BluePhoenix Solutions (NASDAQ: BPHX), the leading provider of value-driven legacy IT modernization solutions, announced today that it has amended its debt agreements. The company has agreed with the banks on a new set of covenants, including certain financial ratios which are more favorable to the company. The debt is secured as a first lien by the company’s assets. This will result in approximately $5.1 million (as of today) being reclassified from short term to long term debt. In addition, the company has borrowed an additional $5 million dollars due in one year with an interest rate of 3.25% per annum. $2.9 million has already been borrowed with the remaining $2.1 million to be borrowed no later than May 15, 2011. In consideration for the loan, the company will issue 676,000 ordinary shares in the aggregate to the lenders. The shares will be issued under Regulation S and will be subject to a lock-up period of 90 days from the date of issuance. The debt is secured as a second lien by the company’s assets. The agreements contain provisions for acceleration in certain events of default as well as certain restrictive covenants. About BluePhoenix Solutions BluePhoenix Solutions (NASDAQ: BPHX) is the leading provider of value-driven legacy IT modernization solutions. The BluePhoenix portfolio includes a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, rehosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime. BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, Capita Group, CareFirst, Citigroup, Danish Commerce and Companies Agency, Desjardins, Los Angeles County Employees Retirement Association, Rabobank, Rural Servicios Informaticos, SDC Udvikling, TEMENOS, Toyota, and Volvofinans. BluePhoenix has 13 offices in the USA, UK, Denmark, Germany, Italy, The Netherlands, Romania, Russia, Cyprus, Australia, and Israel.