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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-K

(Mark One)



|x | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2005 or
|- | -----------------------------------------------------------------------------------------------------------------------------------



| ̈ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from
                     to
|- | -----------------------------------------------------------------------------------------------------------------------------------------------

Commission File Number 1-12989

SunGard® Data
Systems Inc.

(Exact name of registrant as specified in its charter)



|                         |  |                                     
|------------------------ |  | ------------------------------------
|Delaware                 |  | 51-0267091                          
|(State of incorporation) |  | (I.R.S. Employer Identification No.)

680 East Swedesford Road, Wayne, Pennsylvania 19087

(Address of principal executive offices, including zip code)

484-582-2000

(Telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

None



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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ̈.  No x.

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes x.  No ̈.

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes ̈.  No x.

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of the registrants knowledge, in definitive proxy or information statements incorporated by reference into Part III of this Form 10-K or any amendment to this Form 10-K.  x.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of
accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act.

Large accelerated filer ̈.                Accelerated filer ̈.                Non-accelerated filer  x.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ̈.  No x.

The aggregate market value of the registrants voting stock held by nonaffiliates is zero. The registrant is a privately held corporation.

There were 100 shares of the registrants Common Stock outstanding as of March 1, 2006.

DOCUMENTS INCORPORATED BY REFERENCE

None.



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Table of Contents



|                           |  |                                                                                                              |  |     
|-------------------------- |  | ------------------------------------------------------------------------------------------------------------ |  | ----
|                           |  |                                                                                                              |  | Page
|                           | 
|Forward-Looking Statements |  | 1                                                                                                           
|                           |  |                                                                                                             
|                           |  | PART I                                                                                                       |  |     
|                           |  |                                                                                                             
|Item 1.                    |  | Business                                                                                                     |  | 1   
|                           |  | Overview                                                                                                     |  | 1   
|                           |  | Our Strengths                                                                                                |  | 2   
|                           |  | Business Strategy                                                                                            |  | 3   
|                           |  | Business Segment Overview                                                                                    |  | 5   
|                           |  | Financial Systems                                                                                            |  | 5   
|                           |  | Higher Education and Public Sector Systems                                                                   |  | 9   
|                           |  | Availability Services                                                                                        |  | 10  
|                           |  | Acquisitions                                                                                                 |  | 11  
|                           |  | Product Development                                                                                          |  | 12  
|                           |  | Marketing                                                                                                    |  | 12  
|                           |  | Competition                                                                                                  |  | 13  
|                           |  | Employees                                                                                                    |  | 14  
|                           |  | Proprietary Protection                                                                                       |  | 14  
|Item 1A.                   |  | Risk Factors                                                                                                 |  | 14  
|Item 1B.                   |  | Unresolved Staff Comments                                                                                    |  | 24  
|Item 2.                    |  | Properties                                                                                                   |  | 24  
|Item 3.                    |  | Legal Proceedings                                                                                            |  | 24  
|Item 4.                    |  | Submission of Matters to a Vote of Security Holders                                                          |  | 24  
|                           |  |                                                                                                             
|                           |  | PART II                                                                                                      |  |     
|                           |  |                                                                                                             
|Item 5.                    |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  | 25  
|Item 6.                    |  | Selected Financial Data                                                                                      |  | 25  
|Item 7.                    |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                        |  | 27  
|Item 7A.                   |  | Quantitative and Qualitative Disclosures About Market Risk                                                   |  | 46  
|Item 8.                    |  | Financial Statements and Supplementary Data                                                                  |  | 47  
|Item 9.                    |  | Changes In and Disagreements With Accountants on Accounting and Financial Disclosure                         |  | 79  
|Item 9A.                   |  | Controls and Procedures                                                                                      |  | 79  
|Item 9B.                   |  | Other Information                                                                                            |  | 79  
|                           |  |                                                                                                             
|                           |  | PART III                                                                                                     |  |     
|                           |  |                                                                                                             
|Item 10.                   |  | Directors and Executive Officers of the Registrant                                                           |  | 80  
|Item 11.                   |  | Executive Compensation                                                                                       |  | 85  
|Item 12.                   |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               |  | 95  
|Item 13.                   |  | Certain Relationships and Related Transactions                                                               |  | 101 
|Item 14.                   |  | Principal Accounting Fees and Services                                                                       |  | 102 
|                           |  |                                                                                                             
|                           |  | PART IV                                                                                                      |  |     
|                           |  |                                                                                                             
|Item 15.                   |  | Exhibits, Financial Statement Schedules                                                                      |  | 103 
|                           | 
|Signatures                 |  | 104                                                                                                         
|                           | 
|List of Exhibits           |  | 105                                                                                                         



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Forward-Looking Statements

Certain of the matters we discuss in this Report on Form 10-K may constitute
forward-looking statements. You can identify forward-looking statements because they contain words such as believes, expects, may, will, should, seeks,
approximately, intends, plans, estimates, or anticipates or similar expressions which concern our strategy, plans or intentions. These forward-looking statements are subject to risks and
uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected. We described some of the factors that we believe could affect our results in ITEM 1ARisk Factors. We assume no
obligation to update any written or oral forward-looking statements made by us or on our behalf as a result of new information, future events or other factors.

PART I



|ITEM1. | BUSINESS
|------ | --------

Overview

We are one of the worlds leading software and IT services companies. We provide software and
processing solutions to institutions throughout the financial services industry, higher education, and the public sector; and we help enterprises of all types to maintain the continuity of their business through information availability services. We
operate our business in three segments: Financial Systems (FS), Higher Education and Public Sector Systems (HEPS) and Availability Services (AS). Our FS segment primarily serves financial services companies,
corporate and government treasury departments and energy companies. Our HEPS segment primarily serves higher education institutions, state and local governments and not-for-profit organizations. Our AS segment serves information-dependent companies
across virtually all industries.

Our company supports more than 25,000 customers in over 50 countries, including the worlds 50
largest financial services companies. We seek to establish long-term customer relationships by negotiating multi-year contracts and by emphasizing customer support and product quality and integration. We believe that we are one of the most efficient
operators of mission-critical information technology, or IT, solutions as a result of the economies of scale we derive from serving multiple customers on shared platforms. Our revenue is highly diversified by customer and product, with no single
customer accounting for more than 3% of our total revenue during any of the past three fiscal years. We estimate that approximately 89% of our revenue for the past three fiscal years was recurring in nature, with approximately 7% of our total
revenue associated with upfront software licenses.

We were acquired on August 11, 2005 by a consortium of private equity investment
funds associated with Bain Capital Partners, The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis Roberts & Co., Providence Equity Partners, Silver Lake Partners and Texas Pacific Group (the Transaction). The
Transaction was accomplished through the merger of Solar Capital Corp. into SunGard Data Systems Inc., with SunGard Data Systems Inc. being the surviving company.

All references in this report to SunGard, the Company, we, our, and us mean, unless the context indicates otherwise, SunGard Data Systems Inc. and its
subsidiaries on a consolidated basis.



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Our Strengths

Leading franchise in attractive industries.    Built over many
years, our business has leading positions and strong customer relationships in industries with attractive growth dynamics.



| |  |  | Leading industry positions.    We believe that the majority of businesses within our FS segment are leaders in the sectors in which they
participate within the highly fragmented global market for financial services IT software and services. We believe that HEPS is a leading provider of software and services to higher education institutions and the public sector. AS is the pioneer and
leader in the availability services industry.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Attractive industry dynamics.    We believe that the sectors in which we participate have favorable growth dynamics. We believe that FS will
benefit from several key industry dynamics: the shift from internal to external IT spending, the shift from infrastructure to application software spending, and the general increase in IT spending associated with rising compliance and regulatory
requirements and real-time information needs. We believe that HEPS will benefit from favorable growth dynamics in higher education and public safety IT spending. We believe that AS will continue to benefit from strong internal growth in the small
and medium business sector. We believe that our extensive experience and the significant total capital that we have invested in AS and our strong relationships with our customers in the relatively fragmented software and processing sectors that we
serve help us to maintain leading positions. We believe that these factors provide us with competitive advantages and enhance our growth potential.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Highly attractive business model.    We have an extensive portfolio of businesses with substantial recurring revenue, a diversified customer base and significant operating cash flow
generation.



| |  |  | Extensive portfolio of businesses with substantial recurring revenue.    With a large portfolio of services and products in each of our three
business segments, we have a diversified and stable business. We estimate that approximately 89% of our revenue for the past three fiscal years was recurring in nature. In FS, none of our more than 50 business units accounted for more than 7% of FS
revenue in 2005. Because our FS customers generally pay us monthly fees that are based on metrics such as number of users or accounts, we believe that our FS revenue is more insulated from trading and transaction volumes than the financial services
industry at large. Our extensive portfolio of businesses and the largely recurring nature of our revenue across all three of our segments have reduced volatility in our revenue and income from operations.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Diversified and stable customer base.    Our base of 25,000 customers includes the worlds 50 largest financial services firms, a variety of
other financial services firms, corporate and government treasury departments, energy companies, institutions of higher education, school districts and not-for-profit organizations. Our AS business serves customers across most sectors of the
economy. We believe that our specialized solutions and services help our customers improve operational efficiency, capture growth opportunities and respond to regulatory requirements, which results in long-term customer relationships. Our customer
base is highly diversified with no single customer accounting for more than 3% of total revenue during any of the last three fiscal years.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Significant operating cash flow generation.    The combination of moderate capital expenditures and minimal working capital requirements allows us
to convert a significant proportion of our revenue to cash available for debt service.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Experienced and committed management team with track record of
success.    Our management team, operating within a decentralized, entrepreneurial culture, has a long track record of operational excellence, has a proven ability to acquire and integrate complementary businesses, and is
highly committed to our Companys long-term success.



| |  |  | Long track record of operational excellence.    We have a solid track record of performance consistent with internal financial targets. Our
experienced senior executive officers have proven capabilities in both running a global business and managing numerous applications that are important to our customers. Our FS solutions account for and manage over $25 trillion in investment assets
and process over 5 million transactions per day. In our HEPS business, 1,600 universities and colleges rely on our administrative, portal advancement, information access and academic solutions. Our AS business has had a 100% success rate in
supporting customer recoveries since our inception.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Successful, disciplined acquisition program.    To complement our organic growth, we have a highly disciplined, due diligence-intensive program to
evaluate, execute and integrate acquisitions. We have completed more than 140 acquisitions over the past 20 years and overall have improved the operating performance of acquired businesses. Our ongoing acquisition program has contributed
significantly to our long-term growth and success.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Experienced and committed management team.    Our most senior executive officers have an average tenure with the Company of 15 years. Our
senior managers have committed significant personal capital to our Company in connection with the Transaction.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Business Strategy

We are focused on expanding our position not only as a leading provider of integrated
software and processing solutions, but also as the provider of choice for a wide range of availability services for a broad base of information-dependent enterprises. Our operating and financial strategy emphasizes fiscal discipline, profitable
revenue growth and significant operating cash flow generation. In pursuit of these objectives, we have implemented the following strategies:

Expand our industry-leading franchise.    We are constantly enhancing our product and service offerings across our portfolio of businesses, further building and leveraging our customer relationships, and
looking to acquire complementary businesses at attractive valuations.



| |  |  | Enhance our product and service offerings.    We continually support, upgrade and enhance our systems to incorporate new technology and meet the
needs of our customers for increased operational efficiency and resilience. Our strong base of recurring revenue allows us to reinvest in our products and services. We continue to introduce innovative products and services in all three of our
business segments. We believe that our focus on product enhancement and innovation will help us to increase our penetration of existing and new customers.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Extend our strong customer relationships.    We focus on developing trusted, well-managed, long-term relationships with our customers. We look to
maximize cross-selling opportunities, increase our share of our customers total IT spending and maintain a high level of customer satisfaction. Our global account management program allows us to present a single face to our larger FS customers
as well as better target potential cross-selling opportunities.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Acquire and integrate complementary businesses.    We seek to opportunistically acquire, at attractive valuations, businesses that
broaden our existing product and service offerings,
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | expand our customer base and strengthen our leadership positions, especially within the fragmented FS and HEPS markets. Before committing to an acquisition,
we devote significant resources to due diligence and to developing a post-acquisition integration plan, including the identification and quantification of potential cost savings. Our ongoing acquisition program has contributed significantly to our
long-term growth and success.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Optimize our attractive business model.    We continue
to focus on maintaining our attractive business model and, in particular, increasing our recurring revenue base and identifying and implementing opportunities for incremental operational improvement.



| |  |  | Maintain our recurring revenue base.    We strive to generate a high level of recurring revenue and stable cash flow from operations. Many of the
products and services we offer feature recurring monthly fees that are based on multi-year contracts, and we continue to prefer such contracts because they offer high levels of revenue stability and visibility. Moreover, we believe that our high
quality services and customized solutions help increase the level of integration and efficiency for our customers and reduce customer losses to other vendors or to in-house solutions.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Implement incremental operational improvements.    We have identified opportunities to further increase revenue, reduce costs and improve cash flow
from operations. These include the global account management program, which stimulates cross-selling opportunities and account penetration for our largest customers; centralization of certain product management functions and expansion of certain
software development capacity in lower-cost regions; the selective integration of certain FS and HEPS business units; and the increased focus on generating revenue from ancillary services such as customer training and education as well as
consulting.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Enhance our performance-based culture.    We have an experienced management
team that is focused on enhancing our performance-based culture. We will continue to evaluate and implement programs to improve our current management structure through competitive compensation plans and continue to design effective human resources
initiatives to retain key individuals from acquired businesses. Our compensation program, consistent with past practice, is highly performance-based.



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Business Segment Overview

Our Segments



|                                             |  |                                                                                                                                                                                 |  |                                                                                                                         |  |                                                                                                                                                                                                                         
|-------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                             |  | Financial Systems                                                                                                                                                               |  | Higher Education and Public Sector Systems                                                                              |  | Availability Services                                                                                                                                                                                                   
|Revenue for the Year Ended December 31, 2005 |  | $1,906 million                                                                                                                                                                  |  | $788 million                                                                                                            |  | $1,308 million                                                                                                                                                                                                          
|                                             |  |                                                                                                                                                                                 | 
|Products and Organization                    |  |    Software and processing solutions that automate the many detailed processes associated with trading securities,
managing portfolios of and accounting for investment assets |  |    Specialized enterprise resource planning and administrative solutions                                               |  |    Portfolio of always ready standby services, as well as advanced recovery and always on
production services that help businesses maintain uninterrupted access to their critical information and computer systems
|                                             |  |                                                                                                                                                                                 | 
|Key Facts                                    |  |    50+ business units    50+ primary brands                                                                                                                                   |  |    8 business units    40+ products                                                                                   |  |    3,000,000+ square feet of secure facilities    25,000+ mile global network                                                                                                                                         
|                                             |  |                                                                                                                                                                                 | 
|Primary Customers                            |  |    Financial services companies    Corporate and government treasury departments    Energy companies                                                                         |  |    Higher education institutions    School districts    State and local governments    Not-for-profit organizations |  |    Large, medium and small companies across virtually all industries                                                                                                                                                   

Financial Systems

In FS, we primarily serve financial services institutions through a broad range of
complementary software solutions that process their investment and trading transactions. These solutions are grouped into the following business areas: (1) institutional asset management and securities servicing systems; (2) trading,
treasury and risk management systems; (3) wealth management and brokerage systems; and (4) benefit administration and insurance systems. The principal purpose of most of these systems is to automate the many detailed processes associated
with trading securities, managing investment portfolios and accounting for investment assets. We also provide professional services that focus on application implementation and integration of these solutions and on software development.

Since our inception, we have consistently enhanced our FS systems to add new features, process new types of financial instruments, incorporate new
technologies and meet evolving customer demands. In addition, we have acquired many FS businesses, most being smaller providers of specialized products that were similar or complementary to the FS products we already owned.



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Our FS solutions are used by customers on both the buy-side and sell-side of the global financial
services industry, as well as corporate and government treasury departments and energy companies. Buy-side customers include banks, investment managers, mutual funds, investment advisors, insurance companies, trustees, benefit plan administrators
and others involved in buying, holding and managing investments. Sell-side customers include brokers, exchange members, depositaries, custodians, transfer agents and others involved in selling, brokering and trading financial instruments.
Approximately five million transactions per day are processed by our systems at some point in the trade cycle.

We deliver many of our FS
solutions as an application service provider, primarily from our data centers located in North America and Europe that customers access through the Internet or virtual private networks. We also deliver some of our FS solutions by licensing the
software to customers for use on their own computers.

In 2005, we formed a new operating group for our FS business units based in Europe
to better serve our European customers by focusing our product development and distribution strategies on their specific requirements. Also in 2005, we formed our enterprise solutions group in order to market and sell enterprise software and
processing solutions primarily to our global accounts.

Institutional Asset Management and Securities Servicing Systems

Our institutional asset management and securities servicing systems include a range of software solutions used primarily by buy-side customers to maintain
the books of record for all types of institutional investment portfolios, such as those managed by institutional asset managers, mutual funds, hedge funds, funds of funds, banks, prime brokers and third party administrators. We offer an integrated
investment management application suite that provides straight-through processing for investment transactions, with comprehensive front- to back-office functionality including trade order management, execution support, portfolio management,
compliance checking, accounting and reporting.

Our investment management systems are used to track investment activities including
purchases and sales of securities, value portfolios using securities prices from various market sources, provide performance measurement and attribution analyses, perform complex accounting calculations and general ledger postings, and generate a
variety of accounting, audit, tax and regulatory reports. In addition, some of these systems are used by investment advisors and other portfolio managers to analyze large investment portfolios using various models to assist with investment strategy
and management decisions. We also provide software solutions that address the specialized accounting needs of domestic and offshore hedge funds and funds of funds and that address the specialized needs of private equity partnerships and venture
capital funds.

Trading, Treasury and Risk Management Systems

Our trading systems are used by traders worldwide to trade most types of financial instruments and commodities, including equities, fixed income, foreign exchange, and their derivatives and to help manage, and report
trades efficiently. The capabilities of our trading systems range from online transaction initiation and order management to integrated trading, trade matching, and accounting. Many of our customers achieve further efficiencies by completing
transactions through the SunGard Transaction Network, which links participants across the financial industry to provide automated order routing for a variety of securities types. These include U.S. and foreign equities, fixed-income instruments,
mutual funds, money market funds, certificates of deposit, and commercial paper.



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We own three registered brokers that facilitate enhanced straight-through processing by providing the
following services using our financial systems solutions: (1) a clearing broker that provides order routing, execution and clearing for professional traders; (2) a full-service equities trading desk for institutional investors; and
(3) a New York Stock Exchange member that executes trades for institutional investors.

Our treasury systems are used by the treasury
departments of corporate and government entities worldwide to manage their cash, debt and investment portfolios. With the recent acquisition of The GetPAID Corporation, we now offer accounts receivables and working capital optimization solutions. In
addition, we offer a Web-based service that provides a single point of access via the Internet to help corporate treasurers manage geographically dispersed treasury operations more efficiently.

We provide a range of software solutions that automate risk management and trading operations for capital markets globally. Generally, these products are
used by traders and market makers of fixed income securities, foreign exchange contracts and equities, and their related derivatives such as interest rate and credit derivatives, convertible bonds, foreign exchange options and equity options. These
front- to back-office systems help customers price and analyze trades, manage market and credit risk across the institution, process and account for trading activities and determine hedging strategies to manage risk. These systems also help
customers monitor compliance with regulations and with their own trading policies, limits and internal controls.

We also provide a
comprehensive solution for global banks to manage the credit risk associated with their worldwide trading activities. This solution allows users to consolidate credit exposures, optimize collateral management, and monitor compliance with capital
requirements and regulations such as Basel II. We also provide to banks, mortgage and credit lenders and other institutions asset and liability management software with comprehensive risk management and performance measurement functionality.

We provide software systems that help utilities, power generating companies and energy traders, producers and distribution companies to
manage physical and financial trading activities. These systems provide trading support, market and credit risk management, trade processing, power scheduling and accounting functions.

We also provide exception management and reporting systems to financial services institutions. These systems automatically detect and repair errors that
occur when transactions move between systems, which helps prevent exceptions in straight-through processing. In addition, we offer software solutions that provide intelligent message transformation, content-based routing, and data validation and
enrichment, primarily for payments and post-trade automation. This helps financial services firms to integrate their financial messaging business processes.

Wealth Management and Brokerage Systems

Our wealth management systems include a range of software solutions used primarily
by bank trust departments to manage and service the portfolios of high net worth individuals. We offer an integrated wealth management application suite that provides straight-through processing for global asset management firms and includes
functionality for portfolio management and performance measurement, trade order management, regulatory and tax compliance, preparation of customer statements and handling of other customer services.



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Several of our wealth management systems are used to automate the investment, operations and
administrative areas unique to the bank trust business, including cash and portfolio management, payment of trust expenses, retiree benefits and beneficiary distributions and preparation of tax returns for taxable trusts. Other wealth management
systems are used to automate the functions associated with the worldwide custody and safekeeping of invested assets, such as trade settlement, investment income collection, tax reclamation, foreign exchange and reconciliation of depositary and
sub-custodian positions.

We also provide a range of solutions used by brokers, banks and insurance companies to support front office
wealth management activities. For example, we provide software solutions that are used by retail brokers in their advisory role to track customer contacts and manage customer portfolios. We also provide systems that enable our customers to provide
online brokerage services to their own customers. Other wealth management systems are used by investment advisors to identify new prospects, create customer profiles, analyze customer needs, assess customer suitability, monitor compliance and
cross-sell products. We also provide information management systems that are used by brokers and investment professionals to make informed investment decisions based on timely, dependable market data from exchanges and leading industry providers
worldwide. In addition, we offer historical market and reference data and technology to perform trading analytics, quantitative modeling and portfolio processing.

We also provide systems that automate the functions associated with worldwide securities lending activities and facilitate straight-through processing by providing a single, centralized order routing network that
links lenders and borrowers of securities.

Our clearing solutions provide comprehensive processing of equities, fixed income securities
and exchange traded futures, options and other instruments. Used primarily by broker/dealers and other sell-side customers, these systems address important facets of securities transaction processing, including clearing, position keeping, regulatory
and tax compliance and reporting, investment accounting and recordkeeping.

Benefit Administration and Insurance Systems

Our employee benefit plan systems automate the participant accounting activities associated with defined contribution retirement plans, such as 401(k)
plans. These systems maintain the books of record for each participants share of the cash and securities in the plan, monitor compliance with government regulations and plan restrictions, process cash contributions and benefit payments and
produce tax reports for plan sponsors and participants. As a complement to these systems, we offer document generation systems for creating retirement plan documents and forms, and software for generating annual government filings and returns by
employee benefit plans.

We also provide to the global insurance industry integrated marketing and policy administration solutions for both
insurance agencies and home offices, supporting individual and group insurance, annuity, investment contract and pension policy administration. Insurance solutions include client management, financial analysis, retirement and estate planning and
policy illustrations.

Our investor accounting systems automate the transfer agent process for stock, bond and mutual fund issues. These
systems maintain shareholder and bondholder positions, process new accounts, record purchases and sales, process cash deposits and disbursements, process dividend and interest distributions, generate proxy materials, tabulate votes, and produce tax
reports and periodic shareholder and bondholder statements.



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We provide specialized imaging and workflow management solutions for certain niches within the financial
services industry.

Enterprise Solutions Group

In late 2005, we formed our enterprise solutions group bringing product management, global account management, offshore services and consulting services together in order to market and sell enterprise software and processing solutions
primarily to our global accounts. The enterprise solutions group employs industry experts who work with global account customers to proactively define and plan enterprise solutions that address their current and anticipated requirements.

Higher Education and Public Sector Systems

In HEPS, we primarily provide specialized enterprise resource
planning and administrative software and services to institutions of higher education, school districts and other not-for-profit organizations, as well as state and local governments. These solutions include accounting, personnel, fundraising, grant
and project management, student administration and reporting for educational and not-for-profit organizations and accounting, personnel, utility billing, land management, public safety and justice administration for governments. We also provide
long-term outsourcing solutions to higher education institutions related to the management of technology, enterprise resource planning system implementations, and the integration of technology in the classroom and online.

Since 1995, we have been acquiring companies and developing solutions for our HEPS segment. Three recent acquisitions, Systems & Computer
Technology Corporation (SCT) and Collegis, Inc. in 2004 and HTE Inc. in 2003, substantially increased the size of our HEPS business. This expansion continued in February 2005, when we acquired Vivista Holdings Limited, a provider of public safety
and criminal justice administration solutions in the United Kingdom.

Our Higher Education solutions help colleges and universities
worldwide achieve their institutional goals through the strategic application of technology, business and academic solutions. We work collaboratively with institutions to create learning environments distinguished by self-service convenience,
operational efficiency and academic excellence through a broad spectrum of industry-leading software and services. These include administrative and academic solutions; business and curriculum planning solutions; portal, collaboration, and content
management solutions; information access and business intelligence solutions; integration solutions and technology outsourcing solutions. In late 2005, we formed SunGard Higher Education Solutions by aligning our three higher education business
units, SCT, Collegis and BSR, in order to strengthen the SunGard brand in higher education.

In Public Sector Systems, we serve a wide
range of customersincluding K-12 school districts, not-for-profit organizations, local governments and emergency serviceswith a growing range of specialized enterprise resource planning and administrative solutions for functions such as
accounting, human resources, payroll, utility billing, land management, public safety and justice, as well as student administration.



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Availability Services

In AS, we help our customers maintain uninterrupted access to the information and
computer systems they need to run their businesses by providing them with cost-effective resources to keep their information technology, or IT, reliable and secure. We pioneered commercial disaster recovery in the late 1970s, and, over the past 25
years, we have consistently expanded our business to add facilities and platforms, incorporate new technologies and meet evolving customer demands. Before 2001, most of the AS businesses we acquired were small providers of services for particular
platforms. In 2001 and 2002, we approximately doubled the size of our AS business and added a significant presence in Europe through the acquisitions of the availability services businesses of Comdisco, Inc. and Guardian iT plc. We believe that our
dedicated focus on information availability, together with our experience, technology expertise, resource management capabilities, vendor neutrality and diverse service offerings, uniquely position us to meet customer demands in an environment where
business functions are critically dependent on availability of information.

Because data and business applications can vary significantly
in importance, there is a need for a broad range of information availability services. A customers tolerance for downtime with respect to a particular application and the cost of the solution will dictate the type and complexity of
availability services that the customer will select for that application. Our principal AS offering is a broad range of always ready standby services that were traditionally called disaster recovery services. As technology and customer
needs evolved, we not only expanded the scope of our standby services, but also developed advanced recovery services and always on production services. We provide all of these services on a subscription basis. We help customers select
and blend multiple services to achieve an overall business solution tailored to meet their goals for both production and recovery. We also provide professional services to help our customers design, implement and maintain the ways they access
critical information. With our comprehensive portfolio of AS offerings, complemented by professional services, we can meet customers varied information availability requirements with cost-effective, reliable and secure solutions. To service
our more than 10,000 AS customers, we operate more than 3,000,000 square feet of secure facilities at over 60 locations in more than 10 countries and a global network of approximately 25,000 miles.

Our always ready standby services help customers recover key information and systems in the event of an unplanned interruption, such as a
major system failure, significant power or communication outage, security breach, labor stoppage, terrorist attack, fire, flood or natural disaster. These services are best suited for the recovery of customer applications that can tolerate some
level of interruption. By providing backup IT infrastructure, communications network and alternate workspace for personnel, we help customers restore access to information and processing within a short period of time after an interruption, usually
from several hours to two days. We deliver these services using processors, servers, storage devices, networks and other resources and infrastructure that are subscribed to by multiple customers, which results in economies of scale for us and
cost-effectiveness for our customers. These resources and infrastructure, when not needed by customers to recover from actual interruptions, are used around the clock by customers to test their plans for dealing with potential interruptions.

We believe that an important element of our value proposition is our ability to successfully manage recovery operations for our customers
over an extended period of time. Since our inception, we have had a 100% success rate supporting customer recoveries from unplanned interruptions, including during recent major disasters such as the 2005 Gulf Coast hurricanes, 2004 Florida
hurricanes, the 2003 Northeast U.S. blackout and the September 11, 2001 terrorist attacks.



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The primary standby service is called a hot site service in which we provide 24/7 access to
fully operational backup computer systems, allowing customers to recover their mainframe, distributed systems and server technology. We support more than 30 different operating platforms and specialized industry solutions. Many of our standby
solutions can be provided in one of our mobile recovery units or delivered to a customers facility.

We also offer a variety of
advanced recovery services that blend hot site services and dedicated data storage resources, supported by a common robust infrastructure. These blended solutions are sometimes referred to as high availability, data
vaulting or data mirroring solutions. The dedicated data storage resources, which are used exclusively by a single customer, allow the customer to continuously mirror its data at one of our sites. If there is an unplanned
interruption at the customers site, the backup data is immediately available for restoring operations using our hot site service. This helps customers minimize data loss and reduce recovery times.

Our production services help our customers keep their most critical applications up and running at all times. These always on services are
most needed when disruptions can have immediate and severe financial and reputational repercussions. They are engineered with redundant or failover capabilities to virtually eliminate the possibility of any disruption and to limit any downtime to at
most a few seconds or minutes. Production services typically require more dedicated processors, servers, storage devices, networks and other resources, which are either obtained by the customer or provided by us for the customers exclusive
use. Examples of these production services are managed hosting, managed IT services, network access management, security and optimization services, and e-mail archiving and retrieval. We can typically provide always on production
services in a cost-effective manner by leveraging our comprehensive resources and infrastructure as well as our resource management skills and purchasing power, all of which provide us with certain economies of scale. Our acquisition of InFlow, Inc.
in January 2005 enhanced our production services offerings by adding 14 data centers throughout the United States that geographically complement our other U.S. data centers.

As solutions move along the continuum of information availability services from always ready standby services to blended advanced recovery
services to always on production services, they become more complex and require more dedicated resources. Advanced recovery services often result in greater use of both shared and dedicated resources and, therefore, typically generate
appreciably higher revenue and income with a modest increase in capital expenditures and a modest decrease in operating margin percentage rate. Production services require significant dedicated resources and, therefore, generally produce even higher
revenue and income at an appropriately lower operating margin percentage rate. Although standby services remain our principal revenue generating services, advanced recovery and production services increasingly account for a greater percentage of our
new sales.

Acquisitions

To complement our organic growth, we have a highly disciplined, due diligence intensive program
to evaluate, execute and integrate acquisitions. Generally, we seek to acquire businesses that broaden our existing product lines and service offerings by adding complementary products and service offerings and by expanding our geographic reach.
During 2005, we spent approximately $538 million in cash (net of cash acquired) to acquire eight FS businesses, two HEPS businesses and one AS business.



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The following table lists the businesses we acquired since January 1, 2005:



|                                     |  |               |  |                                                                              
|------------------------------------ |  | ------------- |  | -----------------------------------------------------------------------------
|Acquired Company/Business            |  | Date Acquired |  | Description                                                                  
|InFlow, Inc.                         |  | 01/04/05      |  | Hosting and managed services for information availability.                   
|Protegent, Inc.                      |  | 01/26/05      |  | Risk management solutions.                                                   
|Vivista Holdings Limited             |  | 02/25/05      |  | Public safety and justice software solutions in the U.K.                     
|Ensemble Technology (Pty) Ltd        |  | 02/28/05      |  | Professional services for the financial services industry in South Africa.   
|Integrity Treasury Solutions Limited |  | 03/03/05      |  | Treasury management systems.                                                 
|Recognition Research, Inc.           |  | 05/12/05      |  | Data-capture technology for the financial services and healthcare industries.
|Understanding Systems, Inc.          |  | 07/25/05      |  | Graphical mapping solutions for the public sector.                           
|Pyramid Digital Systems, LLC         |  | 08/17/05      |  | Software and solutions to the retirement plan industry.                      
|The GetPAID Corporation              |  | 10/24/05      |  | Accounts receivable and working capital optimization solutions.              
|Prophet                              |  | 10/31/05      |  | Actuarial calculations software.                                             
|ERisk Holdings, Inc.                 |  | 11/08/05      |  | Capital and credit risk management solutions.                                

Product Development

We continually support, upgrade and enhance our systems to meet the needs of our customers
for operational efficiency and resilience and to leverage advances in technology.

We fund most of our routine ongoing software support
activities through a portion of the monthly fees paid by our application service provider customers and the software support and related upgrade fees paid by our license customers. Our expenditures for software development during the years ended
December 31, 2003, 2004 and 2005, including amounts that were capitalized, totaled approximately $208 million, $254 million and $265 million, respectively. These amounts do not include routine software support costs that are included in cost of
sales, nor do they include costs incurred in performing certain customer-funded development projects in the ordinary course of business.

Marketing

Most of our financial systems are marketed throughout North America and Europe and many are marketed
worldwide, with the principal focus being on selling additional products and services to existing customers. Our availability services and higher education and public sector systems are marketed primarily in North America and Europe, with a focus on
both new accounts and existing accounts. Our revenue from sales outside the United States during the years ended December 31, 2003, 2004 and 2005 totaled approximately $748 million, $918 million and $1,102 million, respectively.



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Competition

Since most of our computer services and software are specialized and technical in nature, most of
the market niches in which we compete have a relatively small number of significant competitors. Some of our existing competitors and some potential competitors have substantially greater financial, technological and marketing resources than we have
(see ITEM 1ARISK FACTORS).

Financial Systems.    In our FS business, we compete with numerous
other data processing and software vendors that may be broadly categorized into two groups. One group is comprised of specialized financial systems companies, which are much smaller than us. The other group is comprised of large computer services
companies whose principal businesses are not in the financial systems area, some of which are also active acquirors. We also face competition from the internal processing and information technology departments of our customers and prospects. The key
competitive factors in marketing financial systems are the accuracy and timeliness of processed information provided to customers, features and adaptability of the software, level and quality of customer support, degree of responsiveness, level of
software development expertise, total cost of ownership and return on investment. We believe that we compete effectively with respect to each of these factors and that our reputation and experience in this business are important competitive
advantages.

Higher Education and Public Sector Systems.     In our HEPS business, we compete with a
variety of other vendors depending upon customer characteristics such as size, type, location, computing environment and functional requirements. For example, there may be different competitors for different sizes or types of educational
institutions or government agencies, or in different states or geographic regions. Competitors in this business range from larger providers of generic enterprise resource planning systems to smaller providers of specialized applications and
technologies. We also compete with outsourcers and systems integrators, as well as the internal processing and information technology departments of our customers and prospective customers. The key competitive factors in marketing higher education
and public sector systems are the accuracy and timeliness of processed information provided to customers, features and adaptability of the software, level and quality of customer support, degree of responsiveness, level of software development
expertise and overall net cost. We believe that we compete effectively as to each of these factors and that our leadership and reputation in this business are important competitive advantages.

Availability Services.    In our AS business, our greatest source of competition is in-house dedicated solutions, which
are production or standby solutions that our customers or prospective customers develop and maintain internally instead of purchasing those solutions from a commercial vendor such as us. Although in-house solutions provide customers with exclusive
access to resources and infrastructure, we believe that, for many customers, building and maintaining an in-house solution is significantly more costly and difficult than subscribing to comparable services from us. This is because of our economies
of scale, experience, technology expertise, resource management skills and vendor neutrality.

Historically, our single largest commercial
competitor in the AS business has been IBM Corporation, which we believe is the only company other than ours that currently provides the full continuum of availability services. We also face competition from specialized vendors, including hardware
manufacturers, data-replication software companies, outsourcers, managed hosting companies, IT services companies and telecommunications companies. We sometimes face a competitive disadvantage with respect to pricing because some of our competitors
have a motivation to



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bundle availability services with hardware or other products and services for what appears to be little or no additional cost to the customer in order to
sell the hardware or other products. We believe, however, that our solutions are more flexible than these bundled services and, because of our scale and experience, more comprehensive than the ones offered by our competitors. We believe that this
places us in a better long-term position to satisfy the requirements of customers as their businesses and needs for availability services grow and evolve.

We believe that we compete effectively with respect to the key competitive factors in information availability, namely quality of infrastructure, scope and quality of services, including breadth of hardware platforms
and network capacity, level and quality of customer support, level of technical expertise, and price. We also believe that our experience and reputation as an innovator in information availability, our proven track record, our financial stability
and our ability to provide the entire continuum of availability services as a single vendor solution are important competitive advantages.

Employees

On December 31, 2005, we had approximately 15,000 full-time employees. We believe that our
success depends partly on our continuing ability to retain and attract skilled technical, sales and management personnel. While skilled personnel are in high demand and competition exists for their talents, we believe that we have been able to
retain and attract highly qualified personnel (see ITEM 1ARISK FACTORS). We believe that our employee relations are excellent.

Proprietary Protection

We own registered marks for the SUNGARD name and own or have applied for trademark
registrations for many of our services and software products.

To protect our proprietary services and software, we rely upon a combination
of copyright, patent, trademark and trade secret law, confidentiality restrictions in contracts with employees, customers and others, software security measures, and registered copyrights and patents. We also have established policies requiring our
personnel and representatives to maintain the confidentiality of our proprietary property. We have a few registrations of our copyrights and a number of patents and patent applications pending. We will continue to apply for software and business
method patents on a case-by-case basis and will continue to monitor ongoing developments in the evolving software and business method patent field (see ITEM 1ARISK FACTORS).



|ITEM1A. | RISK FACTORS
|------- | ------------

Certain
of the matters we discuss in this Report on Form 10-K may constitute forward-looking statements. You can identify forward-looking statements because they contain words such as believes, expects, may,
will, should, seeks, approximately, intends, plans, estimates, or anticipates or similar expressions which concern our strategy, plans or intentions. All
statements we make relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, we, through our senior management, from time to time make
forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our
actual results may differ materially from those we expected. We derive most of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions.



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While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is
impossible for us to anticipate all factors that could affect our actual results. Some of the factors that we believe could affect our results include:



| |  |  | our high degree of leverage;
| | - |  | ----------------------------



| |  |  | general economic and market conditions;
| | - |  | ---------------------------------------



| |  |  | the condition of the financial services industry, including the effect of any further consolidation among financial services firms;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------



| |  |  | the integration of acquired businesses, the performance of acquired businesses, and the prospects for future acquisitions;
| | - |  | --------------------------------------------------------------------------------------------------------------------------



| |  |  | the effect of war, terrorism, natural disasters or other catastrophic events;
| | - |  | -----------------------------------------------------------------------------



| |  |  | the effect of disruptions to our systems and infrastructure;
| | - |  | ------------------------------------------------------------



| |  |  | the timing and magnitude of software sales;
| | - |  | -------------------------------------------



| |  |  | the timing and scope of technological advances;
| | - |  | -----------------------------------------------



| |  |  | customers taking their information availability solutions in-house;
| | - |  | -------------------------------------------------------------------



| |  |  | the trend in information availability toward solutions utilizing more dedicated resources;
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | the market and credit risks associated with clearing broker operations;
| | - |  | -----------------------------------------------------------------------



| |  |  | the ability to retain and attract customers and key personnel;
| | - |  | --------------------------------------------------------------



| |  |  | risks relating to the foreign countries where we transact business; and
| | - |  | -----------------------------------------------------------------------



| |  |  | the ability to obtain patent protection and avoid patent-related liabilities in the context of a rapidly developing legal framework for software and business-method patents.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The factors described in this paragraph and other factors that may affect our business or future financial results, as and
when applicable, are discussed in our filings with the Securities and Exchange Commission (SEC), including this Report on Form 10-K. We assume no obligation to update any written or oral forward-looking statements made by us or on our
behalf as a result of new information, future events or other factors.

Risks Related to Our Indebtedness

Our substantial leverage could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy
or our industry, expose us to interest rate risk to the extent of our variable rate debt and prevent us from meeting our debt obligations.

As a result of being acquired on August 11, 2005 by a consortium of private equity investment funds, we are highly leveraged and our debt service requirements are significant. At December 31, 2005, our total indebtedness was $7.43
billion, and we had $980 million available for borrowing under our revolving credit facility, after giving effect to certain outstanding letters of credit. In addition, at December 31, 2005, we had borrowed $385 million of our $450 million
off-balance sheet long-term receivables facility.



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Our high degree of leverage could have important consequences, including:



| |  |  | making it more difficult for us to make payments on our debt obligations;
| | - |  | -------------------------------------------------------------------------



| |  |  | increasing our vulnerability to general economic and industry conditions;
| | - |  | -------------------------------------------------------------------------



| |  |  | requiring a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on our indebtedness, therefore reducing our ability to use our
cash flow to fund our operations, capital expenditures and future business opportunities;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | exposing us to the risk of increased interest rates as certain of our borrowings are at variable interest rates;
| | - |  | ----------------------------------------------------------------------------------------------------------------



| |  |  | restricting us from making strategic acquisitions or causing us to make non-strategic divestitures;
| | - |  | ---------------------------------------------------------------------------------------------------



| |  |  | limiting our ability to obtain additional financing for working capital, capital expenditures, product development, debt service requirements, acquisitions and general corporate or
other purposes; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who are less highly leveraged.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

We and our subsidiaries may be able to incur substantial additional indebtedness in the future, subject to the restrictions
contained in our senior secured credit facilities and the indentures relating to our new senior notes. If new indebtedness is added to our current debt levels, the related risks that we now face could intensify.

Our debt agreements contain restrictions that limit our flexibility in operating our business.

Our senior secured credit agreement and the indentures governing our new senior notes contain various covenants that limit our ability to engage in
specified types of transactions. These covenants limit our and our restricted subsidiaries ability to, among other things:



| |  |  | incur additional indebtedness or issue certain preferred shares;
| | - |  | ----------------------------------------------------------------



| |  |  | pay dividends on, repurchase or make distributions in respect of our capital stock or make other restricted payments;
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | make certain investments;
| | - |  | -------------------------



| |  |  | sell certain assets;
| | - |  | --------------------



| |  |  | create liens;
| | - |  | -------------



| |  |  | consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; and
| | - |  | --------------------------------------------------------------------------------------------



| |  |  | enter into certain transactions with our affiliates.
| | - |  | ----------------------------------------------------

In
addition, under the senior secured credit agreement, we are required to satisfy and maintain specified financial ratios and other financial condition tests. Our ability to meet those financial ratios and tests can be affected by events beyond our
control, and we cannot assure you that we will meet those ratios and tests. A breach of any of these covenants could result in a default under the senior secured credit agreement. Upon the occurrence of an event of default under the senior secured
credit agreement, the lenders could elect to declare all amounts outstanding under the senior secured credit agreement to be immediately due and payable and terminate all commitments to extend further credit.



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If we were unable to repay those amounts, the lenders under the senior secured credit agreement could
proceed against the collateral granted to them to secure that indebtedness. We have pledged a significant portion of our assets as collateral under the senior secured credit agreement and, to the extent required by the indenture governing the
existing senior notes, the existing senior notes. If the lenders under the senior secured credit agreement accelerate the repayment of borrowings, we cannot assure you that we will have sufficient assets to repay the senior secured credit agreement
and the existing senior notes, as well as our unsecured indebtedness.

Risks Related to Our Business

Our business depends largely on the economy and financial markets, and a slowdown or downturn in the economy or financial markets could adversely affect our business
and results of operations.

When there is a slowdown or downturn in the economy, a drop in stock market levels or trading volumes, or an
event that disrupts the financial markets, our business and financial results may suffer for a number of reasons. Customers may react to worsening conditions by reducing their capital expenditures in general or by specifically reducing their
spending on information technology. In addition, customers may curtail or discontinue trading operations, delay or cancel information technology projects, or seek to lower their costs by renegotiating vendor contracts. Also, customers with excess
information technology resources may choose to take their availability solutions in-house rather than obtain those solutions from us. Moreover, competitors may respond to market conditions by lowering prices and attempting to lure away our customers
to lower cost solutions. If any of these circumstances remain in effect for an extended period of time, there could be a material adverse effect on our financial results. During the last economic slowdown, our internal growth decreased, and nearly
all of our revenue growth during 2001 through 2003 was from acquisitions. Because our financial performance tends to lag behind fluctuations in the economy, our recovery from any particular downturn in the economy may not occur until after economic
conditions have generally improved.

Our business depends largely on the financial services industry, and a weakening of the financial services industry
could adversely affect our business and results of operations.

Because our customer base is concentrated in the financial services
industry, our business is largely dependent on the health of that industry. When there is a general downturn in the financial services industry, or if our customers in that industry experience financial or business problems, our business and
financial results may suffer. If financial services firms continue to consolidate, there could be a material adverse effect on our business and financial results. When a customer merges with a firm using its own solution or another vendors
solution, they could decide to consolidate their processing on a non-SunGard system, which could have an adverse effect on our financial results.

Our
acquisition program is an important element of our strategy but, because of the uncertainties involved, this program may not be successful and we may not be able to successfully integrate and manage acquired businesses.

Part of our growth strategy is to pursue additional acquisitions in the future. There can be no assurance that our acquisition program will continue to be
successful. In addition, we may finance any future acquisition with debt, which would increase our interest costs. If we are unable to successfully integrate and manage acquired businesses, or if acquired businesses perform poorly, then our business
and financial results may suffer. It is possible that the businesses we have acquired and businesses that



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we acquire in the future may perform worse than expected or prove to be more difficult to integrate and manage than expected. If that happens, there may be a
material adverse effect on our business and financial results for a number of reasons, including:



| |  |  | we may have to devote unanticipated financial and management resources to acquired businesses;
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | we may not be able to realize expected operating efficiencies or product integration benefits from our acquisitions;
| | - |  | --------------------------------------------------------------------------------------------------------------------



| |  |  | we may have to write-off goodwill or other intangible assets; and
| | - |  | -----------------------------------------------------------------



| |  |  | we may incur unforeseen obligations or liabilities in connection with acquisitions.
| | - |  | -----------------------------------------------------------------------------------

If we are unable to identify suitable acquisition candidates and successfully complete acquisitions, our growth and our financial results may be adversely affected.

Our growth has depended in part on our ability to acquire similar or complementary businesses on favorable terms. In the last three years, most of our
revenue growth was from acquired businesses. This growth strategy is subject to a number of risks that could adversely affect our business and financial results, including:



| |  |  | we may not be able to find suitable businesses to acquire at affordable valuations or on other acceptable terms;
| | - |  | ----------------------------------------------------------------------------------------------------------------



| |  |  | we may face competition for acquisitions from other potential acquirers, some of whom may have greater resources than us or may be less highly leveraged, or from the possibility of
an acquisition target pursuing an initial public offering of its stock;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may have to incur additional debt to finance future acquisitions as we have done in the past and no assurance can be given as to whether, and on what terms, such additional debt
will be available; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may find it more difficult or costly to complete acquisitions due to changes in accounting, tax, securities or other regulations.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------

Catastrophic events may disrupt or otherwise adversely affect the markets in which we operate, our business and our profitability.

Our business may be adversely affected by a war, terrorist attack, natural disaster or other catastrophe. A catastrophic event could have a direct
negative impact on us or an indirect impact on us by, for example, affecting our customers, the financial markets or the overall economy. The potential for a direct impact is due primarily to our significant investment in our infrastructure.
Although we maintain redundant facilities and have contingency plans in place to protect against both man-made and natural threats, it is impossible to fully anticipate and protect against all potential catastrophes. Despite our preparations, a
security breach, criminal act, military action, power or communication failure, flood, severe storm or the like could lead to service interruptions and data losses for customers, disruptions to our operations, or damage to our important facilities.
The same disasters or circumstances that may lead to our customers requiring access to our availability services may negatively impact our own ability to provide such services. Our three largest availability services facilities are particularly
important, and a major disruption at one or more of those facilities could disrupt or otherwise impair our ability to provide services to our availability services customers. If any of these events happen, we may be exposed to unexpected liability,
our customers may leave, our reputation may be tarnished, and there could be a material adverse effect on our business and financial results.



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Our application service provider systems may be subject to disruptions that could adversely affect our reputation and
our business.

Our application service provider systems maintain and process confidential data on behalf of our customers, some of which
is critical to their business operations. For example, our brokerage and trading systems maintain account and trading information for our customers and their clients, and our benefit, insurance and investor accounting systems maintain investor
account information for retirement plans, insurance policies and mutual funds. There is no guarantee that the systems and procedures that we maintain to protect against unauthorized access to such information are adequate to protect against all
security breaches. If our application service provider systems are disrupted or fail for any reason, or if our systems or facilities are infiltrated or damaged by unauthorized persons, our customers could experience data loss, financial loss, harm
to reputation and significant business interruption. If that happens, we may be exposed to unexpected liability, our customers may leave, our reputation may be tarnished, and there could be a material adverse effect on our business and financial
results.

Because the sales cycle for our software is typically lengthy and unpredictable, our results may fluctuate from period to period.

Our operating results may fluctuate from period to period and be difficult to predict in a particular period due to the timing and
magnitude of software sales. We offer some of our financial systems on a license basis, which means that the customer has the right to run the software on its own computers. The customer usually makes a significant up-front payment to license
software, which we generally recognize as revenue when the license contract is signed and the software is delivered. The size of the up-front payment often depends on a number of factors that are different for each customer, such as the number of
customer locations, users or accounts. As a result, the sales cycle for a software license may be lengthy and take unexpected turns. Thus, it is difficult to predict when software sales will occur or how much revenue they will generate. Since there
are few incremental costs associated with software sales, our operating results may fluctuate from quarter to quarter and year to year due to the timing and magnitude of software sales.

Rapid changes in technology and our customers businesses could adversely affect our business and financial results.

Our business may suffer if we do not successfully adapt our products and services to changes in technology and changes in our customers businesses. These changes can occur rapidly and at unpredictable intervals
and we cannot assure you that we will be able to respond adequately. If we do not successfully update and integrate our products and services to adapt to these changes, or if we do not successfully develop new products and services needed by our
customers to keep pace with these changes, then our business and financial results may suffer. Our ability to keep up with technology and business changes is subject to a number of risks, including:



| |  |  | we may find it difficult or costly to update our products and services and to develop new products fast enough to meet our customers needs;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may find it difficult or costly to make some features of our products and services work effectively and securely over the Internet;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may find it difficult or costly to integrate more of our FS solutions into efficient straight-through processing solutions;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------



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| |  |  | we may find it difficult or costly to update our products and services to keep pace with business, regulatory and other developments in the financial services industry, where many
of our customers operate; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | we may find it difficult or costly to update our services to keep pace with advancements in hardware, software and telecommunications technology.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------

Some technological changes, such as advancements that have facilitated the ability of our AS customers to develop their own internal solutions, may
render some of our products and services less valuable or eventually obsolete. In addition, because of ongoing, rapid technological changes, the useful lives of some technology assets have become shorter and customers are therefore replacing these
assets more often. As a result, our customers are increasingly expressing a preference for contracts with shorter terms, which could make our revenue less predictable in the future.

Customers taking their availability solutions in-house may continue to create pressure on our internal revenue growth rate.

Our AS solutions allow customers to leverage our significant infrastructure and take advantage of our experience, technology expertise, resource management capabilities and vendor neutrality. Nevertheless, some
customers, especially among the very largest having significant information technology resources, prefer to develop and maintain their own in-house availability solutions, which can result in a loss of revenue from those customers. Technological
advances in recent years have significantly reduced the cost yet not the complexity of developing in-house solutions. Over the past several years, business lost to customers taking their availability solutions in-house generally has offset our new
sales. If this trend continues or worsens, there will be continued pressure on our internal revenue growth rate.

The trend toward information
availability solutions utilizing more single customer dedicated resources likely will lower our overall operating margin percentage over time.

In the information availability services industry, especially among our more sophisticated customers, there is an increasing preference for solutions that utilize some level of dedicated resources, such as blended advanced recovery services
and always on production services. The primary reason for this trend is that adding dedicated resources, although more costly, provides greater control, reduces data loss and facilitates quicker responses to business interruptions.
Advanced recovery services often result in greater use of both shared and dedicated resources and, therefore, typically generate appreciably higher revenue with only a modest increase in capital expenditures and a modest decrease in operating margin
percentage. Production services require significant dedicated resources and, therefore, generally produce even higher revenue at an appropriately lower operating margin percentage.

Our brokerage operations are highly regulated and are riskier than our other businesses.

Organizations like the Securities and Exchange Commission, New York Stock Exchange and National Association of Securities Dealers can, among other things, fine, censure, issue cease-and-desist orders and suspend or expel a broker/dealer or
any of its officers or employees for failures to comply with the many laws and regulations that govern brokerage operations. Our ability to comply with these laws and regulations is largely dependent on our establishment, maintenance and enforcement
of an effective brokerage compliance program. Our failure to establish, maintain and



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enforce proper brokerage compliance procedures, even if unintentional, could subject us to significant losses, lead to disciplinary or other actions, and
tarnish our reputation. Regulations affecting the brokerage industry, in particular with respect to active traders, may change, which could adversely affect our financial results.

We are exposed to certain risks due to the trading activities of our customers and professional traders of our brokerage operations. If customers or
professional traders fail to pay for securities they buy, or fail to cover their short sales, or fail to repay margin loans we make to them, then we may suffer losses, and these losses may be disproportionate to the relatively modest revenue and
profit contributions of this business. In our other businesses, we generally can disclaim liability for trading losses that may be caused by our software, but in our brokerage operations, we cannot limit our liability for trading losses even when we
are not at fault.

We could lose revenue due to fiscal funding or termination for convenience clauses in certain customer
contracts, especially in our HEPS business.

Certain of our customer contracts, particularly those with governments, institutions of
higher education and school districts, may be partly or completely terminated by the customer due to budget cuts or sometimes for any reason at all. These types of clauses are often called fiscal funding or termination for
convenience clauses. If a customer exercises one of these clauses, the customer would be obligated to pay for the services we performed up to the date of exercise, but would not have to pay for any further services. While we have not been
materially affected by exercises of these clauses in the past, we may be in the future. If customers that collectively represent a substantial portion of our revenue were to invoke the fiscal funding or termination for convenience clauses of their
contracts, our future business and results of operations could be adversely affected.

If we fail to comply with government regulations in connection
with our providing technology services to certain financial institutions, our business and results of operations may be adversely affected.

Because we act as a third-party service provider to financial institutions and provide mission-critical applications for many financial institutions that are regulated by one or more member agencies of the Federal Financial Institutions
Examination Council (FFIEC), we are subject to examination by the member agencies of the FFIEC. More specifically, we are a Multi-Regional Data Processing Servicer of the FFIEC because we provide mission critical applications for
financial institutions from several data centers located in different geographic regions. As a result, the FFIEC conducts periodic reviews of certain of our operations in order to identify existing or potential risks associated with our operations
that could adversely affect the financial institutions to whom we provide services, evaluate our risk management systems and controls, and determine our compliance with applicable laws that affect the services we provide to financial institutions.
In addition to examining areas such as our management of technology, data integrity, information confidentiality and service availability, the reviews also assess our financial stability. Our incurrence of significant debt in connection with the
Transaction increases the risk of an FFIEC agency review determining that our financial stability has been weakened. A sufficiently unfavorable review from the FFIEC could result in our financial institution customers not being allowed to use our
technology services, which could have a material adverse effect on our business and financial condition.

If we are unable to retain or attract
customers, our business and financial results will be adversely affected.

If we are unable to keep existing customers satisfied, sell
additional products and services to existing customers or attract new customers, then our business and financial results may suffer. A



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variety of factors could affect our ability to successfully retain and attract customers, including the level of demand for our products and services, the
level of customer spending for information technology, the level of competition from customers that develop their own solutions internally and from other vendors, the quality of our customer service, our ability to update our products and develop
new products and services needed by customers, and our ability to integrate and manage acquired businesses. Our services revenue, which has been largely recurring in nature, comes from the sale of our products and services under fixed-term
contracts. We do not have a unilateral right to extend these contracts when they expire. If customers cancel or refuse to renew their contracts, or if customers reduce the usage levels or asset values under their contracts, there could be a material
adverse effect on our business and financial results.

If we fail to retain key employees, our business may be harmed.

Our success depends on the skill, experience and dedication of our employees. If we are unable to retain and attract sufficiently experienced and capable
personnel, especially in product development, sales and management, our business and financial results may suffer. For example, if we are unable to retain and attract a sufficient number of skilled technical personnel, our ability to develop high
quality products and provide high quality customer service may be impaired. Experienced and capable personnel in the technology industry remain in high demand, and there is continual competition for their talents. When talented employees leave, we
may have difficulty replacing them, and our business may suffer. There can be no assurance that we will be able to successfully retain and attract the personnel that we need.

We are subject to the risks of doing business internationally.

During 2005, approximately 28% of our
revenue was generated outside the United States. Approximately 77% of this revenue was from customers located in the United Kingdom and Continental Europe. Because we sell our services outside the United States, our business is subject to risks
associated with doing business internationally. Accordingly, our business and financial results could be adversely affected due to a variety of factors, including:



| |  |  | changes in a specific countrys or regions political and cultural climate or economic condition;
| | - |  | -------------------------------------------------------------------------------------------------



| |  |  | unexpected changes in foreign laws and regulatory requirements;
| | - |  | ---------------------------------------------------------------



| |  |  | difficulty of effective enforcement of contractual provisions in local jurisdictions;
| | - |  | -------------------------------------------------------------------------------------



| |  |  | inadequate intellectual property protection in foreign countries;
| | - |  | -----------------------------------------------------------------



| |  |  | trade-protection measures, import or export licensing requirements such as Export Administration Regulations promulgated by the U.S. Department of Commerce and fines, penalties or
suspension or revocation of export privileges;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the effects of applicable foreign tax structures and potentially adverse tax consequences; and
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | significant adverse changes in foreign currency exchange rates.
| | - |  | ---------------------------------------------------------------

The
private equity firms that acquired the Company (Sponsors) control us and may have conflicts of interest with us.

Investment
funds associated with or designated by the Sponsors indirectly own, through their ownership in our parent companies, a substantial portion of our capital stock. As a result, the Sponsors



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have control over our decisions to enter into any corporate transaction regardless of whether noteholders believe that any such transaction is in their own
best interests. For example, the Sponsors could cause us to make acquisitions that increase the amount of indebtedness that is secured or that is senior to our new senior subordinated notes or to sell assets.

Additionally, the Sponsors are in the business of making investments in companies and may from time to time acquire and hold interests in businesses that
compete directly or indirectly with us. One or more of the Sponsors may also pursue acquisition opportunities that may be complementary to our business and, as a result, those acquisition opportunities may not be available to us. So long as
investment funds associated with or designated by the Sponsors continue to indirectly own a significant amount of the outstanding shares of our common stock, even if such amount is less than 50%, the Sponsors will continue to be able to strongly
influence or effectively control our decisions.

If we are unable to protect our proprietary technologies and defend infringement claims, we could lose
one of our competitive advantages and our business could be adversely affected.

Our success depends in part on our ability to protect
our proprietary products and services and to defend against infringement claims. If we are unable to do so, our business and financial results may suffer. To protect our proprietary technology, we rely upon a combination of copyright, patent,
trademark and trade secret law, confidentiality restrictions in contracts with employees, customers and others, software security measures, and registered copyrights and patents. Despite our efforts to protect the proprietary technology,
unauthorized persons may be able to copy, reverse engineer or otherwise use some of our technology. It also is possible that others will develop and market similar or better technology to compete with us. Furthermore, existing patent, copyright and
trade secret laws may afford only limited protection, and the laws of certain countries do not protect proprietary technology as well as United States law. For these reasons, we may have difficulty protecting our proprietary technology against
unauthorized copying or use. If any of these events happens, there could be a material adverse effect on the value of our proprietary technology and on our business and financial results. In addition, litigation may be necessary to protect our
proprietary technology. This type of litigation is often costly and time-consuming, with no assurance of success.

The legal framework for
software and business method patents is rapidly evolving. Some of our competitors may have been more aggressive than us in applying for or obtaining patent protection for innovative proprietary technologies both in the United States and
internationally. There can be no assurance that in the future third parties will not assert infringement claims against us (as they have already done in the past) and preclude us from using a technology in our products or require us to enter into
royalty and licensing arrangements on terms that are not favorable to us, or force us to engage in costly infringement litigation, which could result in us paying monetary damages or being forced to redesign our products to avoid infringement.
Additionally, our licenses and service agreements with our customers generally provide that we will defend and indemnify them for claims against them relating to our alleged infringement of the intellectual property rights of third parties with
respect to our products or services. We might have to defend or indemnify our customers to the extent they are subject to these types of claims. Any of these claims may be difficult and costly to defend and may lead to unfavorable judgments or
settlements, which could have a material adverse effect on our reputation, business and financial results. For these reasons, we may find it difficult or costly to add or retain important features in our products and services.

Defects, design errors or security flaws in our products could harm our reputation and expose us to potential liability.

Most of our FS and HEPS products are very complex software systems that are regularly updated. No matter how careful the design and development, complex
software often contains errors and defects



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when first introduced and when major new updates or enhancements are released. If errors or defects are discovered in our current or future products, we may
not be able to correct them in a timely manner, if at all. In our development of updates and enhancements to our products, we may make a major design error that makes the product operate incorrectly or less efficiently.

In addition, certain of our products include security features that are intended to protect the privacy and integrity of customer data. Despite these
security features, our products and systems, and our customers systems may be vulnerable to break-ins and similar problems caused by third parties, such as hackers bypassing firewalls and misappropriating confidential information. Such
break-ins or other disruptions could jeopardize the security of information stored in and transmitted through our computer systems and those of our customers, subject us to liability and tarnish our reputation. We may need to expend significant
capital resources in order to eliminate or work around errors, defects, design errors or security problems. Any one of these problems in our products may result in the loss of or a delay in market acceptance of our products, the diversion of
development resources, a lower rate of license renewals or upgrades and damage to our reputation, and in turn may increase service and warranty costs.



|ITEM1B. | UNRESOLVED STAFF COMMENTS
|------- | -------------------------

None.



|ITEM2. | PROPERTIES
|------ | ----------

We lease space,
primarily for availability services facilities, data centers, sales offices, customer support offices and administrative offices, in many locations worldwide. We also own some of our computer and office facilities. Our principal facilities include
our leased availability services facilities in Philadelphia, Pennsylvania (506,300 square feet), Carlstadt, New Jersey (432,400 square feet), and Hounslow, England (195,000 square feet) and include our financial systems application service provider
centers in Voorhees, New Jersey, Birmingham, Alabama, Waltham, Massachusetts, and Weehawken, New Jersey. We believe that our leased and owned facilities are adequate for our present operations.



|ITEM3. | LEGAL PROCEEDINGS
|------ | -----------------

We
are presently a party to certain lawsuits arising in the ordinary course of our business. We believe that none of our current legal proceedings will be material to our business, financial condition or results of operations.



|ITEM4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|------ | ---------------------------------------------------

None.



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PART II



|ITEM5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|------ | ------------------------------------------------------------------------------------------------------------

Our outstanding common stock is privately held, and there is no established public trading market for our common stock. As of the date of this filing,
there was one holder of record of our common stock.

See ITEM 7, Liquidity and Capital ResourcesThe Transaction for
a description of restrictions on our ability to pay dividends.



|ITEM6. | SELECTED FINANCIAL DATA
|------ | -----------------------



|                            |  |             |       |           |   |       |             |      |       |                                |   |                                  |  |   |                            |  |   |       |   |  |   |      
|--------------------------- |  | ----------- | ----- | --------- | - | ----- | ----------- | ---- | ----- | ------------------------------ | - | -------------------------------- |  | - | -------------------------- |  | - | ----- | - |  | - | -----
|                            |  | Predecessor |       | Successor |   |       | Combined(1)
|(in millions)               |  | 2001        |       | 2002      |   | 2003  |             | 2004 |       | January 1throughAugust 10,2005 |   | August 11throughDecember 31,2005 |  |   | Year EndedDecember 31,2005
|Income Statement Data(2)(3) |  |             |       |           |   |       |             |      |       |                                |   |                                  |  |   |                            |  |   |       |   |  |   |      
|Revenue                     |  | $           | 1,982 |           | $ | 2,593 |             | $    | 2,955 |                                | $ | 3,556                            |  | $ | 2,371                      |  | $ | 1,631 |   |  | $ | 4,002
|Income from operations      |  |             | 399   |           |   | 547   |             |      | 623   |                                |   | 704                              |  |   | 296                        |  |   | 197   |   |  |   | 493  
|Net income (loss)           |  |             | 246   |           |   | 326   |             |      | 370   |                                |   | 454                              |  |   | 146                        |  |   | (29   | ) |  |   | 117  



|                                    |  |             |       |           |   |       |  |      |       |      |   |       |  |   |       
|----------------------------------- |  | ----------- | ----- | --------- | - | ----- |  | ---- | ----- | ---- | - | ----- |  | - | ------
|                                    |  | Predecessor |       | Successor
|                                    |  | 2001        |       | 2002      |   | 2003  |  | 2004 |       | 2005
|Balance Sheet Data(2)               |  |             |       |           |   |       |  |      |       |      |   |       |  |   |       
|Total assets                        |  | $           | 2,898 |           | $ | 3,282 |  | $    | 4,000 |      | $ | 5,195 |  | $ | 14,587
|Total short-term and long-term debt |  |             | 459   |           |   | 206   |  |      | 200   |      |   | 554   |  |   | 7,429 
|Stockholders equity                |  |             | 1,794 |           |   | 2,222 |  |      | 2,766 |      |   | 3,252 |  |   | 3,572 

---

|(1) | Our combined results for the year ended December 31, 2005 represent the addition of the Predecessor period from January 1, 2005 through August 10, 2005 and the
Successor period from August 11, 2005 through December 31, 2005. This combination does not comply with generally accepted accounting principles (GAAP) or with the rules for pro forma presentation, but is presented because we believe it
provides the most meaningful comparison of our results.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Includes the effect of business acquisitions and dispositions from the date of each event. There were seven acquisitions in 2001, nine acquisitions in 2002, nine acquisitions in
2003, ten acquisitions in 2004 and eleven acquisitions in 2005. Brut LLC and two other businesses were sold in 2004. See Note 2 of Notes to Consolidated Financial Statements.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(3) | 2001 includes amortization of goodwill of $18 million and charges of $18 million for the write-off of an investment, for facility shut-down and severance costs related to an
acquisition, and for merger costs, offset in part by a break-up fee and a realized gain on short-term investments sold to fund an acquisition.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2002 includes charges of $12 million for facility shut-down and severance costs related to two acquisitions, along with our share of merger costs associated with our equity interests in two companies before we
acquired the remaining equity of each, net of other income of $3 million related to a gain on foreign currency purchased to fund an acquisition.



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2004 includes a gain of $78 million from the sale of Brut LLC, offset by $6 million of costs associated
with the previously planned spin-off of SunGard Availability Services and net facility shut-down and severance costs related to previous acquisitions.

The period from January 1, 2005 through August 10, 2005 includes $59 million of accounting, investment banking, legal and other costs associated with the Transaction and the planned spin-off of SunGard
Availability Services as well as $60 million resulting from the acceleration of stock options and restricted stock.

The period from
August 11, 2005 through December 31, 2005 includes $18 million consisting primarily of payroll taxes and certain compensation expenses related to the Transaction.

See Notes 1 and 2 of Notes to Consolidated Financial Statements.



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|ITEM7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
|------ | -------------------------------------------------------------------------------------

Overview

We are one of the worlds leading software and IT services companies. We provide software and processing solutions to institutions
throughout the financial services industry, higher education, and the public sector; and we help enterprises of all types to maintain the continuity of their business through information availability services. We support more than 25,000 customers
in over 50 countries, including the worlds 50 largest financial services companies. We operate our business in three segments: Financial Systems (FS), Higher Education and Public Sector Systems (HEPS) and Availability
Services (AS). Our FS segment primarily serves financial services companies, corporate and government treasury departments and energy companies. Our HEPS segment primarily serves higher education institutions, state and local governments
and not-for-profit organizations. Our AS segment serves information-dependent companies across virtually all industries.

SunGard Data
Systems Inc. (SunGard) was acquired on August 11, 2005 by a consortium of private equity investment funds associated with Bain Capital Partners, The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis Roberts &
Co., Providence Equity Partners, Silver Lake Partners and Texas Pacific Group (the Transaction). The Transaction was accomplished through the merger of Solar Capital Corp. into SunGard, with SunGard being the surviving company.

SunGard is a wholly owned subsidiary of SunGard Holdco LLC, which is wholly owned by SunGard Holding Corp., which is wholly owned by
SunGard Capital Corp. II, which is wholly owned by SunGard Capital Corp. SunGard Capital Corp. II and SunGard Capital Corp. are collectively referred to as the Parent Companies. All four of these companies were formed for the purpose of
facilitating the Transaction.

Although SunGard continued as the same legal entity after the Transaction, the accompanying consolidated
balance sheets, statements of operations, cash flows and stockholders equity are presented for two periods: Predecessor and Successor, which relate to the period preceding the Transaction and the period succeeding the Transaction,
respectively. The Company refers to the operations of SunGard and subsidiaries for both the Predecessor and Successor periods. We have prepared our discussion of the results of operations by comparing the mathematical combination, without making any
pro forma adjustments, of the Successor and Predecessor periods in the year ended December 31, 2005 to the year ended December 31, 2004. Although this presentation does not comply with generally accepted accounting principles (GAAP), we
believe it provides the most meaningful comparison of our results. The combined operating results have not been prepared as pro forma results under applicable regulations, may not reflect the actual results we would have achieved absent the
Transaction and may not be predictive of future results of operations.

In FS, we primarily serve financial services institutions through a
broad range of complementary software solutions that process their investment and trading transactions. These solutions are grouped into the following business areas: (1) institutional asset management and securities servicing systems;
(2) trading, treasury and risk management systems; (3) wealth management and brokerage systems; and (4) benefit administration and insurance systems. The principal purpose of most of these systems is to automate the many detailed
processes associated with trading securities, managing investment portfolios and accounting for investment assets.

In HEPS, we primarily
provide specialized enterprise resource planning and administrative software and services to institutions of higher education, school districts and other not-for-profit



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organizations, as well as state and local governments. We significantly expanded this segment through three acquisitions during 2003-2004, including the
February 2004 acquisition of Systems & Computer Technology Corporation (SCT), a leading global provider of technology solutions for higher education. We had two additional acquisitions in 2005. See Note 2 of Notes to
Consolidated Financial Statements.

In AS, we help our customers maintain uninterrupted access to the information and computer systems they
need to run their businesses by providing them with cost-effective resources to keep their information technology, or IT, reliable and secure. We offer a continuum of availability services from always ready standby solutions to
always on production services. We also provide professional services to help our customers design, implement and maintain the ways they access critical information.

The following discussion includes historical and certain forward-looking information that should be read together with the accompanying Consolidated
Financial Statements and related footnotes and the discussion above of certain risks and uncertainties (see ITEM 1ARISK FACTORS) that could cause future operating results to differ materially from historical results or the expected
results indicated by forward-looking statements.

Use of Estimates and Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make
many estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. Those estimates and judgments are based on historical experience, future expectations and other factors and assumptions we believe to be
reasonable under the circumstances. We review our estimates and judgments on an ongoing basis and revise them when necessary. Actual results may differ from the original or revised estimates. A summary of our significant accounting policies is
contained in Note 1 of Notes to Consolidated Financial Statements. A description of the most critical policies follows. Our management has discussed the critical accounting policies described below with our audit committee.

Intangible Assets and Purchase Accounting

As
discussed above, the Transaction was completed on August 11, 2005 and was financed by a combination of borrowings under the Companys new senior secured credit facilities, the issuance of senior notes due 2013 and senior subordinated notes
due 2015, the funding under the Companys new receivables facilities, and the equity investment of the Sponsors, co-investors and management. The purchase price including transaction costs was approximately $11.73 billion. Purchase accounting
requires that all assets and liabilities be recorded at fair value on the acquisition date, including identifiable intangible assets separate from goodwill. Identifiable intangible assets include customer base (which includes customer contracts and
relationships), software and trade name. Goodwill represents the excess of cost over the fair value of net assets acquired. For the Transaction and for other significant acquisitions, we obtain independent appraisals and valuations of the intangible
(and certain tangible) assets acquired and certain assumed obligations as well as equity.

We seek to grow through both internal
development and the acquisition of businesses that broaden our existing product lines and service offerings and strengthen our leadership position. During the three years ended December 31, 2005, we spent approximately $1.8 billion, net of cash
acquired, to purchase 30 businesses.



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The estimated fair values and useful lives of identified intangible assets are based on many factors,
including estimates and assumptions of future operating performance and cash flows of the acquired business, estimates of cost avoidance, the nature of the business acquired, the specific characteristics of the identified intangible assets and our
historical experience and that of the acquired business. The estimates and assumptions used to determine the fair values and useful lives of identified intangible assets could change due to numerous factors, including product demand, market
conditions, regulations affecting the business model of our brokerage operations, technological developments, economic conditions and competition. The carrying values and useful lives for amortization of identified intangible assets are reviewed on
an ongoing basis, and any resulting changes in estimates could have a material adverse effect on our financial results.

When circumstances
change or at least annually, we compare the carrying value of our reporting units to their estimated fair value. If the carrying value is greater than the respective estimated fair value, we then determine if the goodwill is impaired, and whether
some or all of the goodwill should be written off as a charge to operations, which could have a material adverse effect on our financial results. The estimate of fair value requires various assumptions including the use of projections of future cash
flows and discount rates that reflect the risks associated with achieving the future cash flows. Changes in the underlying business could affect these estimates, which in turn could affect the fair value of the reporting unit.

In connection with certain acquisitions, we have accrued the estimated costs of closing certain facilities. Costs for closing leased facilities are
estimated based on the condition and remaining lease term of each facility, the expected closure date and an assessment of relevant market conditions, including an estimate of any sub-lease rental income we can reasonably expect to obtain at the
time of the acquisition. Costs for closing owned facilities are based on the difference between the estimated net proceeds from a sale of the facility and its carrying value. These estimates are based on an assessment of the condition of the
facility, its location and relevant market conditions. The estimated cost of closing our existing facilities is included in merger costs, and the estimated cost of closing acquired facilities is included in goodwill. Merger costs or goodwill could
change due to the finalization of plans for closing facilities and completion of valuations, as well as the settlement of lease obligations or sale of owned facilities. A change in market conditions after the acquisition date could change the
estimated costs for closing facilities and would result in a charge or credit to merger costs, which could have a material effect on our financial results.

Revenue Recognition

We recognize revenue in accordance with SEC Staff Accounting Bulletin No. 104, Revenue
Recognition (SAB 104). SAB 104 requires that the following criteria be met in determining whether revenue has been earned: persuasive evidence of an arrangement exists; delivery has occurred or services have been provided; the price is
fixed or determinable; and collectibility is reasonably assured.

We generate services revenue from availability services, processing
services, software maintenance and rentals, professional services, broker/dealer fees and hardware rentals. All services revenue is recorded as the services are provided based on the fair value of each element. Fair value is determined based on the
sales price of each element when sold separately. Most AS services revenue consists of fixed monthly fees based upon the specific computer configuration or business process for which the service is being provided, and the related costs are incurred
ratably over the contract period. When recovering from an interruption, customers generally are contractually obligated to pay additional fees, which typically cover our incremental costs of supporting customers during recoveries.



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FS services revenue includes monthly fees, which may include a fixed minimum fee and/or variable fees based on a measure of volume or activity, such as the
number of users, accounts, trades or transactions or the number of hours of service.

For fixed-fee professional services contracts,
services revenue is recorded based upon the estimated percentage of completion, measured by the actual number of hours incurred divided by the total estimated number of hours for the project. When fixed-fee contracts include both professional
services and software and require a significant amount of program modification or customization, installation, systems integration or related services, the professional services and license revenue is recorded based upon the estimated percentage of
completion, measured in the manner described above. Changes in the estimated costs or hours to complete the contract are reflected in the period during which the change becomes known. Losses, if any, are recognized immediately.

License fees result from contracts that permit the customer to use our software products at its site. Generally, these contracts are multiple-element
arrangements since they usually provide for professional services and ongoing software maintenance. In these instances, license fees are recognized upon the signing of the contract and delivery of the software if the license fee is fixed, collection
is probable, and there is sufficient evidence of the fair value of each undelivered element. Revenue is recorded over the contract period when customer payments are extended beyond normal billing terms, or when there is significant acceptance,
technology or service risk. Revenue also is recorded over the contract period in those instances where the software is bundled together with computer equipment or other post-delivery services, and there is not sufficient evidence of the fair value
of each element.

We believe that our revenue recognition practices comply with the complex and evolving rules governing revenue
recognition. Future interpretations of existing accounting standards, new standards or changes in our business practices could result in changes in our revenue recognition accounting policies that could have a material effect on our financial
results.

Accounting for Income Taxes

SFAS No. 109, Accounting for Income Taxes, establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or
refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entitys financial statements or tax returns. Considerable judgment is required in assessing and
estimating these amounts and differences between the actual outcome of these future tax consequences and our estimates could have a material effect on our financial results.

Accounting for Stock-Based Compensation

As of the date of the Transaction, the Company
adopted SFAS No. 123R (revised 2004), Share-Based Payment (SFAS 123R), using the modified prospective method, which requires companies to record stock compensation expense for all unvested and new awards as of the adoption date.
Accordingly, prior period amounts have not been restated. Under the fair value recognition provisions of SFAS 123R, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over
the requisite service period. Determining the fair value of stock-based awards at the grant date requires considerable judgment, including estimating the expected term of stock options, expected volatility of our stock, and the number of stock-based
awards expected to be forfeited due to future terminations. In addition, for stock-based awards where vesting is dependent upon achieving certain operating performance goals, we estimate the likelihood of achieving the performance goals. Differences
between actual results and these estimates could have a material



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effect on our financial results. A deferred income tax asset is recorded over the vesting period as stock compensation expense is recorded. The realizability
of the deferred tax asset is ultimately based on the actual value of the stock-based award upon exercise. If the actual value is lower than the fair value determined on the date of grant, then there could be an income tax expense for the portion of
the deferred tax asset that is not realizable. This income tax expense could have a material effect on our financial results.

Results of Operations

The following table sets forth, for the periods indicated, certain amounts included in our Consolidated Statements of Operations and
the relative percentage that those amounts represent to consolidated revenue (unless otherwise indicated).



|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|----------------------------------------------------- |  | ----------------------- | ----- | - | ------------------------------------------ | --- | -- | -------------------------------------------- | - | ----- | --------------------------- |  | --- | -- |  | - | ----- | - |  | - | ----- | - | ----------- | - | ----- | - |  | --- | --
|                                                      |  | Predecessor             |       |   | Successor                                  |     |    | Combined(1)                                  |  
|                                                      |  | Year Ended December 31, |       |   | Period fromJanuary 1throughAugust 10, 2005 |     |    | Period
fromAugust 11throughDecember 31, 2005 |   |       | Year endedDecember 31, 2005 | 
|                                                      |  | 2003                    |       |   | 2004                                       |     |    |                                              |  
|(in millions)                                         |  |                         |       |   | % ofrevenue                                |     |    |                                              |   |       | % ofrevenue                 |  |     |    |  |   |       |   |  |   |       |   | % ofrevenue |  
|Revenue                                               |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|Financial systems (FS)                                |  | $                       | 1,646 |   |                                            | 56  | %  |                                              | $ | 1,871 |                             |  | 53  | %  |  | $ | 1,120 |   |  | $ | 786   |   |             | $ | 1,906 |   |  | 48  | % 
|Higher education and public sector systems (HEPS)     |  |                         | 179   |   |                                            | 6   | %  |                                              |   | 525   |                             |  | 15  | %  |  |   | 471   |   |  |   | 317   |   |             |   | 788   |   |  | 20  | % 
|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|Software & processing solutions                       |  |                         | 1,825 |   |                                            | 62  | %  |                                              |   | 2,396 |                             |  | 67  | %  |  |   | 1,591 |   |  |   | 1,103 |   |             |   | 2,694 |   |  | 67  | % 
|Availability services (AS)                            |  |                         | 1,130 |   |                                            | 38  | %  |                                              |   | 1,160 |                             |  | 33  | %  |  |   | 780   |   |  |   | 528   |   |             |   | 1,308 |   |  | 33  | % 
|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|                                                      |  | $                       | 2,955 |   |                                            | 100 | %  |                                              | $ | 3,556 |                             |  | 100 | %  |  | $ | 2,371 |   |  | $ | 1,631 |   |             | $ | 4,002 |   |  | 100 | % 
|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|Costs and Expenses                                    |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|Cost of sales and direct operating                    |  | $                       | 1,292 |   |                                            | 44  | %  |                                              | $ | 1,608 |                             |  | 45  | %  |  | $ | 1,119 |   |  | $ | 741   |   |             | $ | 1,860 |   |  | 46  | % 
|Sales, marketing and administration                   |  |                         | 536   |   |                                            | 18  | %  |                                              |   | 665   |                             |  | 19  | %  |  |   | 456   |   |  |   | 343   |   |             |   | 799   |   |  | 20  | % 
|Product development                                   |  |                         | 195   |   |                                            | 7   | %  |                                              |   | 236   |                             |  | 7   | %  |  |   | 154   |   |  |   | 96    |   |             |   | 250   |   |  | 6   | % 
|Depreciation and amortization                         |  |                         | 223   |   |                                            | 8   | %  |                                              |   | 218   |                             |  | 6   | %  |  |   | 141   |   |  |   | 89    |   |             |   | 230   |   |  | 6   | % 
|Amortization of acquisition-related intangible assets |  |                         | 89    |   |                                            | 3   | %  |                                              |   | 119   |                             |  | 3   | %  |  |   | 84    |   |  |   | 147   |   |             |   | 231   |   |  | 6   | % 
|Merger costs                                          |  |                         | (3    | ) |                                            |    |    |                                              |   | 6     |                             |  |    |    |  |   | 121   |   |  |   | 18    |   |             |   | 139   |   |  | 3   | % 
|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|                                                      |  | $                       | 2,332 |   |                                            | 79  | %  |                                              | $ | 2,852 |                             |  | 80  | %  |  | $ | 2,075 |   |  | $ | 1,434 |   |             | $ | 3,509 |   |  | 88  | % 
|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|Operating Income                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|Financial systems(2)                                  |  | $                       | 321   |   |                                            | 20  | %  |                                              | $ | 319   |                             |  | 17  | %  |  | $ | 183   |   |  | $ | 104   |   |             | $ | 287   |   |  | 15  | % 
|Higher education and public sector systems(2)         |  |                         | 22    |   |                                            | 12  | %  |                                              |   | 82    |                             |  | 16  | %  |  |   | 76    |   |  |   | 47    |   |             |   | 123   |   |  | 16  | % 
|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|Software & processing solutions(2)                    |  |                         | 343   |   |                                            | 19  | %  |                                              |   | 401   |                             |  | 17  | %  |  |   | 259   |   |  |   | 151   |   |             |   | 410   |   |  | 15  | % 
|Availability services(2)                              |  |                         | 321   |   |                                            | 28  | %  |                                              |   | 365   |                             |  | 31  | %  |  |   | 197   |   |  |   | 128   |   |             |   | 325   |   |  | 25  | % 
|Corporate administration                              |  |                         | (44   | ) |                                            | (1  | )% |                                              |   | (56   | )                           |  | (2  | )% |  |   | (39   | ) |  |   | (64   | ) |             |   | (103  | ) |  | (3  | )%
|Merger costs                                          |  |                         | 3     |   |                                            |    |    |                                              |   | (6    | )                           |  |    |    |  |   | (121  | ) |  |   | (18   | ) |             |   | (139  | ) |  | (3  | )%
|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   
|                                                      |  | $                       | 623   |   |                                            | 21  | %  |                                              | $ | 704   |                             |  | 20  | %  |  | $ | 296   |   |  | $ | 197   |   |             | $ | 493   |   |  | 12  | % 
|                                                      |  |                         |       |   |                                            |     |    |                                              |   |       |                             |  |     |    |  |   |       |   |  |   |       |   |             |   |       |   |  |     |   

---

|(1) | Our combined results for the year ended December 31, 2005 represent the addition of the Predecessor period from January 1, 2005 through August 10, 2005 and the
Successor period from August 11, 2005 through December 31, 2005. This combination does not comply with GAAP or with the rules for pro forma presentation, but is presented because we believe it provides the most meaningful comparison of our
results.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Percent of revenue is calculated as a percent of revenue from FS, HEPS, Software & Processing Solutions, and AS, respectively.
|--- | ------------------------------------------------------------------------------------------------------------------------------



31



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##### Table of Contents

The following table sets forth, for the periods indicated, certain supplemental revenue data and the
relative percentage that those amounts represent to total revenue.



|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|------------------------------------------ |  | ----------------------- | ----- | ----------- | ------------------------------------------ | ----------- | -------------------------------------------- | - | --------------------------- |  | --- | - |  | - | ----- |  | - | ----------- |  | - | ----- |  | --- | -
|                                           |  | Predecessor             |       | Successor   |                                            | Combined(1) |                                             
|                                           |  | Year Ended December 31, |       |             | Period fromJanuary 1throughAugust 10, 2005 |             | Period
fromAugust 11throughDecember 31, 2005 |   | Year endedDecember 31, 2005 | 
|                                           |  | 2003                    |       |             | 2004                                       |             |                                              |   |                            
|(in millions)                              |  |                         |       | % ofrevenue |                                            |             |                                              |   | % ofrevenue                 |  |     |   |  |   |       |  |   | % ofrevenue | 
|Financial Systems                          |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Services                                   |  | $                       | 1,430 |             | 48                                         | %           |                                              | $ | 1,630                       |  | 46  | % |  | $ | 968   |  | $ | 648         |  | $ | 1,616 |  | 40  | %
|License and resale fees                    |  |                         | 165   |             | 6                                          | %           |                                              |   | 166                         |  | 5   | % |  |   | 99    |  |   | 104         |  |   | 203   |  | 5   | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Total products and services                |  |                         | 1,595 |             | 54                                         | %           |                                              |   | 1,796                       |  | 51  | % |  |   | 1,067 |  |   | 752         |  |   | 1,819 |  | 45  | %
|Reimbursed expenses                        |  |                         | 51    |             | 2                                          | %           |                                              |   | 75                          |  | 2   | % |  |   | 53    |  |   | 34          |  |   | 87    |  | 2   | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|                                           |  | $                       | 1,646 |             | 56                                         | %           |                                              | $ | 1,871                       |  | 53  | % |  | $ | 1,120 |  | $ | 786         |  | $ | 1,906 |  | 48  | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Higher Education and Public Sector Systems |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Services                                   |  | $                       | 127   |             | 4                                          | %           |                                              | $ | 418                         |  | 12  | % |  | $ | 393   |  | $ | 257         |  | $ | 650   |  | 16  | %
|License and resale fees                    |  |                         | 22    |             | 1                                          | %           |                                              |   | 96                          |  | 3   | % |  |   | 70    |  |   | 55          |  |   | 125   |  | 3   | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Total products and services                |  |                         | 149   |             | 5                                          | %           |                                              |   | 514                         |  | 14  | % |  |   | 463   |  |   | 312         |  |   | 775   |  | 19  | %
|Reimbursed expenses                        |  |                         | 30    |             | 1                                          | %           |                                              |   | 11                          |  |    |   |  |   | 8     |  |   | 5           |  |   | 13    |  |    |  
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|                                           |  | $                       | 179   |             | 6                                          | %           |                                              | $ | 525                         |  | 15  | % |  | $ | 471   |  | $ | 317         |  | $ | 788   |  | 20  | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Software & Processing Solutions            |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Services                                   |  | $                       | 1,557 |             | 53                                         | %           |                                              | $ | 2,048                       |  | 58  | % |  | $ | 1,361 |  | $ | 905         |  | $ | 2,266 |  | 57  | %
|License and resale fees                    |  |                         | 187   |             | 6                                          | %           |                                              |   | 262                         |  | 7   | % |  |   | 169   |  |   | 159         |  |   | 328   |  | 8   | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Total products and services                |  |                         | 1,744 |             | 59                                         | %           |                                              |   | 2,310                       |  | 65  | % |  |   | 1,530 |  |   | 1,064       |  |   | 2,594 |  | 65  | %
|Reimbursed expenses                        |  |                         | 81    |             | 3                                          | %           |                                              |   | 86                          |  | 2   | % |  |   | 61    |  |   | 39          |  |   | 100   |  | 2   | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|                                           |  | $                       | 1,825 |             | 62                                         | %           |                                              | $ | 2,396                       |  | 67  | % |  | $ | 1,591 |  | $ | 1,103       |  | $ | 2,694 |  | 67  | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Availability Services                      |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Services                                   |  | $                       | 1,104 |             | 37                                         | %           |                                              | $ | 1,132                       |  | 32  | % |  | $ | 765   |  | $ | 513         |  | $ | 1,278 |  | 32  | %
|License and resale fees                    |  |                         | 23    |             | 1                                          | %           |                                              |   | 20                          |  | 1   | % |  |   | 10    |  |   | 7           |  |   | 17    |  |    |  
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Total products and services                |  |                         | 1,127 |             | 38                                         | %           |                                              |   | 1,152                       |  | 32  | % |  |   | 775   |  |   | 520         |  |   | 1,295 |  | 32  | %
|Reimbursed expenses                        |  |                         | 3     |             |                                           |             |                                              |   | 8                           |  |    |   |  |   | 5     |  |   | 8           |  |   | 13    |  |    |  
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|                                           |  | $                       | 1,130 |             | 38                                         | %           |                                              | $ | 1,160                       |  | 33  | % |  | $ | 780   |  | $ | 528         |  | $ | 1,308 |  | 33  | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Total Revenue                              |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Services                                   |  | $                       | 2,661 |             | 90                                         | %           |                                              | $ | 3,180                       |  | 89  | % |  | $ | 2,126 |  | $ | 1,418       |  | $ | 3,544 |  | 89  | %
|License and resale fees                    |  |                         | 210   |             | 7                                          | %           |                                              |   | 282                         |  | 8   | % |  |   | 179   |  |   | 166         |  |   | 345   |  | 9   | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|Total products and services                |  |                         | 2,871 |             | 97                                         | %           |                                              |   | 3,462                       |  | 97  | % |  |   | 2,305 |  |   | 1,584       |  |   | 3,889 |  | 97  | %
|Reimbursed expenses                        |  |                         | 84    |             | 3                                          | %           |                                              |   | 94                          |  | 3   | % |  |   | 66    |  |   | 47          |  |   | 113   |  | 3   | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  
|                                           |  | $                       | 2,955 |             | 100                                        | %           |                                              | $ | 3,556                       |  | 100 | % |  | $ | 2,371 |  | $ | 1,631       |  | $ | 4,002 |  | 100 | %
|                                           |  |                         |       |             |                                            |             |                                              |   |                             |  |     |   |  |   |       |  |   |             |  |   |       |  |     |  

---

|(1) | Our combined results for the year ended December 31, 2005 represent the addition of the Predecessor period from January 1, 2005 through August 10, 2005 and the
Successor period from August 11, 2005 through December 31, 2005. This combination does not comply with GAAP or with the rules for pro forma presentation, but is presented because we believe it provides the most meaningful comparison of our
results.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



32



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##### Table of Contents

Year Ended December 31, 2005 Compared to Year Ended December 31, 2004

Income from Operations:

Our total operating
margin was 12% for the year ended December 31, 2005 compared to 20% for the year ended December 31, 2004, due primarily to a $133 million increase in merger costs and $107 million from purchase accounting adjustments resulting from the
Transaction. The negative impact on total operating margin of the increase in merger costs and purchase accounting adjustments resulting from the Transaction was 610 basis points (one hundred basis points equals one percentage point). The purchase
accounting adjustments included incremental amortization of acquisition-related intangible assets of $86 million and the adjustment of deferred revenue to fair value at the date of the Transaction (the deferred revenue adjustment) of $21 million.
The preliminary allocation of the purchase price was based upon preliminary valuation data and our estimates and assumptions are subject to change. In addition, $47 million in the aggregate, which was related to the relocation of an AS facility,
stock-based compensation and other expenses, caused a 120 basis point decline in the total operating margin. The balance of the decline in total operating margin is primarily the result of businesses acquired in 2005.

Financial Systems

The FS operating
margin was 15% for the year ended December 31, 2005 compared to 17% for the year ended December 31, 2004. There was a negative impact on the FS margin of 270 basis points due to purchase accounting adjustments resulting from the
Transaction, including incremental amortization ($46 million) and the deferred revenue adjustment ($7 million).

The most important factors
affecting the FS operating margin are:



| |  |  | the operating margins of recently acquired businesses, which tend to be lower at the outset and improve over a number of years,
| | - |  | -------------------------------------------------------------------------------------------------------------------------------



| |  |  | the level of IT spending and its impact on the overall demand for professional services and software license sales,
| | - |  | -------------------------------------------------------------------------------------------------------------------



| |  |  | the rate and value of contract renewals and contract terminations,
| | - |  | ------------------------------------------------------------------



| |  |  | continued pressure on pricing both in contract renewals and new contract signings,
| | - |  | ----------------------------------------------------------------------------------



| |  |  | the level of trading volumes, and
| | - |  | ---------------------------------



| |  |  | the overall condition of the financial services industry and the effect of any further consolidation among financial services firms.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------

Higher Education and Public Sector Systems

The HEPS operating margin was 16% in each of the years ended December 31, 2005 and 2004, respectively. The impact of the purchase accounting adjustments resulting from the Transaction was immaterial.

Availability Services

The AS
operating margin was 25% for the year ended December 31, 2005 compared to 31% for the year ended December 31, 2004. There was a negative impact of 320 basis points on the AS margin due to the purchase accounting adjustments resulting from
the Transaction, including incremental amortization ($37 million) and the deferred revenue adjustment ($8 million). The AS margin decreased



33



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##### Table of Contents

by 220 basis points due to the lower margin associated with a business acquired in January 2005 as well as a one-time charge of $12 million related to the
relocation of an AS facility.

The most important factors affecting the AS operating margin are:



| |  |  | the rate and value of contract renewals, new contract signings and contract terminations,
| | - |  | -----------------------------------------------------------------------------------------



| |  |  | the timing and magnitude of equipment and facilities expenditures, and
| | - |  | ----------------------------------------------------------------------



| |  |  | the trend toward availability solutions utilizing more dedicated resources.
| | - |  | ---------------------------------------------------------------------------

The margin rate of the AS European business is inherently lower than the margin rate of the North American business due primarily to lower economies of scale in the distinct geographic markets served and, to a lesser
extent, a higher percentage of always on solutions.

Revenue:

Total revenue was $4.0 billion for the year ended December 31, 2005 compared to $3.56 billion for the year ended December 31, 2004. The increase
in total revenue in 2005 was due to $360 million from recently acquired businesses and to internal revenue growth of approximately 6.5%, offset in part by a decrease of $129 million due to the sale of Brut LLC in September 2004 and the deferred
revenue adjustment of $21 million. The rate of growth in internal revenue increased to approximately 6.5% in 2005 compared to approximately 2% in 2004, reflecting improvements in all three segments. Internal revenue is defined as revenue from
businesses owned for at least one year and excludes the deferred revenue adjustment and revenue from Brut LLC. When assessing our financial results, we focus on growth in internal revenue because overall revenue growth is affected by the timing and
magnitude of acquisitions and dispositions and by purchase price accounting adjustments resulting from the Transaction.

Services revenue,
which is largely recurring in nature, includes revenue from availability services, processing services, software support and rentals, professional services, broker/dealer fees and hardware rentals. Services revenue increased to $3.5 billion from
$3.2 billion, representing approximately 89% of total revenue in both 2005 and 2004. The revenue increase in 2005 was due primarily to the impact of acquired businesses, especially in HEPS and AS, and to internal revenue growth in all three
segments, offset in part by the sale of Brut LLC.

Professional services revenue was $644 million and $523 million in 2005 and 2004,
respectively. The increase was due primarily to acquired businesses and improvement in HEPS and benefit administration and insurance systems.

Revenue from license and resale fees was $345 million and $282 million for the years ended December 31, 2005 and 2004, respectively, and includes software license revenue of $266 million and $217 million, respectively. The increases
were due primarily to internal revenue growth in FS and HEPS. At December 31, 2004, we had a software license backlog of $19 million, most of which was recognized as revenue in the first quarter of 2005.

Financial Systems

FS revenue was
$1.91 billion for the year ended December 31, 2005 compared to $1.87 billion for the year ended December 31, 2004. Services revenue decreased $14 million and license and resale fees increased $37 million. The net decrease in services
revenue reflects the impact of the sale of Brut LLC



34



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##### Table of Contents

which had $129 million in total revenue and $110 million in services revenue in 2004. FS internal revenue increased approximately 6% in 2005, compared to
approximately 2% in 2004, reflecting broad-based improvements across the segment, especially in trading, treasury and risk management systems and wealth management and brokerage systems.

Higher Education and Public Sector Systems

HEPS revenue was $788 million for the year ended December 31, 2005 compared to $525 million for the year ended December 31, 2004. Services revenue increased $232 million and license and resale fees increased $29 million due to
recently acquired businesses and to internal revenue growth of approximately 12%.

Availability Services

AS revenue was $1.31 billion for the year ended December 31, 2005 compared to $1.16 billion for the year ended December 31, 2004. The increase
was due primarily to a business acquired in January 2005 and to internal revenue growth. AS internal revenue increased approximately 5% in 2005 and approximately 3% in 2004 due primarily to growth in North America.

Costs and Expenses:

Total costs and expenses as a
percentage of revenue were 88% and 80% for the year ended December 31, 2005 and 2004, respectively. The increase was due primarily to the $133 million increase in merger costs and the incremental amortization of acquisition-related intangible
assets of $86 million resulting from the Transaction.

Cost of sales and direct operating expenses as a percentage of total revenue were
46% for the year ended December 31, 2005 compared to 45% for the year ended December 31, 2004. The increase of $252 million was due primarily to acquired businesses, reimbursable clearing broker costs, and a one-time charge in the first
quarter of 2005 of $12 million related to the relocation of an AS facility, offset in part by a decrease in expenses due to the sale of Brut LLC. The one-time AS facility charge related to the relocation of a leased availability services facility in
North Bergen, New Jersey, which was acquired in 2001 as part of the Comdisco, Inc. availability services business. The equipment in this facility has been relocated to an expanded facility in Carlstadt, New Jersey, thereby improving the operational
resilience and scope of services available to customers.

Sales, marketing and administration expenses as a percentage of total revenue
were 20% for the year ended December 31, 2005 compared to 19% for the year ended December 31, 2004. The increase of $134 million was due primarily to acquired businesses and a non-cash charge of $29 million for stock-based compensation
(see Note 6 of Notes to Consolidated Financial Statements).

Because AS product development costs are insignificant, it is more meaningful
to measure product development expense as a percentage of revenue from software and processing solutions. For the year ended December 31, 2005 and 2004, software development expenses were 9% and 10% of revenue from software and processing
solutions, respectively.

Depreciation and amortization was consistent as a percentage of total revenue at 6% for the years ended
December 31, 2005 and 2004. The $12 million increase in 2005 was due primarily to acquired businesses.



35



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##### Table of Contents

Amortization of acquisition-related intangible assets was 6% of total revenue for the year ended
December 31, 2005 compared to 3% for the year ended December 31, 2004. Amortization of acquisition-related intangible assets increased $112 million in 2005 due to the impact of the Transaction as well as recent acquisitions made by the
Company.

In 2005, we recorded merger costs of $139 million in connection with costs associated with the Transaction. See Note 2 of Notes
to Consolidated Financial Statements.

Interest income was $15 million for the year ended December 31, 2005 compared to $8 million for
the year ended December 31, 2004. The increase was due primarily to interest earned on higher average invested balances. Interest expense was $265 million for the year ended December 31, 2005 compared to $29 million for the year ended
December 31, 2004. The increase was due to the $7.3 billion in debt incurred in connection with the Transaction, and includes amortization of debt issuance costs and debt discounts of $23 million.

Other income (expense) decreased $95 million in the year ended December 31, 2005 due to the gain associated with the sale of Brut LLC in September
2004. Other income (expense) in 2005 includes the loss on sale of accounts receivable and discount on retained interests of $18 million (see Note 5 of Notes to Consolidated Financial Statements).

The effective tax rate was 48% for the year 2005 compared to 40% for the year 2004. The higher effective tax rate in 2005 was due to non-deductible
merger costs and, to a lesser extent, repatriation of undistributed earnings of foreign subsidiaries under the American Jobs Creation Act of 2004.

Year
Ended December 31, 2004 Compared to Year Ended December 31, 2003

Income from Operations:

Our total operating margin declined to 20% from 21% in 2003 due primarily to the initial aggregate impact of the lower margin businesses acquired in 2004.

Financial Systems

The
FS operating margin declined 190 basis points in 2004. Most of this decline was attributable to the following: a $13 million decrease in internal software license fee revenue; the initial aggregate impact of FS businesses acquired in 2004; a $5
million reduction in the carrying value of our investment in New York Stock Exchange seats; and the effect of including our output solutions business in FS starting January 1, 2004.

Higher Education and Public Sector Systems

The HEPS operating margin was 16% and 12% in 2004 and 2003, respectively. The margin in 2004 is driven almost entirely by the margins of businesses acquired in 2004.

Availability Services

The AS
operating margin was 31% and 28% in 2004 and 2003, respectively. The higher margin in 2004 was due primarily to lower depreciation expense because of short-lived assets acquired in 2001 becoming fully depreciated, a decrease in commission expense
resulting from lower sales, lower costs associated with certain recovery resources, and collection of reserved accounts receivable.



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##### Table of Contents

Revenue:

Due to the sale of Brut LLC in September of 2004, we present internal revenue growth excluding and including Brut LLC as follows:



|                        |  |                        |   |  |      |   
|----------------------- |  | ---------------------- | - |  | ---- | --
|                        |  | Year endedDecember 31, |  
|Internal Revenue Growth |  | 2004                   |   |  | 2003 |   
|Excluding Brut          |  |                        |   |  |      |   
|Total SunGard           |  | 2                      | % |  | (2   | %)
|Financial Systems       |  | 2                      | % |  | (5   | %)
|                        |  |                       
|Including Brut          |  |                        |   |  |      |   
|Total SunGard           |  | 4                      | % |  | 0    | % 
|Financial Systems       |  | 5                      | % |  | (2   | %)

The following discussions of internal revenue growth are based on internal revenue excluding Brut
LLC.

Total revenue increased $601 million in 2004. Internal revenue increased approximately 2% in 2004 and decreased approximately 2% in
2003. Currency fluctuation had a positive impact of approximately 2% on internal revenue in both years. The improvement in the 2004 internal revenue growth rate was driven by an increase in services revenue, including professional services, offset
in part by a decline in license fees.

Services revenue increased to $3.2 billion from $2.7 billion, representing approximately 89% and 90%
of total revenue in 2004 and 2003, respectively. The revenue increase in 2004 was due primarily to acquired businesses and to increases in AS, wealth management and brokerage systems, and benefit administration and insurance systems.

Professional services revenue was $523 million and $376 million in 2004 and 2003, respectively. The increase was due to acquired businesses and
improvement in benefit administration and insurance systems.

Revenue from license and resale fees was $282 million and $210 million in
2004 and 2003, respectively, and included software license revenue of $217 million and $172 million, respectively. The increase in software license fees was due primarily to acquired businesses and improvement in benefit administration and insurance
systems. We ended 2004 with a software license backlog, which consisted of signed contracts for licensed software that at our election or the election of our customer was not shipped to the customer until 2005, with the result that the license fees
were recognized as revenue in 2005. The 2004 backlog was higher than usual, totaling $19 million, with the largest portion coming from license-fee businesses acquired in 2004.

Financial Systems

Total FS revenue
increased $225 million in 2004. FS internal revenue increased approximately 2% in 2004 compared to a decrease of approximately 5% in 2003. Currency fluctuation had a positive impact of approximately 2% on internal revenue in both years.

FS services revenue increased $200 million, and license and resale fees increased $1 million. The increase in services revenue was due primarily to
$135 million from acquired businesses and to



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##### Table of Contents

increases in wealth management and brokerage systems and benefit administration and insurance systems. FS internal professional services revenue improved in
2004 by $14 million, or 5%, after declining for two consecutive years.

Reimbursed expenses revenue increased $24 million in 2004 primarily
due to the inclusion, effective January 1, 2004, of our output solutions business in FS.

Higher Education and Public Sector
Systems

Revenue from HEPS increased $346 million in 2004. HEPS services revenue increased $291 million and license and resale fees
increased $73 million, with both increases due to acquired businesses. Reimbursed expenses revenue decreased $18 million in 2004, due primarily to the effect of including our output solutions business in FS beginning January 1, 2004.

Availability Services

AS revenue, which was all internal, increased $30 million, or 3%, in 2004 compared to an internal revenue increase of approximately 3% in 2003. Currency fluctuation had a positive impact of approximately 2% on internal revenue in both
years. The primary factors for the lower internal revenue growth were new sales offset by the loss of business to customers taking certain of their availability solutions in-house, as well as the pressure that this and other competitive and
technological factors had on prices.

Costs and Expenses:

Total costs and expenses as a percentage of revenue were relatively consistent during 2004 and 2003.

Cost
of sales and direct operating expenses increased as a percentage of total revenue to 45% in 2004 compared to 44% in 2003. The increase was due to acquired businesses and trading, treasury and risk management systems.

Sales, marketing and administration expenses increased $129 million in 2004 due to acquired businesses and, to a lesser extent, increased corporate
expenses.

Because AS product development costs are insignificant, it is more meaningful to measure product development expense as a
percentage of revenue from software and processing solutions. In 2004, product development expenses were 10% of revenue from software and processing solutions, compared to 11% in 2003.

Depreciation and amortization declined to 6% of total revenue in 2004 compared to 8% in 2003 because certain short-lived AS assets acquired in 2001 were
fully depreciated.

Amortization of acquisition-related intangible assets increased $30 million in 2004 due to recently acquired
businesses.

In 2004, we recorded a gain of $78 million in connection with the sale of Brut LLC, and merger and spin-off costs of $6
million. In 2003, we recorded a benefit of $3 million from the reversal of previously recorded merger costs. See Note 2 of Notes to Consolidated Financial Statements.



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Interest income in 2004 and 2003 was $8 million and $6 million, respectively. Interest expense in 2004
and 2003 was $29 million and $11 million, respectively. The increase in interest expense was due to the issuance of $500 million in senior unsecured notes in January 2004.

Liquidity and Capital Resources

At December 31, 2005, cash and cash equivalents were $317
million, a decrease of $358 million from December 31, 2004. Cash flow from operations was $1.3 billion in the year ended December 31, 2005 compared to cash flow from operations of $785 million in the year ended December 31, 2004. The
increase in cash flow from operations is due primarily to the sale of accounts receivable under our long-term receivables facility and lower initial working capital requirements of businesses acquired in 2005 compared to those acquired in 2004.

Net cash used in investing activities was $12.4 billion in the year ended December 31, 2005, including $11.6 billion in connection
with the Transaction, $538 million (net of cash acquired) for eleven acquisitions and $274 million for net capital expenditures. Net cash used in investing activities was $845 million in the year ended December 31, 2004, which is net of $194
million cash received from the sale of Brut LLC and other businesses. During 2004, we spent $799 million (net of cash acquired) for ten acquisitions and $240 million on capital expenditures.

Net cash provided by financing activities was $10.7 billion for the year ended December 31, 2005, primarily related to Transaction-related financing
activities of $7.33 billion of new debt and $3.45 billion of equity contributions by SunGard Holdco LLC, the Companys parent. Net cash provided by financing activities was $256 million in 2004.

At December 31, 2005, contingent purchase price obligations that depend upon the operating performance of certain acquired businesses cannot exceed
$125 million, none of which we currently expect to pay. We also have outstanding letters of credit and bid bonds that total approximately $47 million.

As a result of the Transaction, we are highly leveraged and our debt service requirements are significant. At December 31, 2005, our total indebtedness was $7.43 billion and we had $980 million ($831 million at
March 8, 2006) available for borrowing under the revolving credit facility, after giving effect to certain outstanding letters of credit. In addition, at December 31, 2005, we had borrowed $385 million of our $450 million off-balance sheet
long-term receivables facility.

At December 31, 2005, our contractual obligations follow (in millions):



|                              |  |       |        |      |   |             |  |             |       |               |   |       |  |   |      
|----------------------------- |  | ----- | ------ | ---- | - | ----------- |  | ----------- | ----- | ------------- | - | ----- |  | - | -----
|                              |  | Total |        | 2006 |   | 2007  2008 |  | 2009  2010 |       | 2011and After
|Short-term and long-term debt |  | $     | 7,483  |      | $ | 46          |  | $           | 84    |               | $ | 331   |  | $ | 7,022
|Interest payments             |  |       | 4,591  |      |   | 604         |  |             | 1,206 |               |   | 1,176 |  |   | 1,605
|Operating leases              |  |       | 739    |      |   | 161         |  |             | 250   |               |   | 141   |  |   | 187  
|Purchase obligations          |  |       | 176    |      |   | 65          |  |             | 48    |               |   | 19    |  |   | 44   
|                              |  |       |        |      |   |             |  |             |       |               |   |       |  |   |      
|                              |  | $     | 12,989 |      | $ | 876         |  | $           | 1,588 |               | $ | 1,667 |  | $ | 8,858
|                              |  |       |        |      |   |             |  |             |       |               |   |       |  |   |      

Short-term and long-term debt excludes the impact of debt discounts of $21 million in 2009 and $33
million in 2011 and after. Purchase obligations include our estimate of the minimum outstanding obligations under noncancelable commitments to purchase goods or services.



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##### Table of Contents

We expect our cash flows from operations, combined with availability under our revolving credit and
receivables facilities, to provide sufficient liquidity to fund our current obligations, projected working capital requirements and capital spending for a period that includes the next 12 months.

The Transaction

On August 11, 2005, in
connection with the Transaction, we (i) entered into a new $5.0 billion senior secured credit facility, consisting of a $3.69 billion term loan facility with SunGard as the borrower, a $315 million-equivalent term loan facility with a U.K.
subsidiary as the borrower ($165 million of which is denominated in euros and $150 million of which is denominated in pounds sterling), and a $1.0 billion revolving credit facility ($980 million available at December 31, 2005 for borrowing
under the revolving credit facility, after giving effect to certain outstanding letters of credit), (ii) issued $3.0 billion aggregate principal amount of senior notes and senior subordinated notes and (iii) entered into receivables
securitization facilities initially totaling $375 million.

Senior Secured Credit Facilities

Borrowings under the senior secured credit facilities bear interest at a rate equal to an applicable margin plus, at our option, either (a) a base
rate determined by reference to the higher of (1) the prime rate of JPMorgan Chase Bank, N.A. and (2) the federal funds rate plus 1/2 of 1% or (b) a LIBOR rate determined by reference to the costs of funds for deposits in the currency
of such borrowing for the interest period relevant to such borrowing adjusted for certain additional costs. The applicable margin for borrowings under the revolving credit facility may be reduced subject to attaining certain leverage ratios. In
addition to paying interest on outstanding principal under the senior secured credit facilities, we pay a commitment fee to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. The initial commitment
fee rate is 0.50% per annum. The commitment fee rate may be reduced subject to attaining certain leverage ratios.

All obligations
under the senior secured credit facilities are unconditionally guaranteed by SunGard Holdco LLC and, subject to certain exceptions, by substantially all domestic wholly owned subsidiaries, referred to, collectively, as U.S. Guarantors. In addition,
the borrowings of U.K. subsidiary borrowers under the revolving credit facility are unconditionally guaranteed by certain wholly owned U.K. subsidiaries. We must also pay customary letter of credit fees.

The senior secured credit facilities require us to prepay outstanding term loans, subject to certain exceptions, with excess cash flow and in the event
of certain asset sales, casualty and condemnation events, incurrences of debt and certain financings under receivables facilities. Any mandatory prepayments would be applied pro rata to the term loan facilities and to installments of the term loan
facilities in direct order of maturity.

We are required to repay installments on the loans under the term loan facilities in quarterly
principal amounts of 0.25% of their funded total principal amount for the first seven years and three months, with the remaining amount payable on the date that is seven years and six months from the date of the closing of the senior secured credit
facilities.

Principal amounts outstanding under the revolving credit facility are due and payable in full at maturity, six years from the
date of the closing of the senior secured credit facilities.



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The senior secured credit facilities contain a number of covenants that, among other things, restrict,
subject to certain exceptions, our (and most or all of our subsidiaries) ability to incur additional indebtedness or issue preferred stock, pay dividends and distributions on or repurchase capital stock, create liens on assets, enter into sale
and leaseback transactions, repay subordinated indebtedness, make investments, loans or advances, make capital expenditures, engage in certain transactions with affiliates, amend certain material agreements, change our lines of business, sell assets
and engage in mergers or consolidations. In addition, under the senior secured credit facilities, we are required to satisfy and maintain a maximum total leverage ratio and a minimum interest coverage ratio. We were in compliance with all covenants
at December 31, 2005.

Senior Notes due 2009 and 2014

On January 15, 2004, we issued $500 million of senior unsecured notes, of which $250 million are 3.75% notes due 2009 and $250 million are 4.875% notes due 2014, which are subject to certain standard covenants.
Upon completion of the Transaction and to the extent required by their indentures, these senior notes became collateralized on an equal and ratable basis with loans under the senior secured credit facilities and are guaranteed by all subsidiaries
that guarantee the senior notes due 2013 and senior subordinated notes due 2015. The senior notes due 2009 and 2014 are recorded at $446 million as of December 31, 2005 as a result of fair value adjustments related to purchase accounting.
The discount of $54 million will continue to be amortized into interest expense and added to the recorded amounts over the remaining periods to maturity.

Senior Notes due 2013 and Senior Subordinated Notes due 2015

The senior notes due 2013 are senior unsecured obligations
that rank senior in right of payment to future debt and other obligations that are, by their terms, expressly subordinated in right of payment to the senior notes, including the senior subordinated notes. The senior notes (i) rank equally in
right of payment to all existing and future senior debt and other obligations that are not, by their terms, expressly subordinated in right of payment to the senior notes, (ii) are effectively subordinated in right of payment to all existing
and future secured debt to the extent of the value of the assets securing such debt, and (iii) are structurally subordinated to all obligations of each subsidiary that is not a guarantor of the senior notes. All obligations under the senior
notes are unconditionally guaranteed, subject to certain exceptions, by substantially all of our domestic wholly owned subsidiaries.

The
senior subordinated notes due 2015 are unsecured senior subordinated obligations that are subordinated in right of payment to the existing and future senior debt, including the senior secured credit facilities, the senior notes due 2009 and 2014 and
the senior notes due 2013. The senior subordinated notes (i) rank equally in right of payment to all future senior subordinated debt, (ii) are effectively subordinated in right of payment to all existing and future secured debt to the
extent of the value of the assets securing such debt, (iii) are structurally subordinated to all obligations of each subsidiary that is not a guarantor of the senior subordinated notes, and (iv) rank senior in right of payment to all
future debt and other obligations that are, by their terms, expressly subordinated in right of payment to the senior subordinated notes.

The senior notes due 2013 and senior subordinated notes due 2015 are redeemable in whole or in part, at our option, at any time at varying redemption prices that generally include premiums, which are defined in the applicable indentures. In
addition, upon a change of control, we are required to make an offer to redeem all of the senior notes and senior subordinated notes at a redemption price equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest.



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##### Table of Contents

The indentures governing the senior notes due 2013 and senior subordinated notes due 2015 contain a
number of covenants that restrict, subject to certain exceptions, our ability and the ability of our restricted subsidiaries to incur additional indebtedness or issue certain preferred shares, pay dividends on or make other distributions in respect
of its capital stock or make other restricted payments, make certain investments, enter into certain types of transactions with affiliates, create liens securing certain debt without securing the senior notes due 2013 or senior subordinated notes
due 2015, as applicable, sell certain assets, consolidate, merge, sell or otherwise dispose of all or substantially all of our assets and designate our subsidiaries as unrestricted subsidiaries.

Off-Balance Sheet DebtReceivables Securitization Facilities

In August 2005, certain domestic subsidiaries entered into two receivables facilities, a transitional facility and a long-term facility (the Facilities). The Facilities allow us to sell, on a revolving
basis, an undivided interest that provided, in the aggregate, up to $375 million in funding, based on the amount of eligible receivables and satisfaction of other customary conditions, for a period of up to six years following the Transaction.

As of December 31, 2005, all participating domestic subsidiaries have joined the long-term facility and there are no subsidiaries
participating in, and no borrowings under, the transitional facility. In addition, funding available under the long-term facility was increased to $450 million. Under the long-term facility, eligible receivables are sold to third-party conduits
through a wholly owned, bankruptcy remote special purpose entity that is not consolidated for financial reporting purposes. We continue to service the receivables and charge a monthly servicing fee at market rates. The third-party conduits are
sponsored by certain lenders under our senior secured credit facilities. Additional subsidiaries may become parties to the long-term facility, subject to the satisfaction of specified conditions including the completion of satisfactory due
diligence. Sales of receivables under the long-term facility qualify as sales under the provisions of FASB Statement No. 140 Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities (SFAS 140).
Accordingly, these receivables, totaling $618 million net of applicable allowances, and the corresponding borrowings, totaling $385 million, are excluded from our consolidated balance sheet as of December 31, 2005. Our retained interest in
receivables sold as of December 31, 2005 is $224 million. Expenses associated with the receivables facilities totaled $19 million for the period ended December 31, 2005, of which $18 million (representing the loss on sale of the
receivables and the discount on retained interest) is recorded in other income (expense) and the remainder (representing facility and professional fees associated with the transitional facility) is recorded in interest expense in our consolidated
statements of operations. The loss on sale of receivables was determined at the date of transfer based upon the fair value of the assets sold and the interests retained. We estimate fair value based on the present value of expected cash flows. The
collection period and discount rate (prime rate of 7.25% at December 31, 2005) are the key assumptions used in this estimate. At December 31, 2005, neither a 10% nor a 20% adverse change in the assumed collection period or assumed discount
rate would have a material impact on our financial position or results of operations.

Covenant Compliance

Our senior secured credit facilities and the indentures governing our new senior notes contain various covenants that limit our ability to engage in
specified types of transactions. These covenants limit our and our restricted subsidiaries ability to, among other things:



| |  |  | incur additional indebtedness or issue certain preferred shares;
| | - |  | ----------------------------------------------------------------



| |  |  | pay dividends on, repurchase or make distributions in respect of our capital stock or make other restricted payments;
| | - |  | ---------------------------------------------------------------------------------------------------------------------



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| |  |  | make certain investments;
| | - |  | -------------------------



| |  |  | sell certain assets;
| | - |  | --------------------



| |  |  | create liens;
| | - |  | -------------



| |  |  | consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; and
| | - |  | --------------------------------------------------------------------------------------------



| |  |  | enter into certain transactions with our affiliates.
| | - |  | ----------------------------------------------------

In
addition, pursuant to the Principal Investor Agreement by and among our four parent companies, Solar Capital Corp. and the Sponsors, dated as of August 10, 2005, we are required to obtain approval from certain of the Sponsors prior to the
declaration or payment of any dividend by us or any of our subsidiaries (other than dividends payable to us or any of our wholly owned subsidiaries).

Under the senior secured credit facilities and the long-term receivables facility, we are required to satisfy and maintain specified financial ratios and other financial condition tests. As of December 31, 2005,
we are in compliance with the financial and nonfinancial covenants. Our continued ability to meet those financial ratios and tests can be affected by events beyond our control, and we cannot assure you that we will meet those ratios and tests. A
breach of any of these covenants could result in a default under the senior secured credit facilities. Upon the occurrence of an event of default under the senior secured credit facilities, the lenders could elect to declare all amounts outstanding
under the senior secured credit facilities to be immediately due and payable and terminate all commitments to extend further credit.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP measure used to determine our compliance with certain covenants contained in the indentures governing the senior notes due 2013 and senior
subordinated notes due 2015 and in our senior secured credit facilities. Adjusted EBITDA is defined as EBITDA further adjusted to exclude unusual items and other adjustments permitted in calculating covenant compliance under the indentures and our
senior secured credit facilities. We believe that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is appropriate to provide additional information to investors to demonstrate compliance with our financing
covenants.

The breach of covenants in our senior secured credit facilities that are tied to ratios based on Adjusted EBITDA could result
in a default under that agreement, in which case the lenders could elect to declare all amounts borrowed due and payable. Any such acceleration would also result in a default under our indentures. Additionally, under our debt agreements, our ability
to engage in activities such as incurring additional indebtedness, making investments and paying dividends is also tied to ratios based on Adjusted EBITDA.

Adjusted EBITDA does not represent net income (loss) or cash flow from operations as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. While
Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements, these terms are not necessarily comparable to other similarly titled captions of other companies due to the
potential inconsistencies in the method of calculation. Adjusted EBITDA does not reflect the impact of earnings or charges resulting from matters that we may consider not to be indicative of our ongoing operations. In particular, the definition of
Adjusted EBITDA in the indentures allows us to add back certain non-cash, extraordinary, unusual or non-recurring charges that are deducted in calculating net income (loss). However, these are expenses that may recur, vary greatly and are difficult
to predict. Further, our debt instruments require that Adjusted EBITDA be calculated for the most recent four fiscal quarters. As a result, the measure can be disproportionately affected by a particularly strong or weak quarter. Further, it may not
be comparable to the measure for any subsequent four-quarter period or any complete fiscal year.



43



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##### Table of Contents

The following is a reconciliation of net income (loss), which is a GAAP measure of our operating results,
to Adjusted EBITDA as defined in our debt agreements, and the calculation of the fixed charge coverage ratio, net debt and net debt to Adjusted EBITDA ratio under the indentures governing the senior notes due 2013 and senior subordinated notes due
2015. The terms and related calculations are defined in the indentures.



|                                                                             |  |                            |       |           |                                           |   |                                             |  |   |     |   |  |   |      
|---------------------------------------------------------------------------- |  | -------------------------- | ----- | --------- | ----------------------------------------- | - | ------------------------------------------- |  | - | --- | - |  | - | -----
|                                                                             |  | Predecessor                |       | Successor |                                           |   | Year
endedDecember 31,2005                 
|(in millions)                                                                |  | Year endedDecember 31,2004 |       |           | Period fromJanuary 1throughAugust 10,2005 |   | Period fromAugust 11throughDecember 31,2005 |  |  
|Net income (loss)                                                            |  | $                          | 454   |           |                                           | $ | 146                                         |  | $ | (29 | ) |  | $ | 117  
|Interest expense, net                                                        |  |                            | 20    |           |                                           |   | 8                                           |  |   | 242 |   |  |   | 250  
|Taxes                                                                        |  |                            | 307   |           |                                           |   | 142                                         |  |   | (33 | ) |  |   | 109  
|Depreciation and amortization                                                |  |                            | 337   |           |                                           |   | 225                                         |  |   | 236 |   |  |   | 461  
|                                                                             |  |                            |       |           |                                           |   |                                             |  |   |     |   |  |   |      
|EBITDA                                                                       |  |                            | 1,118 |           |                                           |   | 521                                         |  |   | 416 |   |  |   | 937  
|Purchase accounting adjustments(1)                                           |  |                            |      |           |                                           |   |                                            |  |   | 19  |   |  |   | 19   
|Non-cash charges(2)                                                          |  |                            | 2     |           |                                           |   | 61                                          |  |   | 30  |   |  |   | 91   
|Unusual or non-recurring charges(3)                                          |  |                            | (72   | )         |                                           |   | 61                                          |  |   | 21  |   |  |   | 82   
|Restructuring charges or reserves(4)                                         |  |                            |      |           |                                           |   | 12                                          |  |   |    |   |  |   | 12   
|Acquired EBITDA, net of disposed EBITDA(5)                                   |  |                            | 57    |           |                                           |   | 17                                          |  |   |    |   |  |   | 17   
|Other(6)                                                                     |  |                            | 3     |           |                                           |   | 2                                           |  |   | 8   |   |  |   | 10   
|                                                                             |  |                            |       |           |                                           |   |                                             |  |   |     |   |  |   |      
|Adjusted EBITDASenior Secured Credit Facilities                             |  |                            | 1,108 |           |                                           |   | 674                                         |  |   | 494 |   |  |   | 1,168
|Loss on sale of receivables                                                  |  |                            |      |           |                                           |   |                                            |  |   | 18  |   |  |   | 18   
|                                                                             |  |                            |       |           |                                           |   |                                             |  |   |     |   |  |   |      
|Adjusted EBITDASenior Notes due 2013 and Senior Subordinated Notes due 2015 |  | $                          | 1,108 |           |                                           | $ | 674                                         |  | $ | 512 |   |  | $ | 1,186
|                                                                             |  |                            |       |           |                                           |   |                                             |  |   |     |   |  |   |      

---

|(1) | Purchase accounting adjustments include the adjustment of deferred revenue and lease reserves to fair value at the date of the Transaction.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Non-cash charges include stock-based compensation resulting from the acceleration of vesting of stock options and restricted stock under APB 25 due to the Transaction, new
stock-based compensation awards accounted for under SFAS 123R (see Note 6 of Notes to Consolidated Financial Statements) and loss on the sale of assets.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(3) | Unusual or non-recurring charges include merger costs associated with the Transaction, gain on the sale of Brut LLC, payroll taxes and certain compensation and other expenses
associated with acquisitions made by the Company.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(4) | Restructuring charges or reserves include the relocation of a leased availability services facility in North Bergen, New Jersey to an expanded facility in Carlstadt, New Jersey.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(5) | Acquired EBITDA net of disposed EBITDA reflects the EBITDA impact of significant businesses that were acquired or disposed of during the period as if the acquisition or disposition
occurred at the beginning of the period.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(6) | Other includes franchise and similar taxes reported in operating expenses and management fees paid to the Sponsors, offset by interest charges relating to the receivables facilities
and gains related to fluctuation of foreign currency exchange rates impacting the foreign-denominated debt.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Our covenant requirements and actual ratios for the year ended December 31, 2005 are as follows:



|                                                                                                              |  |                      |  |              
|------------------------------------------------------------------------------------------------------------- |  | -------------------- |  | -------------
|                                                                                                              |  | CovenantRequirements |  | Actual Ratios
|Senior secured credit facilities (1)                                                                          |  |                      |  |              
|Minimum Adjusted EBITDA to consolidated interest expense ratio                                                |  | 1.40x                |  | 2.08x        
|                                                                                                              |  |                      |  |              
|                                                                                                              |  |                     
|Senior Notes due 2013 and Senior Subordinated Notes due 2015 (2)                                              |  |                      |  |              
|Minimum Adjusted EBITDA to fixed charges ratio required to incur additional debt pursuant to ratio provisions |  | 2.00x                |  | 2.03x        
|                                                                                                              |  |                      |  |              

---

|(1) | Our senior secured credit facilities require us to maintain an Adjusted EBITDA to consolidated interest expense ratio starting at a minimum of 1.40x for the four-quarter period
ended December 31, 2005 and stepping up over time to 1.50x by the end of 2006 and 2.20x by the end of 2013. Consolidated interest expense is defined in the senior secured credit facilities as consolidated cash interest expense less cash
interest income further adjusted for certain noncash or nonrecurring interest expense and the elimination of interest expense and fees associated with our Receivables Facility. Beginning with the four-quarter period ending March 31, 2006, we are
also required to maintain a consolidated total debt to Adjusted EBITDA ratio starting at a maximum of 8.25x and stepping down over time to 7.75x by the end of 2006 and to 4.0x by the end of 2013. Consolidated total debt is defined in the senior
secured credit facilities as total debt less certain indebtedness and further adjusted for cash and cash equivalents on our balance sheet in excess of $50 million. Failure to satisfy these ratio requirements would constitute a default under the
senior secured credit facilities. If our lenders failed to waive any such default, our repayment obligations under the senior secured credit facilities could be accelerated, which would also constitute a default under our indentures.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Our ability to incur additional debt and make certain restricted payments under our indentures, subject to specified exceptions, is tied to an Adjusted EBITDA to fixed charges ratio
of at least 2.0x, except that we may incur certain debt and make certain restricted payments and certain permitted investments without regard to the ratio, such as our ability to incur up to an aggregate principal amount of $5.75 billion under
credit facilities (inclusive of amounts outstanding under our senior secured credit facilities from time to time; as of December 31, 2005, we had $3.97 billion outstanding under our term loan facilities and available commitments of $980 million
under our revolving credit facility), to acquire persons engaged in a similar business that become restricted subsidiaries and to make other investments equal to 6% of our consolidated assets. Fixed charges is defined in the indentures governing the
Senior Notes due 2013 and the Senior Subordinated Notes due 2015 as consolidated interest expense less interest income, adjusted for acquisitions, and further adjusted for noncash interest expense and the elimination of interest expense and fees
associated with our Receivables Facility.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

EFFECT OF RECENT ACCOUNTING
PRONOUNCEMENTS:

In September 2004, the Financial Accounting Standards Board (FASB) Emerging Issues Task Force reached a
consensus on Issue 04-01, Accounting for Pre-existing Relationships between the Parties to a Business Combination (EITF 04-01). EITF 04-01 is effective for business combinations completed in reporting periods beginning after
October 13, 2004. EITF 04-01 applies when two parties that have a pre-existing contractual relationship enter into a business combination. EITF 04-01 addresses whether a consummation of a business combination between two parties that have a
pre-existing contractual relationship should be evaluated to determine if a settlement of a pre-existing contractual relationship exists, thus requiring accounting separate from the business combination. The

adoption of EITF 04-01 on January 1, 2005 did not have a material impact on our financial position or results of operations.



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In March 2005, the FASB issued FASB Interpretation No. 47, Accounting for Conditional Asset
Retirement Obligations, an interpretation of FASB Statement No. 143 (FIN 47). FIN 47 clarifies that conditional asset retirement obligations meet the definition of liabilities and should be recognized when incurred if their fair values
can be reasonably estimated. The Interpretation is effective no later than December 31, 2005. The adoption of FIN 47 did not have a material impact on our financial position or results of operations.

In June 2005, the FASB Derivatives Implementation Group (DIG) issued DIG Issue No. B38, Embedded Derivatives: Evaluation of Net Settlement with
respect to the Settlement of a Debt Instrument through Exercise of an Embedded Put Option or Call Option (DIG B38) and DIG Issue No. B39 Embedded Derivatives: Application of Paragraph 13(b) to Call Options That Are Exercisable Only by
the Debtor (DIG B39) that address circumstances in which a put or call option embedded in a debt instrument would be bifurcated from the debt instrument and accounted for separately. DIG B38 and DIG B39 are effective in the first quarter of
2006. We are currently evaluating DIG B38 and DIG B39 and the related impact on our financial position and results of operations.



|ITEM7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|------- | ----------------------------------------------------------

We do not use derivative financial instruments for trading or speculative purposes. We have invested our available cash
in short-term, highly liquid financial instruments, with a substantial portion having initial maturities of three months or less. When necessary, we have borrowed to fund acquisitions.

At December 31, 2005, we had total debt of $7.43 billion, including $4.37 billion of variable rate debt. We have entered into two interest rate swap
agreements which fixed the interest rates for $1.6 billion of our variable rate debt. Our two swap agreements each have a notional value of $800 million and, effectively, fix our interest rates at 4.85% and 5.00%, respectively, and expire
in February 2009 and February 2011, respectively. Our remaining variable rate debt of $2.77 billion is subject to market rate risk, as our interest payments will fluctuate as the underlying interest rates change as a result of market changes. During
the period when both of our interest rate swap agreements are effective, a 1% change in interest rates would result in a change in interest of approximately $28 million per year. Upon the expiration of each interest rate swap agreement in
February 2009 and February 2011, a 1% change in interest rates would result in a change in interest of approximately $36 million and $44 million per year, respectively. See Note 5 of Notes to Consolidated Financial Statements.

In addition, at December 31, 2005, $158 million of our debt is denominated in euros and $144 million is denominated in pounds sterling. While we
expect that our foreign denominated debt will be serviced through our local operations, the euro debt is held by a U.K. subsidiary which has a functional currency of the pound sterling. Therefore, we are subject to foreign currency rate risk as
changes in the currency exchange rates between the euro and the pound sterling are marked to market through our statement of operations. A 10% change in currency exchange rates would result in a charge or credit in the statement of operations of
approximately $17 million.

During 2005, approximately 28% of our revenue was from customers outside the United States. Approximately 77%
of this revenue was from customers located in the United Kingdom and Continental Europe. Only a portion of the revenue from customers outside the United States is denominated in foreign currencies, the majority being pounds sterling and euros.
Revenue and expenses of our foreign operations are generally denominated in their respective local currencies. We continue to monitor our exposure to foreign exchange rates as a result of our foreign currency denominated debt, our acquisitions and
ongoing changes in our operations.



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|ITEM8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|------ | -------------------------------------------

Index to Consolidated Financial Statements



|                                                         |  |   
|-------------------------------------------------------- |  | --
|                                                         |  |   
|Reports of Independent Registered Public Accounting Firm |  | 48
|Consolidated Balance Sheets                              |  | 49
|Consolidated Statements of Operations                    |  | 50
|Consolidated Statements of Cash Flows                    |  | 51
|Consolidated Statement of Stockholders Equity           |  | 52
|Notes to Consolidated Financial Statements               |  | 54



47



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Reports of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholder of SunGard Data Systems
Inc.:

In our opinion, the accompanying consolidated balance sheets and the related statements of operations, of stockholders equity
and of cash flows present fairly, in all material respects, the financial position of SunGard Data Systems Inc. (predecessor) at December 31, 2004 and the results of its operations and its cash flows for the period January 1, 2005 to
August 10, 2005 and for each of the two years in the period ended December 31, 2004 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Philadelphia, PA

March 8, 2006

To the Board of Directors and Stockholder of SunGard Data Systems Inc.:

In our opinion, the accompanying consolidated balance sheet and the related consolidated statements of operations, of stockholders equity and of
cash flows present fairly, in all material respects, the financial position of SunGard Data Systems Inc. (successor) at December 31, 2005, and the results of its operations and its cash flows for the period from August 11, 2005 to
December 31, 2005 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on
these financial statements based on our audit. We conducted our audit of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

March 8, 2006



48



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SunGard Data Systems Inc.

Consolidated Balance Sheets



|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------- | ----- | - | ---------------- | - | ------ | -
|                                                                                                                                                                  |  | Predecessor      |       |   | Successor        |  
|(in millions except share and per-share amounts)                                                                                                                  |  | December 31,2004 |       |   | December 31,2005 |  
|Assets                                                                                                                                                            |  |                  |       |   |                  |   |        |  
|Current:                                                                                                                                                          |  |                  |       |   |                  |   |        |  
|Cash and cash equivalents                                                                                                                                         |  | $                | 675   |   |                  | $ | 317    |  
|Trade receivables, less allowance for doubtful accounts of $50 and $9                                                                                             |  |                  | 618   |   |                  |   | 190    |  
|Earned but unbilled receivables                                                                                                                                   |  |                  | 118   |   |                  |   | 38     |  
|Prepaid expenses and other current assets                                                                                                                         |  |                  | 109   |   |                  |   | 166    |  
|Clearing broker assets                                                                                                                                            |  |                  | 232   |   |                  |   | 391    |  
|Retained interest in accounts receivable sold                                                                                                                     |  |                  |      |   |                  |   | 224    |  
|Deferred income taxes                                                                                                                                             |  |                  | 43    |   |                  |   | 40     |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|Total current assets                                                                                                                                              |  |                  | 1,795 |   |                  |   | 1,366  |  
|                                                                                                                                                                  |  |                 
|Property and equipment, less accumulated depreciation of $925 and $72                                                                                             |  |                  | 620   |   |                  |   | 705    |  
|Software products, less accumulated amortization of $416 and $83                                                                                                  |  |                  | 353   |   |                  |   | 1,528  |  
|Customer base, less accumulated amortization of $213 and $68                                                                                                      |  |                  | 557   |   |                  |   | 2,817  |  
|Other tangible and intangible assets, less accumulated amortization of $26 and $3                                                                                 |  |                  | 46    |   |                  |   | 248    |  
|Trade name                                                                                                                                                        |  |                  |      |   |                  |   | 1,019  |  
|Goodwill                                                                                                                                                          |  |                  | 1,824 |   |                  |   | 6,904  |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|Total Assets                                                                                                                                                      |  | $                | 5,195 |   |                  | $ | 14,587 |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|Liabilities and Stockholders Equity                                                                                                                              |  |                  |       |   |                  |   |        |  
|Current:                                                                                                                                                          |  |                  |       |   |                  |   |        |  
|Short-term and current portion of long-term debt                                                                                                                  |  | $                | 45    |   |                  | $ | 46     |  
|Accounts payable                                                                                                                                                  |  |                  | 60    |   |                  |   | 67     |  
|Accrued compensation and benefits                                                                                                                                 |  |                  | 180   |   |                  |   | 218    |  
|Accrued interest expense                                                                                                                                          |  |                  | 11    |   |                  |   | 161    |  
|Other accrued expenses                                                                                                                                            |  |                  | 241   |   |                  |   | 282    |  
|Clearing broker liabilities                                                                                                                                       |  |                  | 209   |   |                  |   | 360    |  
|Deferred revenue                                                                                                                                                  |  |                  | 630   |   |                  |   | 695    |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|Total current liabilities                                                                                                                                         |  |                  | 1,376 |   |                  |   | 1,829  |  
|                                                                                                                                                                  |  |                 
|Long-term debt                                                                                                                                                    |  |                  | 509   |   |                  |   | 7,383  |  
|Deferred income taxes                                                                                                                                             |  |                  | 58    |   |                  |   | 1,803  |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|Total liabilities                                                                                                                                                 |  |                  | 1,943 |   |                  |   | 11,015 |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|Commitments and contingencies                                                                                                                                     |  |                  |       |   |                  |   |        |  
|                                                                                                                                                                  |  |                 
|Stockholders equity:                                                                                                                                             |  |                  |       |   |                  |   |        |  
|Predecessor:                                                                                                                                                      |  |                  |       |   |                  |   |        |  
|Preferred stock, par value $.01 per share; 5,000,000 shares authorized, of which 3,200,000 shares are designated as Series A Junior
Participating Preferred Stock |  |                  |      |   |                  |   |       |  
|Common stock, par value $.01 per share; 800,000,000 shares authorized; 292,257,243 shares issued at December 31, 2004                                             |  |                  | 3     |   |                  |   |       |  
|Successor:                                                                                                                                                        |  |                  |       |   |                  |   |        |  
|Common stock, par value $.01 per share; 100 shares authorized, issued and outstanding at December 31, 2005                                                        |  |                  |      |   |                  |   |       |  
|Capital in excess of par value                                                                                                                                    |  |                  | 957   |   |                  |   | 3,629  |  
|Restricted stock plans                                                                                                                                            |  |                  | (2    | ) |                  |   |       |  
|Retained earnings (accumulated deficit)                                                                                                                           |  |                  | 2,221 |   |                  |   | (29    | )
|Accumulated other comprehensive income (loss)                                                                                                                     |  |                  | 177   |   |                  |   | (28    | )
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|                                                                                                                                                                  |  |                  | 3,356 |   |                  |   | 3,572  |  
|Treasury stock, at cost, 3,930,000 and 0 shares                                                                                                                   |  |                  | (104  | ) |                  |   |       |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|Total stockholders equity                                                                                                                                        |  |                  | 3,252 |   |                  |   | 3,572  |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  
|Total Liabilities and Stockholders Equity                                                                                                                        |  | $                | 5,195 |   |                  | $ | 14,587 |  
|                                                                                                                                                                  |  |                  |       |   |                  |   |        |  

The accompanying notes are an integral part of these financial statements.



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SunGard Data Systems Inc.

Consolidated Statements of Operations



|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|----------------------------------------------------- |  | -------------------------- | ----- | - | -------------------------- | - | ----- | ----------------------------------------- |  | - | ------------------------------------------- | - |  | - | ----- | -
|                                                      |  | Predecessor                |       |   | Successor                  |  
|(in millions)                                         |  | Year endedDecember 31,2003 |       |   | Year endedDecember 31,2004 |   |       | Period fromJanuary 1throughAugust 10,2005 |  |   | Period fromAugust 11throughDecember 31,2005 |  
|Revenue:                                              |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|Services                                              |  | $                          | 2,661 |   |                            | $ | 3,180 |                                           |  | $ | 2,126                                       |   |  | $ | 1,418 |  
|License and resale fees                               |  |                            | 210   |   |                            |   | 282   |                                           |  |   | 179                                         |   |  |   | 166   |  
|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|Total products and services                           |  |                            | 2,871 |   |                            |   | 3,462 |                                           |  |   | 2,305                                       |   |  |   | 1,584 |  
|Reimbursed expenses                                   |  |                            | 84    |   |                            |   | 94    |                                           |  |   | 66                                          |   |  |   | 47    |  
|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|                                                      |  |                            | 2,955 |   |                            |   | 3,556 |                                           |  |   | 2,371                                       |   |  |   | 1,631 |  
|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|                                                      |  |                            |       |  
|Costs and expenses:                                   |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|Cost of sales and direct operating                    |  |                            | 1,292 |   |                            |   | 1,608 |                                           |  |   | 1,119                                       |   |  |   | 741   |  
|Sales, marketing and administration                   |  |                            | 536   |   |                            |   | 665   |                                           |  |   | 456                                         |   |  |   | 343   |  
|Product development                                   |  |                            | 195   |   |                            |   | 236   |                                           |  |   | 154                                         |   |  |   | 96    |  
|Depreciation and amortization                         |  |                            | 223   |   |                            |   | 218   |                                           |  |   | 141                                         |   |  |   | 89    |  
|Amortization of acquisition-related intangible assets |  |                            | 89    |   |                            |   | 119   |                                           |  |   | 84                                          |   |  |   | 147   |  
|Merger costs                                          |  |                            | (3    | ) |                            |   | 6     |                                           |  |   | 121                                         |   |  |   | 18    |  
|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|                                                      |  |                            | 2,332 |   |                            |   | 2,852 |                                           |  |   | 2,075                                       |   |  |   | 1,434 |  
|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|Income from operations                                |  |                            | 623   |   |                            |   | 704   |                                           |  |   | 296                                         |   |  |   | 197   |  
|Interest income                                       |  |                            | 6     |   |                            |   | 8     |                                           |  |   | 9                                           |   |  |   | 6     |  
|Interest expense                                      |  |                            | (11   | ) |                            |   | (29   | )                                         |  |   | (17                                         | ) |  |   | (248  | )
|Other income (expense)                                |  |                            | (3    | ) |                            |   | 78    |                                           |  |   |                                            |   |  |   | (17   | )
|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|Income (loss) before income taxes                     |  |                            | 615   |   |                            |   | 761   |                                           |  |   | 288                                         |   |  |   | (62   | )
|Provision (benefit) for income taxes                  |  |                            | 245   |   |                            |   | 307   |                                           |  |   | 142                                         |   |  |   | (33   | )
|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  
|Net income (loss)                                     |  | $                          | 370   |   |                            | $ | 454   |                                           |  | $ | 146                                         |   |  | $ | (29   | )
|                                                      |  |                            |       |   |                            |   |       |                                           |  |   |                                             |   |  |   |       |  

The accompanying notes are an integral part of these financial statements.



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SunGard Data Systems Inc.

Consolidated Statements of Cash Flows



|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|---------------------------------------------------------------------------------------------- |  | -------------------------- | ---- | - | -------------------------- | - | ---- | ----------------------------------------- |  | - | ------------------------------------------- | - |  | - | ------- | -
|                                                                                               |  | Predecessor                |      |   | Successor                  |  
|(in millions)                                                                                  |  | Year endedDecember 31,2003 |      |   | Year endedDecember 31,2004 |   |      | Period fromJanuary 1throughAugust 10,2005 |  |   | Period fromAugust 11throughDecember 31,2005 |  
|Cash flow from operations:                                                                     |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Net income (loss)                                                                              |  | $                          | 370  |   |                            | $ | 454  |                                           |  | $ | 146                                         |   |  | $ | (29     | )
|Reconciliation of net income (loss) to cash flow from operations:                              |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Depreciation and amortization                                                                  |  |                            | 311  |   |                            |   | 337  |                                           |  |   | 225                                         |   |  |   | 236     |  
|Deferred income tax provision (benefit)                                                        |  |                            | 42   |   |                            |   | 13   |                                           |  |   | (14                                         | ) |  |   | (57     | )
|Stock compensation expense                                                                     |  |                            |     |   |                            |   |     |                                           |  |   | 59                                          |   |  |   | 29      |  
|Gain on sale of Brut, net of tax                                                               |  |                            |     |   |                            |   | (46  | )                                         |  |   |                                            |   |  |   |        |  
|Amortization of deferred financing costs and debt discount                                     |  |                            |     |   |                            |   |     |                                           |  |   |                                            |   |  |   | 20      |  
|Other noncash credits                                                                          |  |                            | (25  | ) |                            |   | (17  | )                                         |  |   | (17                                         | ) |  |   | (13     | )
|Accounts receivable and other current assets                                                   |  |                            | 14   |   |                            |   | 54   |                                           |  |   | 79                                          |   |  |   | 293     |  
|Accounts payable and accrued expenses                                                          |  |                            | (89  | ) |                            |   | (1   | )                                         |  |   | 106                                         |   |  |   | 171     |  
|Clearing broker assets and liabilities, net                                                    |  |                            | (5   | ) |                            |   | (18  | )                                         |  |   | (3                                          | ) |  |   | (5      | )
|Deferred revenue                                                                               |  |                            | 27   |   |                            |   | 9    |                                           |  |   | (10                                         | ) |  |   | 60      |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Cash flow from operations                                                                      |  |                            | 645  |   |                            |   | 785  |                                           |  |   | 571                                         |   |  |   | 705     |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|                                                                                               |  |                            |      |  
|Investment activities:                                                                         |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Cash paid for businesses acquired by the Company, net of cash acquired                         |  |                            | (465 | ) |                            |   | (799 | )                                         |  |   | (419                                        | ) |  |   | (119    | )
|Cash paid for property and equipment                                                           |  |                            | (182 | ) |                            |   | (210 | )                                         |  |   | (132                                        | ) |  |   | (88     | )
|Cash paid for software and other assets                                                        |  |                            | (29  | ) |                            |   | (30  | )                                         |  |   | (23                                         | ) |  |   | (31     | )
|Acquisition of SunGard                                                                         |  |                            |     |   |                            |   |     |                                           |  |   |                                            |   |  |   | (11,577 | )
|Cash received for sale of certain assets                                                       |  |                            | 13   |   |                            |   | 194  |                                           |  |   | 5                                           |   |  |   | 15      |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Cash used in investment activities                                                             |  |                            | (663 | ) |                            |   | (845 | )                                         |  |   | (569                                        | ) |  |   | (11,800 | )
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|                                                                                               |  |                            |      |  
|Financing activities:                                                                          |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Cash received from borrowings for the Transaction                                              |  |                            |     |   |                            |   |     |                                           |  |   |                                            |   |  |   | 7,333   |  
|Investment by parent                                                                           |  |                            |     |   |                            |   |     |                                           |  |   |                                            |   |  |   | 3,450   |  
|Cash received from other borrowings, net of fees                                               |  |                            | 147  |   |                            |   | 591  |                                           |  |   | 75                                          |   |  |   | 179     |  
|Cash used to repay debt                                                                        |  |                            | (161 | ) |                            |   | (293 | )                                         |  |   | (132                                        | ) |  |   | (556    | )
|Cash received from stock option and award plans                                                |  |                            | 72   |   |                            |   | 62   |                                           |  |   | 386                                         |   |  |   |        |  
|Cash used to purchase treasury stock                                                           |  |                            |     |   |                            |   | (104 | )                                         |  |   |                                            |   |  |   |        |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Cash provided by financing activities                                                          |  |                            | 58   |   |                            |   | 256  |                                           |  |   | 329                                         |   |  |   | 10,406  |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Increase (decrease) in cash and cash equivalents                                               |  |                            | 40   |   |                            |   | 196  |                                           |  |   | 331                                         |   |  |   | (689    | )
|Beginning cash and cash equivalents                                                            |  |                            | 439  |   |                            |   | 479  |                                           |  |   | 675                                         |   |  |   | 1,006   |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Ending cash and cash equivalents                                                               |  | $                          | 479  |   |                            | $ | 675  |                                           |  | $ | 1,006                                       |   |  | $ | 317     |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|                                                                                               |  |                            |      |  
|Supplemental information:                                                                      |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Interest paid                                                                                  |  | $                          | 12   |   |                            | $ | 18   |                                           |  | $ | 22                                          |   |  | $ | 289     |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Income taxes paid                                                                              |  | $                          | 209  |   |                            | $ | 254  |                                           |  | $ | 69                                          |   |  | $ | 14      |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Acquired businesses:                                                                           |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Property and equipment                                                                         |  | $                          | 11   |   |                            | $ | 27   |                                           |  | $ | 66                                          |   |  | $ | 1       |  
|Software products                                                                              |  |                            | 115  |   |                            |   | 177  |                                           |  |   | 57                                          |   |  |   | 39      |  
|Customer base                                                                                  |  |                            | 82   |   |                            |   | 204  |                                           |  |   | 160                                         |   |  |   | 21      |  
|Goodwill                                                                                       |  |                            | 364  |   |                            |   | 528  |                                           |  |   | 213                                         |   |  |   | 65      |  
|Other tangible and intangible assets                                                           |  |                            | 9    |   |                            |   | 12   |                                           |  |   | 2                                           |   |  |   | 5       |  
|Deferred income taxes                                                                          |  |                            | (26  | ) |                            |   | (47  | )                                         |  |   | (53                                         | ) |  |   | 5       |  
|Purchase price obligations and debt assumed                                                    |  |                            | (7   | ) |                            |   | (57  | )                                         |  |   | (21                                         | ) |  |   | (3      | )
|Net current liabilities assumed                                                                |  |                            | (83  | ) |                            |   | (45  | )                                         |  |   | (5                                          | ) |  |   | (14     | )
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  
|Cash paid for acquired businesses, net of cash acquired of $61, $148, $31 and $6, respectively |  | $                          | 465  |   |                            | $ | 799  |                                           |  | $ | 419                                         |   |  | $ | 119     |  
|                                                                                               |  |                            |      |   |                            |   |      |                                           |  |   |                                             |   |  |   |         |  

The accompanying notes are an integral part of these financial statements.



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SunGard Data Systems Inc.

Consolidated Statement of Stockholders Equity



|                                                       |  |                  |  |              |   |                  |     |          |   |  
|------------------------------------------------------ |  | ---------------- |  | ------------ | - | ---------------- | --- | -------- | - | -
|                                                       |  | Preferred Stock  |  | Common Stock
|                                                       | 
|(in millions)                                          |  | Number of Shares |  | ParValue     |   | Number of Shares |     | ParValue
|Predecessor                                            |  |                  |  |              |   |                  |     |          |   |  
|Balances at December 31, 2002                          |  |                 |  | $            |  |                  | 284 |          | $ | 3
|Comprehensive income:                                  |  |                  |  |              |   |                  |     |          |   |  
|Net income                                             |  |                 |  |              |  |                  |    |          |   | 
|Foreign currency translation                           |  |                 |  |              |  |                  |    |          |   | 
|Total comprehensive income                             |  |                  |  |              |   |                  |     |          |   |  
|Shares issued under stock plans                        |  |                 |  |              |  |                  | 5   |          |   | 
|Compensation expense related to stock plans            |  |                 |  |              |  |                  |    |          |   | 
|Income tax benefit arising from employee stock options |  |                 |  |              |  |                  |    |          |   | 
|                                                       |  |                  |  |              |   |                  |     |          |   |  
|Balances at December 31, 2003                          |  |                 |  |              |  |                  | 289 |          |   | 3
|Comprehensive income:                                  |  |                  |  |              |   |                  |     |          |   |  
|Net income                                             |  |                 |  |              |  |                  |    |          |   | 
|Foreign currency translation                           |  |                 |  |              |  |                  |    |          |   | 
|Total comprehensive income                             |  |                  |  |              |   |                  |     |          |   |  
|Shares repurchased                                     |  |                 |  |              |  |                  |    |          |   | 
|Shares issued under stock plans                        |  |                 |  |              |  |                  | 4   |          |   | 
|Compensation expense related to stock plans            |  |                 |  |              |  |                  |    |          |   | 
|Income tax benefit arising from employee stock options |  |                 |  |              |  |                  |    |          |   | 
|                                                       |  |                  |  |              |   |                  |     |          |   |  
|Balances at December 31, 2004                          |  |                 |  |              |  |                  | 293 |          |   | 3
|Comprehensive income:                                  |  |                  |  |              |   |                  |     |          |   |  
|Net income                                             |  |                 |  |              |  |                  |    |          |   | 
|Foreign currency translation                           |  |                 |  |              |  |                  |    |          |   | 
|Total comprehensive income                             |  |                  |  |              |   |                  |     |          |   |  
|Shares issued under stock plans                        |  |                 |  |              |  |                  | 18  |          |   | 
|Compensation expense related to stock plans            |  |                 |  |              |  |                  |    |          |   | 
|Income tax benefit arising from employee stock options |  |                 |  |              |  |                  |    |          |   | 
|                                                       |  |                  |  |              |   |                  |     |          |   |  
|Balances at August 10, 2005                            |  |                 |  | $            |  |                  | 311 |          | $ | 3
|                                                       |  |                  |  |              |   |                  |     |          |   |  
|                                                      
|Successor                                              |  |                  |  |              |   |                  |     |          |   |  
|Investment by Parent Companies                         |  |                  |  |              |   |                  |    |          | $ | 
|Comprehensive loss:                                    |  |                  |  |              |   |                  |     |          |   |  
|Net loss                                               |  |                  |  |              |   |                  |    |          |   | 
|Foreign currency translation                           |  |                  |  |              |   |                  |    |          |   | 
|Net unrealized loss on derivative instruments          |  |                  |  |              |   |                  |    |          |   | 
|Total comprehensive loss                               |  |                  |  |              |   |                  |    |          |   | 
|Stock-based compensation expense                       |  |                  |  |              |   |                  |    |          |   | 
|Return of capital                                      |  |                  |  |              |   |                  |    |          |   | 
|                                                       |  |                  |  |              |   |                  |     |          |   |  
|Balances at December 31, 2005                          |  |                  |  |              |   |                  |    |          | $ | 
|                                                       |  |                  |  |              |   |                  |     |          |   |  

The accompanying notes are an integral part of these financial statements.



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| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  | --------------------------- | ------ | --------------------------- | ---------------------- | ---------------- | -------------------------------------------------- | ------------------------------------ | ---- | -------------- | --------------------------------------------- | - |  | - | --- | - | ----- | - | -- | - |  | -- | - |  | - | ---- | - |  | - | ----- | -
| |  | Capitalin Excessof ParValue |        |                             | Restricted Stock Plans |                  |                                                    | RetainedEarnings(AccumulatedDeficit) |      |                | Accumulated Other Comprehensive Income
(Loss) |   |  |   |     |   | Total |  
| |  |                             |        | Foreign CurrencyTranslation |                        |                  | Net Unrealized Gain
(Loss)on DerivativeInstruments |                                      |      | Treasury Stock |                                               |  
| |  |                             |        |                             |                        | Number of Shares |                                                    |                                      | Cost |                |                                              
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  | $                           | 802    |                             |                        | $                | (2                                                 | )                                    |      | $              | 1,397                                         |   |  | $ | 24  |   |       | $ |   |   |  |   |   |  | $ | (1   | ) |  | $ | 2,223 |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                | 370                                           |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   | 87  |   |       |   |   |   |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   | 457   |  
| |  |                             | 73     |                             |                        |                  | (1                                                 | )                                    |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   | 1    |   |  |   | 73    |  
| |  |                             |       |                             |                        |                  | 1                                                  |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 1     |  
| |  |                             | 12     |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 12    |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  |                             | 887    |                             |                        |                  | (2                                                 | )                                    |      |                | 1,767                                         |   |  |   | 111 |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 2,766 |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                | 454                                           |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   | 66  |   |       |   |   |   |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   | 520   |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  | (4 | ) |  |   | (104 | ) |  |   | (104  | )
| |  |                             | 63     |                             |                        |                  | (1                                                 | )                                    |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 62    |  
| |  |                             |       |                             |                        |                  | 1                                                  |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 1     |  
| |  |                             | 7      |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 7     |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  |                             | 957    |                             |                        |                  | (2                                                 | )                                    |      |                | 2,221                                         |   |  |   | 177 |   |       |   |   |   |  | (4 | ) |  |   | (104 | ) |  |   | 3,252 |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                | 146                                           |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   | (69 | ) |       |   |   |   |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   | 77    |  
| |  |                             | 386    |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 386   |  
| |  |                             | 59     |                             |                        |                  | 2                                                  |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 61    |  
| |  |                             | 58     |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 58    |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  |                             | $1,460 |                             |                        | $                |                                                   |                                      |      | $              | 2,367                                         |   |  | $ | 108 |   |       | $ |   |   |  | (4 | ) |  | $ | (104 | ) |  | $ | 3,834 |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  |                             |        |                            
| |  | $                           | 3,605  |                             |                        | $                |                                                   |                                      |      | $              |                                              |   |  | $ |    |   |       | $ |   |   |  |   |   |  | $ |     |   |  | $ | 3,605 |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                | (29                                           | ) |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   | (27 | ) |       |   |   |   |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   | (1 | ) |  |   |   |  |   |     |   |  |   |       |  
| |  |                             |       |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | (57   | )
| |  |                             | 29     |                             |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | 29    |  
| |  |                             | (5     | )                           |                        |                  |                                                   |                                      |      |                |                                              |   |  |   |    |   |       |   |   |   |  |   |   |  |   |     |   |  |   | (5    | )
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  
| |  | $                           | 3,629  |                             |                        | $                |                                                   |                                      |      | $              | (29                                           | ) |  | $ | (27 | ) |       | $ | (1 | ) |  |   |   |  | $ |     |   |  | $ | 3,572 |  
| |  |                             |        |                             |                        |                  |                                                    |                                      |      |                |                                               |   |  |   |     |   |       |   |    |   |  |    |   |  |   |      |   |  |   |       |  



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SunGard Data Systems Inc.

Notes to Consolidated Financial Statements

1. Basis of Presentation and Summary of Significant Accounting Policies

SunGard Data Systems Inc. (SunGard) was acquired on August 11, 2005 by a consortium of private equity investment funds
associated with Bain Capital Partners, The Blackstone Group, Goldman Sachs & Co., Kohlberg Kravis Roberts & Co., Providence Equity Partners, Silver Lake Partners and Texas Pacific Group (the Transaction). The
Transaction was accomplished through the merger of Solar Capital Corp. into SunGard, with SunGard being the surviving company.

SunGard is
a wholly owned subsidiary of SunGard Holdco LLC, which is wholly owned by SunGard Holding Corp., which is wholly owned by SunGard Capital Corp. II, which is wholly owned by SunGard Capital Corp. SunGard Capital Corp. II and SunGard Capital Corp. are
collectively referred to as the Parent Companies. All four of these companies were formed for the purpose of facilitating the Transaction.

Although SunGard continued as the same legal entity after the Transaction, the accompanying consolidated statements of operations, cash flows and stockholders equity are presented for two periods: Predecessor
and Successor, which relate to the period preceding the Transaction and the period succeeding the Transaction, respectively. The Company refers to the operations of SunGard and subsidiaries for both the Predecessor and Successor periods.

SunGard has three segments: Financial Systems (FS), Higher Education and Public Sector Systems (HEPS) and Availability
Services (AS). The Companys Software & Processing Solutions business is comprised of the FS and HEPS segments. The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries.
All significant intercompany transactions and accounts have been eliminated. The consolidated financial statements exclude the accounts of the Parent Companies.

Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make many estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses. The Company evaluates its estimates and judgments on an ongoing basis and revises
them when necessary. Actual results may differ from the original or revised estimates.

The Company amortizes identifiable intangible
assets over periods that it believes approximate the related useful lives of those assets based upon estimated future operating results and cash flows of the underlying business operations. The Company closely monitors estimates of those lives,
which could change due to many factors, including product demand, market conditions, regulations affecting the business model of the Companys brokerage operations, technological developments, economic conditions and competition.

Revenue Recognition

The Company recognizes revenue
in accordance with Staff Accounting Bulletin (SAB) No. 104, Revenue Recognition. SAB 104 requires that the following criteria be met in determining whether revenue has been earned: persuasive evidence of an arrangement exists; services have
been provided; the price is fixed or determinable; and collectibility is reasonably assured.



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The Company generates services revenue from availability services, processing services, software
maintenance and rentals, professional services, broker/dealer fees and hardware rentals. All services revenue is recorded as the services are provided based on the fair value of each element. Fair value is determined based on the sales price of each
element when sold separately. Most AS services revenue consists of fixed monthly fees based upon the specific computer configuration or business process for which the service is being provided, and the related costs are incurred ratably over the
contract period. When recovering from an interruption, customers generally are contractually obligated to pay additional fees, which typically cover the incremental costs of supporting customers during recoveries. FS services revenue includes
monthly fees, which may include a fixed minimum fee and/or variable fees based on a measure of volume or activity, such as the number of users, accounts, trades or transactions or the number of hours of service.

For fixed-fee professional services contracts, services revenue is recorded based upon the estimated percentage of completion, measured by the actual
number of hours incurred divided by the total estimated number of hours for the project. When fixed-fee contracts include both professional services and software and require a significant amount of program modification or customization,
installation, systems integration or related services, the professional services and license revenue is recorded based upon the estimated percentage of completion, measured in the manner described above. Changes in the estimated costs or hours to
complete the contract are reflected in the period during which the change becomes known. Losses, if any, are recognized immediately.

License fees result from contracts that permit the customer to use a SunGard software product at the customers site. Generally, these contracts are multiple-element arrangements since they usually provide for professional services and
ongoing software maintenance. In these instances, license fees are recognized upon the signing of the contract and delivery of the software if the license fee is fixed, collection is probable, and there is sufficient evidence of the fair value of
each undelivered element. Revenue is recorded over the contract period when customer payments are extended beyond normal billing terms, or when there is significant acceptance, technology or service risk. Revenue also is recorded over the contract
period in those instances where the software is bundled together with computer equipment or other post-delivery services, and there is not sufficient evidence of the fair value of each element.

Sufficient evidence of fair value is determined by reference to vendor specific objective evidence (VSOE) as defined in American Institute of Certified
Public Accountants Statement of Position (SOP) 98-9, Modification of SOP 97-2, Software Revenue Recognition, with Respect to Certain Transactions. If there is no VSOE of the fair value of the delivered element (which is usually the
software) but there is VSOE of the fair value of each of the undelivered elements (which are usually maintenance and professional services), then the residual method is used to determine the revenue for the delivered element. First, the revenue for
the undelivered elements is set at the fair value of those elements using VSOE of the price paid when each of the undelivered elements is sold separately. The revenue remaining after allocation to the undelivered elements (i.e., the residual) is
allocated to the delivered element.

VSOE supporting the fair value of maintenance is based on the optional renewal rates for each product
included in the Companys contracts, typically 18% to 20% of the software license fee per year. Maintenance revenue is recognized on a straight-line basis over the contract period. VSOE supporting the fair value of professional services is
based on the standard daily rates charged when those services are sold separately. Professional services revenue is recognized as the services are performed.



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In some multiple-element arrangements that include software licenses and services, the services rates are
discounted. In these cases, a portion of the software license fee is deferred and recognized as the services are performed. The deferred portion is equal to the difference between the discounted services rates to be charged to the customer and the
undiscounted fair value of those services based on VSOE. As a result, initial revenue is decreased and future revenue is increased by the amount deferred.

Unbilled receivables are created when services are performed or software is delivered and revenue is recognized in advance of billings. The amount of the unbilled receivables is contract specific. For instance, when
customers are billed one month in arrears for processing services, revenue for each month is included in unbilled receivables until it is billed in the following month. Deferred revenue is typically created by the Companys practice of billing
in advance of performing certain services.

Cash and Cash Equivalents

Cash and cash equivalents consist of investments that are readily convertible into cash and have original maturities of three months or less.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to
concentrations of credit risk consist primarily of accounts receivable. By policy, the Company places its available cash and short-term investments with institutions of high credit-quality and limits the amount of credit exposure to any one issuer.
The Company sells a significant portion of its products and services to the financial services industry and could be affected by the overall condition of that industry. The Company believes that any credit risk associated with accounts receivable is
substantially mitigated by the relatively large number of customer accounts and reasonably short collection terms. Accounts receivable are stated at estimated net realizable value, which approximates fair value.

Property and Equipment

Property and equipment are
recorded at cost and depreciated on the straight-line method over the estimated useful lives of the assets (two to eight years for equipment and ten to forty years for buildings and improvements). Leasehold improvements are amortized ratably over
their remaining lease term or useful life, if shorter. Depreciation and amortization of property and equipment was $198 million in 2003, $189 million in 2004, $122 million for the period January 1, 2005 through August 10, 2005 and $82
million for the period August 11, 2005 through December 31, 2005.

Foreign Currency Translation

The functional currency of each of the Companys foreign operations is the local currency of the country in which the operation is located. All
assets and liabilities are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Revenue and expenses are translated using average exchange rates during the period.

Increases and decreases in net assets resulting from foreign currency translation are reflected in stockholders equity as a component of
accumulated other comprehensive income (loss).

Software Products

Product development costs are expensed as incurred and consist primarily of design and development costs of new products and significant enhancements to existing products incurred before



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the establishment of technological feasibility. Costs associated with purchased software, software obtained through business acquisitions, and new products
and enhancements to existing products that are technologically feasible and recoverable are capitalized and amortized over the estimated useful lives of the related products, generally one to twelve years, using the straight-line method or the ratio
of current revenue to current and anticipated revenue from such software, whichever provides the greater amortization.

Capitalized
development costs, amortization of previously capitalized development costs (which is included in depreciation and amortization) and net capitalized development costs in each of the periods follow (in millions):



|                                                         |  |                        |    |                                            |   |                                               |  |   |   |  |   |  
|-------------------------------------------------------- |  | ---------------------- | -- | ------------------------------------------ | - | --------------------------------------------- |  | - | - |  | - | -
|                                                         |  | Predecessor            |    | Successor                                 
|                                                         |  | Year EndedDecember 31, |    | Period fromJanuary 1throughAugust 10, 2005 |   | Period
fromAugust 11throughSeptember 30, 2005
|                                                         |  | 2003                   |    | 2004                                       |   |                                              
|Capitalized development costs                            |  | $                      | 13 |                                            | $ | 17                                            |  | $ | 9 |  | $ | 6
|Amortization of previously capitalized development costs |  |                        | 9  |                                            |   | 11                                            |  |   | 8 |  |   | 
|                                                         |  |                        |    |                                            |   |                                               |  |   |   |  |   |  
|Net capitalized development costs                        |  | $                      | 4  |                                            | $ | 6                                             |  | $ | 1 |  | $ | 6
|                                                         |  |                        |    |                                            |   |                                               |  |   |   |  |   |  

Amortization of all software products aggregated $62 million in 2003, $83 million in 2004,
$56 million for the period January 1, 2005 through August 10, 2005 and $81 million for the period August 11, 2005 through December 31, 2005.

Customer Base Intangible Assets

Customer base intangible assets represent customer contracts and
relationships obtained as part of acquired businesses and are amortized using the straight-line method over their estimated useful lives, ranging from five to twenty-seven years.

Trade Name

The trade name intangible asset represents the fair value of the SunGard trade name at
August 11, 2005 and is an indefinite-lived asset and therefore is not subject to amortization. Trade name, along with goodwill, is reviewed at least annually for impairment as described below.

Goodwill

Goodwill represents the excess of cost over
the fair value of net assets acquired. When circumstances change or at least annually, the Company compares the carrying value of its reporting units to their estimated fair value. If the carrying value is greater than the respective estimated fair
value, the Company then determines if the goodwill is impaired and whether some or all of the goodwill should be written off as a charge to operations. The estimate of fair value requires various assumptions including the use of projections of
future cash flows and discount rates that reflect the risks associated with achieving the future cash flows. Changes in the underlying business could affect these estimates, which in turn could affect the fair value of the reporting unit.



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The following table summarizes changes in goodwill by segment (in millions):



|                                       |  |    |       |   |      |   |       |    |  |   |       |   |  |   |       |  
|-------------------------------------- |  | -- | ----- | - | ---- | - | ----- | -- |  | - | ----- | - |  | - | ----- | -
|                                       |  | FS |       |   | HEPS |   |       | AS |  |   | Total |  
|Predecessor                            |  |    |       |   |      |   |       |    |  |   |       |   |  |   |       |  
|Balances at December 31, 2003          |  | $  | 628   |   |      | $ | 108   |    |  | $ | 618   |   |  | $ | 1,354 |  
|2004 acquisitions                      |  |    | 80    |   |      |   | 457   |    |  |   |      |   |  |   | 537   |  
|2004 divestitures                      |  |    | (96   | ) |      |   |      |    |  |   |      |   |  |   | (96   | )
|Adjustments to previous acquisitions   |  |    | (30   | ) |      |   | (1    | )  |  |   | (3    | ) |  |   | (34   | )
|Payment of contingent purchase price   |  |    | 25    |   |      |   |      |    |  |   |      |   |  |   | 25    |  
|Effect of foreign currency translation |  |    | 11    |   |      |   |      |    |  |   | 27    |   |  |   | 38    |  
|                                       |  |    |       |   |      |   |       |    |  |   |       |   |  |   |       |  
|Balances at December 31, 2004          |  |    | 618   |   |      |   | 564   |    |  |   | 642   |   |  |   | 1,824 |  
|2005 acquisitions                      |  |    | 26    |   |      |   | 88    |    |  |   | 117   |   |  |   | 231   |  
|Adjustments to previous acquisitions   |  |    | (11   | ) |      |   | (7    | )  |  |   |      |   |  |   | (18   | )
|Effect of foreign currency translation |  |    | (10   | ) |      |   | (6    | )  |  |   | (24   | ) |  |   | (40   | )
|                                       |  |    |       |   |      |   |       |    |  |   |       |   |  |   |       |  
|Balance at August 10, 2005             |  | $  | 623   |   |      | $ | 639   |    |  | $ | 735   |   |  | $ | 1,997 |  
|                                       |  |    |       |   |      |   |       |    |  |   |       |   |  |   |       |  
|                                       | 
|                                       |  |    |       |  
|Successor                              |  |    |       |   |      |   |       |    |  |   |       |   |  |   |       |  
|Acquisition of SunGard                 |  | $  | 3,040 |   |      | $ | 1,797 |    |  | $ | 2,020 |   |  | $ | 6,857 |  
|2005 acquisitions                      |  |    | 68    |   |      |   |      |    |  |   |      |   |  |   | 68    |  
|Effect of foreign currency translation |  |    | (4    | ) |      |   | (3    | )  |  |   | (14   | ) |  |   | (21   | )
|                                       |  |    |       |   |      |   |       |    |  |   |       |   |  |   |       |  
|Balance at December 31, 2005           |  | $  | 3,104 |   |      | $ | 1,794 |    |  | $ | 2,006 |   |  | $ | 6,904 |  
|                                       |  |    |       |   |      |   |       |    |  |   |       |   |  |   |       |  

Other Tangible and Intangible Assets

Other tangible and intangible assets consist primarily of deferred financing costs incurred in connection with debt issued in the Transaction,
noncompetition agreements obtained in business acquisitions, long-term accounts receivable, prepayments and long-term investments. Deferred financing costs are amortized over the term of the related debt. Noncompetition agreements are amortized
using the straight-line method over their stated terms, ranging from two to five years.

Future Amortization of Acquisition-Related Intangible Assets

At December 31, 2005, amounts recorded for acquisition-related intangible assets are estimated because the allocation of the
Transaction purchase price is preliminary. Based on amounts recorded at December 31, 2005, total estimated amortization of all acquisition-related intangible assets during each of the years ended December 31 follows (in millions):



|     |  |   |    
|---- |  | - | ---
|2006 |  | $ | 371
|2007 |  |   | 354
|2008 |  |   | 348
|2009 |  |   | 345
|2010 |  |   | 340

Stock-Based Compensation

Successor

Statement of Financial Accounting Standards Number 123R (revised 2004), Share-Based
Payment (SFAS 123R), supersedes Accounting Principles Board Opinion Number 25 (APB 25) and requires companies to expense the fair value of employee stock options over the employee requisite



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service period. The Company adopted SFAS 123R as of the date of closing the Transaction using the modified prospective method, which requires companies to
record stock compensation expense for all unvested and new awards as of the adoption date. Accordingly, prior period amounts presented herein have not been restated. Under the fair value recognition provisions of SFAS 123R, stock-based compensation
cost is measured at the grant date based on the value of the award and is recognized as expense over the requisite service period.

Predecessor

Prior to the closing of the Transaction, the Company applied APB 25 in accounting for its stock option and award plans. Accordingly,
the Company recorded compensation expense for its restricted stock awards, and the Company recorded in merger costs a non-cash charge for stock compensation of approximately $60 million in the period from January 1, 2005 to August 10, 2005
as a result of the acceleration of vesting of all options and restricted stock in connection with the Transaction (see Note 2). SFAS Number 123, Accounting for Stock-Based Compensation (SFAS 123), as amended by SFAS Number 148,
Accounting for Stock-Based CompensationTransition and Disclosurean Amendment of FASB Statement 123 changed the method for recognition of cost of stock option and award plans. Adoption of the cost recognition requirements
under SFAS 123 was optional; however, the following supplemental information is provided (in millions):



|                                                                                                           |  |                         |     |   |                                             |   |     |   |  |   |      |  
|---------------------------------------------------------------------------------------------------------- |  | ----------------------- | --- | - | ------------------------------------------- | - | --- | - |  | - | ---- | -
|                                                                                                           |  | Predecessor             |    
|                                                                                                           |  | Year Ended December 31, |     |   | Period fromJanuary 1through August 10, 2005 |  
|                                                                                                           |  | 2003                    |     |   | 2004                                        |   |    
|Net income, as reported (including stock compensation expense net of tax, of $1, $1 and $40, respectively) |  | $                       | 370 |   |                                             | $ | 454 |   |  | $ | 146  |  
|Additional stock compensation expenses under SFAS 123, net of tax                                          |  |                         | (69 | ) |                                             |   | (88 | ) |  |   | (135 | )
|                                                                                                           |  |                         |     |   |                                             |   |     |   |  |   |      |  
|Pro forma net income                                                                                       |  | $                       | 301 |   |                                             | $ | 366 |   |  | $ | 11   |  
|                                                                                                           |  |                         |     |   |                                             |   |     |   |  |   |      |  

This pro forma disclosure is not necessarily indicative of what stock option expense will be in
future years.

The fair value of options granted in each year using the Black-Scholes pricing model and related assumptions follow:



|                                                                                       |  |                         |         |   |                                             |   |         |   |  |   |         |  
|-------------------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ------------------------------------------- | - | ------- | - |  | - | ------- | -
|                                                                                       |  | Predecessor             |        
|                                                                                       |  | Year Ended December 31, |         |   | Period fromJanuary 1through August 10, 2005 |  
|                                                                                       |  | 2003                    |         |   | 2004                                        |   |        
|Weighted-average fair value on date of grant                                           |  | $                       | 12.11   |   |                                             | $ | 14.68   |   |  | $ | 15.51   |  
|Ratio of weighted-average fair value to weighted-average market value on date of grant |  |                         | 57      | % |                                             |   | 55      | % |  |   | 60      | %
|Assumptions used to calculate fair value:                                              |  |                         |         |   |                                             |   |         |   |  |   |         |  
|Volatility                                                                             |  |                         | 53      | % |                                             |   | 48      | % |  |   | 46      | %
|Risk-free interest rate                                                                |  |                         | 3.1     | % |                                             |   | 3.4     | % |  |   | 4.2     | %
|Expected term(1)                                                                       |  |                         | 6 years |   |                                             |   | 6 years |   |  |   | 6 years |  
|Dividends                                                                              |  |                         | zero    |   |                                             |   | zero    |   |  |   | zero    |  

---

|(1) | Nine and one-half years for unvested performance accelerated stock options.
|--- | ---------------------------------------------------------------------------



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Income Taxes

The Company recognizes deferred income tax assets and liabilities based upon the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred income tax assets and liabilities are
calculated based on the difference between the financial and tax bases of assets and liabilities using the currently enacted income tax rates in effect during the years in which the differences are expected to reverse.

Effect of Recent Accounting Pronouncements

In
September 2004, the Financial Accounting Standards Board (FASB) Emerging Issues Task Force reached a consensus on Issue 04-01, Accounting for Pre-existing Relationships between the Parties to a Business Combination (EITF 04-01). EITF
04-01 is effective for business combinations completed in reporting periods beginning after October 13, 2004. EITF 04-01 applies when two parties that have a pre-existing contractual relationship enter into a business combination. EITF 04-01
addresses whether a consummation of a business combination between two parties that have a pre-existing contractual relationship should be evaluated to determine if a settlement of a pre-existing contractual relationship exists, thus requiring
accounting separate from the business combination. The adoption of EITF 04-01 on January 1, 2005 did not have a material impact on the Companys financial position or results of operations.

In March 2005, the FASB issued FASB Interpretation No. 47, Accounting for Conditional Asset Retirement Obligations, an interpretation of FASB
Statement No. 143 (FIN 47). FIN 47 clarifies that conditional asset retirement obligations meet the definition of liabilities and should be recognized when incurred if their fair values can be reasonably estimated. The Interpretation is
effective no later than December 31, 2005. The adoption of FIN 47 did not have a material impact on the Companys financial position or results of operations.

In June 2005, the FASB Derivatives Implementation Group (DIG) issued DIG Issue No. B38, Embedded Derivatives: Evaluation of Net Settlement with respect to the Settlement of a Debt Instrument through Exercise of
an Embedded Put Option or Call Option (DIG B38) and DIG Issue No. B39 Embedded Derivatives: Application of Paragraph 13(b) to Call Options That Are Exercisable Only by the Debtor (DIG B39) that address circumstances in which a put
or call option embedded in a debt instrument would be bifurcated from the debt instrument and accounted for separately. DIG B38 and DIG B39 are effective in the first quarter of 2006. The Company is currently evaluating DIG B38 and DIG B39 and the
related impact on the Companys financial position and results of operations.

2. Acquisitions and Dispositions

Acquisition of SunGard

As discussed in Note 1, the
Transaction was completed on August 11, 2005 and was financed by a combination of borrowings under the Companys new senior secured credit facilities, the issuance of senior notes due 2013 and senior subordinated notes due 2015, the
funding under the Companys new receivables facilities, and the equity investment of the Sponsors, co-investors and management. See Note 5 for a description of the Companys indebtedness.



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The purchase price, including transaction costs that have been allocated as debt issuance costs or
included in the overall purchase price, was approximately $11.73 billion. The sources and uses of funds in connection with the Transaction are summarized below (in millions):



|                                   |  |   |        |      |                                                         |  |   |       
|---------------------------------- |  | - | ------ | ---- | ------------------------------------------------------- |  | - | ------
|Sources                            |  |   |        | Uses |                                                         | 
|Secured revolving credit facility  |  | $ | 149    |      | Payment consideration to stockholders and optionholders |  | $ | 11,242
|Secured term loan facilities       |  |   | 4,000  |      | Converted share and option consideration                |  |   | 154   
|Receivables facilities             |  |   | 375    |      | Transaction costs                                       |  |   | 335   
|                                   |  |   |        |      |                                                         |  |   |       
|Senior notes due 2013              |  |   | 2,000  |      | Total uses                                              |  | $ | 11,731
|                                   |  |   |        |      |                                                         |  |   |       
|Senior subordinated notes due 2015 |  |   | 1,000  |      |                                                         |  |   |       
|Cash on hand                       |  |   | 603    |      |                                                         |  |   |       
|Equity contributioncash           |  |   | 3,450  |      |                                                         |  |   |       
|Equity contributionnon-cash       |  |   | 154    |      |                                                         |  |   |       
|                                   |  |   |        |      |                                                         |  |   |       
|Total sources                      |  | $ | 11,731 |      |                                                         |  |   |       
|                                   |  |   |        |      |                                                         |  |   |       

The non-cash equity contribution was a combination of shares and fully vested stock options of the
Predecessor. The shares were converted into shares of the Parent Companies. The fully vested stock options were automatically converted into fully vested stock options of the Parent Companies (continuation options).

Preliminary Purchase Price Allocation

Under business combination accounting, the total purchase price was allocated to the Companys net tangible and identifiable intangible assets based on their estimated fair values as of August 11, 2005 as set forth below, in
millions. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill. The preliminary allocation of the purchase price for property and equipment, intangible assets and deferred income taxes
was based upon preliminary valuation data and the estimates and assumptions are subject to change.



|                                                     |  |   |        |  
|---------------------------------------------------- |  | - | ------ | -
|Property and equipment                               |  | $ | 701    |  
|Software products                                    |  |   | 1,544  |  
|In process research and development                  |  |   | 2      |  
|Customer base                                        |  |   | 2,876  |  
|Trade name                                           |  |   | 1,019  |  
|Goodwill                                             |  |   | 6,857  |  
|Other tangible and intangible assets                 |  |   | 268    |  
|Deferred income taxes                                |  |   | (1,839 | )
|Debt assumed                                         |  |   | (459   | )
|Net current assets acquired                          |  |   | 762    |  
|                                                     |  |   |        |  
|Total purchase price                                 |  |   | 11,731 |  
|Non-cash equity contribution                         |  |   | 154    |  
|                                                     |  |   |        |  
|Cash used in acquisition of SunGard by Solar Capital |  | $ | 11,577 |  
|                                                     |  |   |        |  

The preliminary estimated useful lives are one to twelve years for software (average life is eight
years) and five to 27 years for customer base (average life is 16 years). The SunGard trade name has an indefinite life and is not subject to amortization; it, along with goodwill, will be reviewed at least annually for impairment.



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Since the Transaction did not result in a new tax basis of assets and liabilities, approximately $1.0
billion of goodwill will continue to be deductible over the remaining amortization period for tax purposes.

Acquisitions by the Company

The Company seeks to acquire businesses that broaden its existing product lines and service offerings by adding complementary products and service
offerings and by expanding its geographic reach. During 2005, the Company completed eight acquisitions in its FS segment, two acquisitions in its HEPS segment and one acquisition in its AS segment. Gross cash paid, subject to certain adjustments,
was $575 million, including $391 million for the acquisitions of InFlow, Inc. and Vivista Holdings Limited.

The following table lists the
businesses the Company acquired in 2005:



|                                     |  |              |  |                                                                              
|------------------------------------ |  | ------------ |  | -----------------------------------------------------------------------------
|Acquired Company/Business            |  | DateAcquired |  | Description                                                                  
|InFlow, Inc.                         |  | 01/04/05     |  | Hosting and managed services for information availability.                   
|Protegent, Inc.                      |  | 01/26/05     |  | Risk management solutions.                                                   
|Vivista Holdings Limited             |  | 02/25/05     |  | Public safety and justice software solutions in the U.K.                     
|Ensemble Technology (Pty) Ltd        |  | 02/28/05     |  | Professional services for the financial services industry in South Africa.   
|Integrity Treasury Solutions Limited |  | 03/03/05     |  | Treasury management systems.                                                 
|Recognition Research, Inc.           |  | 05/12/05     |  | Data-capture technology for the financial services and healthcare industries.
|Understanding Systems, Inc.          |  | 07/25/05     |  | Graphical mapping solutions for the public sector.                           
|Pyramid Digital Systems, LLC         |  | 08/17/05     |  | Software and solutions to the retirement plan industry.                      
|The GetPAID Corporation              |  | 10/24/05     |  | Accounts receivable and working capital optimization solutions.              
|Prophet                              |  | 10/31/05     |  | Actuarial calculations software.                                             
|ERisk Holdings, Inc.                 |  | 11/08/05     |  | Capital and credit risk management solutions.                                

During 2004, the Company completed seven acquisitions in its FS segment and three acquisitions in
its HEPS segment, including the acquisition of Systems & Computer Technology Corporation (SCT) in the HEPS segment in February 2004. Gross cash paid was $922 million, subject to certain adjustments, and there was $537 million of goodwill
recorded in connection with these acquisitions.

During 2003, the Company completed eight acquisitions in its FS segment and one
acquisition in its HEPS segment and also purchased the remaining interest in an AS joint venture. Gross cash paid was $496 million, subject to certain adjustments, and there was $312 million of goodwill recorded in connection with these
acquisitions.

During 2004 and 2003, the Company paid $25 million and $30 million, respectively, as additional consideration based upon the
operating performance of Brut LLC. Brut LLC was sold by the Company in September 2004.

In connection with five previously acquired
businesses, up to $125 million could be paid as additional consideration, primarily by June 2006, depending on the future operating results of those businesses. The amount paid, if any, is recorded as additional goodwill at the time the actual



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performance is known and the amounts become due. There were no amounts earned or paid in 2005, and there were no amounts payable as of December 31,
2005.

Pro forma financial information

The following unaudited pro forma results of operations (in millions) assume that the Transaction and certain significant acquisitions and dispositions occurred as of the beginning of each of the period presented and were reflected in the
Companys results from that date. The pro forma results include the Transaction and the 2005 acquisitions of InFlow, Inc., Vivista Holdings Limited, Integrity Treasury Solutions Limited, Recognition Research, Inc., Pyramid Digital Systems, LLC,
The GetPAID Corporation, and ERisk Holdings, Inc., the 2004 acquisitions of FAME Information Services, Inc. (closed January 22, 2004), Systems & Computer Technology Corporation (closed February 12, 2004), Collegis, Inc. (closed
March 4, 2004), and Open Software Solutions, Inc. (closed May 21, 2004), and the disposition of Brut LLC (closed September 7, 2004). This unaudited pro forma information should not be relied upon as necessarily being indicative of the
historical results that would have been obtained if the Transaction, acquisitions and disposition had actually occurred at the beginning of each period presented, nor of the results that may be obtained in the future. The pro forma adjustments
include the effect of purchase accounting adjustments, transaction costs (including stock-based compensation charges due to the acceleration of stock options in connection with the Transaction), interest expense and related tax effects, and exclude
the gain on sale of Brut LLC.



|                  |  |      |       |   |      |   |       |  
|----------------- |  | ---- | ----- | - | ---- | - | ----- | -
|                  |  | 2004 |       |   | 2005 |  
|Revenue           |  | $    | 3,743 |   |      | $ | 4,073 |  
|Net (loss) income |  |      | (348  | ) |      |   | (316  | )

Dispositions

In September 2004, the Company completed the sale of Brut LLC, an electronic communications network, to The NASDAQ Stock Market, Inc. (NASDAQ) for a total cash consideration of $190 million, net of cash sold. The sale
generated an after-tax gain of $46 million for the year ended December 31, 2004. In addition, SunGard and NASDAQ entered into a multi-year agreement for the continued processing of Brut LLC trades by SunGard.

Merger Costs and Other Income (Expense)

During the
period from January 1, 2005 through August 10, 2005, the Company recorded merger costs of $121 million. These costs primarily include $59 million of accounting, investment banking, legal and other costs associated with the Transaction and
a non-cash charge for stock compensation of approximately $60 million in the period ended August 10, 2005 resulting from the acceleration of stock options and restricted stock. During the period from August 11, 2005 through
December 31, 2005, the Company recorded merger costs of $18 million consisting primarily of payroll taxes and certain compensation expenses related to the Transaction. Also during the period January 1, 2005 through August 10, 2005,
the Company recorded a non-recurring charge of $12 million, included in cost of sales and direct operating expenses, related to the relocation of a leased availability services facility in North Bergen, New Jersey to an expanded facility in
Carlstadt, New Jersey.

During 2004, the Company completed the sale of Brut LLC for a total cash consideration of $190 million, net of cash
sold. The sale generated a gain of $78 million, for the year ended December 31, 2004. Also during 2004, the Company recorded merger costs of $6 million consisting of $5.5 million of accounting, investment banking, and legal and other costs
associated with the planned spin-off of its availability services business and $1 million in net facility shut-down and severance costs related to previous acquisitions.



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During 2003, the Company recorded a benefit of $3 million from the reversal of previously recorded merger
costs. This benefit includes a $7 million gain on sale of a non-operating owned facility, offset in part by $3 million of costs for closing facilities and severance and a charge of $1 million for in-process research and development. Also during
2003, the Company recorded other expense of $3 million related to a $1 million loss on foreign currency purchased to fund an acquisition, and a $2 million loss representing the Companys share of the net loss of an acquired company during the
period when the Company owned more than 20% but less than 50% of the equity of that company.

3. Clearing Broker Assets and Liabilities

Clearing broker assets and liabilities are comprised of the following (in millions):



|                                                  |  |                  |     |                  |   |    
|------------------------------------------------- |  | ---------------- | --- | ---------------- | - | ---
|                                                  |  | Predecessor      |     | Successor       
|                                                  |  | December 31,2004 |     | December 31,2005
|Segregated customer cash and treasury bills       |  | $                | 24  |                  | $ | 42 
|Securities owned                                  |  |                  | 23  |                  |   | 36 
|Securities borrowed                               |  |                  | 150 |                  |   | 261
|Receivables from customers and other              |  |                  | 35  |                  |   | 52 
|                                                  |  |                  |     |                  |   |    
|Clearing broker assets                            |  | $                | 232 |                  | $ | 391
|                                                  |  |                  |     |                  |   |    
|Payables to customers                             |  | $                | 59  |                  | $ | 60 
|Securities loaned                                 |  |                  | 118 |                  |   | 272
|Customer securities sold short, not yet purchased |  |                  | 13  |                  |   | 16 
|Payable to brokers and dealers                    |  |                  | 19  |                  |   | 12 
|                                                  |  |                  |     |                  |   |    
|Clearing broker liabilities                       |  | $                | 209 |                  | $ | 360
|                                                  |  |                  |     |                  |   |    

Segregated customer cash and treasury bills are held by the Company on behalf of customers.
Clearing broker securities consist of trading and investment securities at fair market values. Securities borrowed and loaned are collateralized financing transactions which are cash deposits made to or received from other broker/dealers.
Receivables from and payables to customers represent amounts due or payable on cash and margin transactions.

4. Property and Equipment

Property and equipment consisted of the following (in millions):



|                                          |  |                  |       |   |                  |   |     |  
|----------------------------------------- |  | ---------------- | ----- | - | ---------------- | - | --- | -
|                                          |  | Predecessor      |       |   | Successor        |  
|                                          |  | December 31,2004 |       |   | December 31,2005 |  
|Computer and telecommunications equipment |  | $                | 887   |   |                  | $ | 288 |  
|Leasehold improvements                    |  |                  | 329   |   |                  |   | 276 |  
|Office furniture and equipment            |  |                  | 166   |   |                  |   | 58  |  
|Buildings and improvements                |  |                  | 103   |   |                  |   | 98  |  
|Land                                      |  |                  | 14    |   |                  |   | 24  |  
|Construction in progress                  |  |                  | 46    |   |                  |   | 33  |  
|                                          |  |                  |       |   |                  |   |     |  
|                                          |  |                  | 1,545 |   |                  |   | 777 |  
|Accumulated depreciation and amortization |  |                  | (925  | ) |                  |   | (72 | )
|                                          |  |                  |       |   |                  |   |     |  
|                                          |  | $                | 620   |   |                  | $ | 705 |  
|                                          |  |                  |       |   |                  |   |     |  



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At December 31, 2005, total cost and accumulated depreciation of assets under capital leases,
primarily computer and telecommunications equipment, were $7 million and $1 million, respectively.

5. Debt and Derivative Instruments

Debt consisted of the following (in millions):



|                                                                                |  |                  |     |   |                  |   |       |  
|------------------------------------------------------------------------------- |  | ---------------- | --- | - | ---------------- | - | ----- | -
|                                                                                |  | Predecessor      |     |   | Successor        |  
|                                                                                |  | December 31,2004 |     |   | December 31,2005 |  
|Secured revolving credit facility, effective interest rate of 6.67% (A)         |  | $                |    |   |                  | $ |      |  
|Secured term loan facilities, effective interest rate of 6.86% (A)              |  |                  |    |   |                  |   | 3,969 |  
|Senior Notes due 2009 at 3.75%, net of discount of $21 at December 31, 2005 (B) |  |                  | 250 |   |                  |   | 229   |  
|Senior Notes due 2014 at 4.875%, net of discount of $33 at December 31,2005 (B) |  |                  | 250 |   |                  |   | 217   |  
|Senior Notes due 2013 at 9.125% (C)                                             |  |                  |    |   |                  |   | 1,600 |  
|Senior Subordinated Notes due 2015 at 10.25% (C)                                |  |                  |    |   |                  |   | 1,000 |  
|Senior Notes due 2013 at LIBOR plus 4.5% (8.525% at December 31, 2005) (C)      |  |                  |    |   |                  |   | 400   |  
|Other, primarily acquisition purchase price and capital lease obligations       |  |                  | 54  |   |                  |   | 14    |  
|                                                                                |  |                  |     |   |                  |   |       |  
|                                                                                |  |                  | 554 |   |                  |   | 7,429 |  
|Short-term borrowings and current portion of long-term debt                     |  |                  | (45 | ) |                  |   | (46   | )
|                                                                                |  |                  |     |   |                  |   |       |  
|Long-term debt                                                                  |  | $                | 509 |   |                  | $ | 7,383 |  
|                                                                                |  |                  |     |   |                  |   |       |  

On August 11, 2005, in connection with the Transaction, the Company (i) entered into a
new $5.0 billion senior secured credit facility, consisting of a $3.69 billion term loan facility with SunGard as the borrower, a $315 million-equivalent term loan facility with a U.K. subsidiary as the borrower ($165 million of which is denominated
in euros and $150 million of which is denominated in pounds sterling), and a $1.0 billion revolving credit facility ($980 million available at December 31, 2005 after giving effect to certain outstanding letters of credit), (ii) issued
$3.0 billion aggregate principal amount of senior notes and senior subordinated notes and (iii) entered into receivables securitization facilities initially totaling $375 million. The term loan facility denominated in euros and pounds sterling
was $158 million and $144 million, respectively, at December 31, 2005.

(A) Senior Secured Credit Facilities

Borrowings under the senior secured credit facilities bear interest at a rate equal to an applicable margin plus, at the Companys option, either
(a) a base rate determined by reference to the higher of (1) the prime rate of JPMorgan Chase Bank, N.A. and (2) the federal funds rate plus 1/2 of 1% or (b) a LIBOR rate determined by reference to the costs of funds for deposits
in the currency of such borrowing for the interest period relevant to such borrowing adjusted for certain additional costs. The applicable margin for borrowings under the revolving credit facility may be reduced subject to attaining certain leverage
ratios. In addition to paying interest on outstanding principal under the senior secured credit facilities, the Company pays a commitment fee to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. The
initial commitment fee rate is 0.50% per annum. The commitment fee rate may be reduced subject to attaining certain leverage ratios.

All obligations under the senior secured credit facilities are unconditionally guaranteed by SunGard Holdco LLC and, subject to certain exceptions, by substantially all domestic wholly owned



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subsidiaries, referred to, collectively, as U.S. Guarantors. In addition, the borrowings of U.K. subsidiary borrowers under the revolving credit facility are
unconditionally guaranteed by certain wholly owned U.K. subsidiaries. The Company must also pay customary letter of credit fees.

The
senior secured credit facilities require the Company to prepay outstanding term loans, subject to certain exceptions, with excess cash flow and in the event of certain asset sales, casualty and condemnation events, incurrences of debt and certain
financings under receivables facilities. Any mandatory prepayments would be applied pro rata to the term loan facilities and to installments of the term loan facilities in direct order of maturity.

The Company is required to repay installments on the loans under the term loan facilities in quarterly principal amounts of 0.25% of their funded total
principal amount for the first seven years and three months, with the remaining amount payable on the date that is seven years and six months from the date of the closing of the senior secured credit facilities.

Principal amounts outstanding under the revolving credit facility are due and payable in full at maturity, six years from the date of the closing of the
senior secured credit facilities.

The senior secured credit facilities contain a number of covenants that, among other things, restrict,
subject to certain exceptions, the Companys (and most or all of its subsidiaries) ability to incur additional indebtedness or issue preferred stock, pay dividends and distributions on or repurchase capital stock, create liens on assets,
enter into sale and leaseback transactions, repay subordinated indebtedness, make investments, loans or advances, make capital expenditures, engage in certain transactions with affiliates, amend certain material agreements, change its lines of
business, sell assets and engage in mergers or consolidations. In addition, under the senior secured credit facilities, the Company is required to satisfy and maintain a maximum total leverage ratio and a minimum interest coverage ratio.

The Company uses interest rate swap agreements to manage the floating rate proportion of its debt portfolio. In November 2005, the Company entered
into an interest rate swap agreement for the notional amount of $800 million of its $4.4 billion floating rate debt in order to hedge a portion of its exposure to variable rate interest payments associated with the senior secured credit facility.
The interest rate swap expires in February 2009. An interest rate swap is a contractual agreement to exchange payments based on underlying interest rates. The Company is required to pay the counterparty a stream of fixed interest payments of 4.85%,
and in turn, receives variable interest payments based on LIBOR (4.34% at December 31, 2005) from the counterparty. The net receipt or payment from the interest rate swap agreement is recorded in interest expense. The interest rate swap is
designated and qualifies as a cash flow hedge under SFAS 133, Accounting for Derivative Instruments and Hedging Activities. As such, the swap is accounted for as an asset or a liability in the consolidated balance sheet at fair value. The fair value
of derivatives was estimated based on current settlement prices and quoted market prices of comparable contracts and represents their carrying values. For the period ended December 31, 2005, the Company recorded an unrealized after-tax loss of
$1.5 million in Other Comprehensive Income (Loss) related to the change in market value on the swap. The market value of the swap recorded in Other Comprehensive Income (Loss) may be recognized in the statement of operations if certain terms of the
senior secured credit facility change, if the loan is extinguished or if the swap agreement is terminated prior to maturity. In February 2006, the Company also entered into a five year interest rate swap agreement for an additional notional amount
of $800 million, under which the Company is required to pay the counterparty a stream of fixed interest payments of 5.00%, and in turn, receives variable interest payments based on LIBOR (4.72% at February 6, 2006) from the counterparty.



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The effect of the November 2005 interest rate swap is reflected in the effective interest rate for the
senior secured credit facilities in the table above.

(B) Senior Notes due 2009 and 2014

On January 15, 2004, the Company issued $500 million of senior unsecured notes, of which $250 million are 3.75% notes due 2009 and $250 million are
4.875% notes due 2014, which are subject to certain standard covenants. Upon completion of the Transaction and to the extent required by their indentures, these senior notes became collateralized on an equal and ratable basis with loans under the
senior secured credit facilities and are guaranteed by all subsidiaries that guarantee the senior notes due 2013 and senior subordinated notes due 2015. The senior notes due 2009 and 2014 are recorded at $446 million as of December 31, 2005 as
a result of fair value adjustments related to purchase accounting. The discount of $54 million will continue to be amortized into interest expense and added to the recorded amounts over the remaining periods to maturity.

(C) Senior Notes due 2013 and Senior Subordinated Notes due 2015

The senior notes due 2013 are senior unsecured obligations that rank senior in right of payment to future debt and other obligations that are, by their terms, expressly subordinated in right of payment to the senior
notes, including the senior subordinated notes. The senior notes (i) rank equally in right of payment to all existing and future senior debt and other obligations that are not, by their terms, expressly subordinated in right of payment to the
senior notes, (ii) are effectively subordinated in right of payment to all existing and future secured debt to the extent of the value of the assets securing such debt, and (iii) are structurally subordinated to all obligations of each
subsidiary that is not a guarantor of the senior notes. All obligations under the senior notes are unconditionally guaranteed, subject to certain exceptions, by substantially all domestic wholly owned subsidiaries of the Company.

The senior subordinated notes due 2015 are unsecured senior subordinated obligations that are subordinated in right of payment to the existing and future
senior debt, including the senior secured credit facilities, the senior notes due 2009 and 2014 and the senior notes due 2013. The senior subordinated notes (i) rank equally in right of payment to all future senior subordinated debt,
(ii) are effectively subordinated in right of payment to all existing and future secured debt to the extent of the value of the assets securing such debt, (iii) are structurally subordinated to all obligations of each subsidiary that is
not a guarantor of the senior subordinated notes, and (iv) rank senior in right of payment to all future debt and other obligations that are, by their terms, expressly subordinated in right of payment to the senior subordinated notes.

The senior notes due 2013 and senior subordinated notes due 2015 are redeemable in whole or in part, at the option of the Company, at any
time at varying redemption prices that generally include premiums, which are defined in the applicable indentures. In addition, upon a change of control, the Company is required to make an offer to redeem all of the senior notes and senior
subordinated notes at a redemption price equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest.

The
indentures governing the senior notes due 2013 and senior subordinated notes due 2015 contain a number of covenants that restrict, subject to certain exceptions, the Companys ability and the ability of its restricted subsidiaries to incur
additional indebtedness or issue certain preferred shares, pay dividends on or make other distributions in respect of its capital stock or make other



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restricted payments, make certain investments, enter into certain types of transactions with affiliates, create liens securing certain debt without securing
the senior notes due 2013 or senior subordinated notes due 2015, as applicable, sell certain assets, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets and designate its subsidiaries as unrestricted subsidiaries.

(D) Off Balance Sheet DebtReceivables Securitization Facility

In August 2005, certain domestic subsidiaries entered into two receivables facilities, a transitional facility and a long-term facility (the Facilities). The Facilities provide the Company funding of up to
$375 million by allowing it to sell, on a revolving basis, an undivided interest in eligible receivables, subject to the satisfaction of other customary conditions, for a period of up to six years following the Transaction.

As of December 31, 2005, all participating domestic subsidiaries have joined the long-term facility and there are no subsidiaries participating in,
and no borrowings under, the transitional facility. In addition, funding available under the long-term facility was increased to $450 million. Under the long-term facility, eligible receivables are sold to third-party conduits through a wholly
owned, bankruptcy remote special purpose entity that is not consolidated for financial reporting purposes. The Company continues to service the receivables and charge a monthly servicing fee at market rates. The third-party conduits are sponsored by
certain lenders under the Companys senior secured credit facilities. Additional subsidiaries may become parties to the long-term facility, subject to the satisfaction of specified conditions including the completion of satisfactory due
diligence. Sales of receivables under the long-term facility qualify as sales under the provisions of FASB Statement No. 140 Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities (SFAS 140).
Accordingly, these receivables, totaling $618 million net of applicable allowances, and the corresponding borrowings, totaling $385 million, are excluded from the Companys consolidated balance sheet as of December 31, 2005. The
Companys retained interest in receivables sold as of December 31, 2005 is $224 million. Expenses associated with the long-term facility totaled $19 million for the period ended December 31, 2005, of which $18 million related to the
loss on sale of the receivables and discount on retained interests is recorded in other income (expense) and the remainder, representing facility and professional fees associated with the transitional facility, are recorded in interest expense in
the consolidated statements of operations. The gain or loss on sale of receivables is determined at the date of transfer based upon the fair value of the assets sold and the interests retained. The Company estimates fair value based on the present
value of expected cash flows. The collection period and discount rate (prime rate of 7.25% at December 31, 2005) are the key assumptions used in this estimate. At December 31, 2005, neither a 10% nor a 20% adverse change in the assumed
collection period or assumed discount rate would have a material impact on the Companys financial position or results of operations.



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At December 31, 2005, annual maturities of long-term debt during the next five years and thereafter
are as follows (in millions):



|                    |  |   |      
|------------------- |  | - | -----
|2006                |  | $ | 46   
|2007                |  |   | 42   
|2008                |  |   | 42   
|2009                |  |   | 291  
|2010                |  |   | 40   
|Thereafter          |  |   | 7,022
|                    |  |   |      
|                    |  |   | 7,483
|Less: debt discount |  |   | 54   
|                    |  |   |      
|                    |  | $ | 7,429
|                    |  |   |      

Fair Value of Financial Instruments

The following table presents the carrying amounts and fair values of financial instruments as of the end of the last two years:



|                             |  |                   |     |                   |   |               |  |   |           |   |  |   |       |  
|---------------------------- |  | ----------------- | --- | ----------------- | - | ------------- |  | - | --------- | - |  | - | ----- | -
|                             |  | Predecessor       |     | Successor         |  
|                             |  | December 31, 2004 |     | December 31, 2005 |  
|                             |  | CarryingValue     |     | FairValue         |   | CarryingValue |  |   | FairValue |  
|Interest rate swap agreement |  | $                 |    |                   | $ |              |  | $ | (2        | ) |  | $ | (2    | )
|Variable rate debt           |  |                   |    |                   |   |              |  |   | 4,368     |   |  |   | 4,407 |  
|Fixed rate debt              |  |                   | 500 |                   |   | 486           |  |   | 3,061     |   |  |   | 3,119 |  

The fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued
expenses, to the extent the underlying liability will be settled in cash, approximated carrying values because of the short-term nature of these instruments. The derivative financial instrument is carried at fair value, which is based on the amount
the Company would pay to terminate the agreement. The fair value of the Companys long-term debt is based on quoted market rates.

6. Stock Option
and Award Plans and Stock-Based Compensation

Successor

In connection with the Transaction, the Parent Companies adopted a new equity-based management compensation plan, which authorizes equity awards to be granted for up to 60 million shares of Class A common
stock and 7 million shares of Class L common stock of SunGard Capital Corp. and 2.5 million shares of preferred stock of SunGard Capital Corp. II. Under this plan, certain management and key employees were granted time-based options or a
combination of time-based and performance-based options to purchase stock in the Parent Companies. The issued options are for equity units (Unit). Each Unit consists of 1.3 shares of Class A common stock and 0.1444 shares of Class L common
stock of SunGard Capital Corp. and 0.05 shares of preferred stock of SunGard Capital Corp. II. The shares comprising a Unit are in the same proportion as the shares issued to the shareholders of the Parent Companies. Options are exercisable only as
a Unit and cannot be separately exercised for individual classes of shares.

As discussed in Note 2, options to purchase shares of the
Predecessor held by certain members of management that were not exercised before closing of the Transaction were automatically converted into fully-vested continuation options to purchase 7.4 million Units having the same aggregate intrinsic
value of $100 million. The continuation options have an exercise price of $4.50.



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During the period August 11, 2005 through December 31, 2005, the Parent Companies granted
time-based and performance-based options to purchase approximately 12.5 million and 18.2 million Units, respectively. Time-based options vest over the next five years as follows: 25% one year after date of grant, and 1/48 of the remaining
balance each month thereafter for 48 months. Performance-based options vest upon the attainment of certain annual and cumulative earnings goals for the Company during the six-year period beginning January 1, 2005. Time-based and
performance-based options can vest upon a change in control, subject to certain conditions, and expire ten years from the date of grant.

As of the date of the Transaction, the Company adopted SFAS Number 123R (revised 2004), Share-Based Payment (SFAS 123R), using the modified prospective method, which requires companies to record stock compensation expense for
all unvested and new awards as of the adoption date. Accordingly, prior period amounts presented herein have not been restated.

Time-based
and performance-based options granted in the period August 11, 2005 through December 31, 2005 have an exercise price of $18.00 per Unit and a fair value of $10.56 per Unit based on the Black-Scholes option-pricing model using the following
assumptions: expected term to exercise of 5.5 years; expected volatility of 62%; risk-free interest rate of 4.18%; and no dividend yield. Expected volatility is based primarily on a combination of the Companys historical volatility
adjusted for its new leverage and estimates of implied volatility of the Companys peer group. The requisite service period is up to 5.4 years from the date of grant.

The adoption of FAS 123R had no impact on the Companys cash flow. For the period August 11, 2005 through December 31, 2005, the Company
recorded non-cash stock compensation expense of $29 million included in sales, marketing and administration expenses. At December 31, 2005, there is approximately $100 million of unearned non-cash stock-based compensation related to
time-based options that the Company expects to record as expense over the next 4.6 years. In addition, at December 31, 2005, there is approximately $147 million of unearned non-cash stock-based compensation related to performance-based options
that the Company could record as expense over the next five years, depending on the level of achievement of financial performance goals. For time-based options, compensation expense is recorded on a straight-line basis over the requisite service
period of five years. For performance-based options, compensation expense is recorded at the time that the achievement of financial performance goals becomes probable, and then recorded over the requisite performance and service periods. At
December 31, 2005, all continuation options were exercisable, there were no exercisable time-based options, and we estimated that performance-based options for approximately 1.7 million Units were exercisable. The following table
summarizes transactions under these option plans:

|                              |  |                     |   |  |                         |   |  |   |     
|----------------------------- |  | ------------------- | - |  | ----------------------- | - |  | - | ----
|                              |  | Units (in millions) |   |  | Weighted- Average Price
|                              |  | Available           |   |  | Under Option            |   | 
|Authorized                    |  | 38.7                |   |  |                        |   |  | $ |    
|Continuation options          |  |                    |   |  | 7.4                     |   |  |   | 4.5 
|Granted                       |  | (30.7               | ) |  | 30.7                    |   |  |   | 18.0
|Canceled                      |  | 1.3                 |   |  | (1.6                    | ) |  |   | 14.5
|                              |  |                     |   |  |                         |   |  |   |     
|Balances at December 31, 2005 |  | 9.3                 |   |  | 36.5                    |   |  |   | 15.4
|                              |  |                     |   |  |                         |   |  |   |     



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The following table summarizes information concerning outstanding and exercisable options at
December 31, 2005:



|               |  |                                           |  |                                       |  |                                          
|-------------- |  | ----------------------------------------- |  | ------------------------------------- |  | -----------------------------------------
|Exercise Price |  | Number ofOptions Outstanding(in millions) |  | Weighted-averageRemaining Life(years) |  | Number ofOptions Exercisable(in millions)
|$  4.50        |  | 7.0                                       |  | 7.7                                   |  | 7.0                                      
|18.00          |  | 29.5                                      |  | 9.6                                   |  | 1.7                                      

Predecessor

Prior to the Transaction, the Company had an employee stock purchase plan whereby employees could purchase Company stock for 85% of the lower of the closing price of the Companys common stock on the first
business day or the last business day of each calendar quarter. During 2003, 2004 and 2005, employees purchased 1.2 million, 1.3 million and 0.4 million shares, respectively, at average purchase prices of $19.85, $21.60 and $23.84 per
share, respectively. This plan was discontinued in connection with the Transaction.

The Company also had other equity incentive plans,
whereby restricted shares or options to purchase shares of common stock were granted to key employees and outside directors. During 2003, 2004 and 2005, the Company awarded performance accelerated stock options (PASOs) for an aggregate of
3.6 million, 3.8 million and 4.3 million shares, respectively. The Company also awarded 21,911 and 40,100 restricted shares to Outside Directors in 2003 and 2004 at average fair values of $22.82 and $24.34 per share, respectively.
Compensation expense related to restricted shares aggregated $1 million in 2003 and 2004. All outstanding options and restricted shares as of August 10, 2005 were accelerated in connection with the Transaction (see Merger and Other Income
(Expense) in Note 2).

The table below summarizes transactions under these equity incentive plans:



|                              |  |                      |   |  |                        |   |  |   |      
|----------------------------- |  | -------------------- | - |  | ---------------------- | - |  | - | -----
|                              |  | Shares (in millions) |   |  | Weighted-average Price
|                              |  | Available            |   |  | UnderOption            |   | 
|Balances at December 31, 2002 |  | 11.6                 |   |  | 40.1                   |   |  | $ | 21.42
|Authorized                    |  | 1.8                  |   |  |                       |   |  |   |     
|Canceled                      |  | 3.2                  |   |  | (3.2                   | ) |  |   | 23.59
|Granted                       |  | (7.4                 | ) |  | 7.4                    |   |  |   | 21.09
|Exercised                     |  |                     |   |  | (3.6                   | ) |  |   | 13.75
|                              |  |                      |   |  |                        |   |  |   |      
|Balances at December 31, 2003 |  | 9.2                  |   |  | 40.7                   |   |  |   | 21.86
|Authorized                    |  | 3.6                  |   |  |                       |   |  |   |     
|Canceled                      |  | 3.1                  |   |  | (3.1                   | ) |  |   | 24.79
|Granted                       |  | (9.2                 | ) |  | 9.2                    |   |  |   | 26.69
|Exercised                     |  |                     |   |  | (2.4                   | ) |  |   | 14.63
|                              |  |                      |   |  |                        |   |  |   |      
|Balances at December 31, 2004 |  | 6.7                  |   |  | 44.4                   |   |  |   | 23.05
|Canceled                      |  | 1.1                  |   |  | (1.1                   | ) |  |   | 25.55
|Granted                       |  | (5.1                 | ) |  | 5.1                    |   |  |   | 26.08
|Exercised(1)                  |  |                     |   |  | (38.5                  | ) |  |   | 22.67
|Continuation options          |  |                     |   |  | (9.9                   | ) |  |   | 23.62
|Plan cancellation             |  | (2.7                 | ) |  |                       |   |  |   |     
|                              |  |                      |   |  |                        |   |  |   |      
|Balances at August 10, 2005   |  |                     |   |  |                       |   |  |   |     
|                              |  |                      |   |  |                        |   |  |   |      

---

|(1) | Includes 20.9 million options that were cashed out in connection with the Transaction, with the same economic effect as an exercise and sale for the Transaction consideration.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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7. Common Stock Buyback

On February 26, 2004, the Companys Board of Directors authorized the purchase by the Company of up to 5 million shares of its common stock
during a one-year period which expired February 24, 2005. Shares purchased under this plan were used to offset the effect of issuances under the Companys employee stock option and purchase plans. Through December 31, 2004,
3.9 million shares were purchased for $104 million. There were no shares purchased under this plan in 2005.

8. Savings Plans

The Company and its subsidiaries maintain savings plans that cover substantially all employees. These plans generally provide that employee contributions
are matched with cash contributions by the Company subject to certain limitations including a limitation on the Companys contributions to 4% of the employees compensation. Total expense under these plans aggregated $27 million in 2003,
$34 million in 2004, $23 million for the period January 1, 2005 through August 10, 2005 and $16 million for the period August 11, 2005 through December 31, 2005.

9. Income Taxes

The provision (benefit) for income taxes for the calendar years ended
December 31, 2003 and 2004 and the predecessor and successor periods of calendar year 2005 consisted of the following (in millions):



|          |  |                         |     |      |                                            |     |   |                                              |   |     |   |  |   |     |  
|--------- |  | ----------------------- | --- | ---- | ------------------------------------------ | --- | - | -------------------------------------------- | - | --- | - |  | - | --- | -
|          |  | Predecessor             |     |      | Successor                                  |    
|          |  | Year Ended December 31, |     |      | Period fromJanuary
1throughAugust 10, 2005 |     |   | Period fromAugust
11throughDecember 31, 2005 |  
|          |  | 2003                    |     | 2004 |                                            |     |  
|Current:  |  |                         |     |      |                                            |     |   |                                              |   |     |   |  |   |     |  
|Federal   |  | $                       | 133 |      | $                                          | 184 |   |                                              | $ | 95  |   |  | $ | 2   |  
|State     |  |                         | 41  |      |                                            | 57  |   |                                              |   | 36  |   |  |   | 3   |  
|Foreign   |  |                         | 29  |      |                                            | 53  |   |                                              |   | 25  |   |  |   | 19  |  
|          |  |                         |     |      |                                            |     |   |                                              |   |     |   |  |   |     |  
|          |  |                         | 203 |      |                                            | 294 |   |                                              |   | 156 |   |  |   | 24  |  
|          |  |                         |     |      |                                            |     |   |                                              |   |     |   |  |   |     |  
|Deferred: |  |                         |     |      |                                            |     |   |                                              |   |     |   |  |   |     |  
|Federal   |  |                         | 30  |      |                                            | 12  |   |                                              |   | (9  | ) |  |   | (47 | )
|State     |  |                         | 5   |      |                                            | 2   |   |                                              |   | (2  | ) |  |   | (7  | )
|Foreign   |  |                         | 7   |      |                                            | (1  | ) |                                              |   | (3  | ) |  |   | (3  | )
|          |  |                         |     |      |                                            |     |   |                                              |   |     |   |  |   |     |  
|          |  |                         | 42  |      |                                            | 13  |   |                                              |   | (14 | ) |  |   | (57 | )
|          |  |                         |     |      |                                            |     |   |                                              |   |     |   |  |   |     |  
|          |  | $                       | 245 |      | $                                          | 307 |   |                                              | $ | 142 |   |  | $ | (33 | )
|          |  |                         |     |      |                                            |     |   |                                              |   |     |   |  |   |     |  

Income (loss) before income taxes for the calendar years ended December 31, 2003 and 2004 and
the predecessor and successor periods of calendar year 2005 consisted of the following (in millions):



|                   |  |                         |     |                                            |   |                                              |  |   |     |  |   |      |  
|------------------ |  | ----------------------- | --- | ------------------------------------------ | - | -------------------------------------------- |  | - | --- |  | - | ---- | -
|                   |  | Predecessor             |     | Successor                                  |  
|                   |  | Year Ended December 31, |     | Period fromJanuary
1through August 10,2005 |   | Period fromAugust
11through December 31,2005 | 
|                   |  |                        
|                   |  | 2003                    |     | 2004                                       |   |                                             
|U.S. operations    |  | $                       | 511 |                                            | $ | 615                                          |  | $ | 203 |  | $ | (111 | )
|Foreign operations |  |                         | 104 |                                            |   | 146                                          |  |   | 85  |  |   | 49   |  
|                   |  |                         |     |                                            |   |                                              |  |   |     |  |   |      |  
|                   |  | $                       | 615 |                                            | $ | 761                                          |  | $ | 288 |  | $ | (62  | )
|                   |  |                         |     |                                            |   |                                              |  |   |     |  |   |      |  



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Differences between income tax expense at the U.S. federal statutory income tax rate and the
Companys effective income tax rate for the calendar years ended December 31, 2003 and 2004 and the predecessor and successor periods of calendar year 2005 were as follows (in millions):



|                                           |  |                         |     |   |                                            |   |     |                                              |  |   |     |   |  |   |     |  
|------------------------------------------ |  | ----------------------- | --- | - | ------------------------------------------ | - | --- | -------------------------------------------- |  | - | --- | - |  | - | --- | -
|                                           |  | Predecessor             |     |   | Successor                                  |  
|                                           |  | Year Ended December 31, |     |   | Period fromJanuary
1throughAugust 10, 2005 |   |     | Period fromAugust
11throughDecember 31, 2005 | 
|                                           |  | 2003                    |     |   | 2004                                       |   |     |                                             
|Tax at federal statutory rate              |  | $                       | 215 |   |                                            | $ | 266 |                                              |  | $ | 101 |   |  | $ | (22 | )
|State income taxes, net of federal benefit |  |                         | 32  |   |                                            |   | 39  |                                              |  |   | 22  |   |  |   | (6  | )
|Foreign taxes                              |  |                         | (6  | ) |                                            |   | (6  | )                                            |  |   | (1  | ) |  |   | (1  | )
|Tax repatriation charge(1)                 |  |                         |    |   |                                            |   |    |                                              |  |   | 4   |   |  |   |    |  
|Non-deductible merger costs                |  |                         | 1   |   |                                            |   | 2   |                                              |  |   | 16  |   |  |   | (1  | )
|Other, net                                 |  |                         | 3   |   |                                            |   | 6   |                                              |  |   |    |   |  |   | (3  | )
|                                           |  |                         |     |   |                                            |   |     |                                              |  |   |     |   |  |   |     |  
|                                           |  | $                       | 245 |   |                                            | $ | 307 |                                              |  | $ | 142 |   |  | $ | (33 | )
|                                           |  |                         |     |   |                                            |   |     |                                              |  |   |     |   |  |   |     |  
|Effective income tax rate                  |  |                         | 40  | % |                                            |   | 40  | %                                            |  |   | 49  | % |  |   | 53  | %
|                                           |  |                         |     |   |                                            |   |     |                                              |  |   |     |   |  |   |     |  

---

|(1) | In calendar year 2005, the Company recorded $4 million of taxes associated with the repatriation of $100 million in foreign earnings under the Jobs Act and $32 million related to
additional distributions received from foreign subsidiaries.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Deferred income taxes are recorded based upon differences
between financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities at December 31, 2004 and 2005 are summarized as follows (in millions):



|                                              |  |                  |      |   |                  |   |        |  
|--------------------------------------------- |  | ---------------- | ---- | - | ---------------- | - | ------ | -
|                                              |  | Predecessor      |      |   | Successor        |  
|                                              |  | December 31,2004 |      |   | December 31,2005 |  
|Current:                                      |  |                  |      |   |                  |   |        |  
|Trade receivables and retained interest       |  | $                | 19   |   |                  | $ | 18     |  
|Accrued compensation and benefits             |  |                  | 8    |   |                  |   | 7      |  
|Other accrued expenses                        |  |                  | 21   |   |                  |   | 23     |  
|Deferred revenues                             |  |                  | (5   | ) |                  |   | (8     | )
|                                              |  |                  |      |   |                  |   |        |  
|Total current deferred income tax asset       |  | $                | 43   |   |                  | $ | 40     |  
|                                              |  |                  |      |   |                  |   |        |  
|Long-term:                                    |  |                  |      |   |                  |   |        |  
|Property and equipment                        |  | $                | 11   |   |                  | $ | 22     |  
|Intangible assets                             |  |                  | (103 | ) |                  |   | (1,877 | )
|Net operating loss carry-forwards             |  |                  | 68   |   |                  |   | 94     |  
|Stock compensation                            |  |                  |     |   |                  |   | 16     |  
|Purchased in-process research and development |  |                  | 12   |   |                  |   | 9      |  
|Long term debt                                |  |                  |     |   |                  |   | (20    | )
|Foreign exchange gain                         |  |                  | 1    |   |                  |   |       |  
|                                              |  |                  |      |   |                  |   |        |  
|Total long-term deferred income tax liability |  |                  | (11  | ) |                  |   | (1,756 | )
|Valuation allowance                           |  |                  | (47  | ) |                  |   | (47    | )
|                                              |  |                  |      |   |                  |   |        |  
|Net long-term deferred income tax liability   |  | $                | (58  | ) |                  | $ | (1,803 | )
|                                              |  |                  |      |   |                  |   |        |  



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A valuation allowance for deferred income tax assets associated with certain net operating loss
carry-forwards has been established. The North American tax loss carry-forwards include U.S. federal and state of $186 million and $230 million, respectively, and a total of $2 million in Canada and Mexico. Israeli tax loss carry-forwards, totaling
$20 million, are unlimited in duration and are linked to the Israeli consumer price index. European and Asian tax loss carry-forwards total $80 million. The utilization of these tax loss carry-forwards are limited in certain jurisdictions and expire
between 2007 and 2025. The Company recorded the benefit of tax loss carry-forwards of $2 million, $10 million and $1 million in 2003, 2004 and the Predecessor period of 2005, respectively. There was no benefit of tax loss carry-forwards recorded in
the Successor period.

In addition, $5 million, $2 million and $1 million were recorded as a reduction to goodwill in 2004, the Predecessor
period of 2005, and the Successor period, respectively. There was no net operating loss utilization recorded as a reduction to goodwill in 2003. Predecessor net operating loss carry-forwards as of December 31, 2005 were $211 million.
Utilization, if any, of Predecessor net operating loss carry-forwards not recorded as an asset at August 10, 2005 will be recorded as a reduction to goodwill.

As of December 31, 2005, the Company has not accrued deferred U.S. income taxes on $112 million of unremitted earnings from non-U.S. subsidiaries as such earnings are expected to be reinvested overseas and used
for U.K. debt service. If all of these earnings were to be repatriated at one time, the residual U.S. tax, net of U.S. foreign tax credit, would not be material to the financial statements.



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10. Segment and Geographic Information

The Company has three segments: FS and HEPS, which together form the Companys Software & Processing Solutions business, and AS. Effective
January 1, 2005, the Company reclassified one data center facility from AS to FS. This change has been reflected for all periods presented. The operating results for each segment follow (in millions):



|                                                      |  |    |       |      |   |       |  |                         |       |                          |   |        |                   |   |        |      |  |   |       
|----------------------------------------------------- |  | -- | ----- | ---- | - | ----- |  | ----------------------- | ----- | ------------------------ | - | ------ | ----------------- | - | ------ | ---- |  | - | ------
|Predecessor                                           |  |    |       |      |   |       |  |                         |       |                          |   |        |                   |   |        |      |  |   |       
|2003                                                  |  | FS |       | HEPS |   | AS    |  | Total OperatingSegments |       | Corporate andOther Items |   |        | ConsolidatedTotal
|Revenue                                               |  | $  | 1,646 |      | $ | 179   |  | $                       | 1,130 |                          | $ | 2,955  |                   | $ |       |      |  | $ | 2,955 
|Depreciation and amortization                         |  |    | 65    |      |   | 5     |  |                         | 152   |                          |   | 222    |                   |   | 1      |      |  |   | 223   
|Amortization of acquisition-related intangible assets |  |    | 59    |      |   | 10    |  |                         | 20    |                          |   | 89     |                   |   |       |      |  |   | 89    
|Operating income                                      |  |    | 321   |      |   | 22    |  |                         | 321   |                          |   | 664    |                   |   | (41    | )(1) |  |   | 623   
|Goodwill                                              |  |    | 628   |      |   | 108   |  |                         | 618   |                          |   | 1,354  |                   |   |       |      |  |   | 1,354 
|Total assets                                          |  |    | 2,249 |      |   | 262   |  |                         | 1,922 |                          |   | 4,433  |                   |   | (433   | )(2) |  |   | 4,000 
|Cash paid for property and equipment                  |  |    | 31    |      |   | 2     |  |                         | 144   |                          |   | 177    |                   |   | 5      |      |  |   | 182   
|                                                      |  |    |       |      |   |      
|2004                                                  |  | FS |       | HEPS |   | AS    |  | Total OperatingSegments |       | Corporate andOther Items |   |        | ConsolidatedTotal
|Revenue                                               |  | $  | 1,871 |      | $ | 525   |  | $                       | 1,160 |                          | $ | 3,556  |                   | $ |       |      |  | $ | 3,556 
|Depreciation and amortization                         |  |    | 68    |      |   | 11    |  |                         | 137   |                          |   | 216    |                   |   | 2      |      |  |   | 218   
|Amortization of acquisition-related intangible assets |  |    | 63    |      |   | 35    |  |                         | 21    |                          |   | 119    |                   |   |       |      |  |   | 119   
|Operating income                                      |  |    | 319   |      |   | 82    |  |                         | 365   |                          |   | 766    |                   |   | (62    | )(1) |  |   | 704   
|Goodwill                                              |  |    | 618   |      |   | 564   |  |                         | 642   |                          |   | 1,824  |                   |   |       |      |  |   | 1,824 
|Total assets                                          |  |    | 2,676 |      |   | 1,385 |  |                         | 2,015 |                          |   | 6,076  |                   |   | (881   | )(2) |  |   | 5,195 
|Cash paid for property and equipment                  |  |    | 35    |      |   | 6     |  |                         | 169   |                          |   | 210    |                   |   |       |      |  |   | 210   
|                                                      |  |    |       |      |   |      
|Period from January 1 through August 10, 2005         |  | FS |       | HEPS |   | AS    |  | Total OperatingSegments |       | Corporate andOther Items |   |        | ConsolidatedTotal
|Revenue                                               |  | $  | 1,120 |      | $ | 471   |  | $                       | 780   |                          | $ | 2,371  |                   | $ |       |      |  | $ | 2,371 
|Depreciation and amortization                         |  |    | 39    |      |   | 8     |  |                         | 94    |                          |   | 141    |                   |   |       |      |  |   | 141   
|Amortization of acquisition-related intangible assets |  |    | 39    |      |   | 30    |  |                         | 15    |                          |   | 84     |                   |   |       |      |  |   | 84    
|Operating income                                      |  |    | 183   |      |   | 76    |  |                         | 197   |                          |   | 456    |                   |   | (160   | )(1) |  |   | 296   
|Goodwill                                              |  |    | 623   |      |   | 639   |  |                         | 735   |                          |   | 1,997  |                   |   |       |      |  |   | 1,997 
|Cash paid for property and equipment                  |  |    | 29    |      |   | 11    |  |                         | 92    |                          |   | 132    |                   |   |       |      |  |   | 132   
|                                                     
|                                                     
|Successor                                             |  |    |       |      |   |       |  |                         |       |                          |   |        |                   |   |        |      |  |   |       
|                                                      |  |    |       |      |   |      
|Period from August 11 through December 31, 2005       |  | FS |       | HEPS |   | AS    |  | Total OperatingSegments |       | Corporate andOther Items |   |        | ConsolidatedTotal
|Revenue                                               |  | $  | 786   |      | $ | 317   |  | $                       | 528   |                          | $ | 1,631  |                   | $ |       |      |  | $ | 1,631 
|Depreciation and amortization                         |  |    | 20    |      |   | 6     |  |                         | 63    |                          |   | 89     |                   |   |       |      |  |   | 89    
|Amortization of acquisition-related intangible assets |  |    | 77    |      |   | 24    |  |                         | 46    |                          |   | 147    |                   |   |       |      |  |   | 147   
|Operating income                                      |  |    | 104   |      |   | 47    |  |                         | 128   |                          |   | 279    |                   |   | (82    | )(1) |  |   | 197   
|Goodwill                                              |  |    | 3,104 |      |   | 1,794 |  |                         | 2,006 |                          |   | 6,904  |                   |   |       |      |  |   | 6,904 
|Total assets                                          |  |    | 7,372 |      |   | 3,662 |  |                         | 5,127 |                          |   | 16,161 |                   |   | (1,574 | )(2) |  |   | 14,587
|Cash paid for property and equipment                  |  |    | 20    |      |   | 3     |  |                         | 65    |                          |   | 88     |                   |   |       |      |  |   | 88    

---

|(1) | Includes corporate administrative expenses and merger costs.
|--- | ------------------------------------------------------------



|(2) | Includes items that are eliminated in consolidation and deferred income taxes.
|--- | ------------------------------------------------------------------------------



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FS revenue by business area follows (in millions):



|                                                      |  |                         |       |                                           |   |                                             |  |   |       |  |   |    
|----------------------------------------------------- |  | ----------------------- | ----- | ----------------------------------------- | - | ------------------------------------------- |  | - | ----- |  | - | ---
|                                                      |  | Predecessor             |       | Successor                                
|                                                      |  | Year Ended December 31, |       | Period fromJanuary 1throughAugust 10,2005 |   | Period fromAugust 11throughDecember 31,2005
|                                                      |  | 2003                    |       | 2004                                      |   |                                            
|Wealth Management & Brokerage                         |  | $                       | 447   |                                           | $ | 512                                         |  | $ | 323   |  | $ | 197
|Benefit Administration & Insurance                    |  |                         | 260   |                                           |   | 383                                         |  |   | 237   |  |   | 165
|Trading, Treasury & Risk Management                   |  |                         | 770   |                                           |   | 790                                         |  |   | 434   |  |   | 348
|Institutional Asset Management & Securities Servicing |  |                         | 169   |                                           |   | 186                                         |  |   | 126   |  |   | 76 
|                                                      |  |                         |       |                                           |   |                                             |  |   |       |  |   |    
|Total Financial Systems                               |  | $                       | 1,646 |                                           | $ | 1,871                                       |  | $ | 1,120 |  | $ | 786
|                                                      |  |                         |       |                                           |   |                                             |  |   |       |  |   |    

The Companys revenue by customer location follows (in millions):



|                   |  |                         |       |                                           |   |                                             |  |   |       |  |   |      
|------------------ |  | ----------------------- | ----- | ----------------------------------------- | - | ------------------------------------------- |  | - | ----- |  | - | -----
|                   |  | Predecessor             |       | Successor                                
|                   |  | Year Ended December 31, |       | Period fromJanuary 1throughAugust 10,2005 |   | Period fromAugust 11throughDecember 31,2005
|                   |  | 2003                    |       | 2004                                      |   |                                            
|United States      |  | $                       | 2,207 |                                           | $ | 2,638                                       |  | $ | 1,710 |  | $ | 1,190
|                   |  |                         |       |                                           |   |                                             |  |   |       |  |   |      
|International:     |  |                         |       |                                           |   |                                             |  |   |       |  |   |      
|United Kingdom     |  |                         | 293   |                                           |   | 382                                         |  |   | 303   |  |   | 205  
|Continental Europe |  |                         | 297   |                                           |   | 328                                         |  |   | 211   |  |   | 125  
|Canada             |  |                         | 78    |                                           |   | 103                                         |  |   | 65    |  |   | 44   
|Asia/Pacific       |  |                         | 47    |                                           |   | 57                                          |  |   | 37    |  |   | 43   
|Other              |  |                         | 33    |                                           |   | 48                                          |  |   | 45    |  |   | 24   
|                   |  |                         |       |                                           |   |                                             |  |   |       |  |   |      
|                   |  |                         | 748   |                                           |   | 918                                         |  |   | 661   |  |   | 441  
|                   |  |                         |       |                                           |   |                                             |  |   |       |  |   |      
|                   |  | $                       | 2,955 |                                           | $ | 3,556                                       |  | $ | 2,371 |  | $ | 1,631
|                   |  |                         |       |                                           |   |                                             |  |   |       |  |   |      

The Companys property and equipment by geographic location follow (in millions):



|                   |  |                  |     |                  |   |    
|------------------ |  | ---------------- | --- | ---------------- | - | ---
|                   |  | Predecessor      |     | Successor       
|                   |  | December 31,2004 |     | December 31,2005
|United States      |  | $                | 427 |                  | $ | 504
|                   |  |                  |     |                  |   |    
|International:     |  |                  |     |                  |   |    
|United Kingdom     |  |                  | 132 |                  |   | 133
|Continental Europe |  |                  | 44  |                  |   | 47 
|Canada             |  |                  | 13  |                  |   | 19 
|Asia/Pacific       |  |                  | 2   |                  |   | 1  
|Other              |  |                  | 2   |                  |   | 1  
|                   |  |                  |     |                  |   |    
|                   |  |                  | 193 |                  |   | 201
|                   |  |                  |     |                  |   |    
|                   |  | $                | 620 |                  | $ | 705
|                   |  |                  |     |                  |   |    



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11. Related Party Transactions

In connection with the Transaction, SunGard Holdco LLC, the Companys parent, paid the Sponsors $96 million in fees and expenses for financial and structural advice and analysis as well as assistance with due
diligence investigations and debt financing negotiations. This amount has been allocated as debt issuance costs or included in the overall purchase price of the Transaction.

The Company and its parent companies have agreed to pay the Sponsors management fees based on 1% of quarterly Adjusted EBITDA in connection with
planning, strategy, oversight and support to management. These management fees are payable quarterly in arrears. During the period August 11, 2005 through December 31, 2005, the Company recorded $6.5 million relating to management fees in
sales, marketing and administration expenses in the statement of operations of which $3.7 is included in other accrued expenses on the balance sheet at December 31, 2005. In addition, the management agreement provides that affiliates of the
Sponsors will be entitled to receive a fee equal to 1% of the gross transaction value in connection with certain subsequent financing, acquisition, disposition and change of control transactions. The management agreement includes customary
exculpation and indemnification provisions in favor of the Sponsors and their affiliates.

In connection with the Transaction, SunGard
Capital Corp. received a $16 million promissory note from the Companys Chief Executive Officer (CEO) in payment for 1.6 million shares of Class A common stock and 0.2 million shares of Class L common stock. Also in connection
with the Transaction, SunGard Capital Corp. II received a $6 million promissory note (together with the SunGard Capital Corp. note, the Notes) from the CEO in payment for 61 thousand shares of preferred stock. The Notes bear
interest at a floating rate equal to LIBOR plus 2.5% divided by 0.84725% per annum and are payable on the last day of each calendar quarter in arrears. Principal payments are due upon written demand by the Parent Companies. The Notes are fully
recourse notes and are secured by a pledge of the CEOs shares of the Parent Companies. SunGard Data Systems Inc. is not a party to these arrangements, which were entered into prior to the consummation of the Transaction, therefore there are no
amounts recorded relating to the Notes in the Companys financial statements.

12. Commitments, Contingencies and Guarantees

The Company leases a substantial portion of its computer equipment and facilities under operating leases. The Companys leases are generally
non-cancelable or cancelable only upon payment of cancellation fees. All lease payments are based on the passage of time, but include, in some cases, payments for insurance, maintenance and property taxes. There are no bargain purchase options on
operating leases at favorable terms. Many facility leases have one or more renewal options and have fixed escalation clauses. Certain facility leases include an annual escalation for increases in utilities and property taxes. In addition, certain
facility leases are subject to restoration clauses, whereby the facility may need to be restored to its original condition upon termination of the lease. There were $16 million of restoration liabilities included in accrued expenses at
December 31, 2005. The Companys three largest availability services facilities are designed specifically for the Companys business. We could incur significant costs if we are unable to renew these leases. Future minimum rentals
under operating leases with initial or remaining noncancelable lease terms in excess of one year at December 31, 2005 follow (in millions):



|           |  |   |    
|---------- |  | - | ---
|2006       |  | $ | 161
|2007       |  |   | 140
|2008       |  |   | 110
|2009       |  |   | 80 
|2010       |  |   | 61 
|Thereafter |  |   | 187
|           |  |   |    
|           |  | $ | 739
|           |  |   |    



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Rent expense aggregated $150 million in 2003, $170 million in 2004, $114 million for the period
January 1, 2005 through August 10, 2005 and $75 million for the period August 11, 2005 through December 31, 2005.

At
December 31, 2005, the Company had outstanding letters of credit and bid bonds of $47 million, issued primarily as security for performance under certain customer contracts. In connection with certain previously acquired businesses, up to
$125 million could be paid as additional consideration, primarily by June 2006, depending on the future operating results of those businesses (see Note 2).

In the event that the management agreement described in Note 11 is terminated by the Sponsors or the Company and its Parent Companies, the Sponsors will receive a lump sum payment equal to the present value of the
annual management fees that would have been payable for the remainder of the term of the management agreement. The initial term of the management agreement is ten years, and it extends annually for one year unless the Sponsors or the Company and its
Parent Companies provide notice to the other.

The Company is presently a party to certain lawsuits arising in the ordinary course of its
business. In the opinion of management, none of its current legal proceedings will be material to the Companys business or financial results. The Companys customer contracts generally include typical indemnification of customers,
primarily for intellectual property infringement claims. Liabilities in connection with such obligations have not been material.

13. Quarterly
Financial Data (unaudited)



|                                  |  |              |     |               |           |                                        |  |   |                                              |   |  |               |     |   |  |   |       |  
|--------------------------------- |  | ------------ | --- | ------------- | --------- | -------------------------------------- |  | - | -------------------------------------------- | - |  | ------------- | --- | - |  | - | ----- | -
|                                  |  | Predecessor  |     |               | Successor |                                       
|(in millions)                     |  | FirstQuarter |     | SecondQuarter |           | Period fromJuly 1throughAugust 10,2005 |  |   | Period fromAugust 11throughSeptember 30,2005 |   |  | FourthQuarter |    
|2005(1)                           |  |              |     |               |           |                                        |  |   |                                              |   |  |               |     |   |  |   |       |  
|Revenue                           |  | $            | 947 |               | $         | 1,007                                  |  | $ | 417                                          |   |  | $             | 548 |   |  | $ | 1,083 |  
|Gross profit(3)                   |  |              | 503 |               |           | 537                                    |  |   | 212                                          |   |  |               | 301 |   |  |   | 589   |  
|Income (loss) before income taxes |  |              | 151 |               |           | 174                                    |  |   | (37                                          | ) |  |               | (43 | ) |  |   | (19   | )
|Net income (loss)                 |  |              | 90  |               |           | 99                                     |  |   | (43                                          | ) |  |               | (23 | ) |  |   | (6    | )



|                           |  |              |     |               |   |              |  |               |     |  |   |    
|-------------------------- |  | ------------ | --- | ------------- | - | ------------ |  | ------------- | --- |  | - | ---
|                           |  | Predecessor 
|                           |  | FirstQuarter |     | SecondQuarter |   | ThirdQuarter |  | FourthQuarter
|2004(2)                    |  |              |     |               |   |              |  |               |     |  |   |    
|Revenue                    |  | $            | 841 |               | $ | 899          |  | $             | 899 |  | $ | 917
|Gross profit(3)            |  |              | 450 |               |   | 483          |  |               | 489 |  |   | 526
|Income before income taxes |  |              | 142 |               |   | 172          |  |               | 257 |  |   | 190
|Net income                 |  |              | 86  |               |   | 103          |  |               | 154 |  |   | 111

---

|(1) | Includes merger costs associated with the Transaction and the previously planned spin-off of SunGard Availability Services and a non-recurring charge related to the relocation of a
leased facility of $16 million, $14 million, $103 million and $18 million during the first quarter, second quarter, period from July 1 through August 10, 2005, and period from August 11 through September 30, 2005, respectively.
See Note 2.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Includes a gain from the sale of Brut LLC, merger and spin-off costs associated with the previously planned spin-off of SunGard Availability Services of $(76) million and $4 million
during the third and fourth quarters, respectively. See Note 2.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(3) | Gross profit equals revenue less cost of sales and direct operating expenses.
|--- | -----------------------------------------------------------------------------



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|ITEM9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
|------ | ------------------------------------------------------------------------------------

None.



|ITEM9A. | CONTROLS AND PROCEDURES
|------- | -----------------------

(a) Evaluation of Disclosure Controls and Procedures: Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure
controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, as of the end of the period covered by this Report. Based on that evaluation, the Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures as of the end of the period covered by this Report were effective. However, we caution that a system of controls, no matter how well designed and operated, cannot provide absolute
assurance that its objectives are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

(b) Managements Annual Report on Internal Control Over Financial Reporting: Not applicable.

(c) Attestation Report of Independent Registered Public Accounting Firm: Not applicable.

(d) Change in Internal Control over Financial Reporting: No change in our internal control over financial reporting occurred during our
most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



|ITEM9B. | OTHER INFORMATION
|------- | -----------------

None.



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PART III



|ITEM10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
|------- | --------------------------------------------------

Our executive officers and directors are listed below.



|                     |  |     |  |                                                          
|-------------------- |  | --- |  | ---------------------------------------------------------
|Name                 |  | Age |  | Principal Position With SunGard Data Systems Inc.        
|Executive Officers   |  |     |  |                                                          
|James E. Ashton III  |  | 47  |  | Group Chief Executive Officer                            
|Donald W. Birdwell   |  | 53  |  | Group Chief Executive Officer                            
|Andrew P. Bronstein  |  | 47  |  | Vice President and Controller                            
|Robert F. Clarke     |  | 61  |  | Group Chief Executive Officer                            
|Cristóbal Conde      |  | 45  |  | President, Chief Executive Officer and Director          
|T. Ray Davis         |  | 57  |  | Group Chief Executive Officer                            
|Harold C. Finders    |  | 50  |  | Group Chief Executive Officer                            
|Theodore J. Gaasche  |  | 43  |  | Interim Group Chief Executive Officer                    
|Till M. Guldimann    |  | 56  |  | Vice Chairman                                            
|Paul C. Jeffers      |  | 44  |  | Senior Vice PresidentHuman Resources                    
|Ronald M. Lang       |  | 54  |  | Group Chief Executive Officer                            
|John E. McArdle, Jr. |  | 48  |  | Group Chief Executive Officer                            
|Karen M. Mullane     |  | 41  |  | Vice President and Director of SEC Reporting             
|Michael K. Muratore  |  | 59  |  | Executive Vice President                                 
|Brian Robins         |  | 47  |  | Senior Vice PresidentChief Marketing Officer            
|Michael J. Ruane     |  | 52  |  | Senior Vice PresidentFinance and Chief Financial Officer
|Victoria E. Silbey   |  | 42  |  | Vice PresidentLegal and General Counsel                 
|Richard C. Tarbox    |  | 53  |  | Senior Vice PresidentCorporate Development              
|                     |  |    
|Directors            |  |     |  |                                                          
|Chinh E. Chu         |  | 39  |  | Director                                                 
|John Connaughton     |  | 40  |  | Director                                                 
|James H. Greene, Jr. |  | 55  |  | Director                                                 
|Glenn H. Hutchins    |  | 50  |  | Chairman of the Board of Directors                       
|John Marren          |  | 43  |  | Director                                                 
|Sanjeev Mehra        |  | 47  |  | Director                                                 
|Julie Richardson     |  | 42  |  | Director                                                 

Mr. Ashton has been Group Chief Executive Officer, SunGard Trading, Treasury & Risk
Management since January 2005. Mr. Ashton served as Group Chief Executive Officer, SunGard Trading and Risk Systems from 1999 to January 2005 and Group Chief Executive Officer, SunGard Treasury Systems from 2003 to 2005. From 1997 to 1999, he
served as Senior Vice President and General Manager of a wealth management systems business that we acquired in 1997.

Mr. Birdwell
has been Group Chief Executive Officer, SunGard Wealth Management & Brokerage since January 2005. Mr. Birdwell served as Group Chief Executive Officer, SunGard Asset Management Systems from 1999 to 2005 and Group Chief Executive
Officer, SunGard Securities Processing Systems from 2002 to January 2005, and has been responsible for our SunGard Online Investment Systems group since 2003. From 1989 to 1999, Mr. Birdwell held various senior management positions with us,
including President of one of our wealth management systems business units from 1993 to 1999. Mr. Birdwell was a senior executive of a wealth management systems business that we acquired in 1989.



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Mr. Bronstein has been Vice President and Controller since 1994 and was Corporate Controller from
1992 to 1994. From 1985 to 1992, he was a manager with Coopers & Lybrand L.L.P., Philadelphia, where he served as senior manager on our account and as director of the firms Philadelphia high technology group. Mr. Bronstein has
resigned effective April 1, 2006.

Mr. Clarke has been Group Chief Executive Officer, SunGard Higher Education and Public Sector
Systems since 1998. From 1988 to 1998, he served as President of one of our wealth management systems business units.

Mr. Conde has
been President since 2000 and Chief Executive Officer since 2002. Mr. Conde served as Chief Operating Officer from 1999 to 2002 and Executive Vice President from 1998 to 1999. Before then, Mr. Conde was Chief Executive Officer of SunGard
Trading Systems Group from 1991 to 1998. Mr. Conde was cofounder of a trading and risk systems business that we acquired in 1987.

Mr. Davis has been Group Chief Executive Officer, SunGard Benefit Administration & Insurance since January 2005. Mr. Davis served as Group Chief Executive Officer, SunGard Employee Benefit Systems from 1999 to January
2005 and Group Chief Executive Officer, SunGard Investor Accounting Systems from 2002 to January 2005. From 1989 to 1999, he held various senior management positions with us, including President of one of our benefit, insurance and investor
accounting systems business units from 1991 to 1999. Mr. Davis was a senior executive of an employee benefit systems business that we acquired in 1989.

Mr. Finders has been Group Chief Executive Officer, SunGard Europe since January 2005. From 2001 to January 2005, Mr. Finders headed the SunGard Investment Management Systems businesses based in Europe. From
1996 to 2001, he held various senior management positions with us overseeing a number of our European investment support systems businesses. Mr. Finders headed a Geneva-based wealth management systems business that we acquired in 1996.

Mr. Gaasche has been Interim Group Chief Executive Officer, SunGard Availability Services since January 2006. From 1999 to January
2006, Mr. Gaasche served as Chief Operating Officer and Chief Financial Officer, SunGard Availability Services. From 1995 to 1999, he served as President, SunGard Planning Solutions. From 1987 to 1995, Mr. Gaasche held numerous positions
with us in the areas of financial administration and planning, including Vice-President and Controller of the SunGard Recovery Services Group.

Mr. Guldimann has been Vice Chairman since 2002. He was our Senior Vice President, Strategy and a member of our board of directors from 1999 to March 2002. Mr. Guldimann was Vice Chairman from 1997 to 1999 and Senior Vice
President from 1995 to 1997 of a trading and risk systems business that we acquired in 1998. From 1974 to 1995, Mr. Guldimann held various senior executive positions with J.P. Morgan & Co.

Mr. Jeffers has been Senior Vice PresidentHuman Resources since January 2005 and was Vice PresidentHuman Resources from 2001 to January
2005. From 2000 to 2001, Mr. Jeffers was National Director of Performance Management and Education for Grant Thornton, LLP, and from 1999 to 2000, he was Vice PresidentHuman Resources of First USA Bank. From 1995 to 1999, Mr. Jeffers
was Area Director, Human Resources for the Management Consulting Practice of Ernst & Young LLP.



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Mr. Lang has been Group Chief Executive Officer, Enterprise Solutions Group since December 2005. He
was Chief Product OfficerFinancial Systems from January to December 2005. From 2000 to January 2005, Mr. Lang was Group Chief Executive Officer, SunGard Trading Systems and was responsible for our SunGard Brokerage Systems and SunGard
Financial Networks groups from 2003 to January 2005. Mr. Lang was Vice President of Marketing from 1997 to 1998 and President from 1998 to 2000 of a trading and risk systems business that we acquired in 1998.

Mr. McArdle has been Group Chief Executive Officer, SunGard Institutional Asset Management and Securities Servicing since January 2005.
Mr. McArdle served as Group Chief Executive Officer of SunGard Investment Management Systems from 1999 to January 2005. From 1986 to 1999, he held various senior management positions with us, including President of one of our investment
management systems business units since 1998.

Ms. Mullane has been Vice President and Director of SEC Reporting since November 2005,
Director of SEC Reporting from 2004 to November 2005 and Manager of SEC Reporting from 1999 to 2004. From 1997 to 1999, she was Vice President of Finance at NextLink Communications of Pennsylvania and, from 1994 to 1997, she was Director of Finance
at EMI Communications. From 1986 to 1994, Ms. Mullane held various positions with PriceWaterhouse, including audit manager. Ms. Mullane is a director and officer of most of our domestic subsidiaries. Ms. Mullane will replace
Mr. Bronstein as our Controller and principal accounting officer.

Mr. Muratore has been Executive Vice President since March
2002. He was Senior Vice President from 1998 to March 2002, Chief Executive Officer of the SunGard Financial Systems Group from 1995 to 1998 and Chief Executive Officer of the SunGard Computer Services Group from 1990 to 1995. From 1985 to 1990,
Mr. Muratore held various senior executive positions with us. Mr. Muratore is a director or officer of many of our domestic subsidiaries.

Mr. Robins has been Senior Vice PresidentChief Marketing Officer since January 2005. From 2003 to January 2005, he was Senior Vice PresidentCorporate Marketing and was Vice PresidentCorporate Marketing from 2000 to
February 2003. From 1995 to 2000, Mr. Robins held various marketing positions, including Vice PresidentMarketing, with a trading and risk systems business that we acquired in 1998.

Mr. Ruane has been Senior Vice PresidentFinance since 2001 and our Chief Financial Officer since 1994. He was Vice PresidentFinance from
1994 to 2001 and Treasurer from 1994 to 2005. From 1992 until 1994, Mr. Ruane was Chief Financial Officer and Vice PresidentFinance of the SunGard Trading Systems Group. Mr. Ruane was our Vice PresidentController from 1990 to
1992, and our Corporate Controller from 1985 to 1990. Mr. Ruane is a director and officer of most of our domestic and foreign subsidiaries. Mr. Ruane is also a director of Arbinet-thexchange, Inc.

Ms. Silbey has been Vice PresidentLegal and General Counsel since January 2005. From December 1997 to January 2005, Ms. Silbey held
various legal positions with us, including Vice PresidentLegal and Assistant General Counsel from February 2004 to January 2005. From 1991 to 1997, she was a lawyer with Morgan, Lewis & Bockius LLP, Philadelphia. Ms. Silbey is a
director and officer of most of our domestic and foreign subsidiaries.

Mr. Tarbox has been Senior Vice PresidentCorporate
Development since 2001 and was Vice PresidentCorporate Development from 1987 to 2001. From 1983 to 1987, Mr. Tarbox was a senior manager with Coopers & Lybrand L.L.P., providing acquisition, litigation support and other financial
consulting.



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Mr. Chu has been a director since August 2005. Mr. Chu is a senior managing director of The
Blackstone Group, a private equity firm which he joined in 1990. Mr. Chu currently serves on the boards of directors of Celanese Corporation, Nalco Holding Company, FGIC and Graham Packaging.

Mr. Connaughton has been a director since August 2005. Mr. Connaughton has been a managing director of Bain Capital Partners, LLC, a global
private investment firm, since 1997 and a member of the firm since 1989. Mr. Connaughton serves as a director of ProSiebenSat.1 Media AG, AMC Theatres, MC Communications, Warner Music Group Corp., CRC Health Group, Cumulus Media Partners, The
Boston Celtics, Epoch Senior Living and Warner Chilcott.

Mr. Greene has been a director since August 2005. Mr. Greene joined
Kohlberg Kravis Roberts & Co. LP, a private equity firm (KKR), in 1986 and was a general partner of KKR from 1993 until 1996, when he became a member of KKR & Co. L.L.C., which is the general partner of KKR.
Mr. Greene serves on the boards of directors of Accuride Corporation, Alliance Imaging, Inc. and Zhone Technologies, Inc.

Mr. Hutchins has been chairman of the board of directors since August 2005. Mr. Hutchins is a managing director of Silver Lake Partners, a private equity firm that he co-founded in 1999. Mr. Hutchins is a director of Instinet
Incorporated, Seagate Technology, TD Ameritrade Holding Corp. and The Nasdaq Stock Market, Inc.

Mr. Marren has been a director since
August 2005. Mr. Marren joined Texas Pacific Group, a private equity firm, in 2000 as a partner and leads the firms technology team. From 1996 to 2000, he was a Managing Director at Morgan Stanley. From 1992 to 1996, he was a Managing
Director and Senior Semiconductor Research Analyst at Alex. Brown & Sons. Mr. Marren is currently the Chairman of the Board of MEMC Electronic Materials and serves on the board of directors of ON Semiconductor, Conexant, Smart Modular,
Celerity, Network General and Isola.

Mr. Mehra has been a director since August 2005. Mr. Mehra has been a partner of Goldman,
Sachs & Co. since 1998 and a managing director of Goldman, Sachs & Co.s Principal Investment Area of its Merchant Banking Division since 1996. He serves on the board of directors of Nalco Holding Company, Burger King
Corporation, Hexcel Corporation, Madison River Telephone Company, LLC and Adam Aircraft Industries, Inc.

Ms. Richardson has been a
director since August 2005. Ms. Richardson has been a managing director of Providence Equity Partners since 2003 and oversees the New York-based team. Between 1998 and 2003, Ms. Richardson held various roles at JPMorgan, including Vice
Chairman of the firms investment banking division and Global Co-Head of the firms Telecom, Media and Technology group. Prior to joining JPMorgan in 1998, Ms. Richardson was a managing director at Merrill Lynch, where she spent over
11 years.

Various stockholders agreements among the Company and equity holders of the Parent Companies contain agreements among the
parties with respect to the election of our directors and the directors of Parent Companies.

The Board has determined that
Mr. Connaughton qualifies as an audit committee financial expert within the meaning of regulations adopted by the Securities and Exchange Commission. Mr. Connaughton is not an independent director because of his affiliation
with Bain Capital Partners, LLC, the affiliated funds of which hold a 13.73% equity interest in the Parent Companies.



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We adopted a Global Business Conduct and Compliance Program that is applicable to our directors and
employees, including the Chief Executive Officer, Chief Financial Officer and Controller. The Global Business Conduct and Compliance Program is available on our website at www.sungard.com/investors. A free copy of our Global Business Conduct and
Compliance Program may be requested from:

SunGard Data Systems Inc.

Chief Compliance Officer

680 East Swedesford Road

Wayne, PA 19087

If we make any substantive amendments to the Global Business Conduct and Compliance Program which apply to our Chief Executive Officer, Chief Financial
Officer or Controller or grant any waiver, including any implicit waiver, from a provision of the Global Business Conduct and Compliance Program to our directors or executive officers, we will disclose the nature of the amendment or waiver on our
website at www.sungard.com/investors or in a report on Form 8-K.



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|ITEM11. | EXECUTIVE COMPENSATION
|------- | ----------------------

Summary
Compensation Table

The following table contains certain information about compensation earned during the last three fiscal years by our
chief executive officer and four other executive officers and one former executive officer who were the most highly compensated during 2005 (the Named Executive Officers). Our fiscal year is the calendar year.



|                                                                                                      |      |              |            |                       |           |                                        |                                  |                               |           |                                |            |                        |  |                    
|----------------------------------------------------------------------------------------------------- | ---- | ------------ | ---------- | --------------------- | --------- | -------------------------------------- | -------------------------------- | ----------------------------- | --------- | ------------------------------ | ---------- | ---------------------- |  | -------------------
|                                                                                                      |      |              |            | Annual Compensation   |           | Long-Term Compensation                 |                                  | All
OtherCompensation($)(4)  
|                                                                                                      | Year |              | Salary ($) |                       | Bonus ($) |                                        | Other Annual Compensation ($)(1) |                               | Awards(2) |                                | Payouts(3) |                       
|Name and Principal Position                                                                           |      |              |            |                       |           | Securities Underlying Options/SARs (#) |                                  | Long-Term Incentive Plans ($) |          
|Cristóbal Conde Director, President and Chief Executive Officer                                       |      | 200520042003 |            | 844,560833,000825,000 |           | 2,177,5211,586,424811,928              |                                  | 9,8289,8289,091               |           | 4,961,537324,875400,000350,000 |            |                     |  | 2,686,5978,2008,000
|James E. Ashton III(5) Group Chief Executive Officer, SunGard Trading, Treasury & Risk Management     |      | 200520042003 |            | 366,400350,000       |           | 962,319153,393                        |                                  | 9,3649,511                   |           | 714,21474,90066,800           |            | 38,465               |  | 1,239,916222,432  
|Robert F. Clarke(5) Group Chief Executive Officer, SunGard Higher Education and Public Sector Systems |      | 200520042003 |            | 377,200350,000       |           | 1,228,9821,825,040                    |                                  | 9,9849,984                   |           | 211,04377,40069,400           |            |                     |  | 8,4008,200        
|James L. Mann Former Chairman                                                                         |      | 200520042003 |            | 628,220622,000619,000 |           | 999,739829,654596,519                  |                                  | 5,0196,3951,894               |           | 157,000                      |            |                     |  | 8,4008,2008,000    
|Michael K. Muratore Executive Vice President                                                          |      | 200520042003 |            | 546,350505,000500,000 |           | 1,387,4361,025,6191,108,708            |                                  | 14,6486,0006,000              |           | 1,984,609173,625159,625146,375 |            | 44,904192,7422,024,252 |  | 8,4008,2008,000    
|Richard C. Tarbox Senior Vice President Corporate Development                                        |      | 200520042003 |            | 408,040378,000374,000 |           | 855,003805,243513,853                  |                                  | 11,45210,96310,087            |           | 686,48480,50074,000110,625     |            |                     |  | 8,4008,2008,000    
|                                                                                                      |      |              |            |                       |           |                                       



|(1) | Consists of amounts reimbursed in connection with the payment of taxes. The cost of perquisites is not disclosed for any executive officer named in the table because the disclosure
threshold (the lower of $50,000 or 10% of salary plus bonus) was not reached.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | The Transaction closed on August 11, 2005. After closing of the Transaction, new options to purchase equity units in the Parent Companies were granted as
follows: Mr. Conde4,961,537; Mr. Ashton714,214; Mr. Clarke211,043; Mr. Muratore1,984,609; and Mr. Tarbox686,484. The equity units and the new options to purchase them are described below in this
ITEM 11 under the heading Option Grants Post Transaction. The balance of the 2005 options reflected in the table, which were granted in the first quarter of 2005, and all of the 2004 options reflected in the table were performance
accelerated stock options (PASOs) to purchase shares of common stock of the Predecessor Company. When issued, all PASOs were scheduled to vest nine and one-half years after their date of grant except that, depending upon the extent to
which stated financial performance goals were satisfied for the calendar year during which the PASOs were granted, vesting could have partly or fully accelerated two years after the end of that calendar year. Of the 2003 options reflected in the
table, 232,000 shares were PASOs and 375,000 shares
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | were ordinary non-PASO stock options that were scheduled to vest ratably over four years. Upon closing of the Transaction, all then outstanding options
(including PASOs) that had not previously vested became fully vested and exercisable as a result of the Transaction. To the extent not exercised, all such options converted automatically into continuation options to purchase equity units in the
Parent Companies (the continuation options are described below in this ITEM 11 under the heading Treatment of Options in connection with the Transaction).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(3) | The 2005, 2004 and 2003 payouts are cash payments made under PASOs granted in 2003, 2002 and 2001, respectively, and were earned because the financial performance goals were
exceeded for the performance periods of calendar year 2003, calendar year 2002, and calendar years 2001 through 2003, respectively.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(4) | Consists of contributions made by us to a defined contribution retirement plan. In 2005, for Messrs. Ashton and Conde, also includes $1,231,516 and $2,678,197 for amounts reimbursed
in connection with excise taxes payable as a result of the Transaction. In 2004, for Mr. Ashton, also includes $214,232 for compensation paid and amounts reimbursed in connection with taxes payable as a result of an overseas assignment.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(5) | Information for Messrs. Ashton and Clarke is provided only for the last two fiscal years because, although they have held various senior positions with SunGard for many years,
they have been executive officers of our Company only since January 2004.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Option Grants, Exercises and Holdings up through Closing of the Transaction

Option Grants Pre-Transaction

The following table
contains, for each of the Named Executive Officers, (1) the number of shares of common stock in the Predecessor Company underlying options granted during 2005 before closing of the Transaction on August 11, 2005, (2) the percentage
that those options represent of total options granted to employees during 2005 before closing of the Transaction, (3) the exercise price per share, which was the market value on the date of grant, (4) the expiration date, and (5) the
potential realizable value, assuming 5% and 10% annual rates of appreciation (compounded annually) in the market value of our common stock throughout the option term.



|                    |  |                                                                  |  |                                                                                                 |   |  |                            |  |                |  |           |  |           
|------------------- |  | ---------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------- | - |  | -------------------------- |  | -------------- |  | --------- |  | ----------
|                    |  | Individual Grants                                                |  | Potential Realizable Value atAssumed Annual Rates of Stock PriceAppreciation for Option Term(1)
|Name                |  | Number ofSecurities
UnderlyingOptions Granted(2) Pre-transaction |  | % of TotalOptionsGranted toEmployeesin Fiscal YearPre-transaction                               |   |  | Exerciseor BasePrice($/SH) |  | ExpirationDate |  | 5% ($)    |  | 10% ($)   
|Cristóbal Conde     |  | 324,875                                                          |  | 6.42                                                                                            | % |  | 26.08                      |  | 03/03/15       |  | 5,328,461 |  | 13,503,365
|James E. Ashton III |  | 74,900                                                           |  | 1.48                                                                                            | % |  | 26.08                      |  | 03/03/15       |  | 1,228,478 |  | 3,113,204 
|Robert F. Clarke    |  | 77,400                                                           |  | 1.53                                                                                            | % |  | 26.08                      |  | 03/03/15       |  | 1,269,482 |  | 3,217,116 
|James L. Mann       |  | 157,000                                                          |  | 3.10                                                                                            | % |  | 26.08                      |  | 03/03/15       |  | 2,575,047 |  | 6,525,674 
|Michael K. Muratore |  | 173,625                                                          |  | 3.43                                                                                            | % |  | 26.08                      |  | 03/03/15       |  | 2,847,723 |  | 7,216,689 
|Richard C. Tarbox   |  | 80,500                                                           |  | 1.59                                                                                            | % |  | 26.08                      |  | 03/03/15       |  | 1,320,327 |  | 3,345,967 



|(1) | As a result of the Transaction, the options reflected in the table became fully vested and had a realizable value of $9.92 per share (the Transaction consideration of $36 minus the
exercise price of $26.08). To the extent not exercised before closing of the Transaction, these options converted automatically into continuation options to purchase equity units in the Parent Companies (the continuation options are described below
in this ITEM 11 under the heading Treatment of Options in connection with the Transaction).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | The option grants listed in the table were PASOs that were scheduled to vest on September 3, 2014 (nine and one-half years after the date of grant) except that, depending upon
the extent to which stated financial performance goals were satisfied for calendar year 2005, vesting could have partly or fully accelerated on December 31, 2007. Instead, vesting of these options accelerated as a result of the Transaction.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Treatment of Options in connection with the Transaction

All outstanding options to acquire shares of common stock of the Predecessor Company, to the extent not vested before closing of the Transaction, became fully vested and immediately exercisable as a result of the
Transaction. To the extent outstanding options held by our executive officers were not exercised before the closing of the Transaction, such options converted automatically into continuation options to purchase equity units in the Parent Companies.
The continuation options are for the purchase of equity units (Units) in the Parent Companies. Each Unit consists of 1.3 shares of Class A common



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stock and 0.1444 shares of Class L common stock of SunGard Capital Corp. and 0.05 shares of preferred stock of SunGard Capital Corp. II. The shares
comprising a Unit are in the same proportion as the shares issued to all stockholders of the Parent Companies. The continuation options are exercisable only for whole Units and cannot be separately exercised for the individual classes of stock of
the Parent Companies. The continuation options have an exercise price of $4.50 per Unit, and the number of Units were calculated to preserve the intrinsic value of the converted options as of the closing of the Transaction based on the Transaction
consideration. The continuation options are fully vested and have the same expiration dates and exercise rights as the converted options.

The following table contains, for each of the Named Executive Officers, (1) the number of shares of common stock of the Predecessor Company subject to options that had previously vested and had become exercisable before closing of the
Transaction, (2) the value of such vested options, based on the Transaction consideration of $36 per share, (3) the number of shares of common stock of the Predecessor Company subject to options that became fully vested and exercisable as
a result of the Transaction, (4) the value of such options that vested as a result of the Transaction, based on the Transaction consideration of $36 per share, (5) the total number of shares subject to previously vested options and options
that vested as a result of the Transaction, and (6) the total value of all such previously vested options and options that vested as a result of the Transaction, based on the Transaction consideration of $36 per share.



|                    |  |                           |  |                                                   |  |           |  |            |  |              |  |                
|------------------- |  | ------------------------- |  | ------------------------------------------------- |  | --------- |  | ---------- |  | ------------ |  | ---------------
|Executive Officers  |  | Previously Vested Options |  | Options that Vested as
aResult of the Transaction |  | Totals   
|Name                |  | Shares                    |  | Value ($)                                         |  | Shares    |  | Value ($)  |  | Total Shares |  | Total Value ($)
|Cristóbal Conde     |  | 2,318,622                 |  | 42,638,455                                        |  | 1,363,737 |  | 15,707,075 |  | 3,682,359    |  | 58,345,530     
|James E. Ashton
III |  | 180,350                   |  | 2,369,550                                         |  | 359,250   |  | 4,449,133  |  | 539,600      |  | 6,818,683      
|Robert F. Clarke    |  | 217,933                   |  | 3,488,823                                         |  | 258,267   |  | 2,966,372  |  | 476,200      |  | 6,455,195      
|James L.
Mann       |  | 1,357,500                 |  | 27,701,609                                        |  | 349,500   |  | 3,512,561  |  | 1,707,000    |  | 31,214,170     
|Michael K. Muratore |  | 579,125                   |  | 5,919,917                                         |  | 520,625   |  | 5,708,985  |  | 1,099,750    |  | 11,628,902     
|Richard C. Tarbox   |  | 419,185                   |  | 7,497,153                                         |  | 382,690   |  | 4,814,602  |  | 801,875      |  | 12,311,755     



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Aggregated Option Exercises and Option Value Pre-Transaction

The following table contains, for each of the Named Executive Officers, (1) the number of shares of common stock of the Predecessor Company acquired
upon the exercise of options during 2005 before closing of the Transaction, (2) the value realized as a result of those exercises, based upon the Transaction consideration of $36 per share, (3) the number of shares of common stock of the
Predecessor Company underlying unexercised options held on August 11, 2005 immediately before closing of the Transaction (all of which were exercisable), and (4) the value of those options (all of which were in-the-money), based upon the
Transaction consideration of $36 per share.



|                    |  |                                                 |                |                    |               |                                                                            |             |                                                                |               |           |  |  
|------------------- |  | ----------------------------------------------- | -------------- | ------------------ | ------------- | -------------------------------------------------------------------------- | ----------- | -------------------------------------------------------------- | ------------- | --------- |  | -
|Name                |  | Shares Acquired on Exercise Pre-transaction (#) |                | Value Realized ($) |               | Number of Securities Underlying Unexercised
Options at August 11, 2005 (#) |             | Value of UnexercisedIn-the-money Optionsat August 11, 2005 ($)
|                    |  |                                                 | Exercisable(1) |                    | Unexercisable |                                                                            | Exercisable |                                                                | Unexercisable
|Cristóbal Conde     |  | 3,682,359                                       |                | 58,345,530         |               |                                                                           |             |                                                               |               |          |  | 
|James E. Ashton III |  | 126,048                                         |                | 2,518,682          |               | 413,552                                                                    |             |                                                               |               | 4,300,000 |  | 
|Robert F. Clarke    |  | 288,615                                         |                | 4,455,199          |               | 187,585                                                                    |             |                                                               |               | 1,999,996 |  | 
|James L. Mann(2)    |  | 1,707,000                                       |                | 31,214,170         |               |                                                                           |             |                                                               |               |          |  | 
|Michael K. Muratore |  | 1,099,750                                       |                | 11,628,902         |               |                                                                           |             |                                                               |               |          |  | 
|Richard C. Tarbox   |  | 296,400                                         |                | 6,514,357          |               | 505,475                                                                    |             |                                                               |               | 5,797,398 |  | 



|(1) | Converted into continuation options to purchase Units as follows: Mr. Ashton318,519; Mr. Clarke148,148 and Mr. Tarbox429,437.
|--- | --------------------------------------------------------------------------------------------------------------------------------



|(2) | Technically these options were not exercised but were cashed out in connection with the Transaction, with the same economic effect as an exercise and sale for the Transaction
consideration.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Option Grants, Exercises and Holdings after Closing of the Transaction

Option Grants Post-Transaction

In connection with the
Transaction, on August 12, 2005, executive officers were granted a combination of new time-based and performance-based options to purchase Units in the Parent Companies. As with continuation options, (1) each Unit consists of 1.3 shares of
Class A common stock and 0.1444 shares of Class L common stock of SunGard Capital Corp. and 0.05 shares of preferred stock of SunGard Capital Corp. II, (2) the shares comprising a Unit are in the same proportion as the shares issued to all
shareholders of the Parent Companies, and (3) the new options are exercisable only for whole Units and cannot be separately exercised for the individual classes of stock of the Parent Companies. The new options granted on August 12, 2005
have an exercise price of $18.00 per Unit, the market value on the date of grant and the equivalent of the Transaction consideration.

Time-based options vest over the next five years as follows: 25% one year after date of grant, and 1/48thof the remaining balance each month thereafter for 48 months. Performance-based options vest upon the attainment of certain annual and cumulative earnings goals for the Company during the six-year period beginning January 1, 2005. Time-based
and performance-based options can partly or fully vest upon a change in control, subject to certain conditions, and expire ten years from the date of grant.



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The following table contains, for each of the Named Executive Officers, (1) the number of Units
underlying options granted during 2005 after closing of the Transaction, (2) the percentage that those options represent of total options granted to employees during 2005 after closing of the Transaction, (3) the exercise price per Unit,
which equals the market value on the date of grant, (4) the expiration date, and (5) the potential realizable value, assuming 5% and 10% annual rates of appreciation (compounded annually) in the market value of the Units throughout the
option term.



|                    |  |                                                                 |        |                                                                                                  |                                                      |    |  |                            |  |                      |  |                      |  |                     
|------------------- |  | --------------------------------------------------------------- | ------ | ------------------------------------------------------------------------------------------------ | ---------------------------------------------------- | -- |  | -------------------------- |  | -------------------- |  | -------------------- |  | --------------------
|                    |  | Individual Grants                                               |        | Potential Realizable Value atAssumed Annual Rates of Stock Price Appreciation for Option
Term(1)
|Name                |  | Number ofSecuritiesUnderlyingOptions GrantedPost-transaction(2) |        |                                                                                                  | % of TotalOptionsGranted toEmployeesPost-transaction |    |  | Exerciseor BasePrice($/SH) |  | ExpirationDate       |  | 5% ($)               |  | 10% ($)             
|Cristóbal Conde     |  | 1,771,9943,189,543                                              | (2)(3) |                                                                                                  | 5.7710.39                                            | %% |  | 18.0018.00                 |  | 08/11/201508/11/2015 |  | 20,059,15436,105,958 |  | 50,833,83491,499,587
|James E. Ashton III |  | 203,888510,325                                                  | (2)(3) |                                                                                                  | 0.661.66                                             | %% |  | 18.0018.00                 |  | 08/11/201508/11/2015 |  | 2,308,0395,776,935   |  | 5,849,02314,639,889 
|Robert F. Clarke    |  | 51,564159,479                                                   | (2)(3) |                                                                                                  | 0.170.52                                             | %% |  | 18.0018.00                 |  | 08/11/201508/11/2015 |  | 583,7081,805,320     |  | 1,479,2304,575,036  
|James L. Mann       |  |                                                                |        |                                                                                                  |                                                     |    |  |                           |  |                     |  |                     |  |                    
|Michael K. Muratore |  | 708,7951,275,813                                                | (2)(3) |                                                                                                  | 2.314.16                                             | %% |  | 18.0018.00                 |  | 08/11/201508/11/2015 |  | 8,023,63714,442,338  |  | 20,333,47036,599,721
|Richard C. Tarbox   |  | 176,159510,325                                                  | (2)(3) |                                                                                                  | 0.571.66                                             | %% |  | 18.0018.00                 |  | 08/11/201508/11/2015 |  | 1,994,1375,776,935   |  | 5,053,53514,639,889 



|(1) | The actual value, if any, which an option holder may realize will depend upon the amount by which the actual market value on the date of exercise or sale exceeds the exercise price
and also on the option holders continued employment through the vesting period. The actual value to be realized by the option holder may be more or less than the potential realizable values stated in this table.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Time-based options.
|--- | -------------------



|(3) | Performance-based options.
|--- | --------------------------



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Aggregated Option Exercises and Year-End Option Value Post-Transaction

The following table contains, for each of the Named Executive Officers, (1) the number of Units acquired upon the exercise of options during 2005
after closing of the Transaction, (2) the value realized as a result of those exercises, (3) the number of Units underlying unexercised options held on December 31, 2005, and (4) the value of in-the-money options held on
December 31, 2005, based upon their estimated market value of $18 per Unit.



|                    |  |                                                  |                |                    |               |                                                                  |             |                                                         |               |           |  |  
|------------------- |  | ------------------------------------------------ | -------------- | ------------------ | ------------- | ---------------------------------------------------------------- | ----------- | ------------------------------------------------------- | ------------- | --------- |  | -
|Name                |  | Shares Acquired on Exercise Post-Transaction (#) |                | Value Realized ($) |               | Number of SecuritiesUnderlyingUnexercised
Optionsat Year-end (#) |             | Value of UnexercisedIn-the-money Optionsat Year-end
($)
|                    |  |                                                  | Exercisable(1) |                    | Unexercisable |                                                                  | Exercisable |                                                         | Unexercisable
|Cristóbal Conde     |  |                                                 |                |                   |               | 290,922                                                          |             | 4,670,615                                               |               |          |  | 
|James E. Ashton III |  |                                                 |                |                   |               | 365,066                                                          |             | 667,666                                                 |               | 4,300,000 |  | 
|Robert F. Clarke    |  |                                                 |                |                   |               | 191,787                                                          |             | 167,404                                                 |               | 1,999,996 |  | 
|James L. Mann       |  |                                                 |                |                   |               |                                                                 |             |                                                        |               |          |  | 
|Michael K. Muratore |  |                                                 |                |                   |               | 116,368                                                          |             | 1,868,240                                               |               |          |  | 
|Richard C. Tarbox   |  |                                                 |                |                   |               | 475,984                                                          |             | 639,937                                                 |               | 5,797,398 |  | 



|(1) | Includes the following estimated Units that the executive has the right to receive pursuant to performance-based options subject to the Compensation Committees evaluation and
approval of the extent to which the performance criteria have been met: Mr. Conde290,922; Mr. Ashton46,547; Mr. Clarke43,639; Mr. Muratore116,368; and Mr. Tarbox46,547.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Director Compensation

The Company does not
compensate its management or non-management directors for their service on the board of directors or any committee of the board of directors. Members of the board are reimbursed for travel and other out-of-pocket expenses related to their board
service.

Employment Agreements

As of
August 11, 2005, the Company entered into definitive employment agreements with each of the Named Executive Officers except Mr. Mann. The terms include the following:



| |  |  | A term through December 31, 2010, with one-year renewals automatically effective one year before expiration, unless terminated on one years advance notice;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The same base salary as that payable by the Company prior to the Transaction, subject to annual adjustments, if any, made by the board of directors, in consultation with the chief
executive officer;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The opportunity to earn an annual cash bonus provided that the aggregate bonus opportunity for the senior management as a group will be consistent with that provided by the Company
to executives as a group prior to the Transaction, although the board of directors may re-align the performance metrics and other terms in consultation with the chief executive officer;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Employee benefits consistent with those provided by the Company to executives prior to the Transaction;
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | Participation in the option plan of SunGard Capital Corp. and SunGard Capital Corp. II;
| | - |  | ---------------------------------------------------------------------------------------



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| |  |  | The right to receive certain severance payments and benefits, including upon a termination without cause, a resignation for good reason or a change in
control, consistent with the severance payments and benefits provided for under the change in control agreement with the Company in effect prior to the Transaction;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Certain restrictive covenants (noncompetition, confidentiality and nonsolicitation) that are consistent with those to which the executive was subject under his or her change in
control agreement with the Company in effect prior to the Transaction; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | An agreement to cooperate with the Company to resolve any issues that arise under Section 280G or 409A of the Internal Revenue Code. To the extent such issues cannot be
resolved, the executive will be entitled under certain circumstances to gross-up payments for excise taxes, if any, imposed under Section 4999 of the Internal Revenue Code on the senior management participant as a result of the Transaction or
any subsequent change in control of the Company and/or under Section 409A of the Internal Revenue Code.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Equity Plan

The SunGard 2005 Management Incentive Plan was adopted on August 11, 2005 by SunGard Capital Corp. and SunGard Capital Corp. II and approved by
their shareholders to provide for the granting of options to purchase shares of SunGard Capital Corp. Class A common stock, SunGard Capital Corp. Class L common stock, and SunGard Capital Corp. II preferred stock pursuant to the terms described
therein. A maximum of 60,000 shares of Class A common stock, 7,000,000 shares of Class L common stock, and 2,500,000 shares of preferred stock may be delivered under the plan. The boards of directors of SunGard Capital Corp. and SunGard Capital
Corp. II, or a committee appointed by them, administers the plan and may, from time to time, grant option awards to directors and key employees of, and consultants and advisors to, the Parent Companies and their subsidiaries who, in the opinion of
the plan administrator, are in a position to make a significant contribution to our success . The administrator of the plan may grant options that are vested over time and options that vest based on the attainment of performance goals specified by
the administrator of the plan.

Compensation Committee Interlocks and Insider Participation

Our Compensation Committee is currently comprised of Messrs. Chu, Connaughton, Greene and Marren, who were each appointed to the Compensation Committee in
August 2005 in connection with the Transaction. None of these individuals has been at any time an officer or employee of our Company. During 2005, we had no compensation committee interlocksmeaning that it was not the case that an
executive officer of ours served as a director or member of the compensation committee of another entity and an executive officer of the other entity served as a director or member of our Compensation Committee.

Report of the Compensation Committee

You should
be aware that under Securities and Exchange Commission rules, the Compensation Committee Report is not considered filed with the Securities and Exchange Commission and is not incorporated by reference in any past or future filing by us
under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended.

Our compensation policies for
executive officers are to (1) provide competitive compensation packages to retain and attract superior executive talent, (2) link a significant portion of compensation to financial results to reward successful performance, and
(3) provide long-term equity compensation to



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further align the interests of executive officers with those of stockholders and further reward successful performance. The principal components of our
executive officer compensation program are base salary, annual cash incentive plans and long-term equity incentive awards. The Predecessor Company Compensation Committee reviewed all components of the Chief Executive Officers and executive
officers 2005 compensation, including salary, bonus, equity and long-term incentive compensation, stock option gains, the dollar value to the executive and cost to the Company of all perquisites, and the projected severance obligations under
change-in-control agreements.

Cash Compensation

The primary factor used to set base salaries and annual cash incentives for our executive officers is an analysis of competitive executive compensation based upon general business compensation surveys as well as more
specific compensation surveys of companies of comparable business, size and complexity to SunGard. An independent compensation consultant, whose services were made available to the Predecessor Company Compensation Committee, assisted with this
analysis of competitive compensation.

Our compensation policy is to pay executive officers at or somewhat above competitive compensation
averages for comparable positions. Compensation levels for individual executive officers, however, could be more or less than competitive averages, depending upon a subjective assessment of individual factors such as the executives position,
experience, skills, achievements, tenure with SunGard and historical compensation levels. Generally, previously granted stock options and other equity awards were not considered in setting cash compensation levels. During the past several years, as
part of the cost controls implemented during the recent economic slowdown, salary increases were kept very low, resulting in base salaries for most executive officers being somewhat below the competitive averages for comparable positions.

The performance goals for executive officers 2005 annual cash incentive plans were set at the beginning of the year and took into
account our overall financial goals for 2005. For all executive officers, the incentive payments depended upon either the rate of increase in our earnings per share over the previous year, or the budgeted operating income of the businesses that
report to the officer. For two executive officers, there were additional incentive payments based upon performance goals specific to their functions.

On average, total cash compensation at targeted goals for executive officers increased by 15% in 2005, and incentive payments at targeted goals constituted 58% of total cash compensation. Based upon actual 2005
results, all executive officers except one met or exceeded their minimum targeted goals.

In connection with the Transaction, executive
officers entered into employment agreements that provided, among other things, that executive officers would (1) retain the same base salary as was payable before the Transaction, subject to annual adjustments, and (2) be eligible to
receive an annual incentive bonus under SunGards Executive Incentive Compensation (EIC) plan as in effect immediately before the Transaction, which 2005 bonus was to be determined (a) in accordance with SunGards past
practices and (b) using calculations of actual earnings per share, operating income or other relevant financial targets in the 2005 EIC plans on a pro forma basis as if the Transaction did not occur until after December 31, 2005, using, as
applicable, assumptions regarding SunGards capital structure for the balance of 2005, projected debt levels, software capitalization and amortization, and weighted average shares outstanding, that are consistent with SunGards 2005
operating budget. Therefore, the current Compensation Committees did not make any changes to the 2005 compensation plans put into place by the Predecessor Company Compensation Committee.



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Equity Compensation

Pre-Transaction.    Historically, equity compensation has been provided to executive officers principally through a long-term incentive award program, under which eligible executives
received a performance accelerated stock option (PASO) each year. PASOs were long-term options under which vesting of shares was subject both to the attainment of financial performance goals and continued long-term employment.
Accordingly, the PASO program operated both as a performance-based equity compensation program and as an executive retention program. The number of PASO shares granted to each recipient was determined on the basis of an analysis of competitive
equity compensation programs, similar to the analysis described above with respect to cash compensation, and was subject to subjective adjustments based upon individual factors. The financial performance goals for each PASO were based upon the
year-over-year growth, during the performance period covered by the PASO, in either our earnings per share or in the operating income of the businesses managed by the recipient, with the growth targets for all PASOs, taken together, being consistent
with our overall growth objectives. All executive officers as well as business unit presidents and other key executives participated in the PASO program.

Post-Transaction.    In connection with the Transaction, the SunGard 2005 Management Incentive Plan was established, which provides management and key employees the opportunity to earn up to
15% of the fully diluted equity of the Parent Companies during the period ending December 31, 2010. Under this plan, on August 12, 2005, executive officers were granted a combination of new time-based and performance-based options to
purchase Units in the Parent Companies. The size of these initial option grants were agreed to in connection with the Transaction.

Chief Executive
Officers Compensation

Mr. Condes annual base salary for 2005 was $844,560, up $11,560 or 1% over his base salary
for 2004. Mr. Condes 2005 cash incentive depended solely upon the rate of increase in our earnings per share. If the Predecessor Company 2005 earnings per share had increased by 7.9% (to $1.51), then Mr. Condes 2005 incentive
payment would have been $924,184, yielding total cash compensation at approximately the 60th percentile of competitive compensation levels based upon our analysis. If our 2005 earnings per share had increased by 10% (to $1.54), then
Mr. Condes 2005 incentive payment would have been $1,599,058, yielding total cash compensation at approximately the 85th percentile of competitive compensation levels based upon our analysis. Our pro forma 2005 diluted earnings per share
(excluding the impact of the Transaction and all merger costs) grew 12% (to $1.57), yielding an incentive payment to Mr. Conde of $2,177,521.

The Predecessor Company Compensation Committee approved the grant to Mr. Conde of a PASO to purchase 324,875 shares of common stock of the Predecessor Company in March 2005, with an exercise price equal to the market value of the
predecessor common stock on the date of grant. This PASO became fully vested and immediately exercisable as a result of the Transaction.

As agreed in connection with the Transaction, on August 12, 2005, Mr. Conde was granted time-based options to purchase 1,771,994 Units and performance-based options to purchase 3,189,543 Units.

Deductibility of Certain Compensation

Section 162(m) of the Internal Revenue Code denies a deduction for certain compensation exceeding $1,000,000 paid to the chief executive officer and the other highest paid executive officers named in the Summary Compensation Table
excluding (among other things) certain performance-



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based compensation. The Predecessor Company Compensation Committee attempted to structure performance-based awards to executive officers under equity plans
in a manner that satisfies Section 162(m). The Predecessor Company Compensation Committee also intended to consider whether it was in our best interest to structure cash incentive payments to be deductible under Section 162(m).
Notwithstanding our efforts in this area, no assurance can be given that compensation intended to satisfy the requirements for deductibility under Section 162(m) does in fact do so.

Compensation Committees of the Company and the Parent Companies:

James H. Greene, Jr., Chair

Chinh E. Chu, Member

John Connaughton, Member

John Marren, Member



|ITEM12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|------- | ----------------------------------------------------------------------------------------------

Equity
Compensation Plan Information

There are no compensation plans under which our common stock is authorized for issuance. The following
table contains certain information as of December 31, 2005 with respect to the SunGard 2005 Management Incentive Plan under which Units in the Parent Companies are authorized for issuance.



|                                                           |  |                                                                                              |  |                                                                              |       |                                                                                                                                     |          
|---------------------------------------------------------- |  | -------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------- | ----- | ----------------------------------------------------------------------------------------------------------------------------------- | ---------
|Plan Category                                              |  | Number of
Securities tobe Issued Upon Exercise ofOutstanding Options,Warrants and Rights (A) |  | Weighted-AverageExercise Price ofOutstanding Options,Warrants and Rights (B) |       | Number of SecuritiesRemaining
Available forIssuance Under EquityCompensation Plans(excluding SecuritiesReflected in Column (A)) (C)
|Equity compensation plans approved by security holders     |  | 36,571,965                                                                                   |  | $                                                                            | 15.40 |                                                                                                                                     | 9,581,881
|Equity compensation plans not approved by security holders |  |                                                                                             |  |                                                                              |      |                                                                                                                                     |         
|Total                                                      |  | 36,571,965                                                                                   |  | $                                                                            | 15.40 |                                                                                                                                     | 9,581,881



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Beneficial Ownership

All of our outstanding stock is beneficially owned by SunGard Capital Corp. and SunGard Capital Corp. II through its wholly owned subsidiaries. The following table presents information regarding beneficial ownership
of the equity securities of SunGard Capital Corp. and SunGard Capital Corp. II. as of March 1, 2006 by each person who is known by us to beneficially own more than 5% of the equity securities of SunGard Capital Corp. and SunGard Capital Corp.
II, by each of our directors, by each of the Named Executive Officers, and by all of our directors and executive officers as a group.



|                                                                                       |  |                                        |  |                      |  |           |  |       |  
|-------------------------------------------------------------------------------------- |  | -------------------------------------- |  | -------------------- |  | --------- |  | ----- | -
|Name of Beneficial Owner                                                               |  | Number of Shares Beneficially
Owned(1) |  | Percent ofClasses(2) | 
|                                                                                       |  | Class A Common                         |  | Class L Common       |  | Preferred |  |       |  
|Bain Funds(3)                                                                          |  | 34,849,657                             |  | 3,872,184            |  | 1,340,371 |  | 13.73 | %
|Blackstone Funds(4)                                                                    |  | 34,849,657                             |  | 3,872,184            |  | 1,340,371 |  | 13.73 | %
|GS Limited Partnerships(5)                                                             |  | 28,393,651                             |  | 3,154,850            |  | 1,092,063 |  | 11.19 | %
|KKR Funds(6)                                                                           |  | 34,849,657                             |  | 3,872,184            |  | 1,340,371 |  | 13.73 | %
|Providence Equity Funds(7)                                                             |  | 21,295,238                             |  | 2,366,138            |  | 819,048   |  | 8.39  | %
|Silver Lake Funds(8)                                                                   |  | 34,488,546                             |  | 3,832,061            |  | 1,326,483 |  | 13.59 | %
|Texas Pacific Group Funds(9)                                                           |  | 34,849,657                             |  | 3,872,184            |  | 1,340,371 |  | 13.73 | %
|James E. Ashton III(10)(executive officer)                                             |  | 474,586                                |  | 52,730               |  | 18,253    |  |      |  
|Chinh E. Chu(4)(11)(director)                                                          |  | 34,849,657                             |  | 3,872,184            |  | 1,340,371 |  | 13.73 | %
|Robert F. Clarke(10)(executive officer)                                                |  | 249,323                                |  | 27,701               |  | 9,589     |  |      |  
|Cristóbal Conde(10)(director and executive officer)                                    |  | 1,967,088                              |  | 218,552              |  | 75,657    |  |      |  
|John Connaughton(3)(12)(director)                                                      |  | 34,849,657                             |  | 3,872,184            |  | 1,340,371 |  | 13.73 | %
|James H. Greene, Jr.(6)(13)(director)                                                  |  | 34,849,657                             |  | 3,872,184            |  | 1,340,371 |  | 13.73 | %
|Glenn H. Hutchins(8)(14)(director)                                                     |  | 34,488,546                             |  | 3,832,061            |  | 1,326,483 |  | 13.59 | %
|John Marren(9)(15)(director)                                                           |  | 34,849,657                             |  | 3,872,184            |  | 1,340,371 |  | 13.73 | %
|Sanjeev Mehra(5)(16)(director)                                                         |  | 28,393,651                             |  | 3,154,850            |  | 1,092,063 |  | 11.19 | %
|James L. Mann (former executive officer)                                               |  |                                       |  |                     |  |          |  |      |  
|Michael K. Muratore(10)(executive officer)                                             |  | 636,829                                |  | 70,754               |  | 24,493    |  |      |  
|Julie Richardson(7)(17)(director)                                                      |  | 21,295,238                             |  | 2,366,138            |  | 819,048   |  | 8.39  | %
|Richard C. Tarbox(10)(executive officer)                                               |  | 618,780                                |  | 68,751               |  | 23,799    |  |      |  
|All 24 directors and executive officers as a group(10)(11)(12)(13)(14)(15)(16)(17)(18) |  | 233,376,898                            |  | 25,930,724           |  | 8,976,035 |  | 91.95 | %



|(1) | Includes shares held in the beneficial owners name or jointly with others, or in the name of a bank, nominee or trustee for the beneficial owners account. Unless
otherwise indicated in the footnotes to this table and subject to community property laws where applicable, we believe that each stockholder named in this table has sole voting and investment power with respect to the shares indicated as
beneficially owned.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Unless otherwise indicated, the beneficial ownership of any named person does not exceed, in the aggregate, one percent of the outstanding equity securities of SunGard Capital Corp.
and SunGard Capital Corp. II on March 1, 2006, as adjusted as required by applicable rules.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(3) | Includes (i) 34,693,273 Class A shares and 3,801,832 Class L shares of common stock of SunGard Capital Corp. and 1,313,076 shares of preferred stock of
SunGard Capital Corp. II held
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | by Bain Capital Integral Investors, LLC (Bain Integral), whose administrative member is Bain Capital Investors, LLC (BCI); and
(ii) 156,384 Class A shares and 70,352 Class L shares of common stock of SunGard Capital Corp. and 27,295 shares of preferred stock of SunGard Capital Corp. II held by BCIP TCV, LLC (BCIP TCV and, together with Bain Integral,
the Bain Funds), whose administrative member is BCI. The address of each of the entities listed in this footnote is c/o Bain Capital, LLC, 111 Huntington Avenue, Boston, Massachusetts 02199.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(4) | Includes (i) 18,317,228 Class A shares and 2,035,248 Class L shares of common stock of SunGard Capital Corp. and 704,509 shares of preferred stock of SunGard Capital Corp.
II held by Blackstone Capital Partners IV L.P. (BCP IV), whose general partner is Blackstone Management Associates IV L.L.C. (BMA IV); (ii) 289,253 Class A shares and 32,139 Class L shares of common stock of SunGard
Capital Corp. and 11,125 shares of preferred stock of SunGard Capital Corp. II held by Blackstone Capital Partners IV-A L.P. (BCP IV-A), whose general partner is BMA IV; (iii) 810,541 Class A shares and 90,060 Class L shares of
common stock of SunGard Capital Corp. and 31,175 shares of preferred stock of SunGard Capital Corp. II held by Blackstone Family Investment Partnership IV-A L.P. (BFIP IV-A), whose general partner is BMA IV; (iv) 66,204 Class A
shares and 7,356 Class L shares of common stock of SunGard Capital Corp. and 2,546 shares of preferred stock of SunGard Capital Corp. II held by Blackstone Participation Partnership IV L.P. (BPP IV), whose general partner is BMA IV;
(v) 14,444,444 Class A shares and 1,604,938 Class L shares of common stock of SunGard Capital Corp. and 555,556 shares of preferred stock of SunGard Capital Corp. II held by Blackstone GT Communications Partners L.P. (BGTCP),
whose general partner is Blackstone Communications Management Associates I L.L.C. (BCMA IV); and (vi) 921,986 Class A shares and 102,443 Class L shares of common stock of SunGard Capital Corp. and 35,461 shares of preferred
stock of SunGard Capital Corp. II held by Blackstone Family Communications Partnership L.P. (BFCP and, collectively with BCP IV, BCP IV-A, BFIP IV-A, BPP IV and BGTCP, the Blackstone Funds), whose general partner is BCMA IV.
Messrs. Peter G. Peterson and Stephen A. Schwarzman are the founding members of BMA IV and BCMA IV and as such may be deemed to share beneficial ownership of the shares held or controlled by the Blackstone Funds. Each of BMA IV and BCMA IV and
Messrs. Peterson and Schwarzman disclaims beneficial ownership of such shares. The address of each of the entities listed in this footnote is c/o The Blackstone Group, L.P., 345 Park Avenue, New York, New York 10154.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(5) | The Goldman Sachs Group, Inc., which we refer to as GS Group, Goldman, Sachs & Co., which we refer to as Goldman Sachs, and certain of their affiliates may
be deemed to own beneficially and indirectly Class A shares and Class L shares of common stock of SunGard Capital Corp. and shares of preferred stock of SunGard Capital Corp. II which are owned directly or indirectly by investment partnerships
of which affiliates of Goldman Sachs and GS Group are the general partner, managing limited partner or managing partner. We refer to these investment partnerships as the GS Limited Partnerships. Goldman Sachs is an affiliate of each of, and
investment manager for certain of, the GS Limited Partnerships. GS Group, Goldman, Sachs and the GS Limited Partnerships share voting power and investment power with certain of their respective affiliates. The GS Limited Partnerships and their
respective beneficial ownership of shares of SunGard Capital Corp. and SunGard Capital Corp. II include: (i) 8,034,125 Class A shares and 892,681 Class L shares of common stock of SunGard Capital Corp. and 309,005 shares of preferred stock
of SunGard Capital Corp. II held by GS Capital Partners 2000, L.P.; (ii) 2,552,674 Class A shares and 283,630 Class L shares of common stock of SunGard Capital Corp. and 98,180 shares of preferred stock of SunGard Capital Corp. II held by
GS Capital Partners 2000 Employee Fund, L.P.; (iii) 2,919,293 Class A shares and 324,366 Class L shares of common stock of SunGard
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | Capital Corp. and 112,281 shares of preferred stock of SunGard Capital Corp. II held by GS Capital Partners 2000 Offshore, L.P.; (iv) 354,921
Class A shares and 39,436 Class L shares of common stock of SunGard Capital Corp. and 13,651 shares of preferred stock of SunGard Capital Corp. II held by Goldman Sachs Direct Investment Fund 2000, L.P.; (v) 335,812 Class A shares and
37,312 Class L shares of common stock of SunGard Capital Corp. and 12,916 shares of preferred stock of SunGard Capital Corp. II held by GS Capital Partners 2000 GmbH & Co. Beteiligungs KG; (vi) 7,475,480 Class A shares and 830,609
Class L shares of common stock of SunGard Capital Corp. and 287,518 shares of preferred stock of SunGard Capital Corp. II held by GS Capital Partners V Fund, L.P.; (vii) 3,861,537 Class A shares and 429,060 Class L shares of common stock
of SunGard Capital Corp. and 148,521 shares of preferred stock of SunGard Capital Corp. II held by GS Capital Partners V Offshore Fund, L.P.; (viii) 296,373 Class A shares and 32,930 Class L shares of common stock of SunGard Capital Corp.
and 11,399 shares of preferred stock of SunGard Capital Corp. II held by GS Capital Partners V GmbH & Co. KG; and (ix) 2,563,436 Class A shares and 284,826 Class L shares of common stock of SunGard Capital Corp. and 98,594 shares
of preferred stock of SunGard Capital Corp. II held by GS Capital Partners V Institutional, L.P. Each of Goldman Sachs and GS Group disclaims beneficial ownership of the shares owned directly and indirectly by the GS Limited Partnerships, except to
the extent of their pecuniary interest therein, if any. The address for GS Group, Goldman Sachs and the GS Limited Partnerships is 85 Broad Street, New York, New York 10004.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(6) | Includes (i) 33,937,852 Class A shares and 3,770,872 Class L shares of common stock of SunGard Capital Corp. and 1,305,302 shares of preferred stock of SunGard Capital
Corp. II held by KKR Millennium Fund L.P. (KKR Millennium Fund), whose general partner is KKR Associates Millennium L.P., whose general partner is KKR Millennium GP LLC; and (ii) 911,806 Class A shares and 101,312 Class L
shares of common stock of SunGard Capital Corp. and 35,069 shares of preferred stock of SunGard Capital Corp. II held by KKR Partners III, L.P. (KKR III and, together with KKR Millennium Fund, the KKR Funds), whose general
partner is KKR III GP LLC. Messrs. Henry R. Kravis, George R. Roberts, James H. Greene, Jr., Paul E. Raether, Michael W. Michelson, Perry Golkin, Johannes P. Huth, Todd A. Fisher, Alexander Navab, Marc Lipschultz, Jacques Garaialde, Reinhard
Gorenflos, Michael M. Calbert and Scott C. Nuttall, as members or managing members of KKR Millennium GP LLC and KKR III GP LLC, may be deemed to share beneficial ownership of any shares beneficially owned by KKR Millennium GP LLC and KKR III GP LLC,
respectively, but disclaim such beneficial ownership except to the extent of their pecuniary interest therein. The address of each of the entities listed in this footnote is c/o Kohlberg Kravis Roberts & Co. L.P., 9 West 57thStreet, New York, New York 10019.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(7) | Includes (i) 18,390,397 Class A shares and 2,043,377 Class L shares of common stock of SunGard Capital Corp. and 707,323 shares of preferred stock of
SunGard Capital Corp. II held by Providence Equity Partners V LP (PEP V), whose general partner is Providence Equity GP V LP, whose general partner is Providence Equity Partners V L.L.C. (PEP V LLC); and (ii) 2,904,841
Class A shares and 322,760 Class L shares of common stock of SunGard Capital Corp. and 111,725 shares of preferred stock of SunGard Capital Corp. II held by Providence Equity Partners V-A LP (PEP V-A and, together with PEP V, the
Providence Equity Funds), whose general partner is Providence Equity GP V LP, whose general partner is PEP V LLC. PEP V LLC may be deemed to share beneficial ownership of the shares owned by PEP V and PEP V-A. PEP V LLC disclaims this
beneficial ownership. Messrs. Angelakis, Creamer, Masiello, Mathieu, Nelson, Pelson and Salem are members of PEP V LLC and may also be deemed to possess indirect beneficial ownership of the securities owned by the Providence Equity Funds, but
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | disclaim such beneficial ownership. The address of each of the entities listed in this footnote is c/o Providence Equity Partners Inc., 50 Kennedy Plaza,
18th Floor, Providence, Rhode Island 02903.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(8) | Includes (i) 34,440,889 Class A shares and 3,826,765 Class L shares of common stock of SunGard Capital Corp. and 1,324,650 shares of preferred stock of SunGard Capital
Corp. II held by Silver Lake Partners II, L.P. (SLP II), whose general partner is Silver Lake Technology Associates II, L.L.C. (SLTA II); and (ii) 47,657 Class A shares and 5,295 Class L shares of common stock of
SunGard Capital Corp. and 1,833 shares of preferred stock of SunGard Capital Corp. II held by Silver Lake Technology Investors II, L.L.C. (SLTI II and, together with SLP II, the Silver Lake Funds), whose manager is Silver
Lake Management Company, L.L.C., whose managing member is Silver Lake Technology Management, L.L.C. (SLTM). The address of each of the entities listed in this footnote is c/o Silver Lake Partners, 9 West 57th Street, 25th Floor, New
York, New York 10019.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(9) | Includes (i) 20,745,833 Class A shares and 2,305,093 Class L shares of common stock of SunGard Capital Corp. and 797,917 shares of preferred stock of SunGard Capital Corp.
II held by TPG Partners IV, L.P. (TPG IV), whose general partner is TPG GenPar IV, L.P. (TPG GenPar IV), whose general partner is TPG Advisors IV, Inc. (TPG Advisors IV); (ii) 2,349,389 Class A shares
and 261,043 Class L shares of common stock of SunGard Capital Corp. and 90,361 shares of preferred stock of SunGard Capital Corp. II held by T3 Partners II, L.P. (T3 Partners II), whose general partner is T3 GenPar II, L.P. (T3
GenPar II), whose general partner is T3 Advisors II, Inc. (T3 Advisors II); (iii) 377,000 Class A shares and 41,889 Class L shares of common stock of SunGard Capital Corp. and 14,500 shares of preferred stock of SunGard
Capital Corp. II held by T3 Parallel II, L.P. (T3 Parallel II), whose general partner is T3 GenPar II, whose general partner is T3 Advisors II; (iv) 5,416,667 Class A shares and 601,852 Class L shares of common stock of SunGard
Capital Corp. and 208,333 shares of preferred stock of SunGard Capital Corp. II held by TPG Solar III LLC (TPG Solar III), whose managing member is TPG Partners III, L.P. (TPG Partners III), whose general partner is TPG
GenPar III, L.P. (TPG GenPar III), whose general partner is TPG Advisors III, Inc. (TPG Advisors III); and (v) 5,960,768 Class A shares and 662,308 Class L shares of common stock of SunGard Capital Corp. and 229,260
shares of preferred stock of SunGard Capital Corp. II held by TPG Solar Co-Invest LLC (TPG Solar Co-Invest and, collectively with TPG IV, T3 Partners II, T3 Parallel II and TPG Solar III, the Texas Pacific Group Funds), whose
managing member is TPG GenPar IV, whose general partner is TPG Advisors IV. Messrs. David Bonderman, James G. Coulter and William S. Price, III, as directors, officers and sole shareholders of each of TPG Advisors IV, T3 Advisors II and TPG Advisors
III, may be deemed to have investment powers and beneficial ownership with respect to the shares owned by the Texas Pacific Group Funds, but disclaim beneficial ownership of such shares except to the extent of their respective pecuniary interest
therein. The address of each of the entities and persons identified in this footnote is c/o Texas Pacific Group, 301 Commerce Street, Fort Worth, Texas 76102.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(10) | Includes the following shares which the beneficial owner has the right to acquire within 60 days after March 1, 2006 by exercising stock options:
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------



|                                      |  |                               |  |                               |  |                          
|------------------------------------- |  | ----------------------------- |  | ----------------------------- |  | -------------------------
|Beneficial Owner                      |  | Shares of ClassA Common Stock |  | Shares of ClassL Common Stock |  | Shares of Preferred Stock
|Cristóbal Conde                       |  | 378,199                       |  | 42,009                        |  | 14,546                   
|James E. Ashton III                   |  | 474,586                       |  | 52,730                        |  | 18,253                   
|Robert F. Clarke                      |  | 249,323                       |  | 27,701                        |  | 9,589                    
|Michael K. Muratore                   |  | 151,279                       |  | 16,804                        |  | 5,818                    
|Richard C. Tarbox                     |  | 618,780                       |  | 68,751                        |  | 23,799                   
|All directors and officers as a group |  | 5,093,377                     |  | 565,888                       |  | 195,899                  



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Includes estimated shares that the executive has the right to receive pursuant to performance-based
options subject to the Compensation Committees evaluation and approval of the extent to which the performance criteria have been met.



|(11) | Mr. Chu, a director of the Parent Companies and SunGard, is a member of BMA IV and BCMA IV and a senior managing director of The Blackstone Group, L.P. Amounts disclosed for
Mr. Chu are also included above in the amounts disclosed in the table next to Blackstone Funds. Mr. Chu disclaims beneficial ownership of any shares owned directly or indirectly by the Blackstone Funds, except to the extent of
his pecuniary interest therein.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(12) | Mr. Connaughton, a director of the Parent Companies and SunGard, is a member of BCI and a managing director of BCI and Bain Capital Partners, LLC. Amounts disclosed for
Mr. Connaughton are also included above in the amounts disclosed in the table next to Bain Funds. Mr. Connaughton disclaims beneficial ownership of any shares owned directly or indirectly by the Bain Funds, except to the extent
of his pecuniary interest therein.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(13) | Mr. Greene, a director of the Parent Companies and SunGard, is a member of KKR Millennium GP LLC and KKR III GP LLC. Amounts disclosed for Mr. Greene are also included
above in the amounts disclosed in the table next to KKR Funds. Mr. Greene disclaims beneficial ownership of any shares owned directly or indirectly by the KKR Funds, except to the extent of his pecuniary interest therein.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(14) | Mr. Hutchins, a director of the Parent Companies and SunGard, is a managing director of SLTA II and SLTM. Amounts disclosed for Mr. Hutchins are also included above in the
amounts disclosed in the table next to Silver Lake Funds. Mr. Hutchins disclaims beneficial ownership of any shares owned directly or indirectly by the Silver Lake Funds, except to the extent of his pecuniary interest therein.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(15) | Mr. Marren, a director of the Parent Companies and SunGard, is a senior partner of Texas Pacific Group, an affiliate of the Texas Pacific Group Funds. Amounts disclosed for
Mr. Marren are also included above in the amounts disclosed in the table next to Texas Pacific Group Funds. Mr. Marren disclaims beneficial ownership of any shares owned directly or indirectly by the Texas Pacific Group Funds,
except to the extent of his pecuniary interest therein.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(16) | Mr. Mehra, a director of the Parent Companies and SunGard, is a managing director of Goldman Sachs. Amounts disclosed for Mr. Mehra are also included above in the amounts
disclosed in the table next to GS Limited Partnerships. Mr. Mehra disclaims beneficial ownership of any shares owned directly or indirectly by the GS Limited Partnerships, except to the extent of his pecuniary interest therein.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(17) | Ms. Richardson, a director of the Parent Companies and SunGard, is a managing director of Providence Equity Partners, Inc., an affiliate of the Providence Equity Funds. Amounts
disclosed for Ms. Richardson are also included above in the amounts disclosed in the table next to Providence Equity Funds. Ms. Richardson disclaims beneficial ownership of any shares owned directly or indirectly by the
Providence Equity Funds, except to the extent of her pecuniary interest therein.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(18) | Excluding shares beneficially owned by Ms. Richardson and Messrs. Chu, Connaughton, Greene, Hutchins, Marren and Mehra, the number of shares beneficially owned by all 24 directors
and officers as a group is as follows: Class A Common  9,800,834; Class L Common  1,088,939; Preferred  376,955; percent of classes  3.86%.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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|ITEM13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
|------- | ----------------------------------------------

On August 11, 2005, upon completion of the Transaction, the Company and its four parent companies entered into a management agreement with affiliates
of each of the Sponsors pursuant to which such entities or their affiliates will provide management services. Under the management agreement, affiliates of the Sponsors receive an aggregate annual management fee equal to 1% of the Companys
EBITDA, as defined in the Indenture dated August 11, 2005 governing the senior notes due 2013 (but assuming the management fee had not been paid for purposes of such calculation), and reimbursement for out-of-pocket expenses
incurred by them or their affiliates in connection with the Transaction prior to the closing date and in connection with the provision of services pursuant to the agreement. In connection with the Transaction, SunGard Holdco LLC, the Companys
parent, paid the Sponsors $96 million in fees and expenses for financial and structural advice and analysis as well as assistance with due diligence investigations and debt financing negotiations. During the period August 11, 2005 through
December 31, 2005, the Company recorded an additional $6.5 million relating to management fees.

In the event that the management
agreement is terminated by the Sponsors or the Company and its parent companies, the Sponsors will receive a lump sum payment equal to the present value of the annual management fees that would have been payable for the remainder of the term of the
management agreement. The initial term of the management agreement is ten years, and it extends annually for one year unless the Sponsors or the Company and its parent companies provide notice to the other. Finally, the management agreement provides
that affiliates of the Sponsors will be entitled to receive a fee equal to 1% of the gross transaction value in connection with certain subsequent financing, acquisition, disposition and change of control transactions. The management agreement
includes customary exculpation and indemnification provisions in favor of the Sponsors and their affiliates.

In connection with the
Transaction, SunGard Capital Corp. received a $16 million promissory note from Cristóbal Conde, our chief executive officer in payment for 1.6 million shares of Class A common stock and 0.2 million shares of Class L common
stock. Also in connection with the Transaction, SunGard Capital Corp. II received a $6 million promissory note (together with the SunGard Capital Corp. note, the Notes) from Mr. Conde in payment for 61,000 shares of preferred
stock. The Notes bear interest at a floating rate equal to LIBOR plus 2.5% divided by 0.84725% per annum and are payable on the last day of each calendar quarter in arrears. Principal payments are due upon written demand by the Parent
Companies. The Notes are fully recourse notes and are secured by a pledge of Mr. Condes shares of the Parent Companies. SunGard Data Systems Inc. is not a party to these arrangements, which were entered into prior to the consummation of
the Transaction.



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|ITEM14. | PRINCIPAL ACCOUNTING FEES AND SERVICES
|------- | --------------------------------------

Auditors Fees

The following table shows the
fees for professional audit services rendered by PricewaterhouseCoopers LLP for the audit of our annual financial statements and review of our interim financial statements for 2004 and 2005, and fees for other services rendered by
PricewaterhouseCoopers LLP for 2004 and 2005.



|                      |  |      |           |      |   |          
|--------------------- |  | ---- | --------- | ---- | - | ---------
|Fees                  |  | 2004 |           | 2005
|Audit fees(1)         |  | $    | 6,116,000 |      | $ | 6,602,000
|Audit-related fees(2) |  | $    | 41,000    |      | $ | 47,000   
|Tax fees(3)           |  | $    | 366,000   |      | $ | 271,000  
|All other fees(4)     |  | $    | 701,000   |      | $ | 593,000  
|Total Fees            |  | $    | 7,224,000 |      | $ | 7,513,000

---

|(1) | In 2004, consists of services rendered in connection with the audit of our annual financial statements, inclusive of work performed related to Sarbanes-Oxley ($2,860,000), separate
audit in connection with the spin off of the Availability Services business ($1,464,000) and certain broker- dealer audits and statutory audits ($1,792,000). In 2005, consists of services rendered in connection with the audit of our annual financial
statements, inclusive of work performed related to Sarbanes-Oxley ($3,460,000), work performed related to the Transaction ($761,000) and certain broker-dealer audits and statutory audits ($2,381,000).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Consists of savings plan audits.
|--- | --------------------------------



|(3) | Consists of worldwide tax services.
|--- | -----------------------------------



|(4) | Consists of SAS 70 data center audit fees.
|--- | ------------------------------------------

Audit Committee
Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm

The Audit Committee
pre-approves all audit and permissible non-audit services provided by our independent registered public accounting firm. These services may include audit services, audit-related services, tax services and other services. The Audit Committee has
adopted policies and procedures for the pre-approval of services provided by our independent registered public accounting firm. The policies and procedures provide that management and our independent registered public accounting firm jointly submit
to the Audit Committee a schedule of audit and non-audit services for approval as part of the annual plan for each year. In addition, the policies and procedures provide that the Audit Committee may also pre-approve particular services not in the
annual plan on a case-by-case basis. For each proposed service, management must provide a detailed description of the service and the projected fees and costs (or a range of such fees and costs) for the service. The policies and procedures require
management and our independent registered public accounting firm to provide quarterly updates to the Audit Committee regarding services rendered to date and services yet to be performed.

The Audit Committee may delegate pre-approval authority for audit and non-audit services to one or more of its members, who can pre-approve services up
to a maximum fee of $50,000. Any service pre-approved by a delegee must be reported to the Audit Committee at the next scheduled quarterly meeting.

The audit, audit-related, tax and other services provided by PricewaterhouseCoopers LLP in 2005 were pre-approved by the Audit Committee in accordance with its pre-approval policy.



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PART IV



|ITEM15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|------- | ------------------------------------------

(a)(1) Financial Statements

See Item 8,
Financial Statements and Supplementary Data.

(a)(2) Financial Statement Schedules

None.

(a)(3) Exhibits

The Exhibits that are incorporated by reference in this Report on Form 10-K, or are filed with this Report, are listed in the LIST OF EXHIBITS beginning
on page 105 of this Report. Exhibits 10.23 through 10.38 are the management contracts and compensatory plans and arrangements that are required to be filed as Exhibits to this Report.



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Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                    |  |  |  |                           |  |                        |  |                                      
|------------------- |  |  |  | ------------------------- |  | ---------------------- |  | -------------------------------------
|                    |  |  |  | SUNGARD DATA SYSTEMS INC.
|                    |  |  | 
|Date: March 8, 2006 |  |  |  | By:                       |  | /s/    CRISTÓBAL
CONDE
|                    |  |  |  |                           |  |                        |  | Cristóbal Conde,                     
|                    |  |  |  |                           |  |                        |  | President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been
signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



|                                                 |  |                                                                                         |  |              
|------------------------------------------------ |  | --------------------------------------------------------------------------------------- |  | -------------
|Signature                                        |  | Capacity                                                                                |  | Date         
|                                                 |  |                                                                                        
|/s/    CRISTÓBAL
CONDE Cristóbal Conde           |  | President, Chief Executive Officer and Director (principal executive officer)           |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    MICHAEL J.
RUANE Michael J. Ruane         |  | Senior Vice PresidentFinance and Chief Financial Officer (principal financial officer) |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    ANDREW P.
BRONSTEIN Andrew P. Bronstein   |  | Vice President and Controller (principal accounting officer)                            |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    CHINH E.
CHU Chinh E. Chu                 |  | Director                                                                                |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    JOHN
CONNAUGHTON John Connaughton         |  | Director                                                                                |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    JAMES H. GREENE,
JR. James H. Greene, Jr. |  | Director                                                                                |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    GLENN H.
HUTCHINS Glenn H. Hutchins       |  | Chairman of the Board of Directors                                                      |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    JOHN
MARREN John Marren                   |  | Director                                                                                |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    SANJEEV
MEHRA Sanjeev Mehra               |  | Director                                                                                |  | March 8, 2006
|                                                 |  |                                                                                        
|/s/    JULIE
RICHARDSON Julie Richardson         |  | Director                                                                                |  | March 8, 2006



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List of Exhibits



|       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NUMBER |  | DOCUMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|2.1    |  | Agreement and Plan of Merger, dated as of March 27, 2005, between Solar Capital Corp. and SunGard Data Systems Inc. (incorporated herein by reference to the Exhibits filed with SunGards
Current Report on Form 8-K dated March 27, 2005 and filed March 28, 2005 (Commission File No. 1-12989)).                                                                                                                                                                                           
|       | 
|3.1    |  | Amended and Restated Certificate of Incorporation of SunGard (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                                                  
|       | 
|3.2    |  | Second Amended and Restated Bylaws of SunGard (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30,
2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                                                                 
|       | 
|4.1    |  | Indenture dated January 15, 2004 between SunGard and The Bank of New York, as trustee (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the
fiscal year ended December 31, 2003 (Commission File No. 1-12989)).                                                                                                                                                                                                                                  
|       | 
|4.2    |  | Indenture, dated as of August 11, 2005, among Solar Capital Corp., SunGard Data Systems Inc., Guarantors named therein and The Bank of New York, as Trustee, governing the 91/8% Senior Notes and Senior Floating Rate Notes (incorporated by reference to the Exhibits filed with SunGards
Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                  
|       | 
|4.3    |  | Indenture, dated as of August 11, 2005, among Solar Capital Corp., SunGard Data Systems Inc., Guarantors named therein and The Bank of New York, as Trustee, governing the 101/4% Senior Subordinated Notes (incorporated by reference to the Exhibits filed with SunGards Quarterly Report
on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                   
|       | 
|4.4    |  | Registration Rights Agreement dated January 15, 2004 between SunGard and Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., as representatives of the initial purchasers
(incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 2003 (Commission File No. 1-12989)).                                                                                                                                   
|       | 
|4.5    |  | Registration Rights Agreement, dated as of August 11, 2005, among Solar Capital Corp., SunGard Data Systems Inc., Guarantors named therein and Deutsche Bank Securities Inc., Citigroup Global
Markets Inc. and J.P. Morgan Securities Inc., relating to the 91/8% Senior Notes and Senior Floating Rate Notes
(incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).
|       | 
|4.6    |  | Registration Rights Agreement, dated as of August 11, 2005, among Solar Capital Corp., SunGard Data Systems Inc., Guarantors named therein and Deutsche Bank Securities Inc., Citigroup Global
Markets Inc. and J.P. Morgan Securities Inc., relating to the 101/4% Senior Subordinated Notes (incorporated by
reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                 



105



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|       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NUMBER |  | DOCUMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|10.1   |  | Lease, dated April 12, 1984, between SunGard and Broad and Noble Associates, Inc., relating to SunGards facility at 401 North Broad Street, Philadelphia, Pennsylvania, and Amendments
thereto, dated October 18, 1989, September 30, 1991 and November 19, 1992 (401 Lease) (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 1992 (Commission
File No. 0-14232)).                                                                                                                                                      
|       | 
|10.2   |  | Amendment to 401 Lease, dated October 9, 1995 (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 1995
(Commission File No. 0-14232)).                                                                                                                                                                                                                                                                                                                                                                                        
|       | 
|10.3   |  | Amendment to 401 Lease, dated December 23, 1996 (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 1996
(Commission File No. 0-14232)).                                                                                                                                                                                                                                                                                                                                                                                      
|       | 
|10.4   |  | Amendment to 401 Lease, dated March 1997 (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 1997
(Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                             
|       | 
|10.5   |  | Amendment to 401 Lease, dated December 18, 1997 (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 1997
(Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                      
|       | 
|10.6   |  | Amendment to 401 Lease, dated June 9, 1999 (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 1999
(Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                           
|       | 
|10.7   |  | Amendment to 401 Lease, dated June 29, 2000 (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 2000
(Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                          
|       | 
|10.8   |  | October 1999 Lease by and between Russo Family Limited Partnership and SunGard (as successor to Comdisco, Inc.); Amendment to Lease Agreement, dated November 15, 2001, by and between Russo
Family Limited Partnership and SunGard; and Lease Assignment and Assumption Agreement, dated November 15, 2001, between Comdisco, Inc. and SunGard (each relating to SunGards facility at 777 Central Boulevard, Carlstadt, New Jersey)
(incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 2001 (Commission File No. 1-12989)).
|       | 
|10.9   |  | August 2002 Lease Agreement between 760 Washington Avenue, L.L.C. and SunGard relating to SunGards facility at 760 Washington Avenue, Carlstadt, New Jersey (760 Washington
Lease) (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 2002 (Commission File No. 1-12989)).                                                                                                                                                                                                                                                
|       | 
|10.10  |  | Amendment to 760 Washington Lease, dated May 16, 2003 (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31,
2003 (Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                



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|       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NUMBER |  | DOCUMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|10.11  |  | January 2005 Lease Agreement between 410 Commerce L.L.C. and SunGard relating to SunGards facility at 410 Commerce Boulevard, Carlstadt, New Jersey (incorporated by reference to the
Exhibits filed with SunGards Annual Report on Form 10-K for the fiscal year ended December 31, 2004 (Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | 
|10.12  |  | Credit Agreement, dated as of August 11, 2005, among Solar Capital Corp. and the Overseas Borrowers party thereto as Borrowers, SunGard Holdco LLC, SunGard Data Systems Inc., JPMorgan Chase
Bank, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, the Other Lenders party thereto, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., as Co-Syndication Agents, and Barclays Bank PLC and The Royal Bank of Canada as
Co-Documentation Agents, J.P. Morgan Securities Inc. and Citigroup Global Markets Inc., as Co-Lead Arrangers, and J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. as Joint Bookrunners (incorporated by
reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).
|       | 
|10.13  |  | Guarantee Agreement, dated as of August 11, 2005, among SunGard Holdco LLC, SunGard Data Systems Inc., Solar Capital Corp., the Subsidiaries of SunGard Data Systems Inc. identified therein
and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No.
1-12989)).                                                                                                                                                                                                                                                                                                                                                                                                                                       
|       | 
|10.14  |  | Security Agreement, dated as of August 11, 2005, among SunGard Holdco LLC, SunGard Data Systems Inc., Solar Capital Corp., the Subsidiaries of SunGard Data Systems Inc. identified therein and
JPMorgan Chase Bank, N.A., as Collateral Agent (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                                                                            
|       | 
|10.15  |  | Intellectual Property Security Agreement, dated as of August 11, 2005, among SunGard Holdco LLC, SunGard Data Systems Inc., Solar Capital Corp., the Subsidiaries of SunGard Data Systems Inc.
identified therein and JPMorgan Chase Bank, N.A., as Collateral Agent (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No.
1-12989)).                                                                                                                                                                                                                                                                                                                                                                                                                      
|       | 
|10.16  |  | First Step Receivables Purchase Agreement, dated as of August 11, 2005, by and among Certain Subsidiaries of SunGard Data System Inc., as Sellers and SunGard Financing LLC (incorporated by
reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | 
|10.17  |  | Second Step Receivables Purchase Agreement, dated as of August 11, 2005, by and among SunGard Financing LLC as Transferor, and SunGard Funding II LLC, as the Transferee (incorporated by
reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  



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|       |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|------ | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NUMBER |     |  | DOCUMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|10.18  |     |  | Insured Receivables Credit Agreement, dated as of August 11, 2005, among SunGard Funding LLC as the Borrower, the Persons Party thereto as Conduit Lenders, Committed Lenders and Funding
Agents, Financial Guaranty Insurance Company as Insurer and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2005 (Commission File No. 1-12989)).   
|       |    
|10.19  |     |  | Amendment No. 1 to Insured Receivables Credit Agreement, dated as of December 21, 2005, (incorporated by reference to the Exhibits filed with SunGards Current Report on Form 8-K dated
December 21, 2005 and filed December 23, 2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                     
|       |    
|10.20  |     |  | Insured Receivables Facility Performance Undertaking, dated as of August 11, 2005, executed by SunGard Data Systems Inc. in favor of SunGard Financing LLC, together with its successors and
assigns, including JPMorgan Chase Bank, N.A., as Administrative Agent on behalf of the Lenders and the Insurer (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2005 (Commission File No. 1-12989)).
|       |    
|10.21  |     |  | Insured Receivables Facility Security Agreement, dated as of August 11, 2005, among SunGard Funding LLC, as Grantor and JPMorgan Chase Bank, N.A., as Collateral Agent (incorporated by
reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                     
|       |    
|10.22  |     |  | Insured Receivables Facility Collection Agent Agreement, dated as of August 11, 2005, by and between SunGard Data Systems Inc., as Collection Agent, and SunGard Funding LLC (incorporated by
reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                                               
|       |    
|10.23  | (1) |  | Form of Change in Control Agreement including the 30-Day Clause between SunGard Data Systems Inc. and certain key executives of SunGard Data Systems Inc., effective December 15, 2004
(incorporated by reference to the Exhibits filed with SunGards Current Report on Form 8-K dated December 14, 2004 and filed on December 20, 2004).                                                                                                                                                 
|       |    
|10.24  | (1) |  | Form of Change in Control Agreement not including the 30-Day Clause between SunGard Data Systems Inc. and certain key executives of SunGard Data Systems Inc., effective December 15, 2004
(incorporated by reference to the Exhibits filed with SunGards Current Report on Form 8-K dated December 14, 2004 and filed on December 20, 2004).                                                                                                                                             
|       |    
|10.25  | (1) |  | Form of Executive Employment Agreement, effective as of August 11, 2005, between SunGard Data Systems Inc. and certain executive officers of SunGard Data Systems Inc. (incorporated by
reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                     



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|       |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|------ | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NUMBER |     |  | DOCUMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|10.26  | (1) |  | Form of Executive Employment Agreement, effective as of August 11, 2005, between SunGard Data Systems Inc. and certain executive officers of SunGard Data Systems Inc. located in California,
the United Kingdom and Switzerland (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                      
|       |    
|10.27  | (1) |  | Form of Executive Employment Agreement, effective as of August 11, 2005, between SunGard Data Systems Inc. and certain executive officers of SunGard Data Systems Inc. located in South
Carolina and Alabama (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                          
|       |    
|10.28  | (1) |  | Form of Executive Employment Agreement, effective as of August 11, 2005, between SunGard Data Systems Inc. and certain executive officers of SunGard Data Systems Inc. employed by a subsidiary
of SunGard Data Systems Inc. (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                          
|       |    
|10.29  | (1) |  | Form of Executive Employment Agreement, effective as of August 11, 2005, between SunGard Data Systems Inc. and certain executive officers of SunGard Data Systems Inc. located in California,
the United Kingdom and Switzerland employed by a subsidiary of SunGard Data Systems Inc. (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission
File No. 1-12989)).
|       |    
|10.30  | (1) |  | Form of Executive Employment Agreement, effective as of August 11, 2005, between SunGard Data Systems Inc. and certain executive officers of SunGard Data Systems Inc. located in South
Carolina and Alabama employed by a subsidiary of SunGard Data Systems Inc. (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No.
1-12989)).                    
|       |    
|10.31  | (1) |  | Employment Agreement between Cristóbal Conde and SunGard Data Systems Inc., dated and effective as of August 11, 2005 (incorporated by reference to the Exhibits filed with
SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                                                 
|       |    
|10.32  | (1) |  | SunGard 2005 Management Incentive Plan (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005
(Commission File No. 1-12989)).                                                                                                                                                                                                                                                
|       |    
|10.33  | (1) |  | Forms of Rollover Stock Option Award Agreements (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30,
2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                                       
|       |    
|10.34  | (1) |  | Forms of Time-Based Stock Option Award Agreements (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September
30, 2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                                     
|       |    
|10.35  | (1) |  | Forms of Performance Based Stock Option Award Agreements (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                                                                                                              



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|         |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-------- | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NUMBER   |     |  | DOCUMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|10.36    | (1) |  | Summary Description of SunGards Annual Executive Incentive Compensation Program (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for the
fiscal year ended December 31, 2004 (Commission File No. 0-12989)).                                                                                                                                                                                                                                                                                                                                                                                              
|         |    
|10.37(1) |     |  | Form of Indemnification Agreement entered into by SunGard with its directors and officers (incorporated by reference to the Exhibits filed with SunGards Annual Report on Form 10-K for
the fiscal year ended December 31, 1991 (Commission File No. 0-14232)).                                                                                                                                                                                                                                                                                                                                                                                     
|         |    
|10.38    | (1) |  | Form of Indemnification Agreement between SunGard Capital Corporation, SunGard Capital Corporation II, SunGard Holding Corporation, SunGard HoldCo LLC, SunGard Data Systems Inc. and directors
and certain executive officers of SunGard Data Systems Inc. (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No.
1-12989)).                                                                                                                                                                                                          
|         |    
|10.39    |     |  | Stockholders Agreement, dated as of August 10, 2005, by and among SunGard Capital Corp., SunGard Capital Corp. II, SunGard Holding Corp., SunGard Holdco LLC, Solar Capital Corp. and Certain
Stockholders of SunGard Capital Corp. and SunGard Capital Corp. II (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No.
1-12989)).                                                                                                                                                                                                     
|         |    
|10.40    |     |  | Participation, Registration Rights and Coordination Agreement, dated as of August 10, 2005, by and among SunGard Capital Corp., SunGard Capital Corp. II, SunGard Holding Corp., SunGard Holdco
LLC, Solar Capital Corp. and Certain Persons who will be Stockholders of SunGard Capital Corp. and SunGard Capital Corp. II (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2005 (Commission File No. 1-12989)).                                                                                                                                          
|         |    
|10.41    |     |  | Principal Investor Agreement, dated as of August 10, 2005, by and among SunGard Capital Corp., SunGard Capital Corp. II, SunGard Holding Corp., SunGard Holdco LLC, Solar Capital Corp. and the
Principal Investors (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission FileNo. 1-12989)).                                                                                                                                                                                                                                                   
|         |    
|10.42    |     |  | Management Agreement, dated as of August 11, 2005, by and among SunGard Data Systems Inc., SunGard Capital Corp., SunGard Capital Corp. II, SunGard Holding Corp., SunGard Holdco LLC, Bain
Capital Partners, LLC, Blackstone Communications Advisors I L.L.C., Blackstone Management Partners IV L.L.C., Goldman, Sachs & Co., Kohlberg Kravis Roberts & Co. L.P., Providence Equity Partners V Inc., Silver Lake Management Company, L.L.C.
and TPG GenPar IV, L.P. (incorporated by reference to the Exhibits filed with SunGards Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2005 (Commission File No. 1-12989)).
|         |    
|12.1     |     |  | Computation of Ratio of Earnings to Fixed Charges (filed with this Report).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|         |    
|21.1     |     |  | Subsidiaries of the Registrant (filed with this Report).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|         |    
|31.1     |     |  | Certification of Cristóbal Conde required by Rule 13a-14(a) or Rule 15d-14(a) and Section 302 of the Sarbanes-Oxley Act of 2002 (filed with this Report).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



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|       |  |                                                                                                                                                           
|------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|NUMBER |  | DOCUMENT                                                                                                                                                  
|31.2   |  | Certification of Michael J. Ruane required by Rule 13a-14(a) or Rule 15d-14(a) and Section 302 of the Sarbanes-Oxley Act of 2002 (filed with this Report).
|       | 
|32.1   |  | Certification of Cristóbal Conde required by Rule 13a-14(b) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002 (filed with this Report). 
|       | 
|32.2   |  | Certification of Michael J. Ruane required by Rule 13a-14(b) or Rule 15d-14(b) and Section 906 of the Sarbanes-Oxley Act of 2002 (filed with this Report).

---

|(1) | Management contract or compensatory plan or arrangement.
|--- | --------------------------------------------------------



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