Astea International acquires Bendata Inc.; Acquisition creates largest provider in rapidly growing customer interaction software market.

CHALFONT, Pa.--(BUSINESS WIRE)--Feb. 27, 1996--Astea International (NASDAQ: ATEA), a leading supplier of client/server customer interaction software, today announced the acquisition of Bendata, Inc., a privately-held, international provider of client/server software for the internal help desk industry.

Astea acquired one hundred percent of the outstanding shares of Bendata for 1.5 million shares of Astea common stock. The acquisition will be accounted for as a pooling of interests.

"Astea's strategy is to provide the most comprehensive suite of enterprise-wide solutions to meet the dynamic customer interaction software needs of organizations worldwide," stated Zack B. Bergreen, president and chief executive officer of Astea International. "Astea experienced significant growth in 1995 as we increased our position in the external customer support and service segments of the market. We believe that complementary segments of the market, which Astea has not exploited in the past, such as the internal help desk market, offer exciting growth opportunities for the company.

"With this merger, Astea has established itself as the largest vendor in the rapidly growing customer interaction software marketplace," continued Bergreen. "As leaders in our respective markets, Astea and Bendata each bring a wealth of industry knowledge and expertise. The merger provides Astea with the critical mass necessary to establish a significant position in the marketplace as the market undergoes anticipated rapid change and consolidation in the coming years."

Randall W. Casto, who will continue to serve as president of Bendata, added, "Joining the Astea team is an exciting opportunity for all of us at Bendata. We will be Astea's 'center of excellence' in serving the customer support and help desk markets, with an established market presence, a large installed base, and proven telesales and distribution capabilities. By combining Bendata's operations with Astea's leadership position, worldwide sales and services network and financial resources, Astea believes it now possesses a unique set of strengths which will help the company address a broader range of opportunities in the market."

Astea's family of customer interaction software solutions includes DISPATCH-1, PowerHelp and PowerSales, which are used to automate and streamline external field service, customer support and sales operations, respectively. Bendata's suite of software solutions -- HEAT for Windows Professional, HEAT for Windows Premiere, HEATLink series and First Level Support -- are targeted to the internal help desk marketplace. Bendata's products provide organizations with the ability to improve their help desk operations and internal support processes. The two companies' advanced help desk automation tools embrace the latest computing technologies, including the World Wide Web and the Internet, to empower end users and simplify customer support processes and help desk operations.

Ronald J. Muns, Bendata's chairman and founder, stated that, "This merger expands and diversifies Astea's market opportunity. We can now offer a greater breadth of solutions to meet the market's customer support and help desk business challenges." Muns has been instrumental in shaping the growth and change in the help desk industry. In 1988, Mr. Muns founded the Help Desk Institute, the largest organization in the world representing help desk professionals. Muns will join Astea as vice president of business development to identify new business opportunities and advise management regarding the company's strategic direction.

Headquartered in Colorado Springs, Colorado, Bendata is expected to operate as a wholly owned subsidiary of Astea, to remain at its current location and to retain its current employees. With approximately 115 employees, Bendata's sales efforts are directed primarily through a telesales force in the United States and through a U.K.-based subsidiary, as well as through a network of international distributors. Bendata's products are deployed across a broad range of industry segments with an estimated 15,000 end users at more than 1,600 customers, including industry leaders such as Alltel, Chevron, the FDIC, Mercedes Benz, and U-Haul. Bendata can be reached at [phone] or via the World Wide Web at www.bendata.com.

Astea noted that each of the above forward-looking statements, made under the provisions of the recent "safe harbor" section of the Private Securities Litigation Reform Act of 1995, involve a number of risks and uncertainties that could cause actual future results to differ materially. Among these risk factors are continuing acceptance of Astea's products in the marketplace, the company's ability to grow from the sales of these products, general competitive pressures in the marketplace, and the continued overall growth in the customer interaction software industry. Further information on potential factors which could affect the company's financial results are included in the company's Form 10-Q for its third fiscal quarter ended September 30, 1995, filed with the SEC, and the company's registration statement filed with the SEC and deemed effective on July 27, 1995, containing the IPO prospectus, or any other filings with the SEC which set forth at length a number of key risk factors, or meaningful cautionary statements, relating to our business, products and markets, which could cause the actual results of our business operations in 1996 to differ materially from those suggested in our forward-looking statements.

Astea International develops, markets and supports client/server-based customer interaction software. Its products enable organizations of all sizes across a range of industries to automate and streamline their customer support, field services and sales operations, while increasing profits and customer loyalty. With more than 325 employees worldwide, Astea markets its products through a direct sales and services network throughout North America, Europe, the Middle East and Asia. The company's customer base of more than 375 companies and an estimated 25,000 end users includes such industry leaders as Allen-Bradley; NCR; E.I. du Pont de Nemours & Co.; Moore Products; Northern Telecom Inc.; Ricoh Corp.; and Savin Corp. Astea can be reached at [phone] or via e-mail at [e-mail] or via the World Wide Web @ www.astea.com.

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