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Press Release

For Immediate Release

PowerSteering Software Secures $5 Million Investment from Advent International

December 10, 2004

PowerSteering Software, a provider of Web-based project portfolio management software, said that it has closed its second institutional round of financing with $5 million.

New investor Advent International provided the round. As a result, Michael Pehl, operating partner at Advent, and Kathleen O'Donnell, principal at Advent, will be added to PowerSteering's board. They join David Boghossian, PowerSteering's president and CEO; Jay Goldberg, senior managing director at Hudson Ventures; and independent director David Campbell, managing director at Innovation Advisors.

The company will use the funds primarily for sales and marketing, Mr. Boghossian said. Although the company has been selling its product for several years, he said, "we now need to get in front of as many potential clients as possible."

The company's client list includes: Raytheon, General Electric, Pitney Bowes, and Hewlett-Packard, among others. It was largely this base that attracted Advent to make this investment, said Ms. O'Donnell, who spoke to many of them during the due diligence period. "They're just the happiest customers I've ever talked to," she said.

PowerSteering has been flirting with profitability for around a year and a half. In the middle of 2002, the company reached profitability and has been floating between cash flow neutral and cash flow positive since, Mr. Boghossian said. With this funding, he said, PowerSteering will be firmly in the black and he doesn't anticipate needing an additional round. "It will allow us to become the leader in this market space," he said.

PowerSteering's market is enterprise program management, and the company has developed a Web-based project portfolio management product that allows senior executives to align local, regional, national, and global projects and corporate initiatives with their business goals and objectives. While Mr. Boghossian sees several competitors inhabiting this space -- Primavera Systems, PlanView, and Niku - - he believes that PowerSteering's approach is unique. "What we do is much more milestone- and objective-focused," he said. "We give our customers a plan without much overhead."

Cambridge, Mass.-based PowerSteering Software, founded in 1998, has raised $4.3 million, including $1 million from individual investors and $3.3 in a doubly tranched first institutional round from Hudson Venture Partners and individuals which closed in October 2002.

The company has 25 employees in its Massachusetts headquarters, ten in its engineering facility in Yekaterinburg, Russia, and five in a sales office in London.