Business Engine Secures $34 Million in Funding; Leading Venture Investment Firms Take Stake in Professional Services Industry Net Marketplace Provider Business Engine Software

Business Wire, April 12, 2000

Business/High-Tech Editors

SAN FRANCISCO--(BUSINESS WIRE)--April 12, 2000

Business Engine(C) Software Corporation, a leading supplier of e-business solutions for global IT, R&D and professional service organizations, today announced it has closed $34 million in mezzanine round financing. Broadview Capital Partners led the equity investment, which also included Oak Investment Partners as well as a select group of other investors joining existing investor, Morgan Stanley Dean Witter Private Equity.

The funds will be used to support the launch and public adoption of The Business Engine Network (TM), the company's end-to-end, Internet-based solution that links buyers and sellers of professional services in a seamless net marketplace. The Business Engine Network has been in development for the past year and has been piloted at customer sites nationwide such as Deutsche Bank, Merrill Lynch, Morgan Stanley Dean Witter and others. The Business Engine Network was released for general availability on March 28, 2000.

"In today's tight labor market, companies with large IT and R&D departments must outsource to meet demands and remain competitive, and they are doing so in a variety of ways," said Stephen J. Bachmann, managing director of Broadview Capital Partners. "The Business Engine Network provides a central Web location for companies to fulfill all of their professional services needs -- from finding a buyer or seller, to managing and monitoring the initiative to ensure its completion on time and on budget. The fact that Business Engine is building a net marketplace driven by buyers of professional services is important to us -- since this is where the sellers will logically flock."

The Business Engine Network addresses the critical process automation needs of internal and external service organizations with robust Internet-based applications and a net marketplace, businessengine.net, that:

-- Links buyers and sellers in the service supply chain,

-- Delivers business-to-business applications that automate and

manage the outsourcing of professional services,

-- Provides industrial-strength enterprise applications for the

internal management of resources and initiatives.

"Until recently, automation of the service industry, including IT and R&D services, was a market that was under-served by technology. Business Engine's proven application, large customer base and business-to-business marketplace for delivery and management of services places them as the clear leader in this burgeoning industry," said Fred Harman, general partner of Oak Investment Partners. "We're excited to be a part of establishing the franchise player in this market."

"Our customers are under increasing pressure to bring their products, systems and services to market faster. At the same time, they must cope with the industry-wide shortage of resources and the resulting increased labor costs," said George Van Ness, president and COO of Business Engine. "We are now delivering a solution for these issues with The Business Engine Network."

"Investments from Broadview Capital Partners, Oak Investment Partners and Morgan Stanley Dean Witter Private Equity will be a great asset to Business Engine as we continue to move forward with the launch and increased adoption of The Business Engine Network," said John O'Neil, Business Engine CEO. "This round of financing gives us the necessary resources to position and deliver our products even more efficiently and demonstrates the faith of those following the industry that Business Engine will be a leading player in the service automation market space."

About Business Engine Software Corporation

Business Engine Software Corporation has been delivering resource and initiative management applications to project-driven Fortune 1000 companies for more than five years from offices throughout North America and Europe. These global organizations are using Business Engine solutions to improve the effective management of their complex projects and initiatives, and utilization of internal and external resources. For more information on Business Engine Software Corporation or the company's products, please call 800/235-4142 in the United States, 415/616-4000 from outside of the United States, or visit the company's site at http://www.businessengine.com

About Broadview Capital Partners

Broadview Capital Partners is the private equity affiliate of Broadview International, the leading global investment bank focused on mergers and acquisitions in the IT, communications and digital media industries. Broadview Capital Partners invests in these industries via growth equity financing, transition capital, growth-through-acquisition strategies, recapitalizations and management buyouts of divisions of public companies. Broadview Capital Partners has more than $250 million under management and is located in the Silicon Valley, California. For more information on Broadview Capital Partners or Broadview International, please call Brian Hickey at (201) 363-4299 or visit the company's web site at www.broadviewcapital.com.