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									                                                             Financial Research Corporation
                                                             100 Summer Street, Suite 1500
                                                             Boston, MA 02110
                                                             617-824-1325
                                                             www.frcnet.com

INDUSTRY BRIEFING:                                           Contact: Chris J. Brown
March 21, 2005                                               617-824-1274
                                                             CBrown@frcnet.com



    FRC Projects a Healthy Outlook for Health Savings Accounts

   Boston, MA, March 21, 2005 – As one of the first firms in the industry to estimate long-
term growth for health savings accounts (HSAs), FRC projects that this newest form of
consumer-directed health plan could grow to 8.2 million accounts and nearly $50 billion in assets
by year-end 2010. In addition to the potential for strong asset growth, FRC discusses other
positive factors that are likely to impact the HSA market in its latest white paper, The Outlook
for Health Savings Accounts.

   In this comprehensive white paper, FRC examines the attributes of HSAs and how financial
services firms can identify the optimal role to play in this emerging marketplace. The paper
provides insight not only into how HSAs can benefit consumers, employers, and financial
services firms, but how they represent a positive step forward in solving the country’s mounting
healthcare problems.

   •   Marketable Features – For consumers, HSAs offer a multitude of benefits, including
       favorable tax treatment, an additional retirement savings vehicle, and full discretion over
       contribution levels, medical uses, and investment managers and products.

   •   Distribution Models - Three distinct distribution models have emerged through which
       insurers, custodians or trustees, and recordkeepers distribute their products to the
       marketplace.

   •   Market Drivers – As the country’s healthcare issues grow, including dramatically rising
       healthcare benefit costs, government shortfalls in Medicare, and an expanding number of
       uninsured individuals, HSAs, in conjunction with high-deductible health plans, address a
       number of these problems, which FRC believes will fuel interest in the accounts.
   Despite the positive outlook for HSAs, however, in its nascent stage, this market poses
considerable risks for financial services firms, which should be carefully considered. While the
industry shows promise, administering health savings accounts profitably can be a challenge for
firms.
   Chris J. Brown, vice president and Director of Retirement Market Research at FRC, says
"Because margins for health savings accounts will be slim early on, firms that have the greatest
success in this market will be those that find ways to harness a core competency, be it
recordkeeping, investment management, or serving as a custodian." FRC's white paper provides
solutions to companies serving these three functional areas of health savings account
management, and recommends strategies for success in the new market.
   Research for this study was based on a comprehensive review of the industry, and a series of
in-depth interviews with insurers offering HSA-qualified high-deductible health plans (HDHPs),
health savings account administrators, recordkeepers with experience managing both Archer
Medical Savings Accounts (MSAs) and HSAs, mutual fund firms offering funds as investment
options in HSAs, leading industry experts, and health savings account holders.


About Financial Research Corporation

   Financial Research Corporation (FRC) provides the knowledge to build stronger
relationships through product development and management, distribution solutions, and
marketing strategies. For nearly 20 years, our insightful research and consulting services have
been assisting marketing, product development, and strategic planning professionals in the
creation of innovative products and services. Based in Boston, FRC is at the forefront of
assisting its clients to comprehend and respond to the rapid changes occurring in the manufacture
and distribution of investment products. Our more than 200 clients include the world’s leading
asset managers and distributors. For more information, visit the FRC Web site at
www.frcnet.com.

   FRC is a BISYS company.

About BISYS
   The BISYS Group, Inc. (NYSE: BSG) provides outsourcing solutions that enable investment
firms, insurance companies, and banks to more efficiently serve their customers, grow their
businesses, and respond to evolving regulatory requirements. Its Investment Services group
provides administration and distribution services for mutual funds, hedge funds, private equity
funds, retirement plans and other investment products. Through its Insurance Services group,
BISYS is the nation’s largest independent wholesale distributor of life insurance and a leading
independent wholesale distributor of commercial property/casualty insurance, long-term care,
disability, and annuity products. BISYS’ Information Services group provides industry-leading
information processing, imaging, and back-office services to banks, insurance companies and
corporate clients. Headquartered in New York, BISYS generates more than $1 billion in annual
revenues worldwide. Additional information is available at www.bisys.com.


Except for the historical information contained herein, the matters discussed in the press release
are forward-looking statements within the meaning of the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ materially, including but not limited to
economic, competitive, governmental and technological factors affecting the Company’s
operations, markets, services and related products, prices and other factors discussed in the
Company’s periodic filings with the Securities and Exchange Commission.

								
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