Veros Unveils Automated Future Home
Price Forecasting Software

IRVINE, Calif. - October 21, 2002 - Today, Veros Software introduced VeroFORECAST, its forward-looking home valuation software at the MBA Annual Convention in Chicago. Integrated into VeroVALUE (www.verovalue.com), Veros' Automated Valuation Model (AVM) and collateral assessment software suite, VeroFORECAST provides future home price forecasts over a twelve month period subsequent to the report date. VeroFORECAST analyzes complex relationships between house prices and numerous economic variables using multiple predictive technologies such as neural network, statistical and econometric models, data mining techniques, as well as probabilistic and bayesian methodologies.

"We are very excited to add home price forecasting tools to the growing list of collateral analytics that Veros currently offers," stated Darius Bozorgi, President of Veros. "As we have seen with prior attempts, models that use historical prices as a basis to forecast the future are doomed to failure." Veros heavily back tested VeroFORECAST with actual data to determine the accuracy of the models. According to Eric Fox, VP of Technology at Veros, "Historic price models that rely on past price fluctuations to accurately predict future price changes are not very good at predicting several quarters into the future. Rather, by understanding and automating the complex relationships between price changes and numerous key economic indicators, we are able to understand how declining interest rates, increasing unemployment, a falling affordability index, a steady number of active listings, and numerous other indicators will influence prices into the foreseeable future."

VeroVALUE presently has two forward-looking house price products - VeroFORECAST Basic and Advanced. The Basic product will give customers three and six month future price forecasts while the Advanced version offers price forecasts twelve months into the future and will also indicate the top three significant and influential indicators responsible for the results. Veros currently offers VeroFORECAST for the seven county region comprising Southern California and will roll out the product over its remaining geographic coverage by the end of the year.

What about the future? "We do see a softening of price increases in Orange Co., CA but not a dramatic drop nor a continuation of the same blistering 20% pace," stated Bozorgi. "The next three months in particular will likely see increases in the 2% range with some escalation in prices occurring in the early to mid part of 2003 for a total increase of about 10% in the next twelve months. We see a softening in all Southern California counties for the next twelve month period although price increases should still be attractive and in the 6% to 12% range, depending on the specific county."

About Veros Software
Veros Software (www.veros.com), located in Irvine, California, is a leading predictive technology company building decision-support software applications that allow clients to formulate accurate and informed business decisions that directly impact their bottom line.