Metastorm’s Growth and Leadership Continue

Global Enterprise Software Vendor Delivers Strong Q3 Financial Results and Completes Strategic Acquisition

BALTIMORE, MD – November 7, 2007 – Metastorm, a leading provider of Business Process Management (BPM), Business Process Analysis (BPA), and Enterprise Architecture (EA) software for aligning strategy with execution, today announced financial results for its third quarter ending September 30, 2007. The privately held company posted record software revenues, increased profitability and reported a continued increase in enterprise-wide deployments of its software. The company hit all of its financial targets while at the same time completing the acquisition of Proforma Corporation – a strategic move that extended Metastorm’s reach into new markets, substantially increased its revenue base, and extended the company’s product portfolio. Inclusive of the Proforma acquisition, Metastorm experienced 47% growth in total revenues year-over-year.

The expansion of Metastorm’s product portfolio to include enterprise modeling as well as its traditional business process management capabilities was well received by existing customers, many of whom expressed interest in adding Metastorm ProVision® to their existing Metastorm BPM® deployments. The ability to sell into three growing markets – EA, BPA, and BPM – combined with the new opportunities now available to Metastorm within its existing customer base has had a very positive impact on the performance of the company.

Metastorm added over 65 customers to its portfolio in Q3, including Batelco (Bahrain), Boeing (U.S.), Blue Cross Blue Shield of Louisiana (U.S.), Network Rail (U.K.), Maserati (Italy), Macy’s (U.S.), State Farm (U.S.), and United States Department of Education (U.S.). Existing customers expanding their use of Metastorm software included Blue Cross Blue Shield of Florida (U.S.), Conair (U.S.), DHS Customs & Border Protection (U.S.), Telenor (Norway), United States Department of Veterans Affairs (U.S.), and Wyeth (U.S.). Strong adoption rates and large enterprise license deals enabled Metastorm to post its 12th consecutive quarter of profitable growth.

The Metastorm BPM and Metastorm ProVision Suites are among the leading business process improvement products on the market today. As such, the company is frequently recognized by external parties. In Q3, Metastorm was recognized by both Deloitte Technology and Inc. magazine for its strong growth and was awarded the KMWorld Trend-Setting Product 2007 award for its product innovation and proven customer success.

“Our message of unifying strategy, analysis and execution with the help of a single technology platform from Metastorm is clearly resonating in the market,” stated Robert Farrell, chairman and CEO of Metastorm. “Metastorm customers and partners responded very favorably to our acquisition of Proforma Corporation in Q3, and that strategic move has already resulted in many new revenue opportunities for the company. Our ability to execute a significant acquisition while concurrently delivering strong financial performance is a testament to the successful and focused operating model we have established at Metastorm. Over the years, we have continually demonstrated our ability to both execute and innovate – a combination that has allowed us to maintain our market leadership position and will serve us well as we continue our growth in the future.”