December 18, 2012 - Avaloq, the leading banking software provider in Switzerland, enters German market for business process outsourcing services – a combined offering for private banks available immediately through quirin bank's existing client business:

• The internationally operating Avaloq group takes a majority stake in quirin bank's business process outsourcing (BPO) business

• Complete banking systems and infrastructures to process the business of private banks is available from 2013

• Handling of EUR 30 billion in client assets by the end of 2015 targeted

• Banking services to be provided for Julius Bär Europa AG, Tradegate AG Wertpapierhandelsbank, Bank Vontobel Europe AG and V-Bank AG from day one

• The new company "Avaloq Sourcing AG" will henceforth operate from quirin bank's existing locations in Berlin and Leipzig

Berlin-based quirin bank and the Zurich-based Avaloq group for comprehensive banking software solutions are forming a joint venture. The relevant agreement was signed in Berlin on December 17 2012. The goal of the new Avaloq Sourcing AG is to accelerate exploitation of the German BPO market for private and foreign banks and to tap the enormous growth opportunities in this market. Avaloq is an international provider of integrated, comprehensive software solutions that are revolutionizing the banking experience for customers. With its range of premium banking technologies, it is already today a leading provider in Switzerland and active in 20 other countries.

Avaloq CEO Francisco Fernandez: "I see huge demand for comprehensive BPO services in Germany, as there hasn't been an offering like this for private banks until now." Fernandez cites the industrialization of the banking processes and the growing pressure on efficiency and cost as reasons for this. Added to this is the increasing need for financial service providers to concentrate fully on customer care. "The complete outsourcing of production, settlement and IT systems is becoming ever more important as a result." Fernandez further elaborates: "After successfully implementing Avaloq's independent BPO model in Switzerland, we are now rolling it out in Germany as well. To achieve this, customer proximity is essential. Setting up Avaloq Sourcing AG gives us an outstanding position in the German market as an independent service provider and allows us to start out immediately with a proven solution."

Martin Frick, General Manager BPO at Avaloq, views the deal with quirin bank as a milestone in the expansion of the company's BPO activities in the European Community: "The cooperation with quirin bank is crucial for us if we want to tap the strategically important German market. The expertise of the quirin bank staff will play a key role in our future success."

quirin bank director Stefan Spannagl adds: "We're absolutely delighted that Avaloq has opted for quirin bank's outsourcing operations. We've been able to experience the high performance capability of the Avaloq software and the competence of the company's over 1,200 banking and IT specialists at first hand." Spannagl continues: "We consider it a great opportunity for our enterprise to join forces with the leading provider in Switzerland to set up an independent supplier of BPO solutions that wants to become the market leader in the private banking sector in Germany."

The range of services offered by the future Avaloq Sourcing AG includes the provision of complete banking systems together with securities settlement and payment handling. The aim is to achieve the technical handling of around EUR 30 billion in customer moneys by 2015. The new company will operate as a limited company under German law. Avaloq will hold 51 percent interest in the company and quirin bank 49 percent. Avaloq Sourcing AG is set to commence commercial operations on March 1, 2013. The parties have agreed to maintain confidentiality concerning the purchase price of integration of quirin bank's existing business unit BPO into Avaloq Sourcing AG.

All employees of quirin bank's BPO division are to be transferred to the new company. The Berlin and Leipzig facilities from where quirin bank already successfully provides BPO services are to be retained. The existing clients of quirin bank - Julius Bär Europa AG, Tradegate AG Wertpapierhandelsbank, Bank Vontobel Europe AG and V-Bank AG – will be served by the new company, which will also carry out settlement services for quirin bank itself.

"With the Avaloq Banking System, we dispose of a modern processing platform and will be able to expand our own market presence based on the innovations they develop," says quirin bank CEO Karl Matthäus Schmidt. The financial institution which specializes in fee-based advisory will be able to concentrate more on building up and expanding its private client business.