Portal Software, IBM, and Reciprocal Collaborate to Deliver Secure Digital Media Offering for Content Owners, Wireless and Broadband Service Providers

Business Wire, March 21, 2001

Business Editors/High-Tech Writers

LAS VEGAS--(BUSINESS WIRE)--March 21, 2001

Portal Software, Inc. (Nasdaq:PRSF), IBM, and Reciprocal, Inc. today announced that they are working together to deliver a new secure digital content commerce and distribution offering. Integrating Portal Software's Infranet(R) platform and IBM's Electronic Media Management System (EMMS), the Reciprocal offering enables secure distribution of digital media over broadband and wireless networks.

The offering is being demonstrated at IBM's booth, during this week's CTIA Wireless 2001 tradeshow in Las Vegas, March 20-22, 2001 (Booth 8029).

"Portal's Infranet customer management and billing platform is an integral part of the Reciprocal(TM) Digital Clearing Service, and integrating this with IBM's EMMS system further strengthens our pioneering offering for digital media companies," said John Schwarz, president and CEO, Reciprocal. "Reciprocal is excited to offer this scalable, secure solution to media companies, and wireless and broadband service providers."

Portal's Infranet platform enables content owners and service providers with a scalable and flexible environment for customer management, service definition and bundling, business model definition, and collection and remittances of revenues. The Infranet platform allows digital content owners to quickly deploy and manage new services, create new price plans and bill for content, including content delivered to wireless devices.

IBM's EMMS platform can enable content owners and service providers to secure and distribute high-value content ranging from music to ringtones and icons. EMMS is a sophisticated electronic distribution and digital rights management system designed to support all forms of digital media, including music and other audio content.

Reciprocal Digital Clearing Service provides a full suite of digital rights management (DRM) services that work with all of the core DRM platform technologies and adds components such as web retail integration, financial transaction processing, digital permit vending, and flexible reporting capabilities. The Reciprocal Digital Clearing Service offers all types of content companies a turnkey, outsourced solution for their digital commerce needs.

"As a technology provider committed to helping businesses with digital transformation, IBM sees this combination as a new and exciting step towards offering the delivery of secure music, audio and other content to wireless and other devices," said Scott Burnett, Global Marketing Executive at IBM.

"The Infranet platform is widely used to support a broad range of services and business models for content providers, content distribution networks and broadband and wireless access providers," said Sanjay Swamy, senior director of market development for broadband and digital content services at Portal Software. "Reciprocal's use of Infranet enables content providers and network service providers to benefit by having a common, interoperable platform for customer management and billing along the entire digital content value chain, with support for whatever business model is desired by the content provider."

About EMMS(TM)

EMMS is a comprehensive electronic media distribution and digital rights management system designed to support a broad range of media types, including music and audio content. EMMS provides the foundation for new business models created by the digital delivery of assets and offers a rich set of security features designed to protect the intellectual property rights of content owners throughout the delivery process. EMMS has an open architecture to allow technology advances in audio compression, encryption, formatting, watermarking, end-user devices and in applications to be integrated. EMMS is part of IBM's broad based digital media management portfolio, which offers comprehensive, enterprise-wide solutions for creating, managing, storing and distributing digital assets. Additional information on EMMS can be found at www.ibm.com/software/emms.> About Reciprocal

Reciprocal, Inc., the global leader in digital rights management and digital commerce services, provides comprehensive, easy-to-implement e-commerce clearing services and back-office solutions for the music, publishing, software, film, entertainment, and other digital content industries. Reciprocal offers content owners are a true outsourced DRM solution that allows them to realize new revenue streams while efficiently protecting their online digital assets.

The Reciprocal(TM) Digital Clearing Service leverages leading DRM technology from InterTrust Technologies Corp., Microsoft Corp., IBM, Adobe Systems Inc., and Preview Systems, allowing companies to choose the solution that best fits their business needs. Reciprocal Digital Clearing Service is secure, flexible and capable of handling millions of transactions per day. Leading content companies such as Sony Music Entertainment, BMG Entertainment, Zomba Music Group, Time Warner Trade Publishing, Random House, McGraw-Hill Professional Publishing, Advanced Marketing Services, Inc. and Aberdeen Group have selected Reciprocal as their digital rights management services provider. Privately held, Reciprocal maintains offices in Buffalo, N.Y., London, New York City, Research Triangle Park, N.C. and Singapore.