Bottomline Technologies Announces Support for Enhanced Legal Budgeting and Billing Code Set Within Legal eXchange(TM).

Joint Effort Among Leading Insurance Carriers, Law Firms and Solution Providers Helps to Increase Visibility into Legal Spend Through Advanced UTBMS Code Set

PORTSMOUTH, N.H. -- Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment and invoice automation solutions, today announced support for updates to the industry-standard UTBMS legal budgeting and billing code set within Legal eXchange. Through support for this new code set, users can exercise greater control over legal spend by gathering and reporting on claims litigation costs with greater specificity and granularity.

Bottomline's legal spend management solution, Legal eXchange, helps leading corporations efficiently manage legal spend through electronic invoice management. By accessing and analyzing data electronically, users can work collaboratively with outside counsel to align and manage budgets and case handling strategies, while simultaneously establishing benchmarks against which future performance can be measured.

First introduced in 1995, the Uniform Task-based Management System (UTBMS) code set is widely used among insurance carriers to capture meaningful litigation expense information. Limitations within the original code set, however, have led to inaccurate coding and overuse of default codes, preventing carriers from accurately analyzing important components of litigation costs. The effort to revise the UTBMS code set, which was co-facilitated by Bottomline, attracted the participation of other solution providers, law firms and leading insurance carriers, including Liberty Mutual, AIG, Zurich, The Hartford and Farmers Insurance.

"The UTBMS code set is an invaluable tool for insurance carriers, since it offers a standardized framework for attaining a better understanding of all their legal expenses," said Robert Mullen, Director of Legal Solutions for Bottomline Technologies. "The initiative to revise the code set is the result of a collaborative effort among individuals who believe that by enhancing the existing UTBMS code set and promoting its use to law firms, we can create a system better prepared to respond to the litigation management needs of the insurance industry."

For a copy of the revisions to the UTBMS code set, please visit the Defense Research Institute's Web site: http://www.dri.org/DRI/open/utbms.aspx.

About Bottomline Technologies

Bottomline Technologies (NASDAQ: EPAY) provides collaborative payment and invoice automation solutions to corporations, financial institutions and banks around the world. The company's solutions are used to streamline, automate and manage processes and transactions involving global payments, invoice approval, purchase-to-pay, collections, cash management and document process automation. Organizations trust these solutions to meet their needs for cost reduction, competitive differentiation and optimization of working capital. Headquartered in the United States, Bottomline also maintains offices in Europe and Asia-Pacific. For more information, visit www.bottomline.com.

Bottomline Technologies, Legal eXchange and the BT logo 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" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors. Among the important factors that could cause actual results to differ materially from those indicated by such 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 most recent Form 10-K filed September 2007, Form 10-Q Filed November 2007 and any recently filed Form 8K's. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.