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IFC and Delta Capital/The U.S. Russia Investment Fund Finalize Investment in EGAR Technology


Ms. Adriana Gomez, The International Finance Corporation
Phone:  202 458 5204

Email:  
agomez@ifc.org



Delta Capital Management/The U.S. Russia Investment Fund and The International Finance Corporation finalize investment in EGAR Technology




*Funding from private equity investment sources to help financial software company continue development and expansion – Moscow based research & development center


Moscow. September 16, 2002—
Delta Capital Management, manager of The U.S. Russia Investment Fund (the Fund), and the International Finance Corporation (IFC) announced today an investment in EGAR Technology, Inc, a company specializing in capital markets software applications development with headquarters in New York and a research & development center in Moscow.  EGAR boasts one of the fastest-growing software and related services practices in the financial technology sector worldwide.


IFC, the private sector development arm of the World Bank Group, is providing an equity investment of US$ 1.5 million.  The Fund is participating with a $ 1 million equity investment.


“The Fund’s investment in EGAR reflects a fundamental element of our investment strategy: to leverage Russia’s rich scientific brainpower and knowledge base into commercial applications that drive the technology sector forward,” said David Jones, President and CEO of the Fund.  “EGAR Technology is optimally utilizing its talented pool of Russian software developers, and its management team possesses extensive experience in the financial technology industry.”



“Russia is in the midst of developing the skills base necessary to compete in high-technology exports,” said Mohsen Khalil, Director of IFC’s Global Information and Communication Technologies Department.  “IFC’s investment will support EGAR’s efforts to provide highly specialized capital markets software services to companies globally with highly qualified human resources.  This investment also fits in with IFC’s strategy to create quality jobs in Russia and to support the development of high-end services exports in the country,” Mr. Khalil added.



EGAR Technology was founded in March 2000 and has since become a force in providing financial technology systems.  EGAR has developed its own suite of trading, risk management and analytical systems, custom application development, web application and ASP services, and integration and implementation services for the capital markets. EGAR’s highly specialized products are entirely built in Moscow, while the New York office holds the management and sales team.  With the investment, EGAR will expand its marketing and sales efforts and further enhance product development and R&D.


“An investment from such prominent institutions as IFC and the U.S. Russia Investment Fund is evidence of the success that EGAR has attained thus far and the potential that exists for future growth,” said EGAR Technology CEO Ravi Jain.  “This investment is important to EGAR because it will assist in the next phase of growth in the company.  It will enable EGAR to not only expand its product offering, but also to truly become a global financial technology company.  We view both investors as strategic partners who can play a significant role in EGAR’s expansion. EGAR Technology is well on its way to achieving the status of a premiere financial technology company for the long run.”




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About Delta Capital Management

Delta Capital Management, manager of The U.S. Russia Investment Fund (the Fund), is a leading Russia-focused private equity fund manager dedicated to identifying and growing exceptional start-up and emerging growth companies in Russia. Delta Capital Management focuses on three high-growth sectors in Russia fuelled by high consumer demand: financial services, TMT (telecommunications, media and technology), and consumer products and services. The Fund has invested in excess of US$ 200 million in over 30 portfolio companies, and has achieved five successful exits in 2001-2002. For more information, please visit Delta Capital Management’s website at  
www.deltacap.ru.

About the International Finance Corporation

The International Finance Corporation’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than US$ 31 billion of its own funds and arranged US$ 20 billion in syndications for 2,636 companies in 140 developing countries. IFC's committed portfolio at the end of FY01 was US$ 14.3 billion. IFC has worked actively to support the development of a strong private sector in Russia since it became a member in 1993. IFC has invested over US$ 136 million in equity and provided loans totaling US$ 448 million to the private sector in Russia, as well as mobilizing US$ 110 million from other sources of financing. The IFC website is
www.ifc.org.

About EGAR Technology

EGAR Technology, Inc, was formed in March 2000. Based in New York (and soon Chicago and London) and with a research & development center in Moscow, the consolidated company boasts one of the fastest-growing software and services practices in financial technology. EGAR Technology’s success is driven by extensive expertise in capital markets, trading, and risk technology. Many of the 125 people on EGAR’s team have advanced degrees in mathematics, computer science, or engineering, and boast years of experience at financial institutions and financial technology providers. EGAR Technology is a recognized leader in financial-applications development and customization, from the FOCUS trading and risk management system to the equity derivatives suite, to customized, complete enterprise solutions built from scratch. Unlike typical software companies that only offer off-the-shelf packages, EGAR also supports trading and risk management departments of banks, financial institutions, corporate treasuries and institutional investors requiring specialized solutions. In addition, EGAR maintains extensive integration and implementation resources so that solutions “go live” as quickly as possible. Egar on the web:
www.egartech.ru, www.egartech.com.
Ms. Marlena Hurley, The U.S. Russia Investment Fund
Phone: +7 095 960 3131
Email: mhurley@deltacap.ru
Ms. Carri Brown, EGAR Technology
Phone: +1 212 223 3552, Email: carri_brown@hotmail.com
Mr. Mikhail Talantov, EGAR Technology
Phone: +7 095 105 3388, Email: m_talantov@egartech.com