FrontRange Solutions Reports 103% Overall Earnings Increase.

DUBLIN, Calif. -- Announces 6th Consecutive Quarter of Sequential Revenue and Profit Growth for Q4 FY 2005; License Revenue Grows 22% Over Prior Year and Profit Increases 30% Over Prior Year

FrontRange Solutions, a global leader in service management, CRM, and voice application solutions for the growing and distributed enterprise markets, reported an increase in revenues and profits for the quarter ended April 30, 2005. Total revenue for the quarter increased to $21.6 million, an increase of over 14% from the $18.9 million for the three months ended March 31, 2004, including an increase in license revenue of more than 22% over the same period of the prior year. In addition to an increase in revenue, FrontRange also reported an operating profit of $2.3 million, an increase of 30% over the three months ended March 31, 2004.

"Our Q4 results put an exclamation mark on a strong FY05 performance. FrontRange has now produced six straight quarters of growth in licenses and total revenue, continuing our commitment to building a company that delivers steady and sustained growth," said FrontRange CEO Michael McCloskey. "Particularly encouraging was the 22% overall growth in license revenue in a global environment where few software companies in our space are managing to grow at all.

"The traction being gained by the first wave of new product releases indicates that our earlier assessment of the market and the kind of products that customers would be looking for was sound. We expect the additional investment in research and development to provide healthy returns over the next few years," said McCloskey. "Related to our new ITSM product, we signed 33 customers during Q4. In addition, FrontRange concluded 13 customer transactions in excess of $100,000."

FrontRange aims to become the leading provider of service management, CRM and communication management software solutions for the growing and distributed enterprise markets. McCloskey says that to achieve this goal, the company is executing an aggressive product strategy of building families of solutions for unique market segments within these markets. The company has focused product development on high-growth markets and aims to leverage opportunities within its large installed base by selling applications with adjacent functionality on a single platform.

FrontRange continues to release significant updates to its GoldMine(R), HEAT(R) and FrontRange Contact Center products. Additionally, its major new product, IT Service Management, was released at the end of January 2005.

The improvement in license revenue came on the back of continued solid sales of FrontRange GoldMine and HEAT products combined with some significant wins in its new IT Service Management and IP Contact Center products. "Our business model performance continues to be strong, as evidenced by a significant interest in our new IT Service Management offering in this quarter," said Kevin J. Smith, FrontRange vice president of product. "We're looking forward to building on that success with our new hosted version of ITSM in the very near future."

"We've had some significant early wins with the IT Service Management product and by the end of April we had booked deals for 38 different customers," said McCloskey. "There are some key releases scheduled for this coming fiscal year, including GoldMine Enterprise Edition and several Infrastructure Management modules, including Inventory, Asset and Patch Management."

McCloskey says FrontRange continues to view its outlook with confidence. The increased investment in research and development and ramp-up in sales and marketing initiatives are expected to fuel continued growth in license revenue. He expects FrontRange will be able to continue to build on the revenue momentum generated over the previous 18 months.

Highlights since our last Financial Release:

--FrontRange Continues Strong License Revenue Growth: License revenue grew sequentially for the sixth consecutive quarter, representing a 22% increase over the prior year.

--Customer Momentum Continues: FrontRange added 346 new customers during the period, including 235 new GoldMine Corporate Edition customers, 77 new customers for its HEAT product line, as well as 4 new IP Contact Center customers and 33 new customers for its IT Service Management (ITSM) product. This includes 197 new customers in North America, 104 in EMEA, and 45 in Asia Pacific.

--Customer Wins for the Period Include:

--North America -- ACNielsen, New York City Department of Education, Avanade, CSG Systems, Sonnenschein, CompuCredit, Sitel Corporation, NRT, Inc., Yazaki North America, Inc., M&T Mortgage Corporation, Washington State Liquor Control Board., Dionex Corporation, MedImmune, Inc., First National Technology Solutions, Working Rx, Hoskin Scientific Ltd., Prometheus Laboratories, Lifetouch

--Asia Pacific -- The Warehouse Group Limited, Queensland Rail, Public Trustee, APN Newspaper, Ctrip.com International Limited, New Zealand Ministry of Foreign Affairs & Trade, Australian Nuclear Science & Technology, PT. Asuransi Adira Dinamika

--South Africa -- Uganda Telecom, Department of Land Affairs, Afrox Healthcare, Espial Consulting, Limpopo Legislature, Department of Communication, Durbam Institute of Technology, TrenStar, Rhino Surveillance Solutions, Sabile

--EMEA -- Open Text Corporation, The Co-operative Group, 2 Build 4, UCLES, Bank of England, Liberata, StorageTek, KVB, Renesance Capital, Peugot Greece, Marinador

--Continued Expansion of International Operations: FrontRange continues to make significant investment in its geographic expansion plans, including its Latin American, Asian and European operations. This includes substantial new investment in personnel, product localizations and marketing initiatives. Several new languages were added during the quarter, including Spanish, Italian, Russian, German and Polish.

--Expanded Leadership Team: The addition of Paul Stedman as Vice President, Professional Services for FrontRange, demonstrates the company's commitment to further strengthening its critical industry expertise. With over 21 years of consulting, strategy, sales, software development and leadership experience, Stedman's focus is solution delivery success (On-Time, On-Budget, On-Scope).

--FrontRange Channel Momentum Continues: FrontRange executives managing the World Wide Partner Program said that during Fiscal 2005, the World Wide Partner Program added more than 50 new resellers while increasing licensing revenues from existing partners about 15 percent.

--FrontRange Launches New ITIL-Compatible ITSM 5.0: Access of the enhanced modular FrontRange IT Service Management (ITSM) solution was extended with a new version and languages including English, German, Russian and Polish with French and Chinese to be made available soon. ITSM 5.0.2 is designed to improve the performance of IT and support organizations for new customers as well as offer additional modules to increase functionality for HEAT(R) customers. Updates to ITSM 5.0.2 include:

--Dashboard enhancements offering real-time access to data to meet each user's specific needs.

--Licensing Module enhancements allowing for robust monitoring and license management.

--FrontRange honored with industry awards: FrontRange Solutions products HEAT(R) and GoldMine(R) were selected by ISM Inc., Customer Relationship Management (CRM) strategic advisors, as recipients of their Top 15 CRM (Small & Medium Business) Software Award for 2005. Also in this quarter, CMP publication VARBusiness Magazine named GoldMine 6.7 a "Product of the Year" in its Mid-Market 100 Awards program. GoldMine also received the CRM Excellence Award from Technology Marketing Corporation's (TMC(R)) Customer Interaction Solutions(R) magazine.

FrontRange Solutions
Combined Operating Group P&L's(1)
$'s in Thousands
                    --------------------------------------------------
                     Feb 05 - Apr 05   Jan 04 - Mar 04      PY Var
                    --------------------------------------------------
                        $        %         $       %       $      %
                    --------------------------------------------------
License Revenue        9,225     42.8%    7,554   39.9%  1,671   22.1%
Services Revenue       2,343     10.9%    1,979   10.5%    364   18.4%
Maintenance Revenue   10,001     46.4%    9,382   49.6%    619    6.6%
                    --------------------------------------------------
     Total Revenue    21,569    100.0%   18,915  100.0%  2,654   14.0%
                    --------------------------------------------------

Product Costs          1,010     10.9%    1,015   13.4%      5    0.5%
Services Costs         1,836     78.4%    1,451   73.3%   (385) -26.5%
Maintenance Costs      1,525     15.2%    1,834   19.5%    309   16.8%
                    --------------------------------------------------
     Total Cost of
      Sales            4,371     20.3%    4,300   22.7%    (71)  -1.6%
                    --------------------------------------------------
          % Gross
           margin       79.7%              77.3%

Sales                  6,793     31.5%    4,965   26.2% (1,828) -36.8%
Marketing              2,972     13.8%    3,011   15.9%     39    1.3%
R&D                    3,358     15.6%    2,817   14.9%   (541) -19.2%
G&A                    1,739      8.1%    2,019   10.7%    280   13.9%
                    --------------------------------------------------
     Total Operating
      Costs           14,862     68.9%   12,811   67.7% (2,051) -16.0%
                    --------------------------------------------------

Operating Profit       2,336     10.8%    1,803    9.5%    533   29.5%
                    ==================================================
-------------------------------------------------------
                 Jul 03 -      Oct 03 -      Jan 04 -      Apr 04 -
                  Sep 03        Dec 03        Mar 04        Jun 04
               -------------------------------------------------------
                1Q04          2Q04          3Q04          4Q04
               -------       -------       -------       -------
               Actual        Actual        Actual        Actual
               -------       -------       -------       -------
                  $     %       $     %       $     %       $     %
               ------ ------ ------ ------ ------ ------ ------ ------
License
 Revenue        5,972  35.5%  6,963  38.1%  7,554  39.9%  8,457  42.6%
Services
 Revenue        2,178  12.9%  2,067  11.3%  1,979  10.5%  2,026  10.2%
Maintenance
 Revenue        8,672  51.6%  9,241  50.6%  9,382  49.6%  9,384  47.2%
               -------       -------       -------       -------
    Total
     Revenue   16,821 100.0% 18,271 100.0% 18,915 100.0% 19,866 100.0%
               -------       -------       -------       -------
Quarterly
 Revenue
 Growth                         8.6%          3.5%          5.0%

Product Costs   1,107  18.5%  1,239  17.8%  1,015  13.4%    862  10.2%
Services Costs  1,446  66.4%  1,433  69.3%  1,451  73.3%  1,569  77.5%
Maintenance
 Costs          1,642  18.9%  1,639  17.7%  1,834  19.5%  1,772  18.9%
               -------       -------       -------       -------
    Total Cost
     of Sales   4,196  24.9%  4,310  23.6%  4,300  22.7%  4,203  21.2%
               -------       -------       -------       -------
  % Gross
   margin        75.1%         76.4%         77.3%         78.8%

Sales           5,625  33.4%  5,276  28.9%  4,965  26.2%  6,126  30.8%
Marketing       3,207  19.1%  2,628  14.4%  3,011  15.9%  2,016  10.1%
R&D             2,511  14.9%  2,576  14.1%  2,817  14.9%  3,422  17.2%
G&A             2,079  12.4%  1,962  10.7%  2,019  10.7%  2,041  10.3%
               -------       -------       -------       -------
    Total
     Operating
     Costs     13,422  79.8% 12,441  68.1% 12,811  67.7% 13,605  68.5%
               -------       -------       -------       -------

Operating
 Profit          (796) -4.7%  1,520   8.3%  1,803   9.5%  2,058  10.4%
               =======================================================

               -----------------------------------------
                 Aug 04 -      Nov 04 -      Feb 05 -
                  Oct 04        Jan 05        Apr 05
               -----------------------------------------
                2Q05          3Q05          4Q05
               -------       -------       -------
               Actual        Actual        Actual
               -------       -------       -------
                  $     %       $     %       $     %
               ------ ------ ------ ------ ------ ------
License
 Revenue        8,680  43.0%  9,005  43.5%  9,225  42.8%
Services
 Revenue        1,784   8.8%  1,778   8.6%  2,343  10.9%
Maintenance
 Revenue        9,699  48.1%  9,918  47.9% 10,001  46.4%
               -------       -------       -------
    Total
     Revenue   20,163 100.0% 20,701 100.0% 21,569 100.0%
               -------       -------       -------
Quarterly
 Revenue
 Growth           1.5%          2.7%          4.2%

Product Costs   1,043  12.0%    933  10.4%  1,010  10.9%
Services Costs  1,493  83.7%  1,506  84.7%  1,836  78.4%
Maintenance
 Costs          1,854  19.1%  1,791  18.1%  1,525  15.2%
               -------       -------       -------
    Total Cost
     of Sales   4,390  21.8%  4,230  20.4%  4,371  20.3%
               -------       -------       -------
  % Gross
   margin        78.2%         79.6%         79.7%

Sales           5,318  26.4%  5,881  28.4%  6,793  31.5%
Marketing       2,645  13.1%  2,059   9.9%  2,972  13.8%
R&D             3,430  17.0%  4,253  20.5%  3,358  15.6%
G&A             2,236  11.1%  2,041   9.9%  1,739   8.1%
               -------       -------       -------
    Total
     Operating
     Costs     13,629  67.6% 14,235  68.8% 14,862  68.9%
               -------       -------       -------

Operating
 Profit         2,144  10.6%  2,236  10.8%  2,336  10.8%
               =========================================

(1) Excludes immaterial holding company expenses and a one-time,
    non-cash lease hold improvement amortization charge of $373K in Q4
    FY05 related to calendar years 2001, 2002, 2003, 2004 and 2005.

About FrontRange Solutions

FrontRange Solutions develops award-winning software and solutions used by more than 130,000 companies and over 1.2 million users worldwide to manage a wide variety of business relationships and provide exceptional service. FrontRange product families, designed specifically for small-to-medium-enterprise (SME) and distributed enterprise organizations include: GoldMine(R) for business relationship management, team-based contact management and sales force automation solutions; IT Service Management with HEAT(R) and ITIL standards-based modules for complete service management; Communication Management including IP Contact Center for reduced telephony costs and increased agent productivity, streamlined customer service and communications; and Infrastructure Management, which provides the ability to optimize the full lifecycle of a company's assets. Customers representing 44 percent of the Fortune 100 and 76 percent of the FTSE 100, include Coca-Cola, Shell Oil, Prudential Securities, Electricite de France, Mack Trucks, Campbell Soup, Avaya, Bechtel Corp, Bank of America, and Turner News Network. For more information, call 800-776-7889 or visit www.frontrange.com.

GoldMine, HEAT and other FrontRange Solutions products, brands and trademarks are property of FrontRange Solutions USA Inc. and/or its affiliates in the United States and/or other countries. Other products, brands and trademarks are property of their respective owners/companies.