OpenAir Achieves 40% Revenue Growth

OpenAir marks 28th consecutive quarter of revenue growth

Boston, MA (May 31, 2006)—OpenAir, the leading professional services automation (PSA) software provider, today reported results for the quarter ending March 31, 2006. Quarter-end net revenue increased by 40% over the first quarter in 2005, while the company continued to generate pre-tax profits and positive cash flow. OpenAir has now increased revenue for 28 consecutive quarters and has achieved ten consecutive quarters of profitability. The Company has been cash flow positive for nine consecutive quarters.

"OpenAir's financial results—growing revenue, continued profitability and cash generation—continue to strengthen our financial and industry leadership position," said OpenAir CFO Thomas Brennan. "Our robust financial performance enables us to continue to invest in our business to fuel our rapid and profitable growth." OpenAir's growth was driven by increased penetration into existing organizations, an increase in process consulting services and the addition of significant new customers, bringing its total number of clients to more than 225 and number of users to more than 20,000.

"The growth in OpenAir's customer base shows how more and more companies are adding value through improved staff utilization, time tracking and project management. We continue to see OpenAir and the capacities it brings as strategic necessities for service organizations," said OpenAir CEO Morris Panner.

Other highlights for the first quarter of 2006:

OpenAir continued its broad-based expansion, hiring additional sales, professional services, engineering and marketing personnel to improve OpenAir's implementation and training capabilities and respond to new growth opportunities.

OpenAir and IBM continued a wide-ranging co-marketing effort targeting project and service-based businesses. OpenAir continues to work with IBM as an e-business partner.

OpenAir expanded its relationship with salesforce.com, launching a Time and Expense application on AppExchange

OpenAir became a founding sponsor of PSVillage, a website focused on helping the senior management of IT professional services/consulting services companies

OpenAir joined Technology Professional Services Association (TPSA) and Network of Professional Services Organizations (NPSO)

About OpenAir
OpenAir, based in Boston, is the Web-native professional services automation solution that helps independent software vendors, marketing services companies, consulting firms, and internal corporate service organizations increase top-line growth, improve operations and enhance financial controls. OpenAir customers increase profits by capturing additional billable hours, increasing employee utilization, streamlining project management, accelerating revenue, enhancing collaboration, improving revenue recognition and project accounting, and sharing knowledge and best practices throughout the organization. OpenAir has helped leading services organizations across six continents increase profits through the subscription-based OpenAir® Complete solution. For additional information, visit www.openair.com .