KITCHENER-WATERLOO, ONTARIO -- (MARKET WIRE) -- 02/21/08 -- Covarity Inc., the leading provider of commercial loan management software solutions, today announced that HSBC Bank Canada has signed a multi-year agreement with Covarity for automating the set-up and ongoing management of its margin-based commercial loans. The Covarity solution is scheduled to be deployed beginning in Fall 2008.

"To meet the requirements of a leading Canadian financial institution and a subsidiary of one of the largest banks in the world is a testament to Covarity's knowledge of the industry and ability to deliver a compelling solution," said Rod Foster, President and CEO, Covarity.

Commercial Lender Challenges

Financial institutions that offer margin-based loans have traditionally used labour-intensive manual processes to set-up, monitor and adjust commercial loans. Borrowers attempt to meet reporting requirements and lenders spend valuable time searching for and compiling required information, resulting in bottlenecks and inefficiencies, delayed adjustments to credit availability, and risk and compliance issues.

The Covarity Solution

Through its hosted commercial loan management software solution, Covarity improves efficiencies, augments risk management controls, and helps to ensure compliance by automating the collection and management of key loan documents. Lenders can use the solution to profitably grow their lending portfolios and strengthen their relationships with their borrowers.

Covarity has worked hand-in-hand with a significant number of financial institutions to implement automated commercial loan management. These lenders have chosen the Covarity solution for a variety of reasons such as: risk management, regulation compliance (Basel II, FDIC), operational efficiencies, increased competitiveness, and quick return on investment.

The Covarity solution architecture enables seamless integration with Loan Origination Systems (LOS) such as Capital Stream, Inc. (www.capitalstream.com) and credit rating agencies such as Moody's Corporation.

About Covarity Inc.

Incorporated since 2001, Covarity is the leading provider of commercial loan management software solutions. The Covarity Dashboard helps financial institutions attract new business by harnessing the internet to improve customer service, while reducing the risk and effort associated with capturing borrower financial statement data and monitoring commercial loans. Please see www.covarity.com for additional information.

Contacts:
Covarity Inc.
Rod Foster
CEO
(519) 749-9424 x223
Email: rfoster@covarity@covarity.com
Website: www.covarity.com