Gensym Announces Planned $3 Million Equity Investment in Company.

Business/Technology Editors

BURLINGTON, Mass.--(BUSINESS WIRE)--June 14, 2001

Gensym Corporation (Nasdaq: GNSM), a leader in adaptive software products for modeling, simulating and managing e-business infrastructure, today announced that it has signed a non-binding letter of intent with a New York-based private equity fund pursuant to which the fund will make an equity investment in the Company of at least $1.5 million.

Under the terms of the letter of intent, the total equity investment in the Company from all sources will be approximately $3 million. The planned financing is subject to the satisfactory completion of financial and legal due diligence, to the successful negotiation and execution of definitive investment agreements with any investors, and to conditions customary in transactions of this type, including approval by the Company's shareholders of a portion of the financing. Full details of the financing will be made public when the transaction agreements are finalized.

"The infusion of outside equity into the company will be a very positive event for us as we work to launch NetCure(TM), our new, out-of-the-box network management product, and fund its future development," said Patrick Courtin, chairman and CEO of Gensym. "This anticipated investment in Gensym demonstrates confidence in our product strategy and our ability to achieve the company's business objectives."

Gensym Corporation (www.gensym.com) is a leading provider of adaptive software products that model, simulate and manage e-business infrastructure. Gensym software is powered by ProTelligence(TM), the company's unique, high-performance reasoning-engine technology. Since 1986, Gensym has sold nearly 15,000 product licenses to organizations in communications, manufacturing, aerospace, transportation, government and other industries. Gensym is making e-business infrastructure work(TM).

Gensym is a registered trademark and ProTelligence and making e-business infrastructure work are trademarks of Gensym Corporation.

This news release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, failure to successfully negotiate and enter into definitive investment agreements with investors, failure to obtain shareholder approval for the portion of the financing conditioned upon such approval, the rapidly changing nature of network management technology, the introduction of new hardware or software products to the marketplace, changes in current hardware or software with which NetCure interoperates, intensity of competition from other solutions vendors, and timing and acceptance of new products, including NetCure. Although Gensym believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Gensym Corp. disclaims any intent or obligation to update any forward-looking statements. Gensym Corp. assumes no obligation to update the information contained in this news release.