Tidemark Raises $11.5 Million in Second Round of Funding; Government Software Developer Partners with NIC to Develop Web-Enabled and Mobile Solutions.

Business Editors/Technology Writers

SEATTLE--(BUSINESS WIRE)--May 5, 2000

Tidemark Computer Systems Inc., a leading software developer for city, county and state governments, today announced the close of its second round of funding after receiving a $5 million investment from the National Information Consortium (NIC) (Nasdaq:EGOV), bringing its total Round B funding to $11.5 million.

Earlier in the round, the company also received $6.5 million from a foreign corporate investor and Chartwell Capital Management Company, a private investment-banking firm based in Jacksonville, Fla.

Tidemark, which has been providing client-server software solutions to local governments for over 15 years, will partner with NIC, the world's largest provider of e-government solutions, to help jurisdictions of all sizes expand access to government services through mobile and web-based applications. Tidemark will use the financing as working capital to fund its rapid growth, continue development of additional products and services, and launch a new business unit to extend the company's service offerings to the Internet.

In addition to the investment, NIC Local President Ray Coutermarsh will join Tidemark's board of directors. According to Coutermarsh, Tidemark's extensive experience developing effective solutions for local jurisdictions is one of the major factors behind the partnership.

"By partnering with Tidemark, NIC can develop new services for cities and counties more rapidly than ever before," said Coutermarsh. "This agreement is a significant component of our e-government strategy, which will help local governments provide citizens and businesses with access to government services online."

Tidemark's flagship workflow solution, called Tidemark Advantage, enables government agencies to automate over 700 processes from application and inspection to permitting, remote access and information sharing in building, planning, health, transportation, utilities, public works, engineering, community development, licensing, and code enforcement departments nationwide. The partnership with NIC is part of Tidemark's strategy to expand its services via hosted applications as well as develop new products that allow citizens and government administrators to access government services online.

According to Tidemark President and CEO Bruce Dahl, the partnership with NIC underscores Tidemark's commitment to creating better ways for government to take advantage of new technologies.

"The investment from NIC comes at an auspicious time -- just as we're planning to launch innovative wireless and hosted Internet applications," said Dahl. "It confirms Tidemark's position as a proven leader in the drive toward e-government."

Current Tidemark customers include jurisdictions in Anaheim, Detroit, Indianapolis, Juneau, Orlando, Reno, Sacramento, Sarasota, Fla., Tacoma, Wash., Wichita, Kan. and Vancouver, British Columbia, among others. In addition, a consortium of 10 municipalities in Silicon Valley known as BASP (for Bay-Area Software Purchase Consortium) named Tidemark the vendor of choice for its Smart Permit Project, which encourages Silicon Valley development by implementing advanced technologies to speed permit processing across district lines.

National Information Consortium is the leading provider of Internet-based electronic government services. NIC improves the relationship between people and their government by helping federal, state and local agencies use the Internet to reduce costs and deliver quality services to citizens and businesses. Since its inception in 1991, NIC has developed hundreds of e-government solutions and managed millions of transactions. NIC currently has eleven statewide portal partnerships and application agreements with an additional eight states. Additional information is available at www.nicusa.com.

Since 1984, Tidemark Computer Systems has been providing innovative solutions that streamline government business processes and manage workflow communication. As an innovative leader in e-government, Tidemark serves state and local governments by supporting over 700 different processes in building, planning, public works, engineering, community development, licensing, code enforcement, utilities, health, transportation and many other areas of government. By offering jurisdictions a choice between client/server solutions and Internet-hosted services, Tidemark helps governments improve the quality of service agencies provide to their citizens. For more information call 206/287-1713 or visit www.tidemarksys.com.