SPOOZ Inc (SPZI)

[Wildman-j]

Spooz to Launch Proprietary Trading Division

- 3/7/2007

Chicago, IL – March 7, 2007 -- Spooz, Inc. (OTC: SPZI) is excited to announce the formation of a proprietary trading division to generate additional revenue for the Company. The new division will employ Fractalz3™ technology, acquired in the Tetrahex merger last year, to exploit short-term market anomalies using statistical arbitrage models. The Statistically Weighted Arbitrage Recognition Model (“SWARM”) trading methodology is based upon quantitative trading approaches that involve “Bivariate Normal Probability Distributions”, and “Co-integration Theory”. The algorithms within SWARM provide a real-world application for modeling statistical arbitrage while maintaining a robust framework.

Executed on Spooz’s signature SpoozToolz™ software, SWARM is a combination of high-frequency proprietary arbitrage models that exploit local and spatial price discovery. Its unique weighted components allow for “dynamic” co-integration balancing between multiple correlated markets. Because its success is based on the automation of quantitative strategies, SWARM’s trading performance is not dependent on any specific market direction, but rather on precise micro-second calculations to identify opportunities as they arise. SWARM seeks to deliver risk-adjusted returns within 10 % of top money managers.

“I am pleased that Spooz’s proprietary trading creates significant shareholder value in terms of revenues, but more importantly, as proof of the viability of Fractalz3 and the SpoozToolz platform. “Uncharacteristic of our industry, Spooz will provide a track record to the global market disclosing the results of this effort,” stated Spooz CEO Paul Strickland. “Based on my 26 years of experience as a trader, I believe SWARM to be the most revolutionary trading engine of its kind. We expect SWARM to generate at least $14.7 million in revenue for calendar 2010 with negligible drawdown. This is a projection, but considering minimal risk to capital and our revolutionary trading technology, proprietary trading becomes an integral part of Spooz business and will serve as a demonstration of our ground-breaking initiatives.”

http://www.spooz.com/press_details.aspx?ContentID=95