SOURCE: Chordiant Software, Inc.

March 16, 2005 08:00 ET

Chordiant Provides Basel 2 IRB Compliance With Advanced Credit Risk Decisioning and Monitoring

Business Users to Develop Proven Risk Management Initiatives to Reduce Capital Requirements for Lending Organizations With Chordiant Decision Management Suite

CUPERTINO, CA -- (MARKET WIRE) -- March 16, 2005 -- Chordiant Software, Inc. (NASDAQ: CHRDE) today announced the availability of a new Basel 2 compliance solution that will enable business users to develop Internal Ratings-Based (IRB) ratings models seeking to reduce the capital requirements for banks and lenders under the Basel 2 regulations. The Chordiant Decision Management suite enables banks to create a Basel 2 compliant environment while also realizing the benefits of real time credit risk decisioning and unique "next best action" recommendations for effective customer risk profiling.

Chordiant's solution is unique among IRB Basel 2 compliance solutions, allowing users to generate superior and automatically documented ratings models, by merging organization specific processes with sophisticated mathematical models, all implemented and designed by the people who know these strategies best -- the business users/risk managers. This approach allows organizations to save time and money that would otherwise have been used for statisticians to build the risk models, while still allowing banks the advantages of reduced capital requirements available to those lenders with proven risk management initiatives.

The Chordiant Decision Management suite comprises a series of autonomous modules, ranging from model development to analysis, deployment and monitoring in a transparent, IRB founded process. As well as providing a Basel 2 compliant working environment, this process also allows powerful predictive models to be applied to applicant scoring, risk rating and collection management. Loss on non-performing loans and customers can then be minimized allowing the prices on lending products to be more competitive in a bid to increase a lender's market share.

Furthermore the Chordiant Decision Engine module of the solution, can deliver real-time credit risk decisioning and "next best action" recommendations to customer contact agents based on ratings models that can be monitored, adapted and re-deployed in-house without creating an IT bottleneck.

"Banks and lenders are facing the challenge of becoming Basel 2 compliant, and with Chordiant Decision Management they can realise the considerable associated business benefits of increased speed in their analysis of customer credit risk," said Don Morrison, president of Chordiant.

Chordiant Decision Management may be integrated seamlessly with Chordiant Marketing, Chordiant Contact Center and Retail Channel solutions, providing full control of the entire customer interaction process. Interactions with customers require decisions to be made both beforehand and in real-time. Customer data is passed to the Chordiant Decision Management package which returns the instructions on how to interact; whether via the branch system, the telemarketing support system or the website.

About Chordiant Software, Inc.

Chordiant (NASDAQ: CHRDE) automates the end-to-end operational business processes that enable the business from the back-office systems, existing applications and processes through to the communications with customers.

Chordiant Solutions combine straight-through service processing with your business processes for multi-channel applications in marketing, the contact center, and retail channels, including self-service. The solutions provide end-to-end, process-driven applications, encompassing a single view of the customer, delivered through a role-based desktop. The solutions integrate with existing systems and data thereby leveraging current assets. Chordiant Services enable rapid and successful implementations by reducing risk, increasing return on assets and lowering total cost of ownership.

Headquartered in Cupertino, California, Chordiant maintains offices in Boston; Mahwah, N.J.; Manchester, N.H.; New York City; London; Paris; Amsterdam; and Munich.

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This news release includes "forward-looking statements" that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," "would," "guidance," "projects" and similar expressions which are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Chordiant to differ materially from those indicated by these forward-looking statements, including, among others, potential difficulties in the assimilation of operations, strategies, technologies, personnel and products of acquired companies and technologies, the impact of perceived or actual weakening of economic conditions on customers' and prospective customers' spending on Chordiant software and services; quarterly fluctuations in Chordiant's revenues or other operating results; failure by Chordiant to meet financial expectations of analysts and investors, including failure resulting from significant reductions in demand from earlier anticipated levels; risks related to market acceptance of Chordiant's products; customization and deployment delays or errors associated with Chordiant products; impact of long sales and implementation cycles for certain Chordiant products; reliance by Chordiant on a limited number of customers for a majority of its revenues; Chordiant's need to retain and enhance business relationships with systems integrators and other parties; Chordiant's use in its products of third-party software; activities by Chordiant and others regarding protection of intellectual property; and competitors' release of competitive products and other actions. Further information on potential factors that could affect the financial results of Chordiant are included in risks detailed from time to time in Chordiant's Securities and Exchange Commission filings, including without limitation Chordiant's Annual Report on Form 10-K and Quarterly Reports filed on Form 10-Q. These filings are available on a Web site maintained by the Securities and Exchange Commission at Chordiant does not undertake an obligation to update forward-looking or other statements in this release.

Chordiant and the Chordiant logo are registered trademarks of Chordiant Software, Inc. All other trademarks and registered trademarks are the properties of their respective owners.

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