Goldman Sachs Report Highlights diCarta as One of Leading Providers of Contract Management Solutions

Business Wire, Feb 6, 2001

Business Editors/High-Tech Writers

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Feb. 6, 2001

Analysts Estimate Market for Contract Management Software to Reach

$3.1 Billion by 2005, Position Contract Management as

Viable Market Category

diCarta, Inc. today announced that a Global Equity Research report from Goldman Sachs, a leading global investment banking and securities firm, highlights diCarta as a major player in the new category of contract management. The report, titled, "Time To Manage Those Contracts," underpins diCarta's principal value proposition that companies can lower risk, save money and enhance revenues by automating otherwise complex contract processes. In addition to positioning contract management as a stand-alone market category, the analysts also project that the category will grow to $3.1 billion by 2005.

The authors point to increasing contract complexity and volume as the major factors driving the need for contract management software. As advances in technology allow companies to conduct business at an accelerated pace, the average Fortune 1000 company is managing anywhere between 20,000 and 40,000 total contracts, according to the report. Companies can no longer solely rely on spreadsheets and generic ERP systems to handle the process, which has given rise to the new category of contract management software. The analysts note that the Return on Investment for solutions from companies such as diCarta is compelling, with enterprises saving up to 40 basis points of revenue through cost reductions by using contract management software.

"As an early mover in this category, there is a tremendous opportunity for diCarta to capitalize on the growing need for automated contract management," said Jamie Friedman, Vice President, Senior Equity Analyst -- B2B Software, Goldman Sachs. "Improved contract management reduces operating and processing costs, and increases revenues by providing proactive contract administration, improved vendor and customer relationships, and enhanced compliance with financial standards. These benefits extend to companies in all industries, as contract management is a horizontal reality in today's economy."

The report also provides examples of how organizations can use diCarta's contract management solution, diCarta Contracts(TM), to correctly recognize revenues according to guidelines defined by the American Institute of Certified Public Accountants (AICPA) and extended by the Security and Exchange Commission (SEC). diCarta Contracts uniquely links the contract language and language changes to revenue recognition policies and schedules. As a result, what previously was an error-prone, manual process can now be automated. Given the financial and legal risks associated with incorrectly recognizing revenue, "failure to properly recognize revenues is a risk no public company can afford to take," according to the report.

"The Goldman Sachs team spent almost a year working with us and others researching the issues we had pointed out as driving this new application category," said Scott Martin, president and CEO, diCarta. "This report supports our value proposition, using concrete examples of the cross-industry benefits of contract automation as the basis for the large market potential. As we continue to target Fortune 1000 and Global 2000 companies, in addition to the software SME market, the Goldman Sachs research serves as third-party validation of the critical need for enhanced contract and revenue management."

About diCarta, Inc.

diCarta offers the first B2B collaborative contract management solution that streamlines the entire contract lifecycle. diCarta Contracts, a web-based solution, enables enterprises and Internet trading exchanges to collaborate with customers and suppliers on contract terms and conditions, and to increase visibility into revenue management, future obligations and renewals. This allows companies to accelerate contract processes while minimizing legal and financial risk. Using diCarta's Zero-Impact Activation(TM) methodology, customers realize system benefits rapidly with minimal organizational impact. Founded in October, 1998, diCarta is headquartered in Redwood City, California. diCarta venture capital investors include Sequoia Capital, responsible for funding successful companies such as Agile (Nasdaq:AGIL), Apple Computer (Nasdaq:APPL), Cisco Systems (Nasdaq:CSCO), and Yahoo (Nasdaq:YHOO); Capital Research and Management Company, advisor to the American Funds Group; The Roda Group, lead investors in Ask Jeeves (Nasdaq:ASKJ); and Skywood Ventures, as well as strategic investors Comdisco Ventures, Cooley Godward, Deloitte Consulting, Octane Capital Management, Mentor Capital Group and other private investors. For more information about diCarta solutions visit http://www.dicarta.com, send email to info@dicarta.com, or call 650/474-3800.

Note to Editors: diCarta, diCarta Contracts, Zero-Impact Activation and the diCarta logo are trademarks of diCarta, Inc. in the United States and other countries. All other company and product names mentioned are the trademarks or registered trademarks of their respective companies.