Y2G Associates Reports Improving Software Industry Operating Metrics are Fueling Consolidation Activity

Improved operating metrics within the software industry over the past six months is fueling tremendous levels of capital expenditures for software industry acquisiton activity. The Peoplesoft, Oracle, and JD Edwards events is a recent example of the hightened consolidation.

June 24, 2003 -- Atlanta, GA. Y2G Associates, the leading provider of tools, technology and services that improve the performance of software companies worldwide, is reporting that software industry operating performance metrics over the past year and most recent quarters are improving. Cash flow and cash management challenges have driven operational improvements within software companies, while organic growth and valuations of these same companies are gaining at slower rates than previous years. Y2G acknowledges that the industry focus on: (1) capital spending; and (2) returns on outside investments are significant factors driving the recent consolidation activities within the Enterprise Software market.

"Over the past year, the decline in cash flow fundamentals, improvements in operating performances, and gains in profitability indices are improving at a slower rate than market capital valuations," said David Cahn, CEO, Y2G Associates. While performance metrics have improved on average in the single digits, capital spending has seen a 60 percent increase, which is fueling a market capitalization growth of approximately 28 percent.

Software industry executives and financial industry analysts employ Y2G Associates Competitive Performance Calculator (CPC) as an industry watchdog" and decision support tool. The CPC utilizes metrics that are based on the continuous performance tracking of over 550 software companies spanning enterprise applications, tools and infrastructure. Y2Gs CPC further segments this group of software companies by both size and maturity.

Clients of Y2G Associates access the CPC to accelerate cross-functional operational improvements within their internal business processes. Y2G Associates clients also use the CPC to identify potential merger and acquisition targets; or, potential buyers as part of an exit strategy. Y2G also integrates the CPC tool into its other outsourced service offerings for marketing, sales, channel and alliance management, and research and development.

About Y2G Associates
Y2G Associates is the leading provider of tools, technology and services that improve the performance of software companies worldwide. Their efforts are focused on three key performance indicators: Capital Optimization, Growth Acceleration and Operational Efficiencies. Launched in 2001, with headquarters in Atlanta, Georgia, Y2G Associates team is comprised exclusively of technology executives with proven track records and decades of software industry leadership and implementation experience. Y2G Associates currently has offices in Georgia, Arizona, and Washington, DC.

To learn more about Y2Gs Competitive Performance Calculator, visit www.Y2GAssociates.com, or contact Karen Weidenaar at (770) 437-0361 or KWeidenaar@Y2GAssociates.com.