Servicesoft Technologies Prepares for Rapid Growth Securing Over $16 Million in Financing.

NEEDHAM, Mass.--(BUSINESS WIRE)--June 21, 1999--

Funding From Top-Tier Venture Firms Allows for Expansion of Company

Operations to Meet Overwhelming Demand For eService

Servicesoft(R) Technologies, Inc., the breakaway leader in Internet Customer Service, today announced it closed a round of financing of more than $16 million. New York and Toronto-based CIBC Capital Partners and San Francisco-based FT Ventures join Sigma Partners, Internet Capital Group, Gemini, Sofinov, JL Albright and Grey Advertising, in fueling Servicesoft's growth. Proceeds from the investment will focus on expanding the company's domestic and international operations to maintain its leadership position in eService.

In an aggressive move to deliver on customer demands for a complete eService experience, ServiceSoft Corporation and Balisoft Technologies merged in February 1999, creating Servicesoft Technologies. The merger has allowed Servicesoft to deliver Servicesoft eCenter(TM), the first complete solution to meet the pent-up demand for Internet Customer Service.

"eService is the missing link to making e-commerce work by providing customers with smart answers and support on the Web, and Servicesoft is leading this charge," said Mark Skapinker, chairman and CEO of Servicesoft Technologies. "Since the merger, Servicesoft has grown exponentially and has attracted some of the finest investors in the world. This new funding will help fuel our rapid growth and allow us to maintain our leadership position in eService."

Teddy Rosenberg, Managing Director, CIBC Capital Partners, the lead investor in this round of financing, said "Servicesoft is sitting in the middle of an e-Commerce revolution as customers increasingly turn to their browsers for customer service instead of picking up the phone. Our experience with numerous e-commerce investments has helped us recognize Servicesoft's value proposition in providing a critical component to every company's Internet/e-commerce strategy. We are enthusiastic about Servicesoft's core company focus, vision and commitment to excellent customer service on the Web - all the right ingredients to being the clear leader in this space."

Dave Tarrant, president of Servicesoft Technologies, said "The key to leading this market is executing quickly with best-of-breed, comprehensive solutions. This capital will allow us to aggressively build our infrastructure to maintain our leadership position in Internet Customer Service, setting the technology standard by which all others will follow."

About Servicesoft Technologies

Servicesoft Technologies, Inc. (http://www.servicesoft.com) is the breakaway leader in Internet Customer Service - delivering the industry's only complete end-to-end solution, comprised of best-of-breed applications for self-help, e-mail management and live customer interaction, all driven by the industry's most robust knowledge base. This complete offering is crucial to enabling companies to leverage the promise of the Inter Cisco Systems, Motorola, Verio and NB Tel rely upon the company's award-winning offerings. The company's pad herein are acknowledged to be registered trademarks or trademarks of their respective holders.