Press Release

October 19, 2001

OpenAir Achieves Record 3rd Quarter
Increases revenues by more than 20% over prior quarter

Boston, MA (October 19, 2001) — OpenAir, provider of the complete web-native professional services automation (PSA) solution, today reported third quarter results for the period ending September 30, 2001.

In the third quarter of 2001, OpenAir achieved record revenues, countering an industry trend by realizing growth of over 20% versus the prior quarter. Revenue gains were driven by increases in monthly software subscription fees from new customers, including Hearst Interactive Studios and the Bernard Hodes division of Omnicom, as well as several mid-market companies from a range of industry segments. For the 12 months ended 9/30/2001, revenue grew more than five-fold over the previous year's performance.

"As organizations look for ways to operate more profitably in this challenging economic climate, they are increasingly turning to OpenAir. Our solution helps them fully utilize their people, knowledge, and expertise and gain control over the financial and operational data that drives important business decisions," explained CEO Morris Panner. "The fact that OpenAir was able to continue its strong growth despite slowdown among other industry players is a tribute both to the strength of our product and the appeal of our subscription-based pricing model."

Other highlights for Q3'01:

  • OpenAir launched Workspaces, its enterprise knowledge management solution. OpenAir also completed multiple product updates to enhance functionality throughout the entire PSA solution based on customer feedback.

  • OpenAir received an "Excellent" overall rating from SPEX, a division of META Group, based on its breadth of functionality, usability, overall technology, and market strength.

  • OpenAir initiated co-marketing efforts with IBM, having earned the IBM ASP Prime™ certification, which attests to the scalability, reliability, availability, security, and performance of the OpenAir solution.

  • OpenAir successfully completed a search for a Director of Product Development to drive the continued development of the company's world-class PSA solution.

  • OpenAir was named a top 20 Global ASP by ASPNews.com based on the size of its customer base, revenues, innovation, and industry recognition as a leader.

About OpenAir
OpenAir is the Web-native professional services automation solution that helps organizations improve operational efficiencies and gain insights into key management metrics. OpenAir customers increase profits by capturing additional billable hours, increasing employee utilization, streamlining project management, accelerating revenue, enhancing collaboration, and by sharing knowledge and best practices throughout the organization. OpenAir has helped over 55,000 professionals in over 500 companies across six continents increase profits through its subscription-based solution. For additional information, visit www.openair.com.

Contact
Jeff Hunt
OpenAir
Phone: 617-351-0236
jeffhunt@openair.com