Centra Recognized by IDC as Leader in the Worldwide Conferencing Applications Software Market; Among the Leaders, Centra Ranked Highest for Ability to Gain Share.

LEXINGTON, Mass. -- Focused Business-Process Approach and Flat Fee, Volume Licensing Program Contribute to Rating

Centra Software, Inc. (NASDAQ: CTRA), a leading provider of specialized application software and services for online business collaboration, today announced it has been positioned in the Leadership quadrant of IDC's Leadership Grid. Authored by IDC analysts Robert Mahowald and Mark Levitt, the market analysis titled "Worldwide Conferencing Applications 2004-2008 Forecast and 2003 Vendor Analysis: Virtual Sales Tool or Virtual Inbox? Vendors Take Sides." The market analysis cites many factors for success that support Centra's focus on providing tailored solutions that improve the effectiveness of business processes and Centra's Enterprise Advantage Subscription, a flat fee, volume licensing program designed to meet organizations' increasing demand for online collaboration solutions.

Specific to the industry, the analysis states:

"Looking forward, success for vendors of conferencing products will depend on whether...Vendors design products that, through their interfaces, workflow, and integration with other applications, focus on solving specific business problems that form the cornerstone of business process work, such as enterprise application rollout, sales, customer relationship management (CRM), fulfillment, training, and marketing. By understanding these processes and demonstrating that conferencing can 'structure' the collaboration already occurring in these multiparty activities, vendors can win users who consider these processes essential to their success...Vendors offer corporate buyers better licensing and pricing options and incentives to standardize on fewer conferencing products in a way that both incents broader use and renders the cost of managing audio and Web conferencing fixed (or at least predictable), as opposed to variable."

Specific to Centra, the analysis states:

"By providing significant new workflow tools, such as better integration into desktop applications like Microsoft Office and IM clients, Outlook, and Notes, and by adding Knowledge Center, a searchable, reusable library of content and activities (paired with Knowledge Composer tools to restyle content to create new presentations and training materials), Centra will be able to reach more deeply into more groups of users within its loyal client base and well beyond the elearning role that has been its mainstay for several years.... Discussions with Centra customers have underscored the fact that the company has been able to maintain high overall quality of service and scalability while adding more granular user management and reporting, two user requirements that gained new prominence in IDC's latest user survey. These gains speak directly to customer requirements and differentiate Centra by allowing it to serve prospects with a variety of different requirements."

"This IDC study is further validation that our plan to transition to a leading provider of value-added specialized applications to Global 5000 enterprises mirrors the needs of the marketplace," said Paul R. Gudonis, president and CEO of Centra. "We consider IDC's placement of Centra in the Leadership quadrant recognition of our continued leadership in delivering innovative solutions and offering pricing options that drive our ability to gain share."

Based on best practices gained while working with more than 1,200 leading organizations worldwide, Centra's four solution areas - Centra for Enterprise Application Rollouts, Centra for Sales Effectiveness, Centra for Collaborative Learning, and Centra for Customer Acquisition - automate and facilitate the planning, execution and evaluation phases of mission-critical online business initiatives. With each of Centra's four solutions, the Company has delivered all of the necessary components - a proven collaboration platform, customized workflow tools, an integrated learning content management system, third-party integration capabilities and professional services - for completing the steps necessary for successful online collaboration projects. All solutions include Centra's hallmark Voice-over-IP (VoIP) technology to realize significant savings over traditional teleconferencing services. In addition, Centra's solutions can be installed as a behind-the-firewall packaged application or accessed through Centra's secure ASP network.

About Centra

Online business collaboration solutions from Centra create workforce efficiencies and enable organizations to share and exchange business-critical information with geographically distributed customers, partners, prospects and employees. Centra's solutions integrate real-time collaboration and departmental business processes with specialized applications that increase sales effectiveness, improve collaborative learning and accelerate enterprise application rollouts and customer acquisition initiatives. Currently available in 12 languages, Centra solutions can be deployed as on-site software or through its ASP service and are supported by an active ecosystem of value-added partners, including Siebel, PeopleSoft, SAP and Deloitte Consulting. Organizations across every major industry and market sector choose Centra, including Wyndham International, Weyerhaeuser, Underwriters Laboratories, BMW and Stanford University. Headquartered in Lexington, Massachusetts, Centra serves a worldwide customer base throughout the Americas, Europe, Asia and Australia. For more information, visit http://www.centra.com.

Centra is a registered trademark of Centra Software, Inc. All other trademarks referenced herein are the property of their respective owners.