TCS clinches US$3 Million Philippine Dealing System project

Below is an article posted on Tata Consultancy Services' (TCS) investor relations page. In the article the company notes the importance of the PDTC to their growth. If the FIE project is indeed a National Project as Mr. Lacsamana stated below and will feed the growth of TCS, one could argue that TCS should have compensated our government for giving them this franchise called Government Securities???

Please read the highlighted portions of the article.

Nina



Mumbai, November 18th, 2004

Tata Consultancy Services Ltd (TCS), a leading global IT services organization, announced today it has been awarded a US$3 million contract by the Philippine Dealing System Holdings Corp. (PDS) through its subsidiary the Philippine Depository & Trust Corp. (PDTC), to implement a Depository, Registry, Clearing & Settlement System for the equities and fixed income securities market in the Philippines.

Under the terms of the contract, TCS will implement its eClearSettleTM software - a comprehensive solution for depositories, clearing organizations, transfer agents and central banks. PDS is Philippine's electronic platform for trading, clearing, depository, registry and custody of fixed income securities. Recently, the Bangko Sentral ng Pilipinas (Central Bank of Philippines) initiated a series of market reforms of which PDTC, together with the other projects under the PDS Group, will play active roles.

"This is a national project. A fully automated depository, clearing and settlement system will enhance the efficiency of the country's fixed income market and further reenergize the equities market. With globalization, we need world-class infrastructure to drive our capital markets forward. TCS has demonstrated outstanding global standards, both with its products and processes. With TCS' eClearSettleTM, PDS stands in good stead, both as a technology-based enterprise and as a world-class clearing house," said Roy B. Lacsamana, President & COO of PDTC.

TCS' eClearSettleTM is a comprehensive solution for financial markets encompassing clearing and settlement for equity, debt and derivatives markets as well as depository and registrar services. Among the key features of eClearSettleTM are:
Clearing, settlement and depository (CSD) operations for cash and derivatives markets
Integrated risk management with interfaces to third party products
Real Time Gross Settlement (RTGS) operations and securities settlement for central banks
Registrar services, and
State of the art technology and interfaces over the Internet, SWIFT, email, mobile and land phones.

Regional director for TCS Asia Pacific Girija Pande said: "This landmark deal in the Philippines is part of our growth plan in the Asia Pacific region. The Philippine Depository & Trust Corp is a national mission-critical infrastructure. With eClearSettleTM we are confident of delivering the efficiencies needed to take the fixed income markets in the Philippines to the next level."

This engagement forms part of a larger growth strategy for TCS in Asia Pacific, with the TCS Group taking a strategic 10% stake, at par, in PDS for a consideration of about USD 0.9 million. TCS Asia Pacific - headquartered in Singapore - is today a major player in information technology consulting, services and business process outsourcing in the region.

The TCS project team involves professionals with extensive financial services and IT experience. Comprising experts who have worked on complex projects in the global securities markets, the solution is expected to be completed within a short timeframe.

TCS' global customers in the financial services industries include: SIS, Switzerland, STRATE, South Africa, National Stock Exchange (India), National Securities Depository Limited, India, Canadian Depository, Kuwait Clearing and Company, Deutsche Bank, ING Group, AIG, and AXA Insurance.

About Philippine Dealing System Holdings Corp.

Philippine Dealing System Holdings Corp. (PDS Holdings) was established to operate through its subsidiaries, namely: Philippine Dealing & Exchange Corp. (PDEx), Philippine Depository & Trust Corp.(PDTC) and Philippine Securities Settlement Corp. (PSSC) (collectively, the "PDS Group") the Philippine Fixed-Income Exchange Infrastructure Project. The Fixed-Income Exchange Infrastructure will serve the Philippine fixed-income securities transactions. The integrated infrastructure will be unique and possibly the first in Asia. The PDS Group will also be the systems provider for the foreign exchange markets.

The proponents of the said Project are the Bankers Association of the Philippines (BAP) and Investment House Association of the Philippines (IHAP). The Project was pursued in view of the desire of various financial market stakeholders both from the private and public sectors to establish an efficient and secure market place. It could be said that the Project will be the culmination or the fruition of all the market reforms that were and are continuously being instituted.

PDEx or the Exchange is the entity that will operate and maintain the trading system. PSSC is the central post-trade processing unit responsible for matching, clearing and settlement of fixed-income and foreign currency trades. PDTC is the entity that will offer the depository, custodian and registry services.

Contact:
Shivanand Kanavi
Vice President, Tata Consultancy Services
Phone: +91 22 56689999
Email: shivanand.kanavi@tcs.com