now offer insurers a richer array of cutting-edge technology and a higher level of e-business expertise. IBM will remarket Insure3 (insure cubed), Castek’s component-based insurance framework solution for P&C insurers. This can facilitate better integration of new applications that support administrative business processes.

"Flexible, fast product development capability that cuts time-to-market is critical to success in the customer-centric world of e-business," said Andrew Williams, General Manager IBM Insurance Industry. "Insure3, combined with key IBM e-business solutions for the insurance industry, will help insurers anticipate and respond to competitive market pressures."

"We are pleased about working with IBM to bring this new class of solutions to an underserved market," said Yung Wu, President and CEO of Castek. "The agreement, which grew out of a common industry vision, allows us to focus on delivering breakthrough competitive advantage to customers through strategic, component-based enterprise software solutions and IBM’s technology initiatives and market expertise."

Insure3 is a cost-effective, flexible component-based software solution designed to help insurance companies easily respond to market and regulatory changes, to quickly introduce new products and rapidly respond to clients’ needs. It is strongly aligned with IBM’s Insurance Application Architecture (IAA), which provides a blueprint for application development and integration.

One company already using Insure3 is Universal Underwriters Group, a Zurich Financial Services Group company. In fact, Universal was instrumental in helping to create the system.

"Castek and Universal Underwriters Group worked in partnership to create a new class of insurance systems that will revolutionize the way we do business," said Steve Smith, CEO, Universal Underwriters Group. "We are extremely pleased with the results of our joint efforts. With Insure3 we can dramatically increase service responsiveness to our customers, while slashing time-to-market for introducing new insurance products."

"This agreement provides significant opportunities for insurers that are looking for innovative ways to solve complex business problems," said Alistair Cumming, VP of Business Development at Castek. "We have developed a solution that offers significant competitive advantage for our clients. When we combine this with IBM’s world-class capabilities in e-business, implementation services and market vision, the possibilities for a new era of flexibility and innovation in the Insurance market are within our grasp."

About IBM

IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. IBM Software offers the widest range of application, middleware and operating systems for all types of computing platforms, allowing customers to take full advantage of the new era of e-business. The fastest way to get more information about IBM software is through the IBM Software home page at http://www.software.ibm.com/

IBM Global Insurance is the leading provider of end-to-end, enterprise, e-business solutions to the insurance and financial services industry. We bring together extensive industry expertise with a broad array of IBM products and services spanning e-business, software, hardware and consulting services, to help companies address industry concerns such as customer loyalty, revamping to compete in a global market, launching e-commerce -- selling and servicing online, financial services marketshare, optimizing claims relationships, business transformation, operational efficiency, security and risk management and other issues. For more information about IBM, you can visit http://www.ibm.com/solutions/insurance on the Internet.


About Castek

Castek Software Factory Inc. is an innovative information technology firm with offices in Toronto and Ottawa, Ontario; Cary, North Carolina, and operations across North America. The company’s focus is the delivery of strategic, component-based business software solutions to the financial services sector.

Founded in 1990, Castek is recognized as the pioneer and leading practitioner of component-based development and application assembly from pre-built, reusable software components, delivering systems that are substantially more flexible, maintainable, and configurable than any other industry alternative. Castek was recently ranked as #29 in the 100 Top Independent Software Companies in Canada.