Lucent Venture Partners and Siemens Mustang Ventures Lead $9 Million Funding of Blue Pumpkin Software

Corporate and Venture Capital Firms Make Equity Investments in Workforce Management Software Leader

Mountain View, CA, October 20, 1999 - Blue Pumpkin Software Inc., a venture- backed startup and leader in workforce management software, today announced that it has raised $9 million from Lucent Venture Partners, Siemens' Mustang Ventures, Dain Rauscher Wessels Investors LLC and Brentwood Venture Capital.

Previous investments have been received from Brentwood Venture Capital, Selby Venture Partners and angel backers, such as Ben Rosen, chairman of Compaq Computer, Roger Smith, founder of Silicon Valley Bank, and former executives from companies such as Cisco, Vantive and others. To date, the company has received investments totaling $14.7 million.

"Blue Pumpkin is on track to grow revenues four-fold over last year. This round of financing will support our continued growth as we make further investments in technology innovation, global partnership and distribution agreements, and customer service and support," said Doron Aspitz, CEO of Blue Pumpkin Software. "We continue to be committed to providing innovative workforce management solutions irrespective of our customers' call center infrastructure solutions. We are pleased that major call center equipment and software vendors and several venture capital firms have invested in our ongoing efforts. Their investments are a tribute to Blue Pumpkin's product innovation and market independence."

Michael Bateman, Chairman of Blue Pumpkin, added, "This round of financing, combined with the rapid adoption of our software by more than 300 companies and service providers worldwide validates that we are quickly becoming the industry standard for workforce management solutions in call centers and e-business centers."

According to Cahners In-Stat Group, the worldwide market for workforce management software is expected to grow to $1 billion annually by 2003 (Source: "Workforce Management Software: A Market Assessment" by Paul Stockford, published April 1999)."

The customer care center market is experiencing especially stronger growth, and Lucent Venture Partners chose to support Blue Pumpkin because it has developed an innovative, open-systems-based solution available today for managing call center staff," said Arie Litman, partner at Lucent Venture Partners. "A great deal of technology is already available to help improve call centers, but Blue Pumpkin helps optimize a call center's most important resource of all, its skilled customer care agents."

"This investment reflects our belief that Blue Pumpkin is positioned for success in the workforce management software market," said Vesa Jormakka, Vice President at Siemens Mustang Ventures. "Along with the Mustang investment, Siemens ICN signed a separate distribution and development agreement with Blue Pumpkin in July, and view them as an important element in the company's program to build a strong position in the call center market."

Blue Pumpkin currently has close relationships with all of the major providers of computer telephony integration and switching equipment. The company plans to continue to provide easy-to-use and easy-to-deploy software that is compatible across switching platforms in order to accommodate all call centers from the very small to the very large.

About the Investors

As the venture capital resource of Siemens ICN, Siemens Mustang Ventures makes early-stage direct investments mainly targeting data communications and telecommunications market segments. Organized in October 1998, Siemens Information and Communications Networks (ICN) has initially funded $100 million to support Mustang Ventures investment activities, with current activities focusing on innovative companies in the Americas, Europe, and Israel. For more information visit www.mustangventures.com.

Lucent Venture Partners, LLC. is a wholly owned venture capital subsidiary of Lucent Technologies with offices in Menlo Park, California and Murray Hill, New Jersey. Formed in 1998, the group invests in early-stage technology companies in high-growth communications areas such as wireless communications, data networking, semiconductors, communications software and professional services. For more information on Lucent Venture Partners, web site is www.luvp.com.

Dain Rauscher Wessels Investors LLC is the investment arm for Dain Rauscher Wessels, a leading investment bank focusing on technology. DRW is a division of Dain Rauscher Incorporated (NYSE: DRC).

Brentwood Venture Capital is a premier venture capital partner for early-stage companies. Founded in 1972, Brentwood has a strong track record of successful investments in information technology including investments in WebTV Networks, NextCard and Concur Technologies. For more information visit www.brentwoodvc.com.

Blue Pumpkin PrimeTime

Blue Pumpkin PrimeTime has been awarded Product of the Year from Call Center Magazine and Editor's Choice awards from Call Center Magazine and CTI Magazine while the company's Enterprise product was recently awarded an Editor's Choice award from Call Center Solutions. PrimeTime is a robust workforce management software package designed to optimize the forecasting and scheduling of agents in customer contact centers by ensuring the right agents with the right skills are in the right place at the right time. PrimeTime provides powerful "what-if" analyses to predict how call volume and staffing changes will affect customer contact center operations. Blue Pumpkin PrimeTime is network-enabled, and users are able to designate any Windows 95, Windows 98 or NT PC as a server. With Prime Time, customer contact centers reduce overstaffing costs and increase revenues by capturing previously lost sales.

About Blue Pumpkin

Blue Pumpkin Software is a privately held company founded in 1996 and is the only workforce management company named to Upside Magazine's Hot 100 Private Companies, an elite list of rapidly growing high-technology firms. Blue Pumpkin developed the PrimeTime product line to allow customer contact center professionals to optimize service and increase customer contact center efficiency. Current customers include ADP, Airborne Express, Apple Computer, AT&T, KitchenAid, Carlson Wagonlit Travel and PeopleSoft. Blue Pumpkin has tested and confirmed that the PrimeTime suite of products is Year 2000 compliant. Contact centers in need of computer-aided forecasting and scheduling include those providing technical support, customer service, travel reservations, financial services and telemarketing. For more information, visit the Blue Pumpkin web site at www.blue-pumpkin.com or call 877-257-6756.