Dallas, 28 June 2010

Allegro 8 Provides Hedge Accounting, Fair Value Disclosure, and FASB Compliance Capabilities: Allegro Development, the leading provider of energy trading and risk management (ETRM) solutions, announced today that Southwest Airlines will upgrade to the Allegro 8 platform and add the Allegro Hedge 8.1 component. Southwest Airlines’ treasury department currently utilizes Allegro to manage price risk and hedging activities associated with jet fuel purchases.  The upgrade will provide software capabilities to the financial reporting group, enabling automation to support compliance with the Financial Accounting Standards Board Statement’s (FASB) 133, 157, and 161 standards.

“We have been very satisfied with the breadth of the Allegro platform and the visibility that it has brought into our fuel hedging operations. Upgrading to Allegro 8 and adding enhanced functionality around hedge accounting was a natural decision,” said Scott Topping, Vice President and Treasurer, Southwest Airlines.  “The Southwest Airlines and Allegro teams worked closely in the planning phase of this project and clearly demonstrated our mutual commitment to supporting Southwest Airlines’ long term needs.”

Southwest Airlines is the largest U.S. airline based on the number of passengers carried domestically each year, with more than 3,300 flights a day coast-to-coast.  Allegro’s integrated platform gives Southwest Airlines greater visibility into their positions, streamlined data flow to facilitate better decision making, and the ability to gain more efficiencies in the hedge accounting and reporting process.

The Allegro 8 platform will provide Southwest Airlines advanced tools for analysis and reporting to further optimize their jet fuel hedging program and mitigate risk against volatile prices.  With this upgrade to Allegro 8, Southwest Airlines intends to gain:

“Allegro is very committed to supporting our customers in staying up-to-date with changing regulatory requirements, and will continue to make the investments necessary to do so,” said Michael Hinton, Allegro’s Chief Customer Officer.  “Our comprehensive approach to hedge management will continue to provide Southwest Airlines a competitive advantage with efficient mitigation of risk and essential tools to actively manage their hedging program.”

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