Procuri Continues Industry Leadership with Acquisition of Contract Management Solutions, Inc. and Secures $12.5 Million in New Financing

ATLANTA (March 21, 2005) – Procuri Inc., the leader in On-Demand strategic sourcing solutions, today announced the acquisition of Contract Management Solutions, Inc. (CMSI), a recognized leader in the contract management industry. In addition, Procuri secured $12.5 million in additional equity financing in a Series B up-round led by Procuri’s current investor Insight Venture Partners and new investor Advent International. A portion of the funds will help continue the company’s product expansion and significant overall business growth throughout the United States, Europe and the Pacific Rim.

“The deal solidifies Procuri as a sourcing market leader,” said Tim Minahan, senior vice president of Supply Research & Strategy at AberdeenGroup. “[The acquisition] accelerates Procuri’s plans to expand its sourcing solution footprint with advanced contract authoring, repository, and compliance capabilities and doubles the Procuri customer base to more than 300. With little customer overlap, the union presents strong cross-sell opportunities.”

CMSI’s customer base includes more than 150 companies across all vertical markets including QUALCOMM and Toyota Motor Sales, two companies that were highlighted in AberdeenGroup’s Best Practices in Contract Management: Strategies for Optimizing Business Relationships. Both companies were recognized for implementing CMSI's applications to manage the largest number of contracts among all the companies in the Top 10 list.

The combination of Procuri’s sourcing solutions and CMSI’s contract management solutions address the complete end-to-end sourcing process and are available under the Procuri TotalSource™ suite. Included in this suite is Procuri’s current solution, Procuri TotalDecision™. Additionally, CMSI’s Deal Manager and Contract Manager will be re-branded as Procuri TotalPerformance™, while Supplier Manager will be offered as Procuri TotalStrategy™. All three solutions are available immediately and can be deployed collectively or individually to meet business needs.

“[Customers] will gain access to the battery of contract authoring, collaboration, repository, compliance, and analysis capabilities of CMSI’s proven sixth-generation solution suite. CMSI customers will benefit from the ability to integrate their contracting and compliance processes and systems into their broader sourcing and supplier management initiatives,” added Minahan.

“CMSI solutions bring tremendous value to our suite of solutions and above all, deliver increased value to our newly-combined customers. The transaction doubles the size of our customer base and benefits existing Procuri and CMSI customers by creating a single entity that can provide proven, end-to-end solutions that are easily deployable,” said Mark F. Morel, Procuri’s president and chief executive officer. “CMSI’s complimentary ‘customer-centric’ culture, strong team, and proven financial and customer success exemplify the synergies between our two companies and will be the catalyst to accelerate and sustain our continued global expansion.”

Procuri will maintain CMSI’s existing operations and employees, with CMSI’s president and chief executive officer, Steve Rosbury, serving as a consultant and Observer on Procuri’s board of directors. Current customers will continue to contact CMSI directly for customer support.

“CMSI’s solutions are a natural extension that complements Procuri’s sourcing solutions,” said Rosbury. “Multiple joint customers have applauded the acquisition as it combines our industry leading contract management solutions with Procuri’s functionally rich sourcing solutions to deliver a wider offering and increased savings for all customers.”

Together, Insight Venture Partners and Advent International backed the investment based on Procuri’s proven solutions, successful business model and record of continual revenue and customer growth. Peter J. Boni, an operating partner at Advent International, will join Procuri’s board of directors.

“Over the last two years, we have observed Procuri’s tremendous growth and the ability to secure and retain global customers and deliver on its strategic vision,” said Deven Parekh, managing director, Insight Venture Partners. “We strongly believe in Procuri’s business model and, through its continued, rapid growth, the opportunity for Procuri to continue its leadership position and expand its reach in this industry.”

“With the largest customer base of any stand-alone sourcing software provider, and record-setting growth, it is clear that Procuri’s business model is proven in attracting companies of all sizes and effective in maintaining relationships with customers,” said Boni. “The synergies of the two companies, Procuri and CMSI, make this a smart investment in a solid company.”

Insight Venture Partners, a current Procuri investor with approximately $1 billion in funds under management, is the leading venture capital firm specializing in software companies. A leading global private equity firm with more than $6 billion in cumulative capital raised, Advent International has invested in more than 500 companies and has helped businesses raise over $10 billion through public equity and debt offerings.

About Procuri Inc.

Procuri, the leader in On-Demand strategic sourcing solutions, empowers more than 300 customers of all sizes, industries, geographies and spend categories, including Blue Cross and Blue Shield Association, Eastman Kodak, ITT Industries, KLM Royal Dutch Airlines, The McGraw-Hill Companies, Rio Tinto, Procter & Gamble and U.S. Steel. Procuri’s Web-based solutions address the entire sourcing process from spend analysis to supplier negotiation to contract management for enterprises sourcing from more than 90 countries. For more information, call 1-877-360-1600 or visit www.procuri.com.