Success Story 

Desjardins General Insurance Group Chooses BluePhoenix to Deliver
Multi-Million Dollar Platform and Database Migration Project

Automated BluePhoenix™ PlatformMigrator Solution to
Improve DGIG's Customer Service Infrastructure

CARY, N. C. and HERZLIA, Israel — July 10, 2006 — BluePhoenix Solutions (NASDAQ: BPHX - News), the leader in Enterprise IT Modernization, today announced that it is in the midst of a multi-million dollar platform and database migration project for Desjardins General Insurance Group (DGIG), a leading direct property and casualty insurer in Canada. The project will provide DGIG with an improved technological infrastructure that will increase the speed and quality of its insurance consulting capabilities, thus increasing profitability.

"The purpose of this project is to provide DGIG with an infrastructure that will allow us to better streamline the insurance services provided by our team of over 1,000 insurance agents and subsidiaries," said Pierre Deschênes, senior executive vice president Information Technology at DGIG. "We have chosen BluePhoenix because their automated tools and proven methodology can provide an almost seamless transition to the new platforms and technology. This will also allow us to concentrate on the business needs of our clients and significantly reduce our IT operating costs."

The project involves migrating DGIG's current COBOL/IDMS applications to a Windows/COBOL (Fujitsu NetCOBOL) and Unix/Oracle platform environment. This will enable DGIG to operate a more standard IT environment, suited to its current insurance applications. BluePhoenix Solutions will deliver the migration using the BluePhoenix™ IT Discovery and BluePhoenix™ PlatformMigrator tools.

To efficiently address the complexity of project tasks, BluePhoenix is using several tools for the various stages of the implementation. The BluePhoenix™ IT Discovery product is used to perform an enterprise-level assessment of the interaction between COBOL software components, and IDMS schemas and databases. The BluePhoenix™ PlatformMigrator solution performs the program, database, and environment migration.

"This project is another example of the rapidly growing recognition that profits can be improved through efficient information systems, and that there is an established business need to improve the IT systems through a sophisticated, efficient, state-of-the-art modernization process. It is common knowledge today that IT modernization solutions can move IT systems forward in terms of usability, productivity, and cost-effectiveness," said Arik Kilman, CEO of BluePhoenix Solutions. "With older systems incapable of supporting the newer applications on the market, IT modernization remains the most effective solution for large and complex companies such as DGIG."

BluePhoenix Solutions has extensive experience in automated global assessment, platform, database, and application migration, and remediation projects. It has performed these services for a wide range of financial institutions worldwide, including Aflac, Banca Carige, Isbank, LBS Group, Merrill Lynch, Sparekassernes Datacenter (SDC), TEMENOS Group AG (SWX: TEMN), and others.

About Desjardins General Insurance Group
Desjardins General Insurance Group (DGIG) is a member of Desjardins Group, the largest financial cooperative group in Canada. DGIG ranks among the top 10 property and casualty (P&C) insurers in Canada, with a portfolio of more than 1.8 million policies in force, a business volume of $1.4 billion and assets of $2.6 billion. Through its subsidiaries, DGIG offers direct P&C insurance to the general public, businesses and members of partner groups.