Raging Knowledge Acquired by Knowledge Management Software; Combined Entity Delivers Most Comprehensive Knowledge Management Solution Available.

Business Editors

SOUTH NORWALK, Conn.--(BUSINESS WIRE)--April 24, 2001

Raging Knowledge, the leading provider of web-based tacit knowledge management software solutions today confirms that it has entered into an agreement to be wholly acquired by Knowledge Management Software (KMS) of Manchester, England. Combined, the two companies are poised to present the most comprehensive knowledge management solution available.

"This exciting transaction represents the next logical step for us," says Drew Reilly, Raging Knowledge founder and president. "We've been very successful generating market awareness and building an initial customer base - our acquisition by KMS catapults us to the next level. By joining our respective technologies, we can now provide a comprehensive knowledge management solution that addresses both knowledge in electronic form as well as the tacit knowledge represented by the expertise of an organization's employees. Supported by the infrastructure of a more mature and better established organization, we see great potential ahead."

Raging Knowledge, established in June of 1999, was one of the first software developers to enable organizations to tap into the tacit knowledge (or "know-how") held in the minds of its employees. This expertise, frequently the result of years of training and cultivation, represents a significant corporate expense. Says Reilly, "Companies spend a lot of money building the expertise of their employees. We'd like to see those companies get a better return on that investment."

Industry analysts approve of the Raging Knowledge approach to the knowledge management space and its acquisition by KMS. According to Nathaniel Palmer, Chief Analyst of Delphi Group (a leading U.S. knowledge management consultancy), "Raging Knowledge has established a leading position with its Global Network(TM) solution. Coupled with KMS, they are immediately able to provide a much broader product offering to their combined client base."

As Mr. Palmer explains, "Raging Knowledge has succeeded in taking a potentially valuable but very often misunderstood or otherwise unappreciated area of knowledge management - the facilitation of peer-to-peer knowledge exchange - and placed it within the context of a nearly turn-key solution for fast execution and clearly identifiable business benefit. This approach, as developed by Raging Knowledge, should serve as an effective entry point into enterprise sales for KMS's broader product offerings. The value of this acquisition could be justified by this factor alone, which has remained one of the most immutable challenges to vendors of knowledge management software."

Dave Rosalski, CEO of KMS, is equally excited. "Collaboration is key to facilitating a comprehensive knowledge management solution - and imperative to the exchange of tacit knowledge," says Rosalski. KMS has been moving down the collaboration route and this will be significantly accelerated by the acquisition of RKI. We believe that their technology is very advanced and when combined with our Deskartes search and retrieval software it will represent a powerful proposition to our customers"

About Raging Knowledge

Raging Knowledge, Inc. is a leading provider of scalable, collaborative knowledge management software solutions mid- to large-sized organizations. Through a "people-centric" approach and sophisticated profiling technologies, Raging Knowledge solutions enable the transfer and tracking of "tacit" knowledge (subjective, personal and experiential knowledge developed over time -- "know-how"). Its solutions enable organizations to resolve issues more efficiently and to distribute expertise throughout the enterprise, creating a connected internal knowledge community. Headquartered in South Norwalk, CT and with offices in New York and San Francisco, Raging Knowledge has 16 full-time employees. The company website is www.ragingknowledge.com.

About Knowledge Management Software

London Stock Exchange listed KMS is the author of Deskartes(R), intelligent second generation software, that enables organizations to harness, manage and utilize their knowledge resources more effectively whether they are in text form, web pages, e-mails, documents or even tacit knowledge contained in people's heads.

Deskartes is a combination of a tri-dimensional neural network working in conjunction with a highly sophisticated natural language processor, to provide contextually accurate, self-learning, search and retrieval functionality. It can be deployed as a complete knowledge management solution or embedded into other applications. Implementations include help desks, call centers, customer relationship management, e-learning, intranets, enterprise information/knowledge portals and web portals. Major customers of KMS include Marks & Spencer, Time Group, Somerfield, Nikon, MAFF, NETg and the Northern Offshore Federation.

KMS, founded in 1991, was originally a software house operating in the Business Intelligence market. It now has offices throughout the USA and the UK employing around 180 people. The company was admitted to the Official List/techMARK in May 2000 (EPIC: 'KMS'). The company website is www.kmsoftware.com.