Progress Software and ESOFT Global Announce Application Service Provider -ASP- Business Partnership

Business Wire, Sept 20, 1999

BEDFORD, Mass.--(BUSINESS WIRE)--Sept. 20, 1999--

ESOFT Global joins Progress(R) Software's ASPEN(TM) Program; Leading

ASP will provide technology and professional services to

Internet-enable Progress-based applications

Progress Software (NASDAQ:PRGS), a leading supplier of application development, deployment and management solutions, today announced that ESOFT Global, Europe's first Internet Application Service Provider (iASP), has signed a partnership agreement under Progress Software's ASPEN Program. The ASPEN program enables Progress Software's Independent Software Vendor (ISV) partners to move quickly and easily to the ASP distribution model, by renting their software applications to end-users.

Through the agreement, Progress Software will provide ESOFT Global with technology and professional services in support of ESOFT's Managed Internet Application (MiA) service, which enables companies to deploy applications from a browser using a server-based computing model. ESOFT Global, in turn, will offer migration and hosting services to Progress Software's ISVs, further easing their entry into the ASP marketplace.

A channel veteran, 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. Progress Software is firmly positioned to lead the emerging ASP market by providing an improved infrastructure for bringing its 2,000 ISV partners and their more than 5,000 Progress(R)-based applications to this new distribution channel. In addition, Progress Software is able to bring new profitability to ISVs via the ASP market.

"Progress Software has made it possible for us to extend the range of applications we can deploy over the Internet using our MiA solution," said Charles Sharland company founder and president of ESOFT Global. "In partnering with Progress Software, we are able to take advantage of their forward-looking technology and services to accelerate our ability to ASP-enable applications for our clients."

"New ASPEN members such as ESOFT Global illustrate the tremendous momentum Progress Software is gaining in bringing its ISV partners to the ASP model," said Mike Mitsock, vice president of Progress Software's ASP Business Unit. "By partnering with ESOFT Global we can offer ASPEN ISVs a platform and services from which to efficiently extend their applications to the ASP model. This translates into quicker entry to a new and lucrative market for our ISVs and more available--and affordable--products for end-users."

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(R)-based applications into ASP-enabled applications. Application Service Providers allow small to mid-tier organizations to rent best-of-breed applications (accessing them over the Internet) for immediate business benefits that they might not otherwise be able to afford if they were to purchase them.

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. Forrester Research estimates the "application rental market" will be more than $6.4 billion by the year 2001. The first ASPs who enter this market will have an important grip on its future growth.

About ESOFT Global

ESOFT Global is an ASP, delivering innovative, secure, enterprise scale solutions and Internet connectivity. ESOFT Global is a privately held company that was founded in 1991 to provide sophisticated business solutions to corporate users. Today, the company is acknowledged as one of Europe's leading system integrators of pre-mainstream technology. The company is a dedicated technology specialist delivering innovative, secure, enterprise scale solutions in applications publishing, software distribution and management and Internet connectivity. Consulting and product revenues in Financial Year 98/99 approached (pound)13 million. Management information indicates a turnover anticipated for 1999/00 in excess of (pound)23 million. The ESOFT Global website is located at www.esoft-global.co.uk.

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.

Our customers operate in 100 countries, are supported by more than 1,300 employees worldwide, and deploy annually over $1.5 billion in Progress(R)-based applications built by more than 2,000 Independent Software Vendors (ISVs). For more information, visit www.progress.com or 1-781-280-4000.