Allegrix Inc. Announces Application Service Provider Agreement With Progress Software.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 12, 2000

Allegrix Data Center Offers Unique Architectural Advantages

for Progress Software ASPEN ISV Members Renting Applications

Over the Internet 

Allegrix Inc., a leading Application Service Provider (ASP) and Web hosting company, today announced that it has joined Progress Software's Application Service Provider ENablement (ASPEN) program.

The ASPEN program, developed by application development, deployment and management products and services leader Progress Software, provides member ISVs immediate access to industry-leading partners for Web-enabling, hosting, managing and delivering ASP applications.

"We are extremely pleased to have entered the Progress ASPEN 2000 Program," said Chris Clabaugh, chief executive officer for Allegrix. "Through this partnership, Progress Software gives Allegrix immediate access to its ISVs base, which is well-positioned to quickly adopt the ASP model through the many resources the ASPEN program provides. With this partnership, Allegrix can offer Progress ISVs high-quality application hosting, maintenance and deployment services, while allowing these software vendors to focus on their core competencies and customers."

The Allegrix Data Center is the first to incorporate a three-tier architecture that separates Web brokering capabilities, application servers, and data storage. In addition to efficient scaling, the architecture provides cross platform capability and Internet access for applications running on Windows, Solaris, Linux, and Unixware.

"When we decided to enter the U.S. market, we knew that ASP was the vehicle to drive our market entry quickly and most effectively," said Rhett Thompson, President and CEO of Datasul, Inc., a Progress Software ISV.

"Allegrix got us from the `why' decision quickly through the `how' process and brought our application on-line in short order. It saved us an enormous amount of time and effort over doing it ourselves, and the combination of two strong partners in Progress Software and Allegrix will be key in building our North American ASP presence."

Progress Software's ASPEN 2000 Program now boasts a worldwide membership of more than 200 partners, from 20 different countries around the world, representing all of the company's operating regions.

These new applications, available on a subscription basis and accessed over the Internet rather than purchased, allow small and mid-tier organizations to more quickly and economically gain access to application functionality previously unavailable to them. ASP-enabled applications reduce traditional IT infrastructure costs because they are developed and maintained by service providers rather than an internal IT staff.

New vendors are emerging to bridge the gap between small and mid-tier organizations and high-performance applications. Already growing fast, the ASP market is expected to curve exponentially. Industry analysts estimate the "application rental market" will generate between $4 billion and $6 billion in revenue by 2003. The first ASPs who enter this market will have an important grip on its future growth.

About Allegrix

With headquarters in Santa Clara, Calif., Allegrix Inc. is an ASP infrastructure enabler that provides application Web-enabling, data center hosting, and marketing services for VARs, ISVs and medium to large organizations. By partnering with Allegrix, ISVs and VARs can instantly become ASPs, enabling them to tap into new markets, reach new customers and create new revenue opportunities. Discover the power of becoming an ASP today -- www.allegrix.com

For more information, contact Allegrix Inc., 3270 Jay St., Suite 101, Santa Clara, CA 95054. Phone: [phone]; e-mail; [e-mail].

About Progress Software

Progress Software Corporation (Nasdaq:PRGS) is a global supplier of software products and services for developing, deploying and managing business applications moving to the Internet. The company offers messaging servers, application servers, databases, and application development and management products.

Its partners include more than 2,000 application service providers (ASPs) and independent software vendors (ISVs) who supply annually over $5 billion in Progress(R)-based applications and related services. The company's products are used by over 10,000 organizations across 100 countries worldwide, including 60% of Fortune 100 companies. For more information, visit www.progress.com or call 781/280-4000.

Progress is a registered trademark of Progress Software Corporation. SonicMQ, WebSpeed and ASPEN are trademarks of Progress Software Corporation. All other trademarks contained herein are the property of their respective owners.