Nextance Reports Strong Momentum and Closes $10.1M in New Funding; Sustained Growth and Large Deals Point to Increasing Demand for Contract Performance Management.

REDWOOD CITY, Calif. -- Nextance Inc., the solutions provider setting the standard for contract performance management (CPM), today announced recent company highlights that include winning some of the largest deals in industry history and closing more than $10 million in new funding. Together with recent industry mergers as well as lackluster competitor offerings and performance, Nextance stands out as the favorite for businesses looking for a solutions provider that is dedicated and focused entirely on CPM.

For the first three quarters of the current 2006 fiscal year ending on June 30, 2006, Nextance recorded a 43% growth in license and first-year maintenance sales compared to the same period last year. Nextance also reported impressive quarter-over-quarter growth this fiscal year, with the most recent quarter representing a 43% growth in sales over Q3 2005. In each quarter, the company signed on new deals with major global companies worth over $1 million each, and based on new customers signed, Nextance will be expanding its deployments to 55 countries. Nextance's new funding promises to help continue this momentum by enabling strategic product investments as well as expansion of the company's sales operations.

"We've had an exciting year so far and are poised to further establish our market leadership," stated Kyle Bowker, president and chief executive officer of Nextance. "Our new round of funding comes entirely from current investors, which shows their continuing confidence in Nextance. Our strong customer momentum and the new solutions we're bringing to market make us the obvious and only serious choice for those looking to start getting control over their contracts and for those looking to integrate CPM completely into their business processes."

In the 2006 fiscal year to date, Nextance signed on several new customers such as Juniper Networks and Private Healthcare Systems as well as several Fortune 200 companies, such as a technology company with over $90 billion in annual revenue, another technology company with $10 billion in annual revenue, and an energy services company with $10 billion in annual revenue. Returning customers include Countrywide, Genzyme, Fireman's Fund, Raytheon, Sempra Energy, Wyeth and many others - together, representing customer growth in the energy, healthcare, pharmaceutical/biotech, technology and other important industries.

Analyst Confirmations and Nextance Leadership

Many analysts have taken notice of Nextance's success and compelling value proposition. Andrew Bartels, vice president of Forrester Research, recently said, "Nextance is a top choice for contract life-cycle management", giving it top scores in several functional areas and calling its technology "very strong, with an innovative use of an XML database as its contract repository and strengths in scalability, customization, and security."

Vishal Patel, research analyst at AberdeenGroup, also explained the market need that is driving the industry and Nextance's momentum: "Despite the complexity of contracts today and the obvious need to now manage them more carefully, contract management in most organizations usually involves largely manual, labor-intensive and disjointed processes - resulting in poor visibility into contracts and compliance, as well as missed renewal opportunities."

Advancing the contract performance management industry ahead, Nextance has embarked on several innovation- and thought-leadership initiatives. At the beginning of the fiscal year, Nextance introduced its Contract Insight with QuickStart Deployment services as the first step for companies towards CPM, to acclaimed reviews by outside experts. Further, Nextance has made several speaking appearances, hosted webinars and authored a series of white papers to educate companies on how CPM can solve pressing and expensive business problems today.

Recognizing that no technology is an island, Nextance strengthened key partnerships to the benefit of its customers. For instance, the company continues to work closely with IBM through its alpha- and beta-testing phases of its next-generation XML database. Nextance also continues to invest in its own operations - by recruiting new vice president of sales Tracy Clifford as well as new board director Mike Gardner, among others - to drive company growth and a mature leadership team.

"We're happy with our progress and the good mix of deals we are seeing," continued Bowker. "From our unique vantage point, we see some specific pressures driving the need for CPM and expect these to continue. They include the need for CPM: to mitigate risk and ensure compliance; as a foundation for other sourcing or revenue initiatives; to lay the foundation for scalable company growth; and for greater customer satisfaction and sales productivity. As this trend plainly shows, CPM is much more than just about procurement."

About Nextance Inc.

Nextance is setting the standard for contract performance management (CPM) solutions with innovative software and best-practices professional services. Global 2000 companies are improving financial and business performance by using Nextance CPM to improve the standardization, visibility and control of their contractual relationships. Countrywide, Covenant Health, Eastman Chemical Company, Fireman's Fund, Genzyme Corporation, Juniper Networks, Sasol, Sun Microsystems, and others are using Nextance software every day to tap into the value that is written into each of their thousands of revenue, procurement, intellectual property licensing, and partner agreements. Nextance is based in Redwood City, CA, and is privately held. For additional information, visit: www.nextance.com.

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