Bentley Outlines 2002 Results.

Business Editors

EXTON, Pa.--(BUSINESS WIRE)--Jan. 31, 2003

Bentley Systems, Incorporated today reported preliminary results and milestones for 2002.

The year was marked by revenues rising by 14% to $230 million, sustained and increased profitability, expansion of its subscription licensing program, and future-growth investments including verticalization and several strategic acquisitions. The company also announced the closing of its acquisition of Infrasoft Corporation.

"Despite global economic factors, 2002 was successful for Bentley," said Greg Bentley, CEO of the company. "Our positive financial indicators affirm the increasing value of our solutions to users and the merits of our subscription-based business model. Moreover, our expanded market presence and corporate resources allowed us to attract and complete strategic acquisitions."

Other 2002 financial highlights:

-- After normalizing for acquired businesses and currency translations, the company's organic revenue growth approximated 6%.

-- Cash generated from operations increased by 20% to over $42 million.

-- 405 accounts each invested more than $100,000 in Bentley products and services during the year, an increase of 65 accounts over 2001.

-- No single account represented more than 1% of revenue.

-- Among the top three providers listed in market research firm Daratech's new Architecture/Engineering/Cons truction/Operations (A/E/C/O) rankings, Bentley is the only one with positive corporate revenue growth in reports for 2002.

Bentley has structured its business model to derive a majority of its revenue through subscription programs. Late in 2002, the company expanded its subscription offerings with the introduction of the Enterprise Subscription program. Major accounts that elect this program gain on-demand, organization-wide term license rights to the comprehensive portfolio of Bentley products for a predetermined fee, reset annually. Eight accounts internationally, including CH2M HILL and Bonneville Power Administration, contracted for Enterprise Subscriptions in the first full quarter of availability.

AEC market share in the world's major projects is indicated by software use within Engineering News-Record's Top 500 Design Firms. Based on Bentley's experience, its products are deemed mission-critical for those firms that use at least one AEC content creation seat (MicroStation(R) with related applications) for every million dollars of design billings. In 2002, Bentley met this mission-critical threshold at more than 250 ENR Design 500 firms, which themselves account for over two-thirds of the 500's design market share.

New Market Opportunities

Acknowledging significant growth and opportunity beyond design, Daratech included software revenues for facility and asset operations in this year's newly denominated A/E/C/O report. (In its traditional A/E/C report, Daratech reported revenue from software only for architecture, engineering, and construction.)

Already, 57% of Bentley 2002 revenues were derived from owner-operators of facilities and assets. To capitalize on and better serve this user base in an expanding market, Bentley has introduced vertical organizations for each major facility/asset category. Focused, cross-functional organizations have been named Bentley Civil, Bentley Building, Bentley Plant, and Bentley Geospatial.

"It is gratifying to see Bentley's continued strong performance through 2002 since we share a common vision of the market's development and growth into A/E/C/O," said Daratech's founder and CEO Charles Foundyller. "Bentley's large footprint in owner-operator environments positions them well to take advantage. For instance, Bentley Geospatial addresses the critical, unmet A/E/C/O needs of utilities, communications, and governments for infrastructure and public works assets."

Strategic Acquisitions

The company recently completed the acquisition of Infrasoft Corporation, a global software and services company with operations based in the United Kingdom. As the successor to Moss Systems which it acquired in 1994, Infrasoft has provided its MX and Arenium product lines for civil engineering design and infrastructure management solutions to engineering firms, contractors, and national, state, provincial, county, and municipal governments.

Other recent acquisitions have reinforced Bentley's vertical resources and strengthened its vertical product portfolios. These acquisitions include Rebis and WorkPlace Wisdom for Bentley Plant; the Department of Transportation Division of TransDecisions, Inc., for Bentley Civil; and Cadac.

Combined, these transactions contribute over 225 domain experts and over $35 million in annual revenue to Bentley. Company headcount is now approximately 1,500.

Looking to the future, Greg Bentley comments, "We exited 2002 at an annualized subscription run-rate of over $160 million and accordingly, with acquisitions, we expect to continue double-digit revenue growth throughout 2003."

About Bentley

Bentley Systems, Inc., a global software vendor founded in 1984, provides software solutions to create, manage, and publish architectural, engineering, and construction (AEC) content. Bentley enables leading AEC firms and owners to design, build, and operate facilities, industrial plants, roadways, and other essential infrastructure assets. Bentley delivers integrated building design, plant design, civil engineering, and geospatial solutions for transportation, process and discrete manufacturing, government and public works, building, and utilities.

Bentley's 2002 revenues reached $230 million. Bentley software plays a mission-critical role in over two-thirds of the work of the Engineering News-Record Top 500 Design Firms.

For more information, call 1-800-BENTLEY or visit us on the Web at www.bentley.com.

This press release may include statements that constitute "forward-looking statements," including estimates of future business prospects or financial results and statements containing the words "believe," "expect," "estimate," "plan," "intend," "anticipate" or similar expressions. These statements refer to our future plans, objectives, expectations, and intentions.

Forward-looking statements inherently involve risks and uncertainties that could cause our actual results and plans to differ materially from those anticipated in such forward-looking statements. We do not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.

Bentley, the "B" logo, and MicroStation are registered trademarks of Bentley Systems, Incorporated or Bentley Software, Inc. Other brands and product names are trademarks of their respective owners.