Indicative Software Nets $6 Million in Venture Capital.

Business Editors/High-Tech Writers

FORT COLLINS, Colo.--(BUSINESS WIRE)--May 24, 2004

Three Firms from Colorado and California Invest in Innovative

Enterprise Management Software Company with

a Compelling Approach to Managing Service Value Chains

Indicative Software, Inc. announced today it received a $6.1 million round of combined financing from Sutter Hill Ventures, Sequel Venture Partners and Vista Ventures.

The round of financing paves the way for Indicative to launch an aggressive go-to-market strategy with its groundbreaking approach to managing IT-enabled processes for the creation of new services and revenue-generating lines of business, also known as service value chain management.

The financing combines Colorado-based venture funds from Sequel and Vista with Palo Alto, Calif.-based Sutter Hill, which has funded many of Silicon Valley's successful startups.

"With this funding we're ready to take this company to the next level and beyond," said Tilman Schad, CEO of Indicative. "Our investors understand our vision and market opportunity to build Indicative into a solid performing company. We're ready to establish Indicative as a clear leader in a loosely defined but crowded market for enterprise management software, and with a focus on end-to-end service value chain management."

"Indicative is providing enterprise management capabilities that clearly address the needs of corporations today," said Ron Bernal, Sutter Hill venture partner and a director on Indicative's board. "Its products enable IT to proactively manage their resources in the context of both business and service performance objectives. Its customers are already reaping the bottom-line benefits of this approach."

In addition to Schad and Bernal, the company's board of directors includes Indicative president John Smith, Tim Connor of Sequel Partners, and David Dwyer of Vista Ventures.

Indicative's focus is on meeting the current needs of corporate IT managers to simplify management of ever-increasingly complex enterprise environments and optimize IT-enabled processes. It does so while providing visibility required for identifying and creating new lines of business well into the future. Service value chains include not only the IT environment within the enterprise but the environments engaged with the customer (the ATM machine, or a Blackberry-type handheld) and third-party suppliers (e.g., ISPs/ASPs, credit verification systems). Service value chain management is a level of capability that measures performance across the entire chain, inside and outside the firewall.

Sequel Partners specializes in early-stage funding for technology businesses, and manages more than $410 million in capital, and invests in information technology, telecommunications and life sciences, primarily in the Rocky Mountain region. Sutter Hill Ventures finances start-up and early-stage technology companies pioneering products or services in growth markets, especially those in information technology or health care. Vista Ventures, which has $75 million in funds under management, focuses on early and growth stage companies that have sustainable technology advantages of interest to large markets.

About Indicative

Indicative Software Inc. is a privately held enterprise management software company. Indicative addresses the needs of today's corporate IT managers with a software suite that simplifies management of an increasingly complex IT environment. Its products provide unprecedented context, visualization and performance monitoring of the entire service value chain. Indicative rapidly optimizes IT-enabled processes, and delivers a practical roadmap for corporations to develop new lines of business. The company has a growing stable of health services, banking, government, and media customers in the U.S. and abroad. The company's investors include Sequel Venture Partners, Sutter Hill Ventures and Vista Ventures, and it is based in Fort Collins, Colorado. For more information, visit www.indicative.com.