Press Release

Financial Engines Introduces Next Generation Workplace Advice

Enhancements to Make Advice More Effective for More Employees

PALO ALTO, CA., November 20, 2002 -- Financial Engines introduced two new QuickSolve solutions and printed Personal Statements to make investment advice delivered through the workplace faster, easier and more convenient. Financial Engines' next generation of advice, based on years of experience serving millions of individual investors and hundreds of corporate plan sponsors, enhances both the design and the breadth of its services to make advice more effective for more employees.

Financial Engines' QuickSolve solutions are advice modules that address an investor's most pressing financial needs. Using the new QuickSolve solutions, an employee may focus either on specific 401k decisions or on broader retirement planning decisions. A user who begins with the Single Account QuickSolve solution can do broader retirement planning later using the Retirement QuickSolve solution. Financial Engines is also broadly deploying Personal Statements that give each employee a realistic view of how much their 401k investments might be worth at retirement and a personalized call to action to improve their forecast. Personal Statements can be delivered by mail or email, bringing the value of Financial Engines' services to employees with limited motivation or Internet access.

"The future retirement security of our nation will be determined by the decisions employees make today," said Jeff Maggioncalda, president and CEO of Financial Engines. "Financial Engines is committed to helping employers by delivering a broad range of services that meet the needs of all employees and set the standard for quality, accessibility and results."

Service Enhancements

Financial Engines' service enhancements were influenced by user behavior analysis, focus group studies and behavioral finance theory on how different types of investors make decisions about saving and investing for retirement. Since different investors have different levels of time and interest, Financial Engines' new Single Account QuickSolve solution and Retirement QuickSolve solution enable users to break-up the planning process and develop their retirement strategy one step at a time. The latest product release includes features that address a broad range of investor preferences. In addition to sliders and range pages for employees who are interested in exploring various trade-offs, the service now includes more explicit recommendations for less sophisticated investors who prefer a step-by-step approach.

Single Account QuickSolve Solution - The Single Account QuickSolve solution helps new participants get started faster with a streamlined advice experience and more explicit guidance. The service first shows participants what their investments could be worth at retirement and then provides advice across key decisions such as savings, risk, company stock and investment selection. The screen flow presents information and decisions in order of priority for individual investors. This QuickSolve solution will effectively serve the population of investors who are time-sensitive and prefer explicit guidance that requires little data entry and only a few decisions.

Retirement QuickSolve Solution - The Retirement QuickSolve solution is targeted at participants who want to set retirement goals and receive additional advice that takes outside accounts into consideration. Users set retirement income goals and can receive advice on all company sponsored and other tax-deferred and taxable retirement accounts. New features, such as the ability to save a strategy prior to implementation, enable users to work with the service over multiple sessions and get comfortable with recommendations before taking action. Enhanced monitoring capabilities proactively remind users who have a saved strategy to implement it.

Early data from approximately 3,500 new adopters show that the enhancements are having an impact on users' experiences with the service. Of those who have used the Single Account QuickSolve solution:

• 92% have seen a realistic forecast of how much their investments could be worth in retirement
• 83% have received specific recommendations on savings, rebalancing risk and investments
• Nearly two-thirds have completed the advice experience and reviewed their new plan
• Nearly one-third have used the service multiple times within a three week period

Of the new adopters who have used the Retirement QuickSolve solution:

• 77% have set retirement income goals
• 72% have multiple accounts entered in the service
• The average annual retirement income goal is $75,000
• Nearly one-third have used the service multiple times within a three week period

Personal Statements

Personal Statements enable employers and plan providers to deliver the value of the Financial Engines service via print and email to participants who have limited Internet access. The Financial Engines Personal Statements are customized to each participant's situation and tailored to plan rules. All Personal Statements include a personal financial forecast of how much an individual's account might be worth at age 65, much like a Social Security statement. In addition, they contain a personalized call to action that is tailored to each employee's unique situation. Employees can receive calls to action focused on taking advantage of company matching, increasing overall savings and adjusting risk.

The state of Florida was Financial Engines' first customer to broadly deploy Personal Statements to its population of over 600,000 employees. Statements were personalized for each employee and designed to help employees make a decision between their existing pension plan and a new investment plan offered by the state. Online and call center services were also made available to participants to help them explore trade-offs related to their choice. According to a Florida Public Employees Tracking Survey of the first 159,000 employees to make their choice:

• 67% of employees reported using the statement to learn more about their retirement options
• 79% of employees reported that the statement was useful or very useful in helping them make their choice

About Financial Engines

Financial Engines provides advice technology and services to help financial institutions and employers address real-world investor needs. Financial Engines' services provide specific, actionable investment recommendations based on the outcomes an investor wants to achieve and can be delivered through the web, phone, or face-to-face. More than 15 financial institutions and 800 plan sponsors have hired Financial Engines to make advice available to over 3.0 million individuals. Nobel Prize winning economist William F. Sharpe founded the company with a revolutionary vision: to help financial institutions and employers make institutional-quality advice available to individual investors. For more information on Financial Engines, visit www.financialengines.com.

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