NEW YORK, July 31, 2007 — The Bank of New York Mellon, a global leader in asset management and securities servicing, has been appointed by MGM Assurance to provide a comprehensive derivatives margin management solution that facilitates the administrative and processing requirements associated with posting and receiving collateral in connection with over-the-counter (OTC) derivatives trades.

As part of the appointment, The Bank of New York Mellon will monitor performance under MGM Assurance's ISDA Credit Support Annex — the legal document widely used to govern OTC derivatives trades — including calculating derivatives exposure, receiving and delivering of collateral, and reinvesting cash collateral.

Nigel Sherry, chief operating officer at MGM Assurance, said, "Derivatives have become increasingly important as a risk-management tool for our insurance and pensions-related products. We were therefore keen to identify a provider who had expertise in monitoring complex derivative transactions and proven systems for comprehensive, speedy settlement. We are very pleased to be working with the team at The Bank of New York Mellon, who are acknowledged experts in this growing field."

Art Certosimo, executive vice president and head of broker dealer services at The Bank of New York Mellon, said, "There has been tremendous growth in derivatives trading and the use of collateral to support such trading, which will increasingly make our derivatives margin management service an important component of such programs. We will tailor our capabilities to meet MGM Assurance's evolving needs by delivering the industry's leading administrative and operational services."

Through its derivatives margin management service, The Bank of New York Mellon maintains derivatives trades and values on its systems, monitors margin parameters, and calculates margin status. In addition, it provides Web-based reporting capabilities and workflow management tools designed to help clients reduce risk and enhance access control.

MGM Assurance is the UK's oldest registered company. It is a mutual insurance company and manages assets in excess of £1.6 billion. MGM's commitment to customer satisfaction is backed up by a customer charter, which promises high quality service and ease of mind.

The Bank of New York Mellon's derivatives margin management service is provided through The Bank of New York, a subsidiary of The Bank of New York Mellon Corporation.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and move their financial assets, operating in 37 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services and treasury services through a worldwide client-focused team. It has more than $20 trillion in assets under custody and administration and more than $1 trillion in assets under management. Additional information is available at www.bnymellon.com.