As Reported By PR Newswire - Kanbay Acquires Accurum

Kanbay International, Inc. KBAY, a global IT services firm focused on the financial services industry, today announced it has acquired Accurum, Inc., an IT services provider to the capital markets industry. The purchase price consists of a $5 million closing payment, subject to certain adjustments, plus contingent payments of up to $7 million, payable upon the achievement of certain performance targets. The acquisition is expected to be modestly accretive to Kanbay this fiscal year. Further comments regarding the transaction will be provided in Kanbay's earnings call anticipated in April 2005.

Accurum employs 180 people worldwide, bringing the total number of Kanbay associates to nearly 4,000. Accurum operates offices in the United States and the United Kingdom and an offshore solution center in Chennai, India. Its 2004 revenues were approximately $12 million.

"Accurum brings a wealth of high-end domain expertise that complements Kanbay's focus on IT services for the financial services industry," said Raymond Spencer, Chairman and CEO of Kanbay. "Accurum's leadership in technology solutions in the capital markets sector strengthens Kanbay's practice and adds to our breadth and depth of service for our current clients. Accurum also holds close relationships and a strong track record with some of the most important capital markets clients in the world."

Accurum offers technology solutions for capital markets firms within the front and middle office, including Sales and Trading, Risk Management and Research. Accurum has business and technology experience in the areas of Fixed Income, Equities, Credit and Derivatives. Through its onsite, offsite and offshore delivery model, Accurum provides application development, enterprise application integration, web services, data warehousing and quality assurance and testing, with deep domain expertise in the processes that drive the capital markets industry.

Speaking about the acquisition, Venkat Vallabhaneni, CEO of Accurum, said, "This is a beneficial situation for both companies. Kanbay is a highly focused player in the IT space for financial services and Accurum's strength in capital markets complements Kanbay's existing expertise. We look forward to helping Kanbay grow its capital markets practice and adding scale to our own operations."

Accurum will be operated as a wholly-owned subsidiary of Kanbay, and Mr. Vallabhaneni will continue as its CEO.