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US survey trends evident among UK ASPs.

SLOUGH, 25th May 2001 — The industry may be down on ASP (Application Service Providers) and
hosters in particular, but Progress Independent Software Vendors (ISVs) who adopted the ASP model and the best practices of the Progress ASPEN™ Program are seeing incremental growth from new revenue streams.

In a sample survey of its ISVs, the Progress Company found that, on average, its ASP channel
has increased revenue by 20 percent for the ISVs polled. Progress Software’s ASPEN Program, which in June of 1999 was launched to assist its ISVs in ASP ENabling their applications, now includes over 200 ISVs who boast more than 70,000 end users.

The Progress ASP Survey queried US-based ISVs about the financial impact of ASP business;
specific technology required to ASP their applications; criteria for choosing a hosting company, and the business benefits and challenges they face.

The ISVs told Progress Software that they are adding new customers and new sources of revenue
because of their ASP channel. Although a few companies report that existing customers are converting to the ASP model, the majority of their ASP subscribers are entirely new customers.

Justin Wright, managing director, Progress UK said: “The success of Progress ISVs
demonstrates the way that the ASPEN Program predicted the ASP movement would grow, with ISVs owning the customer relationship and delivering vertical market and application expertise, supported by managed services of the IT infrastructure. A straw poll of UK ASPs suggests a similar trend. The ASP deployment option is winning new business for our partners rather than converting traditional users to the model.”

Alan Snell, sales and marketing director of Progress partner KCS, which delivers complete
payroll and human resource systems via a client/server, bureau and ASP deployment options supports this view: “The customers who have recently chosen our ASP option are all new to KCS. Products like Progress WebClient, which avoids the need for in-between emulation products like Citrix or Tarantella, will we believe, make ASP a more cost-effective and attractive option and we expect to see a doubling of ASP customers over the next couple of months.”

Virtual Supplychain which is establishing a global network of ASPs specialising in the supply
chain, also supports the US results. Its wholly-owned ASP operation, b2bsolutionsonline, has shown a 20 percent increase in new business, mainly from new ASP accounts.


About the ASPEN™ Program

The Progress Company’s ASPEN Program provides business planning assistance, strategic
partnerships, enabling technology, and professional services to assist Progress ISVs in rapidly deploying their applications through the ASP model. The ASPEN Program consists of over 200 members that have deployed over 100 web-enabled applications spanning all vertical markets, and boasting more than 70,000 end-user seats globally. In 2001, ASPnews.com placed Progress in the Global Top 20 ASP infrastructure providers, from the 2000 companies listed in the ASPnews directory. For more information about the ASPEN Program please visit http://www.ASPconnections.com

About the Progress Company

The Progress Company is a global supplier of software technology and services for developing,
deploying, integrating and managing e-business solutions. The company provides a comprehensive suite of products that includes application development tools, application servers, the leading e-business messaging server SonicMQ, and the industry's most widely used, lowest-cost-of-ownership embedded database.

The Progress Company's partners include more than 2000 independent software vendors (ISVs)
and application service providers (ASPs) who supply annually over $5 billion in Progress®-based applications and related services. Over 40,000 organisations across more than 100 countries - including 60% of the Fortune 100 - rely on Progress-based applications. The Progress Company, an operating company of Progress Software Corporation (NASDAQ: PRGS), is headquartered in Bedford, Mass., and can be reached at 01753 216300 or on the Web at http://www.progress.com.

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Progress is a registered trademark of Progress Software Corporation in the US and other
countries. ASPEN is a trademark of Progress Software Corporation in the US. Any other trademarks and/or servicemarks contained herein are the property of their respective owners.

Press enquiries to: Salli Roskilly, Saffron Communications.
T: 44 (0)1763 208708 F: 44 (0)1763 208813 E: salli@saffroncoms.com

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