CenterStone Software Announces $5.5 Million Financing Round; Investment Will Expand Sales and Marketing Momentum for CenterStone's Integrated Solutions to Improve Corporate Real Estate and Facilities Performance

Business Wire, Oct 6, 2005

HOPKINTON, Mass. -- CenterStone Software, Inc., a leading provider of solutions to manage corporate real estate, facilities and workplace operations, today announced that it has secured $5.5 million in Series D financing from its current investors. The round was led by Egan-Managed Capital, a venture capital firm that supports New England-based technology companies, and includes Trans-National Group, Velocity Equity Partners and the Massachusetts Technology Development Corporation. CenterStone has raised a total of $15.4 million in venture capital.

This investment will allow CenterStone to expand its sales, marketing and solution development initiatives in the fast-growing Integrated Workplace Management Systems (IWMS) market. The company's Web-based eCenterOne solution is helping more than 50 of the world's largest organizations, including AIG, Dell, sanofi-aventis and Juniper Networks, save millions of dollars in occupancy costs every year by automating key workplace business processes, improving portfolio utilization and unlocking the information needed to make more informed real estate and operational decisions.

"CenterStone is solving complex, strategic business challenges for a growing blue-chip client roster, with innovative, highly-differentiated solutions," said John R. Egan, Managing Partner, Egan-Managed Capital. "This new investment round reflects the confidence of our entire investment group in CenterStone's leadership, vision and execution and the opportunity to accelerate its growth in this fast-emerging market."

"The integrated workplace management systems (IWMS) market continues to demonstrate strong customer demand for broadly functional, scalable solutions vs. more-specialized point solutions," noted Gartner Research Vice President Michael Bell. "Several forces have converged to propel the market forward. These include a growing emphasis on workflow and process management, with a desire by organizations to integrate workplace management processes across the facilities asset life cycle."(1)

CenterStone has grown by nearly 100% annually for the past two years with a flexible business model that is primarily an on-demand, subscription-based ASP service, which simplifies procurement for many clients and is easy to deploy and use, and also supports traditional, self-hosted deployments that allow clients to capitalize their software purchases.

"As companies of all sizes increasingly focus on the bottom line, CenterStone has achieved fast growth by helping clients to better manage one of their largest expense lines, enhance shareholder value and turn their real estate portfolio into a strategic advantage," said Andrew Sherman, President and CEO of CenterStone Software. "This additional support from our investors gives CenterStone the opportunity to secure and expand its leadership position in the IWMS market."

About CenterStone Software, Inc.

CenterStone Software helps many of the world's largest organizations to manage their space, facilities, personnel, assets, leases and workplace operations more efficiently, strengthen executive planning and decision-making, optimize portfolio utilization and save millions of dollars in occupancy costs every year. Market leaders such as AIG, Dell, EMC, Network Appliance and sanofi-aventis are using CenterStone's Web-based eCenterOne solution to automate workplace processes such as space planning, corporate moves, employee on-boarding, allocations and chargebacks and work orders. As a pioneer in the growing Integrated Workplace Management Systems (IWMS) market, CenterStone was founded in 1999. The company is headquartered in Hopkinton, MA and has its West Coast sales and services office in San Mateo, CA, and regional offices across the United States. For more information, please call (508) 435-1510 or visit www.centerstonesoft.com.

CenterStone and eCenterOne are trademarks of CenterStone Software, Inc. All other logos, company and product names may be trademarks or registered trademarks of their respective owners.

(1)Gartner, Inc., 2005 Market Update: Integrated Workplace Management Systems, May 2005