Concerto Software Delivers Another Record Quarter

WESTFORD, MA -- Nov. 19, 2004 -- Concerto Software, a leading provider of contact center solutions, today announced financial results for the third quarter of 2004. Concerto Software(TM) achieved its most substantial growth in the company's history, increased profitability, and significantly expanded its global customer base and footprint through the acquisition of Rockwell FirstPoint Contact and Positive Software Systems, Inc.

Revenue for the third quarter of 2004, which includes the results of Rockwell FirstPoint Contact from the September 3rd date of acquisition, was $50.4 million, an increase of 85 percent compared to $27.2 million in third-quarter revenue last year and an increase of 26 percent compared to $40.0 million in revenue for the second quarter of 2004.

Driven by strong global sales and the addition of 29 new name global customer wins, this marks the sixth consecutive quarter of revenue growth for Concerto Software.

Product revenue for the third quarter was $22.8 million, an increase of 87 percent from the same period last year and a 24 percent increase from the second quarter of 2004. Excluding revenue from its acquisitions in 2004, product revenue for the third quarter increased by 16 percent from the same period last year.

"Our aggressive business and acquisition strategy positions Concerto Software to offer customers the rare combination of proven industry expertise coupled with innovative and reliable products," said James D. Foy, president and CEO of Concerto Software. "By augmenting our robust organic growth with strategic acquisitions, we have considerably advanced our leadership position in the market, enabling Concerto Software to deliver even greater value to our customers and partners."

Third Quarter Acquisitions

Concerto Software acquired Rockwell FirstPoint Contact, a global provider of contact center solutions, which brought together the industry founders of both inbound and outbound contact center solutions.

This acquisition enabled Concerto Software to significantly expand its intellectual capital and its suite of product offerings. FirstPoint Contact brings to Concerto Software's product portfolio the FirstPoint(TM) Enterprise product with the Spectrum(R) automatic call distributor (ACD), which provides an open interaction architecture enabling the product to easily integrate with other applications. In addition, Concerto Software now has the award-winning FirstPoint Enterprise product leveraging Cisco(TM) CallManager, the most comprehensive Voice-over Internet Protocol (VoIP) call center solution currently available. It extends the capabilities of the Cisco CallManager infrastructure with more complete routing, reporting and monitoring functionality. This solution enhances Concerto Software's existing IP capabilities and accelerates the company's delivery of the most advanced IP contact center solution in the industry.

In addition, Concerto Software acquired Positive Software Systems, Inc., a provider of software solutions that optimize sales and collection activities for telemarketing companies, service bureaus and enterprise contact centers. Formerly a Concerto Software Technology Alliance Partner, Positive Software created Enterprise Campaign Manager (ECM), a private-label customer interaction data warehouse product that was exclusively sold and supported by Concerto Software. Since the acquisition, Concerto Software has already closed its first $1 million ECM sale into the existing Concerto Software customer base.

"With our newly acquired intellectual property, as well as our substantial investment in research and development, Concerto Software is providing our customers with new technologies, processes and solutions to further help them meet their strategic customer contact objectives," said Foy.

About Concerto Software

Concerto Software is a leading provider of contact center solutions that help companies better manage customer interactions via voice, email, the Web and fax. With multiple strengths - including financial stability, talented people, innovative technology, more than 30 years of industry expertise and a singular focus on the contact center - Concerto Software is a trusted partner to companies across the globe. Concerto Software is headquartered in Westford, Massachusetts, with operations across the Americas, Europe and Asia Pacific. For more information, visit www.concerto.com.