Daleen Technologies Completes Private Placement and Adds New Board Members.

BOCA RATON, Fla.--(BUSINESS WIRE)--Sept. 18, 1998--Daleen Technologies, Inc., a rapidly growing software development company specializing in billing and customer care solutions, announced that it has completed a private placement of convertible preferred stock.

Total proceeds of the private placement were $15 million, designated for expanding the company's sales and marketing, product development and implementation services staff.

Investors in this series of financing included BCE Capital, JK&B Capital, ABN AMRO Private Equity, ABS Ventures, St. Paul Venture Capital, as well as HarbourVest Venture Partners, one of Daleen's original investors. Although each investor has a diverse portfolio, they share a common interest in backing high-tech software or communications companies such as Daleen. ABS Ventures, the venture capital arm of BT Alex. Brown, invests in early-stage companies in the area of data communications, software and healthcare products and services. JK&B Capital funds software, IT and telecommunications companies. And St. Paul Venture Capital, a large early-stage private equity firm, finances organizations in the information technology, health care, consumer products, specialty retailing and services/manufacturing sectors.

As a result of the investment, both Daniel J. Foreman, Managing Director of ABN AMRO Private Equity (AAPE), and Paul G. Cataford, Vice President of BCE Capital, were elected to the Board of Directors of Daleen. In addition, David B. Corey, President and Chief Operating Officer of the Company was elected, bringing the total Board membership to eight.

AAPE, the North American private equity group of ABN AMRO N.V. (one of the world's largest banks), focuses on backing business services, healthcare services, telecommunications and IT companies, and assists them in positioning their organizations for significant growth and profitability. Commenting about the recent investment and appointment to the Board, Foreman stated: "After searching for opportunities in the Billing and Customer Care (BACC) industry, we found Daleen to have the latest technology coupled with the best management team. These key elements are critical for ensuring long term success. I welcome the opportunity to be associated with this first-rate team."

According to Cataford, BCE Capital recognized the high growth potential of the convergent billing trend in the BACC market and was seeking investment in a company with leapfrog potential. "Daleen's solid management team and highly advanced products represent an ideal combination to provide the innovative solutions customers require," he said. BCE Capital is a subsidiary of BCE Inc., a diversified communications company which owns a variety of companies in Canada and abroad, including 100 percent of Bell Canada and 41 percent of Nortel Networks.

James Daleen, Chairman and CEO commented on the recent appointments: "We are pleased to elect such high caliber industry professionals to our board. Mr. Foreman, who was instrumental in the growth of Ameritech's telecommunication business, brings with him more than 10 years of industry experience. Mr. Cataford has an extensive background in early stage development of high-tech and communications companies and has participated on a number of company boards. Since he joined the company in February 1998, David Corey has demonstrated an entrepreneurial spirit and solid leadership skills. Adding him to the board enhances our ability to strategically position Daleen as the industry choice for Billing and Customer Care solutions."

Founded in 1989, Daleen Technologies, develops software products and services for the rapidly growing Billing and Customer Care industry. In 1997, the company introduced BillPlex(tm), an innovative convergent billing and customer care solution for communications providers throughout the world. Daleen distributes and markets BillPlex through its Business Alliance Partners and other systems integrators including Oracle, Unisys, Black & Veatch, Bull Integris, Cap Gemini, Danet, Kanbay, IBM, Compaq, and Logica. In addition to its Boca Raton, FL headquarters, the company has offices in Boston, Tampa and Charlotte with plans for a European location in the near future. For additional information regarding Daleen's products and services, visit the World Wide Web site at www.daleen.com.