DST Retirement Solutions Helps Providers Track Market Timers

Recordkeeping enhancement aids providers in identifying frequent trading, assessing fees

Kansas City , Mo. , September 15, 2004 – Retirement plan providers can now define and identify short-term trading activity and assess early redemption fees, thanks to a new enhancement to DST Retirement Solution’s recordkeeping platform, TRAC™.

This enhancement addresses anticipated Securities and Exchange Commission (SEC) legislation that would target market timing by requiring fund companies to assess two percent redemption fees on rapidly traded investments.

A second phase of development will enable plan providers to further customize the criteria and fees for each fund or individual investment in their retirement offerings. This enhancement is designed to give providers the flexibility to meet not only legislative requirements, but also those of individual fund companies that may impose more aggressive rules and fees.

Because the TRAC recordkeeping system is built on a single, rules-based development platform, DST Retirement Solutions’ clients will not have to do any development to support these rules as they evolve or change; the enhancement can be accessed by all DST Retirement Solutions clients.

“We felt it was important to help our client partners stay ahead of the regulations,” said Jim Walsh, client service officer for DST Retirement Solutions. “We are making it easy for retirement providers to adopt this capability and be nimble in anticipation of coming regulatory and market changes.”

DST Retirement Solutions provides recordkeeping, administrative and communications technology and support to the defined contribution marketplace. Offering two distinct service models – selective outsourcing and ASP – DST Retirement Solutions is a single source for all phases of a defined contribution operation. With 3.6 million participants representing 38 major institutional clients, DST Retirement Solutions supports all plan types, sizes and investment options.

DST Systems, Inc. [NYSE: DST] provides sophisticated information processing and computer software services and products that help clients improve productivity, increase efficiencies, and provide higher levels of customer service. DST is organized domestically and internationally into three operating segments: Financial Services, Customer Management, and Output Solutions. DST operates one of the most advanced data centers in the world, which provides information-processing services to support the products within each operating segment. These products are further enhanced through the integration of DST’s advanced technology and e-commerce solutions.

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The information and comments above may include forward-looking statements respecting DST and its businesses. Such information and comments are based on DST's views as of today, and actual results could differ. There could be a number of factors affecting future results, including those set forth in Form 8-K/A dated March 17, 2003 filed by DST with the Securities and Exchange Commission. All such factors should be considered in evaluating any forward-looking comment. The Company will not update any forward-looking statements in this press release to reflect future events.