Financial Engines

FINANCIAL ENGINES® CUSTOMER BASE GROWS TO 650 PLAN SPONSOR CLIENTS SERVING OVER 1.9 MILLION EMPLOYEES IN 2001

Growth in Business Reflects Growing Need for Advice To Help Individual Investors Understand and Manage Investment Risk

PALO ALTO, Calif., February 11, 2002 – Financial Engines, Inc. today announced that in the year 2001 the company's customer base grew over 150%, from 253 plan sponsors to 650 plan sponsors. Consequently, the number of employees with access to Financial Engines investment advice grew over 250%, from 535,000 plan participants to over 1.9 million. Both public and private sector plan sponsors hired Financial Engines in 2001, including Hewlett Packard, Nestlé USA, Inc., the Florida State Board of Administration, Motorola, Inc., the State of Colorado, the United States Army, Washington Mutual and Xerox Corporation. This increase in demand for Financial Engines' advice technology reflects the growing necessity to provide employees with advisory services to help them make crucial investment decisions about diversification, savings and risk.

"Individuals and employers alike realize the need to understand and manage investment risk," said Jeff Maggioncalda, president and CEO of Financial Engines. "Financial Engines not only helps individuals quantitatively understand the risk/return trade offs inherent in investing, but also gives employers confidence that they are helping to ensure the retirement security of American citizens."

2001 Participant Survey
In 2001, Financial Engines conducted a Participant Survey, which revealed that satisfaction with their company's retirement plan increased for 52% of respondents and satisfaction with their overall benefits package increased for 55% of respondents. The survey - which was sent to 25,000 participants representing a broad demographic mix from 18 different 401(k) plans - also found that when given the chance to use Financial Engines, participants began saving more in their defined contribution plans and in accounts outside of their sponsored plans.

• 38% of those who were not already contributing the maximum amount to their DC plan increased their savings by an average of 42%.
• 27% started saving more in investments held outside of their company-sponsored plan as a result of using Financial Engines.
• In total, 42% of employees increased savings in either their company-sponsored plan or outside accounts.
• Savings rates increased across all demographics: A greater percentage of participants, 47%, with less than $50,000 in total financial assets increased their savings rates after using Financial Engines.

With regard to investment risk and portfolio diversification, the survey found that:

• Nearly half of those who used the service received recommendations to change their portfolios.
• Of those who received recommendations, 54% made all or some of the changes, with another 36% saying they plan to make changes in the future.

More Alliances with More Providers
In 2001, Financial Engines also forged new relationships with three financial institutions: The Vanguard Group, which will be the first investment management firm to offer the Financial Engines service on taxable investments for individual retail investors; JP Morgan/American Century, which selected Financial Engines to be part of its Total Retirement Solutions strategy; and Marshall & Ilsley Trust Company, which makes the Financial Engines service available to its 750 plan sponsor clients who use the firm's recordkeeping services.

Total Portfolio Advice
In June 2001, Financial Engines launched Total Portfolio Advice, which adds both tax-efficient investing capabilities and stock option forecasting to its existing services. Total Portfolio Advice addresses not only retirement, but also other life goals, such as saving for college or buying a home. The comprehensive nature of Total Portfolio Advice benefits plan sponsors and employees by allowing plan sponsors to offer employees a more comprehensive benefit while providing their organizations with more complete protection against fiduciary risk.

Financial Engines now provides investment advice, through plan sponsors and defined contribution plan providers, on 401(a), 401(k), 403(b), 457, IRA, Roth IRA, SEP-IRA, and Keogh accounts, as well as taxable brokerage accounts.

About Financial Engines
Financial Engines creates innovative advice technology that enables financial institutions, professionals and employers to provide investment solutions to their clients and employees. The Financial Engines Advisory Services Platform delivers sophisticated outcomes-based investment advice across multiple delivery channels. Founded in 1996 by Nobel Prize winning economist Bill Sharpe, Financial Engines began with a revolutionary vision: make institutional-quality advice available to financial institutions and employers that serve individual investors. For more information on Financial Engines visit www.financialengines.com.

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Financial Engines® is a registered trademark of Financial Engines. All other trademarks and service marks are the property of their respective owners. All advisory services are provided by Financial Engines Advisors LLC, a federally registered investment advisor.