Cambridge Technology Partners Takes Equity Stake in PeopleSupport.

Business/Technology Editors

CAMBRIDGE, Mass.--(BUSINESS WIRE)--April 19, 2000

Cambridge's NEWCO Investments and Cambridge Technology Capital

Fund Combine Investment Capital in e-Customer Care Leader

Cambridge Technology Partners, Inc. (NASDAQ: CATP) (Cambridge), a global e-integration services provider, today announced it has made an equity investment in PeopleSupport(TM), Inc., the premier provider of online customer care and customer intelligence solutions.

Cambridge's participation in PeopleSupport's financing is being funded by the recently-formed NEWCO Investments unit and the Cambridge Technology Capital Fund.

"We are very pleased that PeopleSupport is our first NEWCO investment, and even more pleased that it is with the Cambridge Technology Capital Fund, " said Ralph Linsalata, executive vice president of Cambridge's NEWCO Investments. "PeopleSupport is a perfect example of the kind of company Cambridge welcomes to its alliance network. The company offers the best available online customer care and customer intelligence solutions, its management team is experienced and well-rounded, and it's poised to take advantage of a huge market opportunity in the e-customer care arena."

PeopleSupport, the leading unified Internet customer care service provider, is dedicated to delivering a superior and personalized experience for online customers and committed to delivering comprehensive and integrated solutions to power online customer care.

"Cambridge has helped us to continue to provide our clients with the highest level of customer care as we expand our operations globally," said PeopleSupport CEO Lance Rosenzweig. "We're especially pleased that Cambridge is investing in PeopleSupport because of its strong understanding of e-CRM based on its integration work in the area. This investment is a good fit for both companies."

PeopleSupport plans to work closely with Cambridge in the coming months to strengthen its forefront position in the industry and to create and foster long-term and profitable e-customer relationships.

Background on NEWCO Investments

Last December, Cambridge enhanced its e-solution business model, announcing that it would invest in New Economy companies ("NEWCOs") that are strategically aligned with Cambridge's focus on the Internet. The NEWCO investments are intended to create value for shareholders, employees, clients, and partners of Cambridge, as well as maintain Cambridge's leadership in e-solutions.

The company will target a variety of Internet investment opportunities including application service providers, new e-services companies, e-markets, .Corp, and .Com companies. All of the NEWCO investments will be in companies who are eventual candidates for public markets. In addition to traditional IPOs, Cambridge may use right offerings or directed share offerings to Cambridge shareholders to assist in portfolio companies.

Cambridge plans to incubate a number of NEWCOs in its own offices, providing them strategic guidance, administrative services, information technology, infrastructure, and other business services. The NEWCO Investments unit and Cambridge Technology Capital Fund management teams will work closely together to evaluate potential investments and provide joint funding to companies when appropriate.

Background on Cambridge Technology Capital Fund

Named by Venture Economics as top performing venture capital fund in 1999, Cambridge Technology Capital Fund I, L.P., (The Fund) is a $25 million closed-end venture capital limited partnership. Created in December 1997 with $25 million in Cambridge Technology Partners funding (adding additional funds from limited partners), the Cambridge Technology Capital Fund's IPOs in 1999 rose more than tenfold on average by year-end for investors who bought into the initial sale, according to figures released by Venture Economics.

To date, Cambridge Technology Capital Fund has invested in such companies as Active Software, AlphaBlox, Cohera, Conduit Software, DigitalThink, Eloquent, E.piphany, Interwoven, and Silknet. It took five of its companies public last year and plans another five or six initial public offerings in 2000.

About Cambridge Technology Partners

Cambridge Technology Partners provides management consulting and systems integration services to transform its clients into e-Businesses. Working in collaboration with Global 1000, high-velocity middle market companies and dot-com companies, Cambridge combines a deep understanding of New Economy issues with integrated, end-to-end services, and a proven track record of shared risk and rapid, guaranteed delivery. Cambridge generated $628.1 million in 1999, with $243.3 million from its global e-Business solutions. Cambridge has more than 4,400 employees and 55 offices worldwide. Cambridge on the Web: http://www.ctp.com.

About PeopleSupport

PeopleSupport is the leading unified Internet customer care service provider. The company's comprehensive suite of customized services includes live text chat, personalized e-mail reply, telephone services, and interactive self-help. PeopleSupport provides e-businesses with a flexible range of support options including complete outsourcing, software and infrastructure hosting, customer care consulting, and training. PeopleSupport's clients include Fortune 500 companies and leading e-commerce businesses such as MGM (NYSE:MGM), Time-Warner (NYSE:TWX), GE Card Services, Reel.com, BrandsForLess.com, Toyota Motor Sales U.S.A., CarParts.com, and Tavolo. PeopleSupport has received over $75 million of venture financing from Accel Partners, Benchmark Capital, Idealab Capital Partners, TMCT Ventures, Meritech Capital Partners, Hewlett-Packard (NYSE: HWP), Siebel Systems, Inc. (Nasdaq: SEBL), Viant Corporation (Nasdaq: VIAN), Cambridge Technology Partners (Nasdaq: CATP), Rare Medium Group (Nasdaq: RRRR), iXL Enterprises (Nasdaq: IIXL), the Extraprise Group, Texas Pacific Group, Octane Capital Management, CDB Web Tech International S.A. and Camelot Ventures LLC. For more information, visit http://www.PeopleSupport.com.