October 21, 2004

Open Solutions Reports Record Third Quarter 2004 Revenues and Net Income Up 63% and 455%; Signed Contract Value for the Third Quarter Increased 95% over the Prior Year

GLASTONBURY, Conn.--(BUSINESS WIRE)--Oct. 21, 2004--Open Solutions Inc. (Nasdaq: OPEN), a provider of integrated enabling technologies for financial institutions, today reported financial results for the three months and nine months ended September 30, 2004.

Revenue for the third quarter of 2004 increased 63 percent to $28.3 million, from $17.4 million for the third quarter of 2003. Revenues for the nine months ended September 30, 2004 increased 64 percent to $71.1 million, from $43.4 million for the same period of the prior year.

Net income was $4.5 million, or $0.21 per diluted share, for the third quarter of 2004, compared to $0.8 million, or $0.00 per diluted share, for the third quarter of 2003. Net income was $10.6 million, or $0.53 per diluted share, for the nine months ended September 30, 2004, compared to $1.7 million, or $0.00 per diluted share, for the same period of the prior year. The income per share for both the third quarter and the nine months ended September 30, 2003 have been revised from previously reported income per share as a result of the application of new accounting guidance requiring the allocation of net income to both common and participating preferred stock for purposes of computing income per common share.

"As we approach our one year anniversary as a publicly-traded company and we reflect upon our third quarter 2004 results, we are very pleased with the overall performance that Open Solutions continues to achieve across our key metrics," said Open Solutions' Chairman and CEO, Louis Hernandez, Jr. "We had an impressive third quarter, and we are further encouraged by the continued interest, acceptance and demand for our industry-focused product and service offerings. Additionally, we remain diligent in our ongoing efforts to improve the manner in which financial institutions can conduct business, compete and provide superior service. We believe that the financial services marketplace is undergoing significant and fundamental changes that are causing financial institutions to be willing to move away from legacy based bolt-on technology. As a Company we will continue our efforts to position Open Solutions to further capitalize on and be on the forefront of this emerging trend."

Third Quarter 2004 Highlights

Signed contracts valued at $24.7 million in the third quarter
of 2004 compared to $12.7 million in the third quarter of the
prior year, representing an increase of 95 percent. We define
contract value as total revenues to be received over the life
of the contract for all elements of the contract, including
license, hardware, installation, maintenance and other
services.

Completed the acquisition of re:Member Data Services, Inc., a
provider of core-processing solutions for credit unions.

Completed the acquisition of Omega Systems of North America,
LLC, a provider of a product line that integrates image
capture remittance processing with archive and retrieval.

Signed an acquisition agreement with Datawest Solutions Inc.,
a provider of innovative banking and payment technology
solutions in Canada. Datawest's Banking Solutions Group is a
provider of outsourced core data processing technology to
Canadian credit unions. Datawest's Payment Solutions Group
manages one of Canada's largest ATM networks and develops and
delivers electronic payment products and services, including
fast, secure ATM and POS systems and electronic funds transfer
transaction processing, device management and monitoring. We
believe this transaction will close in late October, subject
to final approval by Datawest's shareholders and satisfaction
of other closing conditions.

Recurring revenue for the third quarter of 2004 increased to
53 percent of total revenue from 50 percent for the third
quarter of 2003, and for the nine months ended September 30,
2004 increased to 52 percent from 47 percent for the nine
months ended September 30, 2003. We define recurring revenue
as revenue from long-term maintenance and data center hosting
contracts and the quarterly minimum payments from BISYS under
the BISYS reseller agreement.

Internal revenue growth was 28 percent for the third quarter
of 2004 and was 29 percent for the nine months ended September
30, 2004. Our internal revenue growth for the full year 2003
was 24 percent. Internal revenue growth percentages are
measured as the increase in revenue for the current period
less "acquired revenue from acquisitions" divided by revenues
from the prior period plus "annualized revenue from
acquisitions."

2004 Business Outlook

The following statements are forward looking and actual results may differ materially. Our guidance assumes no change in the calculation of the Company's tax provision, which currently assumes a full valuation allowance against the Company's deferred tax assets. Currently, the Company only records a charge against income for certain state taxes and federal alternative minimum taxes. At the time that the valuation allowance is released the Company will report a significant income tax benefit in that period and for subsequent periods will record a tax provision against income at the effective statutory rates, however, the Company does not expect to incur significant tax payments until all anticipated net operating loss carry forwards and research and development tax credits are utilized. We are currently evaluating the future realization of the deferred tax asset and expect to release the valuation allowance in the near future.

Fourth Quarter 2004

The Company targets revenue to be in the range of $33.5 and $34.5 million, net income to be between $5.5 and $5.8 million and earnings per diluted share to be between $0.26 and $0.28.

Full year 2004

The Company targets revenue to be in the range of $104.5 and $105.5 million, net income to be between $16.1 and $16.5 million and earnings per diluted share to be between $0.80 and $0.82.

The above guidance includes the impact of the Datawest acquisition on our fourth quarter and full year results assuming that the transaction closes in late October.

About Open Solutions
Open Solutions Inc. offers a fully featured strategic product platform that integrates core data processing applications, built on a single centralized Oracle(R) relational database, with Internet banking, cash management, CRM/business intelligence, financial accounting tools, interactive voice response, imaging, Check 21 and loan origination solutions. Open Solutions' full suite of products and services allows banks, thrifts and credit unions to better compete in today's aggressive financial services marketplace, and expand and tap their trusted financial relationships, client affinity, community presence and personalized service.

Contact: Marvin (Mickey) Goldwasser Open Solutions Inc. 860.652.3153
mgoldwasser@opensolutions.com
www.opensolutions.com

Open Solutions Inc.(R) is a registered trademark of Open Solutions Inc. All other company and product names may be trademarks of their respective owners. Copyright (C) 2004 Open Solutions Inc. All rights reserved.

Safe Harbor Statement

Statements made in this press release that state Open Solutions Inc.'s or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Readers are cautioned that these statements are only predictions and may differ materially from actual future events or results. All forward looking-statements are only as of the date of this press release and Open Solutions Inc. undertakes no obligation to update or revise them. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause Open Solutions Inc.'s actual results to differ materially from those projected in such forward-looking statements. For example, we receive a portion of our revenues from relationships with strategic resellers, and if we lose one or more of these resellers or fail to add new ones it could have a negative impact on our business. Likewise, we have entered and may continue to enter into or seek to enter into business combinations and acquisitions which may be difficult to integrate, disrupt our business, dilute stockholder value or divert management attention. Other factors which could cause our actual results to differ materially from those projected in forward-looking statements include, without limitation, economic, competitive, governmental and technological factors affecting the banking and credit union industry and/or Open Solutions Inc.'s operations, markets, products, services, prices and other factors set forth under the heading "Factors Affecting Future Operating Results" in the Company's Quarterly Report on Form 10-Q for the three months ended June 30, 2004, as filed with the Securities and Exchange Commission.

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