Press Release

For Immediate Release

OpenAir Grows Second Quarter 2004 Revenue 41% Over Second Quarter 2003

Achieves third straight quarter of profitability, expands New York City regional sales staff

Boston, MA (August 18, 2004)— OpenAir, the leading hosted professional services automation (PSA) software provider, today reported results for the quarter ending June 30, 2004. OpenAir increased net revenue by 41% over the second quarter of 2003. OpenAir has increased revenue for twenty-one consecutive quarters. The second quarter of 2004 was OpenAir's third consecutive profitable quarter, and the company was cash flow positive for the quarter. Growth was driven by the addition of new customers as well as increased penetration into existing customer organizations.

Vitria (www.vitria.com), a leading provider of business process integration solutions based in Sunnyvale, Calif., was among the new customers that implemented OpenAir PSA in the second quarter.

“OpenAir is a mission critical system for us to improve profitability and help us gain vital insight into a truly global organization,” said Greg Anderson, SVP, Professional Services and Business Consulting, Vitria. “As a business process integration provider, we know how important it is to deliver value quickly to clients. OpenAir's PSA solution has already delivered on the promises of low total cost of ownership, high ROI and ease of implementation and use.”

“One of OpenAir's key benefits for services firms is the ability to improve profitability through improved staff utilization. In short, we help you keep people off the bench and generating revenue and cash,” said OpenAir CEO Morris Panner. “Vitria is a great example of OpenAir's ability to partner with a company to optimize operational processes and, ultimately, profitability. Given Vitria's market-leading knowledge of business process integration, we were proud to be their choice.”

Other highlights for Q2 2004:

  • OpenAir opened an additional sales office in New York City. This move increased OpenAir's nation-wide sales coverage, increasing its physical locations to Boston, New York City and the Bay Area in California.

  • 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 completed two major upgrades to its professional services automation software including enhancements to project planning and management functionality, to reporting and business intelligence capabilities, to sales force automation features and to OpenAir's industry-leading project accounting and revenue recognition functionality. Also released were enhanced versions of OpenAir for the Pocket PC®, OpenAir for the Palm® and OpenAir OffLine for use with the Microsoft® Windows® operating system.

  • OpenAir completed significant integrations with major CRM packages, including salesforce.com, Siebel and Salesnet.

  • OpenAir was again named to the ASP News Top 25 Global ASPs.

    About OpenAir
    OpenAir 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 over 700 companies across six continents increase profits through the subscription-based OpenAir® Complete solution. For additional information, visit www.openair.com.

    Contact:
    Randy Foster
    OpenAir
    Phone: 617-351-0284
    rfoster@openair.com