Metastorm Growth Streak Continues in 2007

Global BPM Software Leader Reports another Record Quarter and Steady Increase in Enterprise Deployments

BALTIMORE, MD – May 2, 2007 – Metastorm, a leading provider of Business Process Management (BPM) software for organizational agility, innovation, and governance, today announced financial results for its first quarter ending March 31, 2007. The privately held company posted record revenues and profitability, experienced 30% license growth year-over-year, and reported a continued increase in enterprise deployments of the Metastorm BPM® suite. In addition, existing customers continued to invest in the solution by increasing the number of users, deploying new processes, and implementing additional functional capability to support the full roundtrip process life-cycle. The increased investment by both new and existing customers was driven by a growing interest in BPM technology at the executive level as Metastorm customers validate the software’s ability to not only lower costs and increase control, but also to deliver greater agility and foster increased innovation throughout an organization.

Metastorm continued to witness broad adoption of its BPM software and Process Pod® solutions on a global scale including wins at ADP (France), Cameron McKenna (U.K.), John Deere (Germany), MMA Financial (U.S.), Osborne Clark (U.K.), Rome Airport (Italy), Royal Pharmaceutical Society (U.K.), and Wyeth (U.S.). Existing customers expanding their use of the Metastorm BPM suite included Channel 4 Television (U.K.), Chubb & Sons (U.S), FTN Midwest (U.S.), KPMG (U.S.), SkandiaBanken (Denmark), Staples (U.S.), and the U.S. Navy (U.S.). Strong adoption rates and large enterprise license deals enabled Metastorm to post its 10th consecutive quarter of profitable growth.

Metastorm’s continued revenue performance was recognized by several third party organizations including Smart CEO magazine which presented Metastorm with a Future50 award for its revenue growth, and START-IT magazine which named the Metastorm BPM Suite as a top technology for the manufacturing industry. In addition, Metastorm made KMWorld’s list of the Top 100 Companies that Matter in Knowledge Management for the fourth consecutive year – a validation that BPM technology is not a passing fad but an established enterprise platform with widespread adoption. Metastorm’s BPM leadership was further validated in Q1 by its inclusion in Microsoft’s newly launched Business Process Alliance – an elite set of 10 vendors selected to deliver business process capabilities that complement and extend Microsoft applications.

The most telling endorsement of Metastorm’s performance comes from its customers, who stepped forward to deliver Season 3 of the Metastorm Customers Speak Out video testimonial series – adding to a growing library of live commentary detailing the benefits in efficiency, control, agility, and innovation that Metastorm BPM is delivering across industries and across geographies (www.metastorm.com/customers/videos).

“Metastorm exhibited its ability to deliver consistent growth and profitable results throughout 2006, and we capitalized on that momentum in Q1 to deliver another record quarter,” stated Robert Farrell, president and CEO of Metastorm. “Metastorm customers and partners continue to validate our strategic investments in the company and the product. Organizations want to invest in a proven, established company that will be there to support them long-term, and Metastorm has demonstrated its ability to deliver both measurable results and innovative product capabilities that scale to enterprise needs. Our focus has always been to grow our BPM leadership worldwide, and we have the strategic plan and proven operating model in place to deliver on this objective throughout 2007 and beyond.”