Vince:
Thanks for surfacing.Happy New Year!
 Linda


DECEMBER 2000  Financial Engineering Associates, Berkeley, CA



Gentlepeople,

As the end of the year rapidly approaches, it seems timely to thank you for
your business this year.  Thank you for helping to make this the best year
ever for FEA!

And, wed also like to wish you Happy Holidays and a healthy and prosperous
New Year.

Earlier this year, FEA initiated 3Virtual Coffee Break4, an emailed
newsletter for FEA Alliance Partners.  It has proven to be a popular and
useful media to share information.  This is our first effort at an emailed
newsletter to FEA clients, 3Afternoon Tea with Tracie).   We hope you will
take a few minutes to skim it for pertinent information  and then move it to
your FEA file folder for future reference.


***ANNOUNCING FEA PRODUCT UPDATES!***

FEA has been extraordinarily busy running extensive testing on new releases.
The following should be available to all clients, who are current on
maintenance, in just a couple weeks.  We will send an email notification of
the availability of the release, and CDs will be shipped.  If you prefer,
email support@fea.com to request download instructions.

@ENERGY. 2.0 will feature the release of the Forward Curve Builder and the
Swing (take or pay) Options valuation module. The Forward Curve Builder, as
its name suggests, calibrated the forward price curve for power
(electricity) and other commodity markets.  Some additional new features in
the 2.0 release include a Jump Diffusion Model for European-style options,
an option on a strip of options and an option on a strip of spread options.

VaRworks 4.0 includes sophisticated Stress Testing, support for individual
equities, and new easier to use templates.  Eagerly awaited by FEA clients,
the addition of Stress Testing capabilities has been a top priority for
FEA's engineering team.  Fund managers will be happy to hear that individual
(sectorial) equities are now supported in VaRworks. 4.0.

If you do not own a license for @ENERGY or VaRworks, and want to evaluate
them, email sales@fea.com and request a 30 day demo.  Product demos are free
to existing FEA clients.  Curious about a product, but dont have time to
install a demo, read the instructions and experiment?  Visit
www.fea.com/demos.htm and select alternative one.  We can now demo FEA
software on your computer screen, via the internet.


***LIST of CURRENT VERSIONS of FEA PRODUCTS NOW POSTED ON-LINE!
You may refer to www.fea.com/support.htm for details of the most current FEA
product releases.
***FEA NEWSWIRE: FEA AND ITS CHIEF SCIENTISTMARK GARMAN have been awarded a
4th US Patent! Patent 6,122,623 recognizes the "Watershed Method"as FEA's
second US Patent defining cutting-edge methodologies for VaR. The importance
of the recent invention is that it will allow market risk to be more
accurately allocated into accounting periods. Mark'sprior patent in the VaR
arena pertained to the calculation of "marginal VaR" or "Component VaR,"
which allowed risk managers to "slice and dice," or dissect enterprise-wide
VaR into its constituent components. (See the PressRelease at
www.fea.com/pdf/watershed_pr.pdf).
*** FIRST BETA SITE FOR VARWORKS SE***   www.fea.com/press_rm.htm
Look for a Press Release announcing  the first beta site for FEAs VaRworks.
SE (Server Edition).  VaRworks SEs dynamic risk analysis and reporting
environment will enable the delivery of  customized risk profiles to dozens
of exchange participants.  (See the product description at
http://www.fea.com/p_varse.htm.)

*** DID YOU HEAR?????
RiskMetrics, as of 1/15/2001, will be charging for their previously free
data sets.   Only outdated data sets will be available at no charge.

FEAs MakeVC product allows you to build your own customized data sets
utilizing historical time series data that you may already have available to
you.  You may request a FREE 30 day demo of MakeVC from
www.fea.com/demos.htm.  Product demos are free to existing FEA clients.

***PLAN AHEAD
The next VaR seminar will be late Spring 2001.  See
www.fea.com/seminars.htm for information as it becomes available, or browse
the October 2000 seminar brochure.  You may also contact  sales@fea.com to
reserve your space.

***The FEA FREQUENT FLYERS***

December/January, Madrid, Spain, Carlos
January 15 + Calgary and Toronto, Canada, Tracie
February 13-14, New York, GARP 2001, Laurent and Christine
February 13-15, Germany, E*Trade Chris and Ursula
February 19, London, Tracie

Contact sales@fea.com to arrange a meeting.


THE FINE PRINT: We are interested in your feedback, and ideas for future
topics.   Please send an email if you do not want to receive future FEA
Newsletters. mailto:elena@fea.com