Daleen Technologies Pre-Announces Record Third Quarter Results; Expected Revenues of at Least $13 Million Exceed Analysts' Estimates.

Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 10, 2000

Daleen Technologies, Inc. (Nasdaq:DALN), a leading provider of eBusiness infrastructure software solutions for service providers, today announced that it expects record revenues for the third quarter ended September 30, 2000, and confirmed analysts' expectations for increased revenues and reduced loss per share for the quarter.

Based on a preliminary review of third quarter results, Daleen's revenues are expected to be at least $13.0 million, with estimated losses per share, on an adjusted basis which excludes acquisition-related and non-cash charges, of less than $.30 per share. These results exceed current analysts' consensus estimates, which range from $12.6 million to $12.8 million in revenues with consensus estimated loss per share of $.31.

In addition, Daleen has continued to diversify its customer base and capitalize on the rapid growth in next-generation service provider market by adding significant new customers from the Broadband, ASP, ISP and other new markets.

"Daleen continues to successfully execute its business plan for revenue growth and improved operations. Our anticipated third quarter revenues, as well as our revenues for the first nine months of 2000, reflect continued acceptance of our industry leading BillPlex(R) Plus, eCare and SwitchFlow(TM) software solutions within the communications industry," said James Daleen, chairman and chief executive officer of Daleen Technologies. "Our strategy of focusing on providing best of breed solutions for service providers concentrated in a wide variety of communications sectors contributed to our continued strong growth during the quarter. We are pleased to continue to diversify our customer base with new customers servicing the Broadband, ASP, and ISP markets. As a result of recent publicity and concerns about the communications industry in general, we felt it was important to our shareholders to step outside of our normal practices and pre-announce our expected quarterly results to confirm our continued confidence in our operating results."

Daleen's third quarter earnings release is scheduled for October 24, 2000.

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 Daleen Technologies, Inc. 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; 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.

About Daleen

Founded in 1989, Daleen (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, Danet, Prolan 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.