Daleen Announces Fourth Quarter Revenue Expectations; Initiates Actions Expected to Accelerate Profitability.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 4, 2001

Daleen Technologies Inc. (Nasdaq:DALN), a leading provider of ebusiness infrastructure software solutions for service providers, today announced that it expects revenues for the fourth quarter of 2000 to be between $9 million and $10 million, with estimated losses per share, on an adjusted basis which excludes acquisition-related and non-cash charges, of between $.54 and $.64 per share.

The revenue shortfall compared to the company's previous expectations during the fourth quarter was primarily driven by a slowdown in capital spending in the telecom sector resulting in delays of key contracts into 2001, customers and prospects experiencing difficulties in securing additional funding, and postponements in project implementations.

The company ended the quarter with positive momentum in its business. In light of the continued current market conditions in its traditional telecom business, the company executed a strategic shift in its business plan and model to focus on major new market segments and relationships. The company's core value proposition has been accepted in these new markets as shown by the award of three major tier-one contracts, including one in Europe, as well as several customer wins and implementations outside of the telecom sector. The company expects to continue this positive momentum into 2001.

The company is committed to achieving profitability as quickly as possible and is taking aggressive actions to streamline operations and reduce expenses, including organizational restructuring and elimination of 27 percent of its workforce representing approximately 135 jobs. Organizational restructuring will result in redeployment of several employees to customer-facing positions. Staff reductions in all areas are not expected to have any negative impact on current product development plans or in the sales and marketing areas. All restructuring and job cuts will be implemented immediately.

"While we were disappointed that the swift industry-wide decline in telecom spending affected our fourth quarter performance, we remain pleased with the positive momentum we are seeing in our business and look forward to a strong 2001," said James Daleen, chairman and chief executive officer. "At the same time, we are taking the actions required to reduce our expense structure and staffing levels to adjust to the changing market conditions and business models. I remain very confident in the long-term strength of our business and in our ability to continue to drive product innovation as one of the clear market leaders."

The company will hold a conference call on Jan. 31 at 8:00 a.m. EST to discuss quarter and year-end results in full. On the call, representatives of the company will be discussing the company's historical business, trends and business outlook. Further guidance on 2001 performance expectations will be provided at that time. Prior to the call, the company will provide information on how interested parties may access the call.

About Daleen

Founded in 1989, Daleen Technologies, Inc. (Nasdaq:DALN) is a leading provider of solutions that bond businesses and customers in the digital economy. Daleen's software solutions provide mission critical customer and partner management support for businesses that offer voice, data, web and applications hosting services over packet and circuit-switched networks. Daleen's eBusiness software products include eCare, for Internet self-care and partner management, BillPlex(R), for customer management and billing, and SwitchFlow(TM), for service activation. The Company distributes its eBusiness software products throughout the world via Business Alliance Partners and other leading certified systems integrators including BusinessEdge, Cap Gemini Ernst & Young, DMR, Danet, Prolan, Telcordia and Unisys. Daleen is an active participant and provides leadership in industry forums such as the Global Billing Association, Ordering and Billing Forum (OBF), Internet Protocol Data Record (IPDR) working group, TeleManagement Forum and the Application Service Provider (ASP) Industry Consortium. In addition to its Boca Raton, Florida headquarters, Daleen has regional offices located throughout the United States, Canada and Europe. For additional information regarding Daleen's products and services, visit the Company web site at www.daleen.com.

Certain matters discussed in this press release may be considered "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include variance of quarterly operating results; not yet achieving profitability; competition; need to expand sales and distribution capabilities; lengthy sales cycles and timing of contract awards; ability to attract and retain qualified employees; our continued use of strategic relationships to implement and sell our products; managing growth; planned international operations; meeting customer expectations; general market conditions, and quality of software delivered. These and additional important factors to be considered are set forth in the Company's Annual Report on Form 10-K for 1999 and in the Company's Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.