Avalara Announces Release of AvaTax(TM) for ProStores.

BAINBRIDGE ISLAND, Wash. -- Sales tax technology provider Avalara today announced the launch of AvaTax[TM] for ProStores (http://www.avalara.com/prostores). ProStores, an eBay Company, allows small- and medium-sized businesses to create professional online stores, customized with their own branding and domain name.

The result of collaboration between Avalara (http://www.avalara.com) and ProStores, AvaTax for ProStores offers businesses a sales tax automation service that works in the background of the ProStores store via a secure Internet connection. The easiest, most economical, and most accurate sales tax automation solution available today, AvaTax for ProStores provides sales tax calculation and secure data storage for tax filing and reporting, which are critical functions for Web-based businesses.

"As master resellers and certified designers for ProStores, we have firsthand knowledge of the challenges businesses face when manually configuring complex tax tables in their online stores, deciphering reports, and filing sales tax in multiple jurisdictions," said Kurt Davey, president of neoverve.com. "AvaTax for ProStores fills the gap by providing a much needed, end-to-end solution for ProStores merchants. Bravo!"

AvaTax for ProStores is fully integrated with ProStores, which makes deployment easy and eliminates the need for online merchants to struggle with integration. Once purchased, it only requires selecting AvaTax as the Sales Tax engine from within ProStores and completing the necessary set-up for Nexus and Product Taxability.

"Avalara and ProStores are a natural fit for serving the SMB market. We're both committed to providing our mutual customers with online, self-service tools that are affordable and easy to use," said Ranjit Mulgaonkar, Avalara's vice president of business development. "Avalara has been integrated on a one-by-one basis into hundreds of eCommerce Web sites, so this isn't a new market for us. With ProStores as an established leader in eCommerce, and Avalara an established leader in sales tax and the standard-setter for SMBs in accounting and enterprise resource planning (ERP) solutions, the two organizations working together will provide a tremendous degree of value for the ever-growing number of online businesses."

While eCommerce has made it possible for small- and medium-sized businesses (SMBs) to compete in locations where they hadn't previously, it has also introduced new complications, including compulsory sales tax requirements. Although online businesses currently only need to collect sales taxes where they have a physical location, there is legislation pending in the U.S. Congress that could change the laws regarding remote sales tax collection.

"Since ProStores customers are operating businesses that transcend geographic restrictions, sales tax is a huge consideration. By providing a completely customizable virtual storefront that is easy for small- and medium-sized businesses to deploy, ProStores customers haven't had to worry about complexities associated with managing credit card transactions and payment processing on their own, and now they don't have to worry about the sales tax component either," stated Scott McFarlane, CEO of Avalara. "There are more than 12,500 sales tax regions in North America alone. That means each shopping cart checkout will likely require that a unique combination of rules and rates be applied. With AvaTax for ProStores, I am pleased to say that ProStores customers can focus on managing their businesses rather than managing the complexities of sales taxes."

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, Microsoft Dynamics[TM] AX, 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). AvaTax for ProStores is available for purchase from www.avalara.com/ProStores.

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 midsized businesses. Avalara's mission is to transform the sales tax compliance process by creating cost-effective, state-of-the-art solutions, and does so primarily through integrated, on-demand and Web-based services that provide transparent transactions, accurate tax compliance, painless administration and effortless reporting.

Through a technology agreement struck in June, 2005, Avalara customers are able to tap into advanced capabilities provided by Taxware - notably, ADP Taxware's highly regarded taxability matrix covering thousands of industry-specific product, service, entity and use-based rules, and ADP Taxware's VAT capability that addresses more than 150 countries around the globe. Augmented by ADP Taxware, Avalara gives midmarket companies access to the same world-class technologies used by the world's leading corporations. Avalara is also one of only three sales tax automation providers operating as Certified Service Providers (CSPs) for businesses participating in the multi-state Streamlined Sales Tax program. For more information, visit www.avalaracom.