Bottomline Technologies Announces Enhanced Legal eXchange Online Litigation Management and e-Billing Solution.

PORTSMOUTH, N.H. -- Automated management of legal resources provides savings and efficiencies; new features include discussion forums, attachments, and enhanced rules functionality

Bottomline Technologies (NASDAQ: EPAY), a leading global technology provider of Financial Resource Management (FRM) software and managed services, today announced the latest release of its online litigation management and legal e-billing solution. The new platform, Legal eXchange(R) v4.5, lets corporations and their outside counsel set budgets for individual matters; review, adjust, escalate and approve invoices against those budgets online; and view comprehensive reports. New capabilities include attachments, threaded discussions, and enhanced rules functionality to further reduce wasted time and expenses typically associated with managing complex legal billings.

Tom Gaillard, vice president and general manager of Bottomline's Transactional Services North America, said, "This latest release further strengthens what we believe is the most comprehensive and effective invoice management solution on the market today. Legal eXchange is a powerful tool that helps corporate legal departments streamline the management of billings from multiple law firms provided through a single, secure Web portal. Bottomline's Legal eXchange facilitates the billing, review and payment processes, saving time and helping optimize legal expenditures. Version 4.5's new collaborative and monitoring features help shorten billing approval cycles for added productivity and savings."

The new Legal eXchange v4.5 facilitates the review process by allowing users to have online discussions while viewing supporting documents, budgets, and invoices. Legal eXchange provides a complete audit trail and one-stop accessibility to threaded discussions and documents that can reduce or eliminate the physical storage of business documents. Additional new features and functionality include:

--Enhanced rules: The updated rules engine adds industry-leading functionality to validate law firm compliance with negotiated rates at the timekeeper level. Unique budget compliance rules enable users to monitor bills, warn or reject invoices when no budget has been established and alert users when individual budgets are close to expiration.

--Attachments: Law firms and corporations can add attachments to their Legal eXchange environment, so users can include images and documents from within the Legal eXchange platform. For example, law firms can electronically submit supporting documentation, such as expense receipts, at the time of billing. They can also transmit client-directed forms such as litigation plans or explanations for out-of-budget billing. Legal eXchange accepts any type of file format, including Microsoft(R) Word, Excel, PDF or scanned images.

--Threaded discussions: Users can initiate discussions while reviewing invoices, budgets or legal matters, giving law firms and corporate users the opportunity to ask questions or provide additional detail. All communications are stored within the application for easy access and review, and users can mark discussions as 'private' (only accessible to users within their organization), or 'public' (open to their law firm counterparts).

Availability

Legal eXchange v4.5 is available immediately. For more information contact Bottomline Technologies at [phone], via e-mail at [e-mail], or on the Web at: www.bottomline.com/products/legalebill.htm.

About Bottomline Technologies

Bottomline Technologies (NASDAQ: EPAY) is a leading global technology provider of Financial Resource Management (FRM) solutions. Bottomline's comprehensive set of FRM offerings enables businesses and financial institutions to more effectively manage their critical financial transactions, cash decisions and trading partner relationships, leveraging the Web. FRM applications include Electronic Payments and Cash Management, Electronic Invoice Receipt and Management, Electronic Invoice Presentment and Payment (EIPP), Electronic Banking, Information Reporting, and Document Output Management. Founded in 1989, Bottomline maintains its corporate headquarters in Portsmouth, NH and international headquarters in Reading, England. For more information, visit Bottomline on the Web at www.bottomline.com, or dial [phone] or [phone].

Bottomline Technologies and Legal eXchange are trademarks of Bottomline Technologies, Inc. which may be registered in certain jurisdictions. All other brand/product names are trademarks of their respective holders.

Cautionary Language

This press release may contain forward-looking statements that involve risks and uncertainties, including statements regarding expected benefits of use of the Company's products and future growth or results. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are competition, market demand, technological change, strategic relationships, recent acquisitions, international operations and general economic conditions. For additional discussion of factors that could impact Bottomline Technologies' financial results, refer to the Company's Form 10K filed September 2003, Form 10Q filed May 2004 and any recently filed Form 8K's.