Business Engine Surges on Strong Customer and License Growth.

40% License Revenue Growth, Acquisition, and Partnership Fuel Additional Funding

SAN FRANCISCO -- Business Engine, a leader in portfolio management software solutions for IT and R&D organizations, today announced 40% license revenue billing growth vs. prior year. The company attributes this achievement to growing adoption of new products for portfolio optimization, application portfolio management, business intelligence and graphical process management along with significant enhancements to the company's core BEN and MPM product lines.

Business Engine also announced that it has secured a Series B round of funding led by Oak Investment Partners, Morgan Stanley Venture Partners, and Technology Crossover Ventures. These funds are earmarked for continued product, sales, and customer expansion activities.

"2006 has been an outstanding year for Business Engine thus far. Our financial results are a direct reflection of the growing demand for our industry leading portfolio management solutions," said Mark Strauch, Business Engine's president and CEO. "We continue to be committed to enhancing our best in class software and services offerings and delivering solutions that drive transparency, decisions and performance for our customers."

In the third quarter, Business Engine added or expanded customer relationships with Merrill Lynch, SGT, Inc., Com Dev Ltd, L3 Communication, BEI Sensors & Systems Company, Oceaneering International, Siemens Building Technologies, Essex Corporation, American Science & Engineering, Argo-Tech Corporation, SRA International, Ericsson Incorporated, ATK Missile Systems, and the Federal Aviation Administration.

Testimonials to an already stellar year for the company include:

* In October, sealed a strategic partnership with UGS, dramatically expanding Business Engine's exposure and reach to manufacturing firms worldwide. The partnership covers the Business Engine Network (BEN) and UGS Corp.'s Teamcenter[R], the world's most widely used product lifecycle management (PLM) product suite. UGS is a leading global provider of PLM software and services with nearly 4 million licensed seats and 46,000 customers worldwide.

* In July, Business Engine acquired Xylogy Research, a privately-held provider of graphical process management technology. Xylogy's flexible, easy-to-use process modelling has been integrated into the Business Engine Network and goes well beyond the traditional workflow capabilities other vendors provide.

* In June, the company released the Business Engine Network[TM] (BEN[TM]) 5.5. The release provided the industry's first integrated solution for Project Portfolio Management (PPM) and Application Portfolio Management (APM) designed to deliver application total cost of ownership.

* In March, independent analyst firm Forrester Research named Business Engine a leader in the March 2006 Forrester Wave[TM] report entitled "Project Portfolio Management, Q1 2006." Forrester's objective market evaluation defines Leaders as having both a strong current solution and product strategy and a distinguished market presence.

About Business Engine

Business Engine is a market leader in portfolio management software solutions for IT and R&D organizations. Our solutions provide visibility and control across the entire portfolio and specialize in providing financial transparency into spend and performance. IT organizations are therefore able to achieve alignment with their internal business customers by proving value for money. R&D organizations are able to optimize the product portfolio by balancing risk and reward to ensure products get to market on time and on budget. Business Engine serves more than 80,000 end users at over 500 organizations, including Advanced Medical Optics, Deutsche Bank, Merrill Lynch and Northrop Grumman.

Visit www.BusinessEngine.com for more information.