In a $19 million deal, UK Risk Management house, Quadrant Risk Management (International) Ltd., acquires Ecensity Corporation, a specialist in Service Orientated Architectures and Presentation Dashboards. This is the first step in establishing Quadrant as a global player in the growing compliance market.

London, UK 20 November 2006 - Quadrant today announces that it has acquired venture capital backed Ecensity Corporation, based in New York, USA. Quadrant says Ecensity’s EPS (Enterprise Presentation Server) will be integrated with their B² Risk and Compliance Suite to provide a comprehensive compliance solution for Financial Institutions around the world.

Paul Lockyear, founder of Quadrant and Chief Operating Officer says, “Quadrant’s established risk consultancy expertise and its B² compliance solution, an integrated data repository and compliance engine, are now further strengthened by Ecensity’s dashboard and risk management cockpits. This combination will enable clients around the world to comply with the 3 pillars of Basel II and other regulatory requirements including Solvency II, MiFID, Anti-money Laundering, SOX and IAS. B² will provide firms with a single, cohesive solution actively to manage their regulatory capital, operational, credit and market risks.” He continues by saying that the acquisition will increase Quadrant’s scale and reach, anticipating that this is the first step in their transition to becoming a global player in the risk and compliance market.

Quadrant has appointed Sam Bengio, a founder of Ecensity, as CEO. He brings an increased technology focus together with business development capability to Quadrant. Bengio says, “The combination of our risk management capability and advanced Service Oriented Architecture (SOA) based technology will enable us to integrate easily with existing client systems and to implement our compliance solutions more rapidly. At the same time our approach will provide our clients with greater business agility and the capability to manage risk effectively in a changing regulatory environment, while future-proofing their investment.”

The merged company will be known as Quadrant Risk Management (International) Ltd. Corporate headquarters will be in the UK with offices in London, Plymouth, New York and Paris. The existing investors in Ecensity, namely Dassault Dévelopment, XAnge Capital and StoneFund N.V. will invest a further $2.1 million working capital in the merged enterprise.

Quadrant will continue to provide risk based consultancy services to the financial sector globally, both independently and in support of B² and SAB² (their implementation of the standardised approach to Basel II) projects. In addition Quadrant will provide Ecensity’s technology to application providers and system integrators as a stand-alone software product. This will facilitate the generation of composite views for web applications and extend the Service Oriented Architecture (SOA) to the presentation layer, enabling organisations to provide extremely agile solutions with visually appealing user interfaces.

Quadrant says their enhanced B² offering provides the ideal platform to meet the needs for integrated risk and compliance solutions globally and that their timing is right for significant growth.

According to one independent source (Overcoming Risk and Compliance Myopia, Forrester Research, Inc., August 7 2006), organisations confront a complex web of compliance mandates and enterprise risks and firms need governance, risk and compliance (GRC) software platforms substantially to drive efficiency and consistency in managing enterprise risk and compliance. They continue by saying that the GRC market has grown from $85 million in 2002 to $590 million today and project that it will expand to $1.3 billion by 2011.

About Quadrant Risk Management International and Ecensity Corporation
Quadrant was formed in the UK in 1991 as a specialist consultancy by risk management professionals who had previously operated at board level in financial institutions. In 2001 Quadrant diversified by developing its domain expertise into B², their risk and compliance suite, in response to the Bank for International Settlement’s Basel II Capital Accord.

Ecensity was founded in the USA in 2001 by veteran IT entrepreneurs who recognised the benefits of the SOA (Service Oriented Architecture) approach easily to adapt and integrate diverse systems and to deliver business value via the web. The Enterprise Presentation Sever (EPS) completes the SOA model delivering rich Presentation Services via the web.