Metastorm Secures $20 Million In Second Round Financing to Accelerate Global Market Strategy; Market Demand for Business Process Management Solutions To Reach $800 Million in 2001.

Business/Technology Editors

SEVERNA PARK, Md.--(BUSINESS WIRE)--May 29, 2001

Metastorm, Inc. announced today it has secured $20 million in a second round capital investment led by UBS Capital Americas II, L.P. with strong participation from Ironside Ventures and 3i Group.

Metastorm's flagship product, e-work(TM), is the leading software platform for Business Process Management (BPM). According to AMR Research, the BPM market is expected to reach $800 million this year. e-work allows organizations to achieve their objectives by simplifying, automating and integrating people, processes and systems. In doing so, e-work reduces the time, distance and costs of doing business while improving yield and process control. Metastorm e-work further differentiates itself through its ease of use, scalability and speed of deployment. From design, to simulation; development to deployment; measurement to control; e-work provides unmatched support for an organization's business processes.

"With the BPM market exploding and strong investor confidence in our approach to this market opportunity, we are strategically accelerating our global build out of sales, marketing, distribution and customer support," said Avi Hoffer, CEO of Metastorm. "This second round gives Metastorm the fuel and the flexibility to maintain its leadership position and accelerate our path to profitability," he added.

"UBS Capital Americas has spent the past six months looking for investment opportunities in companies that promote efficiency. By rapidly integrating processes, organizations, systems, data and controls into unified solutions, Metastorm e-work ensures that organizations achieve a positive return on efficiency," said Lawrence Handen, Partner UBS Capital Americas, who joins Metastorm's Board of Directors. "Our decision to invest has already been validated by extremely strong customer and investor demand in this very difficult market," he added.

James Walker, Investment Director of 3i said, "We have been involved with Metastorm for over four years and have been impressed by the phenomenal progress over that period. This is an excellently managed company with a market-leading product and we were delighted to provide further funds to fuel further growth."

A sampling of Metastorm's government e-work customers include: Baltimore and Carroll Counties, Maryland, Department of Justice, Small Business Administration, Bakersfield, Davis, and Fresno, California, and Bracknell Forest Borough Council, UK. Commercial accounts include Disney, Hunter Douglas, Wilmington Trust, British Telecom, FIAT, and MSB International. Healthcare customers include North Broward Hospital District, Truman Medical and Birmingham Women's Hospital. And in education, Cornell University, DePaul University and Nottingham University.

Metastorm, Inc. (www.metastorm.com) is the leading developer and distributor of Business Process Management (BPM) software that streamlines and continuously improves processes that rely on the interaction of people and information, offering a rapid return on investment for business, healthcare, education and government. Maryland-based Metastorm, with offices in Europe, the US and Canada, has established over 100 partnerships, including Compaq(R), Microsoft(R), Novell(R) and Oracle(R) to ensure comprehensive integration between Metastorm products and the world's leading hardware and software solutions.