Derivatives Trading to Begin in Radar Logic's Residential Property Index(TM) (RPX(TM)) Market

NEW YORK, NY--(Marketwire - September 12, 2007) - Radar Logic Incorporated (www.radarlogic.com) announced that derivatives trading in the Residential Property Index (RPX) market will begin September 17, 2007. Trading will be based on the RPX Prices, single values representing price per square foot based on actual transactions in residential real estate in 25 U.S. Metropolitan Statistical Areas as well as a 25-city composite.

Dealers licensed to offer products in the RPX market include Morgan Stanley & Co. Incorporated; Lehman Brothers Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Deutsche Bank Securities Inc.; Goldman Sachs & Co.; and Bear Stearns & Co.

At nearly $23 trillion (Federal Reserve statistics as of March 31, 2007), the value of U.S. housing is significantly larger than that of stocks and rivals that of fixed income. Due to its illiquid nature, methods for investing in real estate have been limited. Now, investors will be able to take positions on the value of the residential property market, creating liquid and efficient opportunities similar to those available for more traditional commodities.

"Residential property derivatives should provide an essential and timely investment and risk management tool for our institutional and individual clients by offering them the opportunity to express a long or short view on home price changes across the U.S.," said Tony Tufariello, Global Head of the Securitized Products Group at Morgan Stanley.

Scott Soltas, Managing Director, Head of Merrill Lynch Mortgage Sales and Trading, said, "Initially, we believe the RPX trading will be centered around price return 'swaps' and simple forward contracts. These will be quoted in terms of Home Price Appreciation (HPA) and will vary in length from one to five years. The variety and flexibility provided by these contracts will enable investors to quickly and easily express views on specific property markets for their desired length of time."

According to Rich McKinney, Head of Residential MBS Trading at Lehman Brothers, "Investors holding securities sensitive to mortgage credit and prepayment performance as well as businesses with exposure to the housing market cycles now have a powerful tool in managing their residential real estate risk."

Michael Feder, CEO and President of Radar Logic Incorporated, said, "The launch of the RPX market provides both investors and participants in the real estate industry with sophisticated tools that have not been available to them before. The granular applications of the RPX-based derivatives should allow substantial utility for all interested participants. We are excited by the reaction that professionals have had thus far."

In addition to generating daily RPX prices, Radar Logic has developed a series of analytic tools designed to help professionals in both the real estate and financial services industries utilize these derivatives. These tools are available by subscription via the company's website, www.radarlogic.com.

About Radar Logic Incorporated (www.radarlogic.com)

Radar Logic, the home of tradable real estate(SM), is a technology-driven data and analytics business that produces a daily "spot" price for residential real estate in U.S. metropolitan areas. To do this, actual transaction data are captured from public sources and translated into the Radar Logic Daily™ Prices. The Daily Prices, in turn, power the Residential Property Index™ (RPX™) market, where derivatives and other financial instruments are offered and traded. RPX allows real estate and financial professionals to manage risk, invest in real estate without owning physical assets, and obtain more accurate insight into the residential property market.

For more information on Radar Logic and the RPX, including licensed dealers, visit www.radarlogic.com.

Contact Information: Contact: Nancy Tamosaitis Vorticom Inc. 212.532.2208