Pacific Edge Software, Inc. Secures $6 Million in Venture Financing; Northwest Venture Associates Leads First Round of Funding.

KIRKLAND, Wash.--(BUSINESS WIRE)--July 12, 1999--

Pacific Edge Software, Inc., (www.projectoffice.com), the developer of knowledge management solutions for companies that manage by projects, announced today the completion of its first round of venture financing, totaling $6 million.

Institutional investors are Northwest Venture Associates (NVA), Fluke Venture Partners (FVP), and Matthew G. Norton, Company (MGN). Funding will support Pacific Edge's efforts to further develop, market and deploy its successful enterprise project management software. Joining the company's board is Tom Simpson, Managing Director of NVA.

Pacific Edge's flagship product Project Office(TM) brings planning to the front office by providing a dashboard view of all of the projects in the organization, with the ability to develop budgets and plan resource usage at any stage of the project's lifecycle. The scheduling component of the project plan is provided through a direct connection to Microsoft(R) Project 98. Project Office organizes everything in a Microsoft SQL server database. Web-based timesheets in Project Office Express make it fast and easy for project team members to collaborate on and update plans in both Project Office and Microsoft Project.

Northwest Investors Take the Lead

"We had a number of investors from across the country to choose from and selected those we felt added significant value." Said Lisa Hjorten, CEO of Pacific Edge. "Our new partners bring insight into the needs of high-velocity companies and a strong belief in our products and business strategy." This is the largest investment for Spokane, Washington-based, NVA. "We were impressed with how quickly Pacific Edge established profitability and has maintained its pace," said Tom Simpson. FVP is based in Bellevue, WA and MGN is located in Seattle, WA.

Creating Simplicity

Pacific Edge co-founders Lisa Hjorten and Scott Fuller have each worked in the project management field for over 18 years, serving companies such as Boeing, NASA, Starbucks and Microsoft. As industry experts, they found common problems emerge during the implementation of project management programs. They've used that knowledge to create products that are easy to install and use. This ease expedites a company's return on investment and allows them to get on with their business. The success of their flagship product, Project Office is spreading to companies with as few as five employees and as large as Fortune 50 enterprises.

About Pacific Edge Software, Inc.

Established in January 1998, Pacific Edge Software, Inc. provides Knowledge Management solutions for companies that manage by projects. Project Office(TM) is a leading enterprise business-planning tool. The program's scheduling information is provided through a direct connection to Microsoft Project 98(TM). Web-based timesheets in Project Office Express allow project team members to collaborate on and update plans in both Project Office and Microsoft Project. Information is stored in Microsoft SQL Server(TM) and the applications utilize Microsoft IIS(TM), Microsoft Internet Explorer(TM), and Microsoft Exchange Server(TM). Pacific Edge's customers include Microsoft, Bank of America, BellSouth and Fine.com. Pacific Edge is a Microsoft Solutions Provider. More information on the Kirkland, Washington based company can be found at: www.pacific-edge.com.

About Northwest Venture Associates

NVA is a leading venture capital firm, investing exclusively in rapidly growing Northwest companies. NVA looks for emerging businesses managed by experienced entrepreneurs, have developed proprietary products or services and can become the leader in their markets. In addition to providing capital, the firm assists its portfolio companies in refining their strategies, recruiting employees, arranging additional financing and creating strategic partnerships. NVA is managed by Tom Simpson. Mr. Simpson has more than 12 years experience as an investment banker and venture capitalist to Northwest companies. He serves on the Boards of AdRelevance, Netpodium, Confirma, Sur La Table and the Washington Venture Capital Association. More information on NVA can be found at their Website at www.nwva.com or by calling 509/747-0728.

About Fluke Venture Partners

Fluke Venture Partners, LP, a leading venture capital firm, has invested in early and later stage high growth companies in the Pacific Northwest for over twenty years. FVP recently received a new commitment of $50 million for new investments. With a primary focus on technology, FVP also has a strong interest in specialty retail and innovative service businesses and has assisted its portfolio management teams in all stages of company growth from start-up through initial public offerings. Representative investments include Aldus, Coinstar, Eagle Hardware & Garden, Edmark, ELF Technologies, Innova, Interlinq Software, Luxar Corporation, Media Passage, Panlabs International, Pet's Choice, Starbucks, Sur La Table and Tegic Communications. Additional information about Fluke Venture Partners can be found at www.flukecapital.com or by contacting Dennis Weston, Managing Director, at 425/453-4590 or weston@flukecapital.com.

About Matthew G. Norton Co.

Matthew G. Norton Co. (MGN) is a private investment company based in Seattle, WA. Focused on investments in high-growth, private companies and venture capital funds, MGN also manages a portfolio of U.S. equities and international investments. Through its subsidiary Northwest Building LLC, MGN manages and develops a significant portfolio of real estate properties. For more information call Greg M. Stevenson, Senior Vice President at 206/652-8737.