Avalara — The SMB Sales Tax Automation Provider — Grows Registered User Base to Over 10,000 … Avalara Achieves Sustained Annual Growth Rate of 200%

Business Wire, March 5, 2007

Covering 12,500 Tax Regions Across North America, Avalara Offers to the Most Comprehensive and Affordable Sales Tax Management Service for the SMB Market

BAINBRIDGE ISLAND, Wash. -- Avalara (http://www.avalara.com) - the market's only small and medium business (SMB)-oriented provider of on-demand, web-based sales tax compliance services, and the SMB industry's only web-based and ERP integrated automated Sales Tax Management Service (STMS), has grown its user base to more than 10,000 registered users. With service that covers 12,500 tax regions across North America, Avalara continues to offer the most comprehensive and affordable tax management service for the SMB market.

In Q1 of 2005, Avalara had roughly 100 registered users and reseller-partners. Just over eight months ago, at the close of Q2 of 2006, that figure stood at nearly 5,000 registered users. Today, that number has grown to more than 10,000 registered users for a product line that includes the fully-automated AvaTax sales tax management service, as well as the no-cost AvaRates Now[TM] online rate look-up service. This represents a sustained annual-rate user growth of 200%-plus per year. In sustaining this impressive growth, Avalara continues to sign up an average of from 500 to 700 new users and reseller-partners each month.

"In addition to strong user base growth, both during the latter half of 2006 and the start of 2007, we are experiencing strong revenue and sales numbers growth as well," according to Jared Vogt, Avalara's Chairman and Chief Executive Officer. "We experienced a remarkable 207% rate of revenue growth during calendar year 2006, when compared to the same period in 2005 - as well as a 215% sustained rate of sales growth, when compared to the same period in 2005. This significant and sustained growth stems from Avalara's unhindered focus on the SMB market place, as well as from our unique ability to provide solutions that are both comprehensive and affordable."

As an on-demand, Software-as-a-Service (SaaS) alternative to more expensive and less adaptive software sales tax calculating and management solutions, Avalara processed over 4.1 million transactions in December, with peak periods of five to seven transactions per second. "With a fast growing client base, transactions volume is expected to grow to over 23 million transactions by June of 2007 - an average of over eight transactions every second of the day, with peak periods exceeding 30 transactions per second. Our system's robust and service-oriented architecture ensures the ability to handle all the volume our clients demand of us," Vogt explained.

About AvaTax[TM]

An SMB market-leading, Web-service-based sales tax solution, AvaTax instantly and accurately calculates sales tax for clients in any of the more than 12,500 tax regions in North America; provides detailed, real-time reporting; and automatically generates pre-populated sales tax returns. Currently, more than 10,000 licensed AvaTax users run an average of five to seven sales tax calculation transactions through Avalara's sales tax engine every second.

AvaTax comes integrated with SMB financial applications serving more businesses than any other solution on the market today, including Microsoft Dynamics[TM] GP, Microsoft Dynamics[TM] NAV, Intuit's QuickBooks, Sage Software's Sage MAS 90 ERP, Sage MAS 200 ERP, Sage MAS 500 ERP, and Sage Accpac ERP. Additionally, with AvaTax On-Demand[TM] developers can integrate Avalara's sales tax Web service with any e-commerce, third party or custom-build solution with use of a comprehensive Software Developer's Kit (SDK).

About Avalara

Headquartered on Bainbridge Island near Seattle, Washington, Avalara is changing the sales tax landscape by delivering innovative and affordable solutions to small and mid-sized businesses. Avalara's mission is to transform the sales tax compliance process by creating cost-effective, state-of-the-art solutions. Avalara does so through integrated, on-demand, Web-based services that provide transparent transactions, accurate tax compliance, painless administration and effortless reporting.