Progress Software and Datasul, Inc. Announce Application Service Provider —ASP— Business Partnership

Business Wire, Oct 25, 1999

BEDFORD, Mass.--(BUSINESS WIRE)--Oct. 25, 1999--

Progress Software and Datasul to cooperate in joint

marketing and geographic expansion to leverage

Datasul's ERP suite via the Internet

Progress Software Corporation (NASDAQ: PRGS), a leading supplier of application development, deployment and management products and services, today announced that Datasul, Inc., the U.S. arm of one of the largest international suppliers of corporate management software solutions,has signed an ASP partnership agreement to enter Progress Software's ASPEN Program. The ASPEN(TM) Program enables Progress Software's Independent Software Vendors (ISVs) such as Datasul to move more quickly to the Application Service Provider (ASP) distribution model, thereby expanding their revenue and channel opportunities. As part of the ASPEN Program, Progress Software will enable Datasul to expand its market and geographic reach in the ERP software market by becoming a Progress Software ASP.

A channel pioneer, Progress Software has long been recognized for its ability to give ISVs the technology and services to meet the rigorous requirements of middle market, resource-constrained environments and to deliver industry-specific solutions more quickly, more tightly integrated and at a low total cost of ownership. With its strategy, the company is now at the forefront of the ASP market, providing an established infrastructure for bringing 2,000 ISVs and their more than 5,000 Progress(R)-based applications worldwide to this new distribution channel.

"For us, embracing the ASP model is not a choice--it is a necessity to continue to compete in the market," said Rhett Thompson, president and CEO of Datasul, Inc. "We're projecting over a half a million Progress-based users running on our ASP-enabled products by year 2002. The ASPEN Program will ensure that Datasul solidifies its leadership position in the ERP market, by making our solutions available over the Web to small and mid-size businesses."

"Over the years, Progress Software has recognized the value of assisting our ISVs in expanding their businesses to other parts of the world, and to new, growing market segments," said Mike Mitsock, vice president of Progress Software's ASP Business Unit. "Datasul has long been one of our best partners in Brazil and in Latin America as a whole, and they are poised for a strong position in the U.S. market as well. By leveraging the Internet and the ASPEN Program's combination of technology, services and alliances, Datasul can now expand their position both geographically and to an entirely new market of small to medium end-user businesses."

Progress Software's Application Service Provider ENablement Program

Progress Software's ASPEN Program offers technology, services and industry alliances to help ISVs quickly and easily transform Progress-based applications into ASP-enabled applications. These new applications, available for rent and accessed over the Internet rather than purchased, allow small and mid-tier organizations to more quickly and economically gain access to application functionality previously unavailable to them. ASP-enabled applications reduce traditional IT infrastructure costs because they are developed and maintained centrally by service providers, rather than an internal IT staff.

New vendors are emerging to bridge the gap between small and mid-tier organizations and high-performance applications. Already growing fast, the ASP market is expected to curve exponentially. Industry analysts estimate the "application rental market" will generate between $2 and $6 billion in revenue by 2003. The first ASPs who enter this market will have an important advantage in capitalizing on its future growth.

About Datasul

After over twenty years of business, Datasul has established itself as one of the largest and most outstanding international suppliers of corporate management solutions.

Through the application of advanced concepts like Enterprise Resource Planning (ERP) and Effective Consumer Response (ECR), Datasul provides integrated systems and services for Supply Chain Management. These tools, coupled with leading edge technology, streamline business processes and provide the international organization with a competitive advantage for the future.

Successful in large, medium and even small companies, Datasul's world class product line, available in a variety of languages including English, Spanish and Portuguese, has been localized for the Americas to address regional business practices and tax requirements.

With a target of more than $100 million in fiscal 1999, Datasul has announced its goal of reaching half a billion dollars in annual sales over the next five years, to place it amongst the top ten ERP software suppliers worldwide.

About Progress Software

Progress Software Corporation (NASDAQ: PRGS) is a global supplier of software products and services for developing, deploying and managing business solutions across all computing and network environments. Our products, which are installed in over 60% of Fortune 100 companies, include application servers, databases, development tools and application management products for Internet/Web, extranet and intranet applications.