Contract Management Leader DETERMINE Software Secures $12.25M; JP Morgan Partners Leads Round with Mohr Davidow Ventures and NEA

Business Wire, Feb 24, 2003

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 24, 2003

DETERMINE Software, the leader in buy-side contract management specializing in contractual obligations for leased assets and outsourced business services has secured $12.25M in third round equity financing. JP Morgan led the round with additional investments from existing investors Mohr Davidow Ventures (MDV) and New Enterprise Associates.

DETERMINE will use the new funds to strengthen its world-class sales and service organizations, and continue to capitalize on the proven success of its technology, and customer satisfaction record with customers such as Ace Hardware, Alcoa, Chevon-Texaco and Reyes Holdings. In addition, Buck French, General Partner, JP Morgan Partners, a global private equity organization, is now a member of the DETERMINE Board of Directors.

"Contract management applications are systems that business users -- not IT staff -- use not to just create online contracts, but also to gain the decision-making power that comes with better visibility of contract information. In AMR Research's 2003 contract management study, 90% of the business owners we interviewed bought these systems to improve contract visibility and half of the respondents also cited better contract adherence, easier contract creation, and better control over content as additional reasons why they bought." Source: Lindsey Sodano, AMR Research: The Compelling ROI of Contract Management, Feb 2003.

"2003 is the year for contract management and it's clear that a leader will emerge in the latter half of this year," said Buck French, General Partner, JP Morgan Partners. "Based on our market analysis, and DETERMINE's technology, corporate vision and position in the market, we expect DETERMINE is clearly poised to rise above the pack and capture the leadership position."

Over the past year, DETERMINE has hit significant milestones and emerged as one of the few vendors with tangible savings examples:

-- Typically DETERMINE customers are implemented within 2-4 months.

-- One Fortune 500 customer realized savings almost three times (3x) greater than the cost of the software; many DETERMINE customers experience a return on investment in as little as three months.

-- In a matter of days, another DETERMINE customer saved $50K on a single contract.

-- In 2002 DETERMINE experienced 100% customer renewals.

"Reducing corporate risk and controlling maverick spending are clear enterprise priorities and DETERMINE has proven itself a leader in this increasingly important area of management," said Erik Straser, MDV general partner and DETERMINE board member.

Scott Martin, CEO DETERMINE Software explained, "DETERMINE delivers a rapidly implemented solution to solve today's issues, coupled with the flexibility to support any organization's strategic vision. With this funding we can capitalize on our existing momentum and continue to support our stellar track record in the marketplace."

About DETERMINE Software

DETERMINE is the leading web-based contract management application for Global 2000 companies with significant buy-side contractual obligations for leased assets and outsourced business services. DETERMINE delivers control and efficiency over the entire leasing contract cycle, enabling increased market capitalization through contractual savings, reduced processing time, increased compliance management and reduced financial risk. DETERMINE customers, such as Ace Hardware, Alcoa, Chevron-Texaco, Cummins and Reyes Holdings have realized significant improvement and recognized savings in their contract management process.