Changepoint Completes New $5.5 Million Round of Equity Financing Backed by JMI Equity Fund and Updata Capital.

TORONTO--(BUSINESS WIRE)--Oct. 18, 1999--

Fourth-round funding brings new strength to Changepoint as IT

industry leaders join Board of Directors

Changepoint Corporation (www.changepoint.com), the recognized leader in professional services automation (PSA) software for IT services organizations, today announced that it has completed a fourth-round venture finance backing of $5.5 million from JMI Equity Fund and Updata Capital. Additionally, Changepoint announced that Updata Managing Directors Barry Goldsmith and David Wetmore and JMI General Partner Robert Sywolski have joined Changepoint's Board of Directors.

This latest investment comes less than two months after a third-round venture finance backing of $4.5 million was secured from Vengrowth, C.A. Delaney Investment Management and The BEST Fund. Company officials said the new $10 million cash injection will be used to further grow Changepoint sales and marketing efforts throughout North America and Europe. Other Changepoint investors include the XDL Capital Corp.

"This latest round of financing brings us to a total of $10 MM raised in the last 3 months," said Gerry Smith, President & CEO, Changepoint Corporation. "This combined with our revenue growth rate of 70% puts us in fantastic shape as the market leader. The participation and enthusiasm shown by industry leaders is a demonstration of Changepoint's leadership and will be a huge asset in moving the business forward."

"Changepoint's in market experience and existing customer base made our investment decision an easy one," said Barry Goldsmith, Managing Director, Updata Captial. "Changepoint is clearly the market leader. Having run an IT consulting business for years, I understand the extreme need for solutions such as Changepoint."

"As past CEO of Cap Gemini USA, I keenly understand the need for integrated systems to manage the business of IT consulting services companies," said Robert Sywolski, General Partner, JMI Equity Fund. "The rapid growth in demand for IT Services has created huge interest in PSA solutions and Changepoint is uniquely positioned to lead the market."

Barry Goldsmith, Managing Director, Updata Capital

Goldsmith previously founded CGA Computer, Inc. in 1968. Under his guidance, CGA became one of the top providers of information technology consulting services and software products to Fortune 500 companies. A public company since 1969, CGA was taken private in 1984 when Barry executed one of the first leveraged buyouts of a software company. When CGA was sold in 1986, the firm had grown to employ approximately 1,200 people and had annual revenues in excess of $90 million. After selling CGA, Barry co-founded Updata Capital and two software companies, Updata Software and SableSoft, which he has since sold. Updata Software became the leading tools provider to the DB2 market. SableSoft, a DB2 tools company, also became a leader in its niche.

David Wetmore, Managing Director, Updata Capital

Prior to joining Updata Capital in 1995, David Wetmore was a Board Member and the Chief Operating Officer of Legent Corporation, a $500 million provider of systems software and services. David joined Legent in 1992, in conjunction with their merger with Goal Systems International, Inc., a systems software company. From 1988 to 1992, David held the position of President, Chief Operating Officer and Member of the Board for Goal Systems. In 1989, he added the duties of Chief Executive Officer, and in 1991, was elected Chairman of the Board. When David joined Goal Systems, revenues were $40 million. Through internal growth and acquisition, he grew Goal to $160 million in four years.

Robert Sywolski, General Partner, JMI Equity Fund

Mr. Sywolski joined JMI in 1998. He is an experienced and highly successful executive in the software and information technology industry and brings more than twenty-five years of operation experience to JMI. For twelve years Mr. Sywolski was the Chairman and CEO of Cap Gemini, a systems integration, management consulting and information technology services company, which he grew to $250 million. During this period he had direct line responsibility for the North American operations and was one of a five-person executive committee providing leadership for worldwide operations for the $2.5 billion parent, Cap Gemini Sogeti. Prior to Cap Gemini, Mr. Sywolski was President and COO of a publicly held software and IT services company, which he grew from $25 million to $85 million before selling it.

Changepoint's Professional Services Automation Solution

Changepoint's Professional Services Automation software enables IT services organizations to reshape the way they think about and deliver services internally. Changepoint integrates and automates key business processes such as client relationship management, work request management, engagement and project management, time and expense tracking, and cross charging, and eliminates the need for the myriad of stand-alone and non-integrated solutions typically used by IT departments, IT consulting companies, software development companies, and services divisions of high tech product vendors. Recently released in version 5.2, Changepoint will be offering customers embedded online analytical processing (OLAP) business intelligence technology, enhanced pipeline and opportunity management features, marketing campaign management, additional Help Desk features, asset tracking, and enhanced product management capabilities.

About Changepoint Corporation

Founded in 1992, Changepoint Corporation is spearheading the high growth market for managing the complete business of IT service delivery. Providing customized business management software for IT services organizations, IT departments, software companies, and high-tech product vendors, Changepoint utilizes the latest in Web technology and unparalleled innovation in architecture to provide the most flexible Professional Services Automation solution on the market. Changepoint's comprehensive approach to automating IT service delivery enables organizations to build closer and more profitable relationships with clients by integrating the critical processes of knowledge management, marketing, sales, service delivery, billing and support. Currently working with a roster of North American clients, more information about Changepoint can be found at www.changepoint.com.

NOTE TO MEDIA AND ANALYSTS: All Changepoint news releases are available on the Internet, via the Changepoint Corporation Web site at http://www.changepoint.com. Screenshots and an on-line ScreenCam movie of Changepoint are also available on Changepoint's Web site. Additional information on Changepoint can be accessed on-line, and by sending email to [e-mail] or calling 1-905-886-7000.