Lombardi Software Reports Record Revenue, Strengthens Product Offering, Expands International Presence; BPM Leadership Momentum Increases As Revenue, Customer Base Expand.

AUSTIN, Texas -- Lombardi Software(R), the leader in Business Process Management (BPM) software for Global 2000 companies, announced today that the company achieved record sales revenue in 2005, growing 136% over 2004. This growth was spurred by the launch of a European subsidiary, Lombardi Software Ltd., and by more than doubling the number of new BPM customers across a variety of industries such as telecommunications, transportation, manufacturing, energy, media, entertainment, retail, banking and insurance industries.

The company formed several key strategic alliances and shipped TeamWorks 5.5, the most advanced BPM platform available on the market. In addition to innovative new product development, the company also introduced new BPM modules and services to complement the TeamWorks platform, including the TeamWorks Enablement Practices(TM), the TeamWorks Process Optimizer(TM) and the Lombardi On-Demand Assistance(TM) (LODA) program.

"If our experience is any indication, it's easy to see why Lombardi Software is achieving such market success," said Tom Bauer, Vice President of Application Services IT at Allianz Life. "Allianz Life needed a BPM platform to meet the demands of our enterprise process improvement initiatives as we continue to grow. Lombardi's TeamWorks was the clear choice."

Lombardi's results from 2005 included the following highlights:

--136% year-over-year growth with dozens of strategic customer wins including Allianz Life, Applied Materials, Boeing, Burlington Resources, Cyberonics, Hoover's, T-Mobile, U.S. Government and Worldspan.

--Formed a strategic alliance with Fiserv Insurance Solutions to deliver the first comprehensive BPM insurance solution to the insurance industry.

--Shipped TeamWorks 5.5, the first 100% Eclipse-based BPM platform on the market; Lombardi continued its leadership in standards development with active roles in the Eclipse Foundation and BPMI.org (OMG).

--Introduced innovative new BPM methodology and education curriculum offered at the Lombardi Center for Process Excellence(TM). Trained and certified hundreds of business analysts, process engineers, architects and software developers through this program.

--Closed a $12M round of venture growth financing to fuel global expansion and provide the economic backing to dominate the BPM software market.

--In response to significant market demand, Lombardi formed Lombardi Software, Ltd., and launched its European headquarters in late 2005.

--Added key leadership to manage the company's growth including David Brodsky, Chief Financial Officer.

"As we said in early 2005, we expected our growth in 2005 would continue at a triple-digit pace and we delivered on that promise," said Rod Favaron, president and chief executive officer of Lombardi Software. "With our expanded success in the Global 2000, growth in the SMB segment, continued technology innovation and expanding partner and global reach, Lombardi has become the clear choice for companies looking for a process partner. We expect to double our business again in 2006."

Partner Momentum

In April, Lombardi announced a strategic alliance with Fiserv Insurance Solutions that leverages Fiserv's family of more than fifty dedicated insurance products and services. Fiserv's insurance business analysis, systems and project management expertise combined with Lombardi's TeamWorks delivers the first comprehensive BPM solution designed specifically for the insurance industry.

As part of its partner-driven vertical process solutions strategy, Lombardi strengthened and added strategic relationships with BearingPoint (energy, telecom, pharmaceuticals, financial services), Computer Science Corporation (life sciences), Athens Group (retail, energy), Accenture (financial services), SAIC (Federal Government) and Geac (compliance).

Product Innovation

In June, Lombardi announced TeamWorks Enterprise Edition 5.5. The TeamWorks Enterprise Edition 5.5 BPM platform delivers a shared process-authoring environment, an innovative approach to packaged process templates and the only graphical forms designer that allows "round-trip" development of user interfaces. In June, the company also introduced the TeamWorks Enablement Practices(TM), a set of formal programs and BPM implementation best practices, ensuring that Lombardi customers and partners can develop the organizational agility to repeatedly and efficiently deploy and improve business processes.

To further enhance TeamWorks, Lombardi released the TeamWorks Process Optimizer(TM) for the TeamWorks Enterprise Edition in November, 2005. The Process Optimizer gives users the ability to understand, visualize and improve business process performance. It provides performance analytics built into the process model, and interactively suggests how to optimize processes. Business users can see whether recommended changes will achieve the desired result and, for the first time, have the ability to prove that process change will drive business improvement based on real historical data.

Global Expansion

Also in November, Lombardi opened its European headquarters in London to help meet the rapidly growing demand for TeamWorks outside of North America. Greg Pope, Vice President of European Operations, will focus the company's efforts on Global 2000 organizations looking to improve their enterprise efficiency with business process management.

"The BPM market is growing at an incredible pace and in 2006, Lombardi will focus on what has made us successful to-date: the best BPM technology; rapid, easy deployments; and satisfied, successful customers," said Favaron. "Our customers are focused on the future and committed to becoming process enabled. They realize BPM is the strategic investment necessary to become or remain leaders in their respective industries."

About Lombardi

Lombardi Software is the leader in Business Process Management (BPM) software for Global 2000 companies. Lombardi has both the award-winning technology and implementation best practices to bring business process improvement and excellence to the enterprise. Lombardi's TeamWorks(R) is a Business Process Management Suite (BPMS) built on open standards and provides ongoing visibility and control of business processes, increasing the speed and flexibility with which organizations can manage their process activity and decision-making. Lombardi customers include Aflac, Allianz Life, Applied Materials, Dell, Hasbro, Hoover's, Pfizer, Sprint, T-Mobile, Universal Music Group, U.S. Government and Wells Fargo. The company is noted as a Leader in the Forrester Wave for BPM and a Visionary in Gartner's BPM Magic Quadrant. For more information visit www.lombardisoftware.com.

Lombardi Software and TeamWorks are registered trademarks and TeamWorks Enablement Practices and TeamWorks Process Optimizer are trademarks of Lombardi Software, Inc.