Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision technology, announced today that Workforce Safety & Insurance (WSI), the exclusive provider of workers' compensation insurance in the state of North Dakota, has licensed Fair Isaac's MIRA(TM) Claims Advisor for Reserving technology. The analytic claims reserving solution will help Workforce Safety & Insurance consistently establish more accurate loss reserves earlier in the life of its claims, resulting in improved financial performance and profitability.

According to a study by the National Council on Compensation Insurance, Inc. (NCCI), the reserve deficit of the property and casualty industry amounts to more than $30 billion. Carriers must carefully calculate their potential risk exposures in order to set aside enough money to cover those losses. Fair Isaac's MIRA Claims Advisor 2.0 reserving models will help WSI predict reserves closely to the actual claims costs, thereby preventing over- and under-reserving of funds used to pay its workers' compensation insurance claims. MIRA models also will enable the payor to make timely modifications, premium adjustments and rate assignments as well as rapid recalculations of reserves in response to new data, resulting in greater accuracy and consistency.

"As the exclusive workers' compensation insurer for North Dakota employers, WSI works hard to keep claims and premium costs as low as possible for our policyholders," said Sandy Blunt, executive director/CEO of North Dakota Workforce Safety & Insurance. "MIRA Claims Advisor for Reserving is recognized as the industry-standard reserving tool for workers' compensation. By deploying MIRA, WSI is using the power of intelligent technology to help meet our commitment to our insureds and to state regulators."

WSI will use MIRA 2.0, Fair Isaac's next generation predictive reserving models, accessing reports and data via a Fair Isaac hosted Application Service Provider (ASP) delivery method.

"MIRA Claims Advisor for Reserving has no peer in setting loss reserves accurately and for early detection of high cost workers' compensation claims," said Anu Pathria, vice president of predictive property and casualty solutions at Fair Isaac. "Combining our MIRA 2.0 predictive models with our new Web-based ASP offers greater power, ease of use and accuracy, helping publicly traded insurers better conform to the new Sarbanes-Oxley mandates. MIRA predictive models are another example of how Fair Isaac analytics are helping insurers nationwide operate with greater accuracy and productivity."

MIRA Claims Advisor for Reserving is used by a large number of insurance payors nationwide, including 10 state workers' compensation funds. Combining custom-built, jurisdiction-specific models and individual customer data, MIRA can accurately predict the correct individual case reserves based on the combined interaction of all the data elements in the claim. The importance or weight of any data element is dependent on many other variables in the claim. MIRA models can predict the ultimate cost to be set aside and paid on any workers' compensation insurance claim with a significantly higher degree of accuracy than by manual or other computerized method.

Fair Isaac software products and services process more than $4.4 billion annually in property and casualty claims. They are in use in the operations of nine of the top 10 property/casualty carriers and 65 percent of the nation's state workers' compensation funds. In 2003, Fair Isaac saved its customers more than $2.3 billion in claims costs.

About Fair Isaac

Fair Isaac Corporation (NYSE:FIC) is the preeminent provider of creative analytics that unlock value for people, businesses and industries. The company's predictive modeling, decision analysis, intelligence management, decision management systems and consulting services power billions of mission-critical customer decisions a year. Founded in 1956, Fair Isaac helps thousands of companies in over 60 countries acquire customers more efficiently, increase customer value, reduce fraud and credit losses, lower operating expenses and enter new markets more profitably. Most leading banks and credit card issuers rely on Fair Isaac solutions, as do insurers, retailers, telecommunications providers, healthcare organizations and government agencies. Through the www.myFICO.com Web site, consumers use the company's FICO(R) scores, the standard measure of credit risk, to manage their financial health. For more information, visit www.fairisaac.com.

About Workforce Safety & Insurance

Workforce Safety & Insurance (WSI) is the sole administrator of the workers' compensation program for the State of North Dakota. WSI was established in 1919 and exists solely to provide indemnity and medical benefits to workers injured during the course of their employment.

WSI is not a general fund agency and collects premium each year from North Dakota employers in order to cover the annual losses and administrative expenses of operating the fund. Premium rates are the lowest in the nation. Benefits, on the other hand, rank in the top two-thirds nationally.

Fair Isaac Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this press release that relate to Fair Isaac, including statements regarding its MIRA Claims Advisor for Reserving product offering and the benefits to be derived from this offering, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including any unforeseen technical difficulties related to the implementation, use and functionality of the offering, the risks that customers will not perceive material benefits from the offering, failure of the product to deliver the expected results, the possibility of errors or defects in the offering, regulatory changes applicable to the use of consumer credit and other data, and other risks described from time to time in Fair Isaac's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2004, and quarterly report on Form 10-Q for the period ended March 31, 2005. Forward-looking statements should be considered with caution. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Fair Isaac's results could differ materially from Fair Isaac's expectations in these statements. Fair Isaac disclaims any intent or obligation to update these forward-looking statements.

Fair Isaac, MIRA and FICO are trademarks or registered trademarks of Fair Isaac Corporation, in the United States and/or in other countries. Other product and company names herein may be trademarks of their respective owners.

SOURCE: Fair Isaac Corporation

Fair Isaac Corporation
John D. Emerick, Jr.
800-213-5542
(Investors/Analysts)
investor@fairisaac.com

Angela Carlson
415-492-5373
(Media)
acarlson@fairisaac.com

North Dakota Workforce Safety & Insurance
Mark Armstrong
701-328-5931
marmstrong@state.nd.us