BlueRoads Reports Unprecedented 2004 Momentum with Record Revenue Growth; Channel Management Leadership Delivered Through Enterprise-Class Software as a Service Business Model.

SAN MATEO, Calif. -- BlueRoads Corporation, an on-demand channel management software company, today announced record momentum for 2004, having grown sales revenue by 300% as compared with 2003. The company doubled the size of its customer roster and, in response, tripled its headcount to help capitalize on the growing demand for its channel management solutions. Emerging as the clear leader in its market, BlueRoads looks to continue this momentum through a steadfast focus on customers and by leveraging its Software as a Service (SaaS) business model.

BlueRoads increases revenue and market share for customers by making the channel as powerful as a direct sales force. In order to truly manage indirect business relationships, enterprises need to close the loop between all participants. BlueRoads channel management solutions are designed for complex ecosystems of legally independent partner organizations, aligning business processes across the entire value chain from vendor, to partner, to customer. While many companies struggle to effectively manage their channel system, BlueRoads immediately turns the complexity of the channel into a competitive weapon.

Enterprise-Class SaaS

BlueRoads' Software as a Service offering provides customers with an n-tier, browser-based, Net-native application supporting XML-based Web services standards to streamline process integration. It represents the combined software architecture, delivery and user interaction model needed to support hundreds of thousands of globally dispersed users.

SaaS offers significant customer benefits including lower costs that are aligned with usage, minimal upfront expense, rapid implementation and time to value, and reduced risk. Industry analyst firm Gartner predicts that by 2006, 15 percent of new sales application deployments will use a software as a service model(1) and by 2010, 30 percent of all new software will be delivered as a service(2).

"From the inception of BlueRoads, we have offered channel management through an enterprise SaaS model. It began with the goal of providing the best economic and technological approaches to solving the complexities of indirect channel business and our customers have always understood the role that software as a service plays in turning the channel into a competitive weapon," said Axel Schultze, president and CEO of BlueRoads. "Building on a momentous 2004, we are excited at the prospects for 2005 and continuing to provide our customers with industry-leading channel management solutions."

2004 Highlights

Focused on providing channel management software that allows companies to market and sell more effectively through indirect channels, BlueRoads continued to prove its leadership in 2004 through several important accomplishments:

--Tripled revenue in 2004 over 2003 with the signing of high profile customers including: Nortel Networks, Sana Security, SurfControl and many others

--Successful launch of BlueRoads 5, the industry-leading channel management solution that empowers individual partner salespeople to actively participate in closed-loop sales and marketing processes

--Delivered first automated deal registration solution to drive market share through enhanced partner relationships with introduction of BlueRoads Deal Registration Manager

--Expanded seasoned management team with the addition of Deepak Viswanath, vice president of operations and services and Kathleen Hayes, vice president of marketing. The additions represent the on-going growth of the company's expertise across all areas to ensure that BlueRoads stays at the forefront of channel management solution development

--Grew overall employee base by 3x over 2003 and opened a new office in San Mateo, CA

About BlueRoads Corporation

BlueRoads provides channel management software and expertise that enable companies to market and sell more effectively through indirect channels. BlueRoads 5 empowers individual partner sales representatives to actively participate in closed-loop sales and marketing processes, enabling companies to increase Return on Channel Investment. BlueRoads' impressive customer list includes Hitachi Data Systems, Nortel Networks, Sun Microsystems, SurfControl and many more. The company is headquartered in San Mateo, California, and privately funded by El Dorado Ventures and ArrowPath Venture Capital. For more information about how BlueRoads is helping companies create active channels with higher returns visit our website at http://www.blueroads.com or call 650-349-8500.

(1)Gartner, "Management Update: CRM Predicts 2005: Sales Will Drive Revenue and Growth," R. DeSisto, January 12, 2005.

(2)Gartner, "Vendors Develop Variation of the ASP Model," B. Pring, November 2, 2004.