$40 Million Trade Receivables Securitization Deal

December 2002 by Finacity

New York City, January 28, 2003 – Finacity Corporation, in a strategic partnership with ABN AMRO Bank and EULER American Credit Indemnity, successfully closed and funded a significant trade receivables securitization transaction on December 31, 2002. The funding transaction was completed for a Fortune 100 company. The initial funding facility size is $40 million and comprises domestically originated, cross-border receivables. ABN AMRO Bank, one of the world's largest banks, provided the funding for this facility through its asset-backed commercial paper conduit. EULER ACI, the leading trade credit insurer in North America, insured the credit and political risk associated with the underlying obligor receivables purchased.

“We were extremely pleased to end 2002 with the completion of such a unique and important transaction,” said Adrian Katz, CEO of Finacity.

Finacity Corporation has developed a unique structure to provide trade receivables funding solutions through the capital markets for both investment grade and sub-investment grade corporations and middle market companies. Finacity is able to structure securitization transactions for both domestic and international receivables that will ultimately be funded in either asset-backed commercial paper conduits or placed directly into the term markets.

“We are excited to see our vision of providing clients with capital markets access for traditionally underserved asset classes being realized,” said Kristen Fletcher, Chairman of ABN AMRO North America’s Wholesale Bank. “The combination of ABN AMRO's leadership in global trade and global financial markets, coupled with Finacity's unique capabilities, creates a powerful combination for our clients.”

Joe Ketzner, Executive Vice President of EULER ACI said, “We have worked diligently with Finacity over the past year to develop a trade credit insurance policy that we collectively believe can add significant value in capital markets transactions. The closing of this transaction is a considerable step towards the continued fulfillment of our goals to create an efficient means of credit enhancing receivables for securitization transactions.”

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Finacity Corporation www.finacity.com
Finacity is a company that specializes in the provision of efficient trade receivables funding and state-of-the-art servicing and collections. Finacity brings the pricing of the capital markets to the universe of companies beyond the Fortune 100 by efficiently lowering the barriers to traditional trade receivables securitization for both domestic and cross-border transactions. Several industry-leading companies founded Finacity in the first quarter of 2001. These founding partners include Bank of America, EULER ACI, Amroc Investments, and eVolution Venture Partners, a venture capital firm backed by Kleiner Perkins Caufield & Byers, Bain & Co., and the partners of Texas Pacific Group. Finacity’s headquarters are located in New York City.

ABN AMRO Global Trade and Advisory (GT&A) www.abnamro.com
ABN AMRO Bank N.V. is a leading global trade bank with more than 175 years' experience in intermediating and financing global commerce. Global Trade and Advisory, a division of the Global Transaction Services (GTS) business unit, operates in more then 60 countries and provides integrated trade solutions for importers and exporters by offering risk mitigation, settlement, financing and information solutions. Many of these innovative solutions are web-enabled via the MaxTradsm suite of products (www.maxtrad.com). GT&A also provides a unique e-commerce application, AllTradesm, that provides an end-to-end cross-border trade solution to enhance companies' global supply chain management processes. In addition, GT&A serves a growing number of financial institutions through its Global Partnership Program allowing partner institutions access to its leading edge technology infrastructure and innovative product suite via a variety of outsourcing models.

EULER ACI (www.eulergroup.com)
EULER ACI, a subsidiary of EULER & HERMES, provides comprehensive domestic and export receivables coverage and worldwide credit expertise. Incorporated in 1891, EULER ACI today covers more than $85 billion in sales annually. EULER ACI is a monoline insurer of domestic and export accounts receivable and is rated AA by Standard & Poor's, and A (Excellent) by AM Best.

EULER & HERMES is the leading credit insurer worldwide, as well as the first integrated factoring company in Europe and one of the leaders in the bonding business. With more than 5,000 employees located in 29 countries, EULER & HERMES represents 36% of the global credit insurance market and offers a wide range of services for credit management.

Listed on the “Premier Marché” of the Paris Stock Exchange, EULER & HERMES and its main credit insurance subsidiaries are rated AA by Standard & Poor’s.

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Media Inquiries:
Kit Codik
Executive Vice President, Corporate Development
Finacity Corporation
(212) 878-3522
kcodik@finacity.com