Great Hill Partners

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3.3.2003
Surebridge Acquires ManagedOps

Lexington, MA - March 03, 2003 - Surebridge, Inc., the leading provider of outsourced enterprise application solutions for mid-market companies, today announced it has acquired ManagedOps.com, Inc., a Bedford, New Hampshire-based provider of application outsourcing solutions to mid-size businesses. The combined company strengthens Surebridge's position as the largest, most successful application outsourcer in the mid-market and creates a dominant partner for hosted Microsoft Business Solutions applications with more than 50 percent market share. The transaction has been approved by the boards of directors and shareholders of both companies. Financial terms were not disclosed.

This combination is part of Surebridge's aggressive growth strategy and follows on the heels of the company's acquisition in October 2002 of Transchannel - an Atlanta-based company that specialized in managing and hosting PeopleSoft applications for middle market clients - which solidified Surebridge's status as the leading application outsourcer for the mid-market.

ManagedOps delivers application management and outsourcing services for Microsoft Business Solutions to mid-market companies ranging in revenue size from $10M to $250M. Its customers are in the same vertical markets Surebridge targets - manufacturing/distribution, financial services, healthcare/pharmaceutical services, publishing/media & communications, retail and public sector industries. Surebridge will merge its Microsoft Business Solutions unit into the ManagedOps organization, becoming Surebridge's Microsoft Business Solutions organization, which will be based in Bedford, New Hampshire. Surebridge will continue selling outsourcing services for Microsoft Business Solutions outside of the New England area through the channels established by ManagedOps. The combined company will have approximately 1,000 total clients.

"ManagedOps has a solid reputation in the industry, a strong niche among medium-size companies and exceptional capabilities of delivering Microsoft Business Solutions," said Peter J. Boni, chairman and CEO, Surebridge Inc. "There are also great synergies between the companies in terms of geography, culture and target customer. The combined company will solidify Surebridge's indisputable leadership position in the mid-market, strengthen its Microsoft Business Solutions national footprint and create dominant market share. Middle market companies can be assured that they will receive world-class front-to-back office solutions from a financially viable market leader."

Patrick Curran, a partner with Great Hill Partners and a member of ManagedOps' board said, "Surebridge is a profitable and established firm with a strong track record of delivering solutions with exceptional customer service. We believe that combining operations with Surebridge will provide significant benefit and opportunity for ManagedOps' staff, clients and partners. It is exciting to be a part of a large, successful firm that will provide a compelling value proposition to mid-market companies and be the market leader in hosted Microsoft Business Solutions." Curran is expected to join Surebridge's board of directors.

"Today's companies want to do business with larger, more stable IT services vendors," said Joe Vafi, senior equity research analyst, Jefferies and Company. "Surebridge has succeeded in its consolidation strategy and established leadership in its market. Consolidations like this generally increase company performance and enhance the value proposition for employees, customers, partners and shareholders alike."

"Surebridge's acquisition of ManagedOps enhances the combined company's leadership position in the mid-market by strengthening its Microsoft Business Solutions expertise and value proposition," said Amy Mizoras, AppSourcing program manager, IDC. "This kind of growth strategy has accelerated Surebridge's ability to gain critical mass as a leading provider of outsourced application services to mid-market companies."

Surebridge, which achieved profitability early last year, is the only application outsourcer that can provide a comprehensive portfolio of totally integrated front-to-back end ERP, CRM and eBusiness solutions to mid-market companies. Unlike most traditional ASPs and systems integrators, Surebridge, with its CIO-on-call and vertical approach to application outsourcing, has the ability to tailor applications to integrate seamlessly into legacy systems, eliminating the need for total customization. Surebridge's customer-centric business model has resulted in a high customer satisfaction rating. The company has expertise in several vertical markets to provide tailoring specific to client requirements and to build a road map to deliver applications that meet customers' exact strategic needs at a fraction of the cost of complex customization.

About ManagedOps
Headquartered in Bedford, New Hampshire, ManagedOps has been instrumental in supporting business applications for hundreds of customers since 1987. The company's efforts have been rewarded by being one of the few companies to earn Microsoft Gold Certification for Hosting and Application Services. In 2000 and 2001 the company also received the Microsoft Business Solutions ASP Excellence Award.

About Surebridge, Inc.
Surebridge, the leading provider of outsourced enterprise application solutions for middle market companies, delivers brand name application choice and affordable strategy, implementation and outsourcing services. Surebridge's complete portfolio comprises ERP, CRM, eBusiness integration and productivity applications, driving efficiencies into business processes and adding value to customers, partners, shareholders and employees alike. Its full service offerings include software selection based on business need, rapid and precise application deployment, upgrade services, secure hosting, application management and continuous business improvement solutions. By providing outsourced business-critical enterprise-level applications, Surebridge provides tremendous cost savings to its customers. In addition, Surebridge's offerings are enhanced with a constant eye toward value through high-touch customer service. Surebridge offers vertical expertise in the manufacturing/distribution, financial services, healthcare/pharmaceutical services, publishing/media & communications, retail and public sector industries. The company was founded in 1997 and is headquartered in Lexington, Mass. For more information, please visit www.surebridge.com or call 781-372-3222.