170 Systems Announces Record Results in 2004 Driven by Strong Customer Growth.

BEDFORD, Mass. -- Company Executes on Aggressive Growth Strategy with New Product Offering, Expanded PeopleSoft Partnership and 20 Percent Increase in Customer Base

170 Systems, the leading provider of financial business process automation and imaging solutions that integrate with major ERP systems, today announced strong results in 2004 with record core revenues for the year. In continuing to execute on its aggressive growth strategy, 170 Systems delivered a major new product offering, expanded strategic partnerships with PeopleSoft and increased its customer base by 20 percent.

Extending its leadership in providing Global 1000 customers with world-class financial BPM solutions, 170 Systems signed new customers, including M. A. Mortenson Company and Suffolk Construction Company, Inc. The company now stakes claim to a client roster that includes seven of the top fifty members of the Global 1000. In supporting its significant new customer growth, 170 Systems also focused on expanding current customer relationships through delivering additional products and services to more than 70 percent of its installed base.

"Our success stems from a broad portfolio of solutions and services that delivers high ROI to our customers from streamlining their business processes while ensuring sustainable compliance and decreased risk of fraud," said Dave Ellenberger, CEO of 170 Systems. "Every large finance organization faces the conflicting goals of saving money yet achieving Sarbanes-Oxley compliance. We help them do both with a solution that leverages their existing ERP investment."

Expanding its relationship with PeopleSoft, 170 Systems announced in September 2004 the certification of the integration between its 170 MarkView solution and PeopleSoft Enterprise Payables and PeopleSoft Enterprise Expenses 8.8. That partnership, followed by Oracle's acquisition of PeopleSoft, positions 170 Systems as the leading provider of solutions that streamline the ERP-based business processes of Oracle customers, now and in the future.

As Oracle moves forward with its roadmap for integrating PeopleSoft into its software portfolio, 170 Systems can now enable all Oracle and PeopleSoft customers to increase operational efficiency, productivity and performance while ensuring regulatory compliance and fraud prevention. A Global 1000 mobile telephone service provider implemented 170 MarkView for PeopleSoft Enterprise Payables in September of 2004.

Additional key achievements during 2004 include:

--Strengthening 170 Systems' product offerings with full product integration, best practices business process templates, enhancing ease of use and finalizing additional third-party software support and certifications;

--Earning industry recognition for its 170 MarkView solution by winning the Massachusetts Innovation & Technology Exchange (MITX) Technology Awards for the Best Technology Operations Application;

--Continuing successful global implementations in Japan, China, India, Spain, Portugal, Finland, Sweden, Greece, Norway, Poland, Czech Republic, Hungary, Greece, Great Britain, Wales, Ireland and Scotland;

--Expanding its presence in several key vertical markets, including financial services, higher education, energy, hospitality and telecommunications;

--Working with Bearing Point on successful customer delivery of 170 MarkView for Purchasing, Accounts Payable, Expenses, Accounts Receivable and General Ledger business process automation; and

--Reducing total cost of ownership through upgrade automation and computer based training.

In leveraging their investment in 170 Systems, companies are able to achieve the dual value of realizing a compelling ROI while enabling regulatory compliance. This advantage is significant for world-class companies, because it is contrary to the prevailing trend that most compliance solutions add cost to the operation of finance departments. According to the 2004 Book of Numbers research by The Hackett Group, a business process advisory firm, "world-class" companies dedicate 20 percent of their total finance operations costs to technology spending, a significantly greater percentage than typical companies.

"Moving forward, we expect a significant portion of this technology spending will be related to compliance efforts," said John McMahan, senior business advisor, The Hackett Group. "Overall finance spending on compliance has skyrocketed in the past five years, driven in large part by Sarbanes-Oxley. This has made it extremely difficult for companies to bring down the total cost of finance operations. Part of the problem is that most companies have taken a very manpower-intensive approach in their initial Sarbanes-Oxley compliance efforts. But now that companies are getting past the initial Sarbanes-Oxley hurdles, many of them are looking at how they can streamline the process. A key element of this is how technology can be used to reduce the manpower effort and improve workflow automation for controls and approvals."

About 170 Systems

170 Systems, Inc. is the leading global provider of software products and services that capture and manage all of the information associated with core financial functions, transforming them into consistent, automated, "best practices" business processes that ensure sustainable compliance. Combining best-of-breed business process automation and imaging technologies, the 170 MarkView solution provides seamless integration with ERP systems, including the Oracle E-Business Suite and PeopleSoft Financial Management, resulting in significant cost reduction, improved efficiency and enhanced visibility for enterprises.

170 MarkView is deployed by Global 1000 enterprises across a wide range of industries in more than 40 countries. For more information about 170 Systems, please call 1-800-788-6170, [phone], [phone], or visit http://www.170systems.com.