Capital Markets Technologies, Inc (fka CMKT)

[brig]

News Out Last Night

Capital Markets Technologies: Bear Market, Bull Opportunity!
Date : 10/01/2008 @ 6:58PM
Source : PR Newswire
Stock : (CMKT)
Quote : 0.82 0.02 (2.50%) @ 9:30AM




Capital Markets Technologies: Bear Market, Bull Opportunity!

CHICAGO, Oct. 1 /PRNewswire-FirstCall/ -- The following is a letter to Capital Markets Technologies (OTC:CMKT) (BULLETIN BOARD: CMKT) shareholders from Chairman Jack Bouroudjian:

Dear Colleagues and Shareholders,

In addition to the quarterly updates, which CMT will issue, we have decided that if there are any other important updates along the way that we should communicate, they will take the form of a Corporate Update such as this. And this particular update is extremely important!

Speaking as a former trader on the floor of the CME, I have seen more than my fair share of trouble in the markets. Needless to say the past few weeks have eclipsed anything I have witnessed in recent decades and if I were still trading today, I might not be so bullish about the future. However, as chairman of a company which is likely to be a major beneficiary of the current market situation, I cannot help but view the credit crunch from a different viewpoint.

I have just returned from 'Sibos', the world's leading annual financial services event hosted by SWIFT and probably the most important in CMT's calendar. I had not expected CMT to have such a successful event! We started the week with a major announcement and signing ceremony organised by the Royal Bank of Scotland that Simplex, CMT's UK-based payments outsourcing subsidiary, had been selected to provide the bank with its outsourced SWIFT payments capabilities. The RBS launch immediately generated customer leads and even RBS is amazed at the interest level. Simplex will now jointly work with RBS to target their customers and our focus now moves from integrating our joint proposition to sales and marketing.

In addition to the RBS announcement, HSBC also announced their 'Plug and Play' SWIFT Service Bureau which is also powered by Simplex. The media interest both announcements and the RBS signing ceremony created was amazing. Google's top seven headlines when typing RBS and SWIFT mention Simplex and Google's first four headlines when typing HSBC and SWIFT Bureau discuss the launch of their Service Bureau. I have attached some of the links to those headlines. The bank outsourcing deals represent a major achievement for Simplex and an important step in the adoption of CMT's solutions by tier-one global financial institutions.

http://www.finextra.com/fullstory.asp?id=18959

http://www.sibosonline.com/fullstory.asp?id=18959

http://www.finextra.com/fullstory.asp?id=18961

In addition to the excitement generated around CMT by the RBS and HSBC announcements, I had been asked to participate in a panel debate towards the end of the week which became one of the most interesting debates of the whole conference. It also led BBC World to interview me regarding the credit crunch alongside the CEO of SWIFT. The BBC World News video clip is in the process of being added to CMT's website and helps enormously to position the CMT as an important player on the financial technology landscape.

The CMT business opportunity was always underpinned by the implementation timetable of the EC's Payments Services Directive (PSD), and the Single Euro Payments Area (SEPA). At a high level the PSD demands change in the way payments are processed, thereby requiring significant IT spend in back office operations. We could not have predicted when we launched the company that a second, potentially even more powerful market driver for change would appear on the scene -- the credit crunch. This is driving financial institutions to move as quickly as possible to low-cost outsourced solutions for business processing, as well as requiring them to provide transparency and audit compliance that an independent outsourced Service Bureau can provide.

Our mission was always to embed our solutions into the largest financial institutions in the world and to work with them as channel partners. Not only has this already become a reality for the company but in a twist of fate, the market segments in banking that CMT's solutions are targeted at -- large retail banks and their corporate customers -- are now expected to be the primary focus of revenue generation for the banking community, as many of their respective investment banking divisions are exposed to the full forces of a bear market.

Needless to say, I'm extremely excited about CMT's prospects for the foreseeable future and we plan to make further exciting announcements during the coming weeks before I write Q4's Quarterly Update. Looked at within the context of the market drivers which are pulling the business forward at a tremendous pace, we at CMT firmly believe that the company has a phenomenal business outlook and we welcome all of you along for an exciting ride!

Many thanks, Jack Bouroudjian Chairman, Capital Markets Technologies.

DATASOURCE: Capital Markets Technologies

CONTACT: Jack Bouroudjian, Chairman of Capital Markets Technologies,

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