January 15, 2001

Immediate Release

Excel Technology Signed Agreement With The Hong Kong Monetary Authority To
Provide A State-Of-The-Art Integrated Reserves And Monetary Management System

(January 15, 2001 Hong Kong) Excel Technology International (Hong Kong) Limited ('Excel Technology'), a wholly-owned subsidiary of Excel Technology International Holdings Limited [stock code: 8048], is pleased to announce that it has signed an agreement with the Hong Kong Monetary Authority (‘HKMA’) to develop a fully integrated Reserves and Monetary Management System (‘RMMS’), which will be used to manage the HKSAR’s Exchange Fund.

Excel will provide a total solution including the development of the new RMMS application software platform tailored to HKMA’s requirements, providing the hardware, and the system installation and implementation services. The project is expected to be completed in the 3^rd quarter of 2002 and will involve more than fifty IT professionals at its development peak.

The new RMMS is a fully integrated yet modular system covering front, middle and back-office treasury functions as well as a general ledger module and risk management subsystem. The new RMMS will be developed using state-of-the-art technology (Java-based with a 3-tier architecture). The system centers on a workflow engine that facilitates a seamless front-to-back, straight-through processing and can greatly improve work efficiency and enhance risk management and compliance measures.

Ms. Peggy Chan, Chairman and CEO of Excel Technology, said: “ We have a proven track record in developing complex financial solutions for multinational financial institutions and regulatory bodies and have served the HKMA and its affiliate organizations in the past. Today, we are very pleased to have been commissioned by the HKMA for this important project.”

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