BlueStar Solutions Gets Green Light for $15 Million Contract by North Carolina Department of Transportation.

Business Editors/High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--Oct. 23, 2001

Outsourcing leader to host and manage SAP

environment for state agency

BlueStar Solutions, formerly eOnline, Inc., a leading provider of enterprise application outsourcing services, announced today it has been selected by the North Carolina Office of Information Technology Services to host and manage the SAP environment for the state's Department of Transportation. The value of the three-year contract is approximately $15 million.

BlueStar Solutions will be providing services to an initial user base of approximately 4,000 employees on SAP R/3 with IS-PS (Industry Solutions-Public Sector). While the contract is specifically aimed at supporting North Carolina's Department of Transportation, the State intends to make the services available to all state agencies, including community colleges, institutions, counties, municipalities, public schools, and other local governmental entities.

"We are extremely proud that the North Carolina Department of Transportation has selected us as their partner to help them improve fiscal-related processes and information management within the Department of Transportation and any other state government agency that may require it," said Thomas F. Kelly, chairman and CEO of BlueStar Solutions.

"This contract is especially noteworthy for two reasons," added Kelly. "It sends a clear signal that Governments, like private businesses, are looking for ways to focus more resources on their core business and save money and that they acknowledge that applications outsourcing is an effective means to do that."

Under the terms of the contract, BlueStar Solutions will be responsible for procurement of initial hardware and additional hardware needed to accommodate growth; monitoring and control of the network, hardware, application, and operating system; and security and customer support.

About BlueStar Solutions

BlueStar Solutions is a leading provider of enterprise application outsourcing services. By delivering dependable, secure, high-performance, guaranteed solutions, BlueStar Solutions enables their customers to reduce IT costs and mitigate risks while receiving unparalleled service. BlueStar Solutions' services support a customer base of 35,000 hosted users in over 20 countries. The company is headquartered in Cupertino, California with Data and Service Centers in Arizona and Texas. BlueStar Solutions is backed by Morgan Stanley, GM, Dell, Trident, meVC Draper Fisher Jurvetson Fund I, and ACS. For more information, please contact BlueStar Solutions at 800/944-3454 or visit the company's website at www.bluestarsolutions.com.