PRESS RELEASE
CONTACT:
Jim Flanagan – CEO
781-863-1333
jflanagan@valuelytics.com                                     
FOR IMMEDIATE RELEASE

VALUELYTICS ANNOUNCES COMPLETION OF ANALYTIC TECHNOLOGY PLATFORM

ValuelyticEngine™ Platform To Drive Development of Fundamental Quant Applications for Equity and Credit Market Applications

Lexington, MA, November 5, 2008 – Valuelytics, a developer of predictive analytics to help customers make better decisions, today announced the completion of its ValuelyticEngine™ technology platform and the general availability of its first prototype application for the equity and debt markets.

The Company’s ValuelyticEngine is an analytic platform that combines proprietary data quality hygenics and predictive algorithms. The Company’s analytics enables users to identify and unlock value for decision-making. After four years of development, this patented analytic technology has been combined with additional Company-developed IP to enable the general release of FS-Value™, the Company’s dynamic relative value, fundamental quant application that can be deployed across multiple securities markets to construct portfolios or value existing portfolios of equity or debt securities.

“Valuelytics is unique in that we developed our technology based upon data analytics and statistics not markets and applications. As a result, we are data-agnostic and we see multiple market opportunities where we can add value. However, our focus at this time is to target specific elements of the equity and debt markets where we can unlock more value for portfolio managers,” said Jim Flanagan, president and CEO of Valuelytics. “We believe our analytic technology can drive significant Alpha for long/short, long only, market neutral, and absolute alpha equity portfolios. In back-testing we have successfully applied FS-Value™ across industry sectors and the broad market profile.”

In announcing the general availability of FS-Value, the first application constructed from the Company’s technology platform, Valuelytics hopes to identify partner firms or institutions to support further development and validation beyond the work that has already been completed by the Company. “Our limited back-testing, which includes back-testing of equity data over the turbulent past year, is demonstrating to us that a dynamic, predictive model such as ours has the potential, when optimized, to identify portfolios of securities that outperform both sector and broad market benchmarks” stated Flanagan. “For the month of October 2008 our simulated portfolio demonstrated a return of 4.4%, which is a considerable amount of absolute alpha compared to any benchmark for the month. We are of the belief that the back-testing results we have produced demands that we take actions to begin a dialog with others to more quickly advance this analytic technology.”

“Valuelytics is currently seeking to assist in the valuation of equity or credit portfolios with new partner firms where we can add value and realize mutual benefits through the use of our technology. There will be additional work for us in order to do this; however, our object-oriented technology platform enables rapid custom development in a short time period. In terms of time to deployment, we’re talking a few weeks not months. With the resources of a larger, highly reputable institution or fund supporting us, we should be able to make rapid assessments of the optimal market opportunities for our analytic,” concluded Flanagan.

ABOUT VALUELYTICS
Valuelytics develops analytic technologies that unlock value by improving data quality and enhancing predictive capabilities, creating a strategic differentiator for our customers.

Through our ValuelyticEngine™, a core technology platform, we create applications that enable customers to undertake a rigorous, statistically based conditioning and analysis of data through our proprietary data hygenics, consisting of filters, processes, optimization routines, algorithms, and iterative modeling. When customers apply our predictive analytics, they improve data quality, make better decisions and drive more value from their data and for their business.

FS-Value™, a fundamental quantitative application and our first product, was constructed to target institutional investors who seek to generate investment ideas or portfolios from  public or private market securities. Applied to a variety of security types, it enhances the predictive capability to identify relative value from similar data sets and generate Alpha through the identification of both longs and shorts in the equity markets as well as relative value in a number of other market segments such as credit, fixed income and emerging markets.