Progress Software Announces Seven New Application Service Provider -ASP- Business Partnerships.

BEDFORD, Mass.--(BUSINESS WIRE)--Oct. 20, 1999--

Company extends lead in bringing independent software vendors (ISVs)

to application delivery over the Internet

Progress Software Corporation (NASDAQ:PRGS), a leading supplier of application development, deployment and management products and services, today announced that seven additional Independent Software Vendors (ISVs) have joined Progress Software's ASPEN(TM) Program. The ASPEN Program enables Progress Software's ISV partners to aggressively move to the Application Service Provider (ASP) distribution model, increasing their revenue and distribution opportunities.

"These new partnerships highlight Progress Software's leadership position and add to the serious momentum we've initiated in the ASP marketplace," said Michael Mitsock, vice president of Progress Software's ASP Business Unit. "Our partners' ASP offerings span multiple geographies, vertical markets and company sizes and represent the most comprehensive set of ASP offerings available today. We are pleased to work with these and other ISV partners to accelerate their move to the ASP market."

Through the program, Progress Software will add joint marketing and other benefits to the following partners who have used Progress(R)-based technology and professional services to develop, deploy and manage their applications:

Cutsey Business Systems (www.fdm4.com), based in North Bay, Ontario, Canada, is an industry leader in bringing high performance, high activity Open Business Management Systems to the commercial marketplace. Cutsey provides robust, feature rich "Turn Key" solutions that distributors need to stay ahead of their competition, including a total interactive e-business solution in order to increase business with existing clients now and into the next century.

Distribution Management Systems, Inc. (DMSi) (www.dmsi.com), of Omaha, Nebraska, is the longstanding niche leader for business management and accounting software for the building material distribution industry. DMSi serves over 200 of North America's top building product distributors who account for nearly 600 distribution locations throughout the United States and Canada.

EPS (Eastcoast Property Software Pty Limited) (www.eps.net.au), located in Chatswood, New South Wales, Australia, provides sophisticated retail management, property and leasing solutions to retailers, now being offered to smaller retailers via ASP. EPS is partnering with the Australian Retailers Association to provide this service to their members.

A number of value-added services already included in the existing EPS Professional product will be available to users of the Web service, including monitoring of related services, such as: insurance, store selection, ROI calculations, construction and maintenance, asset management, including depreciation of fittings, sales tracking and performance as well as benchmarking of Key Performance Indicators.

GBST (Global Banking and Securities Transactions) (www.gbst.com.au), formerly known as Star Systems, is the leading provider of transaction technology, and supplier of first choice to many of the world's foremost stockbrokers, institutions and banks. Clients include leading internationals Merrill Lynch, Deutsche Bank, Credit Suisse First Boston, TD Waterhouse and Warburg Dillon Read. GBST is also Australia's leading provider of online trading technology. GBST's headquarters are located in Brisbane, Australia.

Professional Data Systems, Inc. (PDSI) (www.pdsi.com), of Lee's Summit, Missouri, is the author of ProTrac(R), a newly released computer system tailored to the wholesale distribution industry, with a fully graphical user interface for ease of use and simplified training, better management information for informed business decisions, and the integration of advanced technologies through the year 2000 and beyond.

Software Plus (www.softwareplus.com) has developed and delivered dynamic Human Resource and Payroll solutions since 1982. Software Plus' client/server Human Resource and Payroll solutions are Progress-based applications that deliver high-end functionality at competitive cost and are positioned to capitalize on trends toward Internet- and Intranet-based information delivery. Software plus is headquartered in Florham Park, New Jersey.

Springbrook Software (www.sprbrk.com), based in Portland, Oregon, provides local governments, special districts and non-profit agencies with a new standard in price/performance for windows-based Financial and Utility Billing/C.I.S. applications. The architecture is true client/server and is available in Windows NT or selected UNIX environments.

A channel pioneer, Progress Software has long been recognized for its ability to give ISVs the technology and services to meet the rigorous requirements of middle market, resource-constrained environments and to deliver industry-specific solutions more quickly, more tightly integrated and at a low total cost of ownership. These same qualities firmly position Progress Software to lead the emerging ASP market, by bringing its 2,000+ ISV partners and their more than 5,000 Progress-based applications to this new distribution channel, as well as to bring new ISV's profitability into the ASP market.

Progress Software's Application Service Provider ENablement Program

Progress Software's ASPEN Program offers technology, services and industry alliances to help ISVs quickly and easily transform Progress-based applications into ASP-enabled applications. These new applications, available for rent and accessed over the Internet rather than purchased, allow small and mid-tier organizations to more quickly and economically gain access to application functionality previously unavailable to them. ASP-enabled applications reduce traditional IT infrastructure costs because they are developed and maintained by service providers rather than an internal IT staff.

New vendors are emerging to bridge the gap between small and mid-tier organizations and high-performance applications. Already growing fast, the ASP market is expected to curve exponentially. Industry analysts estimate the "application rental market" will generate between $2 and $6 billion in revenue by 2003. The first ASPs who enter this market will have an important grip on its future growth.

About Progress Software

Progress Software Corporation (NASDAQ:PRGS) is a global supplier of software products and services for developing, deploying and managing business solutions across all computing and network environments. Our products, which are installed in over 60% of Fortune 100 companies, include application servers, databases, development tools and application management products for Internet/Web, extranet and intranet applications.

Our customers operate in 100 countries, are supported by more than 1,200 employees worldwide, and deploy annually over $1.5 billion in Progress-based applications built by more than 2,000 independent software vendors (ISVs). For more information, visit www.progress.com or [phone].

Progress is a registered trademark of Progress Software Corporation. All other trademarks contained herein are the property of their respective owners.