Capitol Advantage Sells Chariteam Service to Kintera.

SAN DIEGO -- Kintera(R) Inc. (Nasdaq:KNTA), a leading provider of "software as a service" to nonprofit organizations, and Capitol Advantage(R), a pioneer in online advocacy, election and voter registration solutions, announced an agreement in which Capitol Advantage sold its Chariteam service to Kintera in January 2004.

The Chariteam service is designed to allow participants to build a personal webpage, send email invitations, draw visitors to the page and accept secure online donations. This agreement between Kintera and Capitol Advantage transfers to Kintera ownership of all Chariteam software and contracts with current Chariteam customers. Under the agreement, Kintera also agreed to waive any applicable royalty fees for prior use of its intellectual property regarding fundraising campaigns. Kintera paid no other consideration.

"We decided to focus Capital Advantage more on core competencies surrounding our data services and, as such, decided it was time to sell Chariteam," said Bob Hansan, president of Capitol Advantage. "We chose Kintera, with its reliable technology and service, to take the best care of our nonprofit customers. We recognize the tremendous value that Kintera has brought to the nonprofit sector in terms of leadership and product innovation."

"Kintera is pleased that our innovations are recognized and we were able to work out this amicable agreement with Capitol Advantage," added Harry E. Gruber, M.D., co-founder and CEO of Kintera. "We look forward to working with Capitol Advantage on future projects."

About Capitol Advantage

Founded in 1986, Capitol Advantage provides grassroots advocacy products and services to more than 1,500 organizations, including some of the nation's largest and most respected portals and media companies, as well as trade associations, nonprofit organizations, corporations, educational institutions and other organizations. Capitol Advantage's Capwiz(TM) is the leading online grassroots product. For more information or a product demonstration, contact Capitol Advantage at 703-289-4670 or 800-659-8708, or visit their website at www.capitoladvantage.com.

About Kintera Inc.

Software provider Kintera(R) Inc. (Nasdaq:KNTA) delivers The Giving Experience(TM) by providing giving convenience to donors and feedback about the financial and social impact of their gifts, creating a sense of belonging and appreciation. Kintera services more than 10,000 accounts and 2,200 contracts in the nonprofit, government and corporate sectors. The company's "software as a service" innovations include its Friends Asking Friends(R) solicitation program and Kintera Sphere(TM), an enterprise-grade software system that provides customer relationship management (CRM), a web content management system (CMS), eMarketing and directed giving applications. For more information, visit Kintera at www.kintera.com.

Kintera, Kintera Sphere, Friends Asking Friends and The Giving Experience are either registered trademarks or trademarks of Kintera, Inc. in the U.S. and/or other countries.

Forward-Looking Statements 

In addition to historical information, this press release contains forward-looking statements (including, without limitation, express or implied statements regarding the anticipated benefits to be realized from the Chariteam transaction) that involve risks and uncertainties. These forward-looking statements represent our estimates and assumptions only as of the date hereof. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, without limitation: our limited operating history; our history of losses; our dependence on increased acceptance by nonprofit organizations of online fundraising; lengthy sales cycles for major customers; our need to manage growth; risks associated with accounting for and processing large amounts of donations; the rapidly changing technologies and market demands; and other risks identified in our filings with the Securities and Exchange Commission. Given these uncertainties, you should not place undue reliance on these forward-looking statements.