170 Systems Reports Record First Half of 2005

Company Exceeds Revenue and Profitability Goals While Introducing a New Financial Suite with the Release of 170 MarkView 5.0

Bedford, MA (August 10, 2005) - 170 Systems, the leading provider of software solutions that optimize financial transactions, today announced achievements for the first half of 2005, ending June 30, 2005. Building on its 2004 momentum, the company realized record profitability and revenue growth, increasing its revenue by more than 20 percent over the same period in 2004. This success can be attributed to the continued expansion of its customer base, signing major new customers across a variety of industries, including high technology, healthcare, retail and financial services. In addition, more than 40 percent of 170 Systems' installed customer base purchased additional products and services from the company.

As part of 170 Systems' unyielding commitment to provide its customers with best-in-class solutions, the company announced the availability of its new Financial Suite in June. Delivered through the release of 170 MarkView 5.0, the Financial Suite provides Global 1000 financial executives with visibility and control over all core financial functions, including accounts payable (A/P), accounts receivable (A/R), expenses, procurement, fixed assets (FA) and general ledger (GL). This packaged group of products, services and best practices business processes offers a global end-to-end streamlined solution, increasing service-level responsiveness to internal and external customers, while extending cost savings through gained efficiencies.

"The latest version of the 170 MarkView solution provides customers with the capabilities to strengthen their internal controls while cutting costs," said Dave Ellenberger, CEO of 170 Systems. "The continued adoption of our solution validates our in-depth knowledge and expertise in helping Global 1000 companies develop world-class financial operations and achieve a strong ROI. Looking ahead to the second half of 2005, we are well-positioned to continue delivering solutions that address the challenges faced by financial executives."

Additional highlights from the first half of 2005 include:

Major new customers including a leading coffee retailer, a major West coast health care insurer, a mortgage broker, a leading open source software provider, a storage solutions developer, a sports equipment and apparel retailer, and an energy services provider;
Completing an ROI study with The Gantry Group that highlighted a triple-digit ROI and an average payback period of seven months, based upon actual before and after data with existing customers, validating the significant impact that 170 Systems' solutions have on an organization's performance;
A new strategic relationship with DLT Solutions, a value-added solutions provider focused on delivering state-of-the-art technology products, services and solutions to government and business customers, and an expanded partnership with Xansa, a UK-based outsourcing and technology company;
Releasing results of a customer survey, which highlighted that 80 percent of financial executives surveyed recognize the need for a technology solution to strengthen internal controls to mitigate financial risk and thus comply with Sarbanes-Oxley;
Speaking engagements by 170 Systems' executives, customers and consultants at several conferences, including International Accounts Payable Professionals (IAPP) 15th Annual Forum, the Investment Management Institute's (IMI) Accounts Payable Conference and the Oracle Applications Users Group (OAUG) Connection Point® 2005; and
Upgrades for major customers in record numbers.

About 170 Systems
170 Systems is the leading provider of software solutions that optimize financial transactions, ensuring their cost-effective and timely processing, aligning the finance organization with business goals. Proven in the world's largest organizations, 170 Systems software, best practices, and process automation provide end-to-end automation of financial transactions, including accounts payable, accounts receivable, expense management, procurement and general ledger. These financial solutions reduce costs, strengthen internal controls, improve service, and maximize cash flow. The 170 MarkView solution provides seamless integration with ERP systems, including Oracle E-Business Suite and PeopleSoft Enterprise, and is deployed across a wide range of industries in more than 40 countries. For more information about 170 Systems, please call 1-800-788-6170, +1-781-743-1900, +44 0208 610 6009, or visit http://www.170systems.com.