Progress Software Assumes Leadership Position in Emerging Application Service Provider Market.

DENVER--(BUSINESS WIRE)--Nov. 1, 1999--

ASPEN Program brings technology, services and partnerships

to Progress Software ISVs, resulting in nearly 40 ASP 

applications available worldwide

Progress Software Corporation (NASDAQ:PRGS), a leading supplier of application development, deployment and management products and services, today announced that its ASPEN(TM)Program now represents the largest global force in the expanding ASP market. The ASPEN Program enables independent software vendors (ISVs) to readily take advantage of the rapidly-growing Application Service Provider (ASP) distribution model. This week, Progress Software is a sponsor and key vendor at ZD Studios' sold-out ASP Summit, the largest trade gathering for the ASP industry.

To date, Progress Software has assisted in bringing to market applications from 27 of its ISVs around the world. These new ASPs now represent a global portfolio of 38 applications, and already have 2,400 end-users in nearly 80 different organizations. Progress Software also announced that its ASPEN Program now boasts more than 50 partners worldwide, representing the largest network of ASPs and ISVs in the industry. Through the ASPEN Program, the company provides its ISV partners with ASP technology, services and--as the foremost ASP "matchmaker"--partnerships with the industry's largest network of ASP-related infrastructure providers.

Since the inception of the ASPEN Program in May, 1999, Progress Software has established strategic partnerships with such leaders in the ASP space as USinternetworking, NaviSite, FutureLink and ESOFT Global to speed the hosting of its ISVs' applications. This network of outhosting partners provides Progress Software ISVs with key benefits--pre-trained staff, installed Progress(R) and WebSpeed(R) technology, solid networking and bandwidth, application security, wide geographic coverage, 24x7 technical support and management--that erase market entry barriers and allow them to rapidly migrate to the ASP business model.

"Progress Software's base of ISVs is unique in the application market. These ISVs have applications that are very desirable in the ASP marketplace," said Clare Gillan, vice president of the Applications and Information Access Software Research Group at International Data Corporation. "From the time we identified the potential for the ASP market, IDC has believed that partnering is a key to success. Progress Software has demonstrated the ability to craft a wide range of ASP partnerships to accelerate its ISVs' capability to embrace the ASP model. In a very short period of time, the company has become a leader in this emerging market."

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. With its strategy, the company is now at the forefront of the ASP market, providing an established infrastructure for bringing 2,000+ ISVs and their more than 5,000 Progress(R)-based applications to this new distribution channel.

"Since the inception of the ASPEN Program in May, many of our leading ISVs have moved quickly from the 'why' phase of entering the ASP market, to the 'how' phase, and are now demonstrating leadership by entering the market early, " said Mike Mitsock, vice president of Progress Software's ASP business unit. "Our ISVs have the industry expertise, mid-market presence, solid technology and low total cost of ownership (TCO) that will drive their success as ASPs. Combine these success factors with the assistance they receive from the ASPEN Program, and we have the formula that has allowed us to quickly increase our presence, and that of our ISV partners, in the ASP space, bringing more strong applications to market faster than anyone else."

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 miy service providers rather than an internal IT gress 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. ASPEN is a trademark of Progress Software Corporation. All other trademarks contained herein are the property of their respective owners.