Storm Exchange Launches Electronic Weather Exchange; Debuts First Standardized Benchmarks Connecting Climate to Earnings

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Storm Exchange, Inc., a leading financial technology company that helps corporations maximize shareholder value by reducing the financial impact of unplanned weather on earnings, today unveiled an electronic weather exchange powered by 500 proprietary, industry-specific weather indices.

Our advanced weather correlation analysis gives clients the confidence to make more effective weather-related financial decisions, to increase leverage and invest for growth rather than reserving for potential weather-related loss.

    The launch of Storm Exchange represents the first opportunity for corporations in industries such as agriculture, energy, travel, retail and construction to benchmark the financial impact of weather on earnings, to assess management alternatives, and if applicable, to purchase derivatives contracts to hedge weather risk.

"Climate change is having an increasingly uncertain impact on corporations' revenue and costs. Management must now make decisions that demand the most sophisticated financial considerations," said David Riker, President & CEO of Storm Exchange. "Our advanced weather correlation analysis gives clients the confidence to make more effective weather-related financial decisions, to increase leverage and invest for growth rather than reserving for potential weather-related loss."

Storm Exchange's weather indices give clients a standardized means to assess the cost or benefit of deviations in seasonal temperature, precipitation and wind for their industry, categorized by time of year and geography.

"Weather is inherently random, but increasingly volatile seasons have significant financial implications. Construction lenders, for example, will benefit from our solutions that help them assess and mitigate project interruptions caused by wind, rainfall or temperature. Similarly, the agricultural industry will benefit by reducing the financial impact of low crop yields due to too little rain, or cool temperatures," notes Riker.

Storm Exchange's average contracts are in the order of $10 million and are executed by leading risk management firms, but it has the ability to originate contracts in excess of $50 million. Unlike indemnity policies in insurance, Storm Exchange's indexed derivatives contracts are priced and paid out based on the occurrence of predefined weather parameters, not on an incurred loss.

Storm Exchange is backed by leading venture capital funds RRE Ventures and Venrock Associates, as well as other investors. David Riker, Storm Exchange's founder and CEO, is known for his pioneering role in migrating the insurance business online through his company, eCoverage.

About Storm Exchange

Storm Exchange, Inc. maximizes shareholder value by removing the financial uncertainty of weather. Storm provides the data, analysis and access to financial risk transfer capacity that helps companies invest for growth rather than reserving for potential weather-related loss. Storm facilitates the exchange of options indexed to recorded weather, such as temperature, precipitation and wind speed. To complement financial solutions, Storm publishes proprietary indices, benchmarking the impact of weather on future demand for goods and services, as well as the price and availability of commodity resources.

Storm has been working with companies in energy, mining, agriculture, manufacturing and skiing industries since September 2006. Visit Storm Exchange at http://www.stormexchange.com, and David Riker's blog at http://www.theweatheroption.com.

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Andrew Healy
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