CRM Software Industry News

A return to profitability and increased cash position

ATLANTA (August 14, 2006) - FirstWave Technologies, Inc. (NASDAQ: FSTW), a web-based, CRM solutions provider, today announced financial results for the second quarter ended June 30, 2006.

Continuing Operations
Net income applicable to common shareholders for the second quarter of 2006 improved by $423,000 to net income of $210,000 from a net loss of $213,000 in the second quarter of 2005. Net income per basic share was $.08 and net income per diluted share was $0.07 for the second quarter of 2006 compared to a net loss applicable to common shareholders of $0.08 per basic and diluted share for the second quarter of 2005. For the six months ended June 30, 2006, the net income applicable to common shareholders was $24,000, or $0.01 per basic and diluted share, compared to a net loss of $1,034,000 for the six months ended June 30, 2005, or $0.38 per basic and diluted share.

Aided by a large transaction announced May 5, 2006, software revenues increased 496% to $542,000 in the second quarter of 2006 from $91,000 in the second quarter of 2005. For the six months ended June 30, 2006, software revenue increased 240% to $589,000 from $173,000 for the six months ended June 30, 2005. Services revenues decreased 89% to $20,000 in the second quarter of 2006 from $177,000 in the second quarter of 2005. For the six months ended June 30, 2006, services revenue decreased 70% to $114,000 from $377,000 for the six months ended June 30, 2005. Maintenance revenues decreased 22% to $396,000 during the second quarter of 2006 from $506,000 in the second quarter of 2005. For the six months ended June 30, 2006, maintenance revenues decreased 21% to $854,000 in 2006 from $1,085,000 for the six months ended June 30, 2005. Total revenues for the second quarter of 2006 increased 21% to $958,000 from $793,000 in the second quarter of 2005. For the six months ended June 30, 2006, total revenues decreased 7% to $1,557,000 from $1,674,000 for the six months ended June 30, 2005.

“We are excited that we have returned to profitability and have continued to increase our cash position during the quarter,” said Richard Brock, Chairman and CEO of the Company. “With increased revenues and a lower level of expenses, we believe we can continue to improve our performance as we grow the business. While we cannot count on large transactions to provide dramatic improvements, we believe our balance sheet will grow stronger over the next several quarters. Even though we anticipate our total expenses during the quarter ending September 30, 2006 will be lower than our total second quarter expenses, we have added new employees who we expect will increase our direct sales of licenses and services.”

“As announced today, Lisa Cramer will be leading our direct sales and marketing efforts. Her experience as President of a software company developing and selling on-demand applications in the sales effectiveness and CRM markets allows her to begin adding value to FirstWave immediately with an eye toward expanding into adjacent markets.,” continued Mr. Brock.

“Our plan is to grow revenues, profits, and cash through organic growth and partnerships while seeking strategic and synergistic acquisitions that will be accretive to our earnings per share,” said Mr. Brock.

Discontinued Operations On June 3, 2005, FirstWave entered into the Stock Purchase Agreement with AllAboutTickets LLC, now known as First Sports International (FSI), to sell its UK Subsidiary. As a result of this sale, there were no results from discontinued operations during the second quarter of 2006 compared to a loss from discontinued operations of $427,000 in the second quarter of 2005. During the period from June 3, 2005 through June 30, 2006, FSI paid a total of $673,615 to FirstWave against its promissory note and prepaid royalty expenses. The current balance due from FSI is $1,540,385 (the $500,000 reflected on our balance sheet in Current Note Receivable plus $675,000 in non-current Note Receivable plus $227,385 in prepaid royalties plus $138,000 in deferred interest income). FirstWave anticipates receiving the $1,540,385 which remains due as scheduled through June 30, 2008.

Cash Balance
FirstWave reported a cash balance of $916,000 at June 30, 2006, and continues to carry no debt. This was the third consecutive quarter of positive cash flows. As reported in accordance with Generally Accepted Accounting Principles (GAAP), FirstWave’s current ratio at June 30, 2006 was 2.1:1 (Current Assets of $2,285,000 divided by Current Liabilities of $1,096,000). Current liabilities were composed of deferred revenue of $911,000 from maintenance agreements, Accounts Payable of $49,000, and other accrued liabilities of $136,000.

Other
During the second quarter of 2006, the Company made no tax provision for income tax expense due to its tax net loss carryforwards. The Company has U.S. net operating loss carryforwards of approximately $23,300,000, expiring in years 2009 through 2019, which may be used to offset future income.

FirstWave will hold its second quarter earnings conference call on, August 17, 2006, at 4:00 P.M. EST. To participate in the call from the United States or Canada, please dial 800-998-2457, Conference ID # 953055 approximately five minutes prior to the start time. To participate in the call from outside the United States or Canada , please dial 703-639-1212 five minutes prior to the start time.

Lisa Cramer brings successful software sales and marketing background in sales effectiveness industry

ATLANTA, August 14, 2006 — FirstWave Technologies, Inc. (Nasdaq: FSTW - News), a web-based, CRM solutions provider, today announced the appointment of Lisa Cramer as the Company’s Chief Sales and Marketing Officer. Ms. Cramer will strengthen the Company’s management team, bringing sales and marketing leadership and on-demand sales effectiveness knowledge to accelerate FirstWave’s growth. In this role, she will lead FirstWave’s sales and marketing efforts which encompass a wide range of growth activities, including identifying and developing complementary market opportunities.

“We are extremely excited to have Lisa as an essential part of our team,” said Mr. Brock. “Her twenty plus years of software sales and marketing experience with both large and small, public and private companies, as well as her knowledge of the sales effectiveness space will help FirstWave formulate and execute its growth activities. Lisa will have a major impact in assisting small and medium-sized businesses improve bottom line growth by delivering solutions that will optimize their sales, marketing, and customer care activities.”

As President and COO of Involve Technology, Ms. Cramer led one of the early entries in the sales effectiveness and on-demand markets. Ms. Cramer demonstrated strong sales, marketing, leadership, and product strategy, building and executing a new on-demand offering in the sales effectiveness space. Previously, Ms. Cramer was VP of Marketing and General Manager at a software-as-a-service Internet recruiting company where she was responsible for sales, sales support, marketing, product management and business development. Ms. Cramer also directed product marketing, product strategy, acquisitions and mergers at Viasoft, a publicly held software company in Phoenix, AZ. Ms. Cramer started her career as an IBM sales representative and sales engineering manager moving into marketing and product management during her years at KnowledgeWare, Inc.

“I am very excited to be working with Richard to develop and build new opportunities for the Company, as well as continuing FirstWave’s dedication and commitment to customer service,” said Ms. Cramer. “I look forward to utilizing my marketing, sales, leadership, industry knowledge and vision to FirstWave and am fully committed to the Company’s success.”

Company reports both financial and cash improvement

ATLANTA (May 8, 2006) - FirstWave Technologies, Inc. (NASDAQ: FSTW), a web-based, CRM solutions provider, today announced preliminary financial results for the quarter ended March 31, 2006.

Continuing Operations
The loss from continuing operations applicable to common shareholders for the first quarter of 2006 decreased 77.2% to $187,000, or ($0.06) per fully diluted share, as compared to a loss from continuing operations applicable to common shareholders of $821,000 in the first quarter of 2005, or ($0.30) per fully diluted share.

As more fully explained below, the decreases in license and services revenues are in part the result of a shift in the product marketing approach from a direct model to a channel model as reflected in our previously announced relationship with M1 Global which commenced in October 2005. Software license revenues decreased 42.7% to $47,000 in the first quarter of 2006 from $82,000 in the first quarter of 2005. Services revenues decreased 53.0% to $94,000 in the first quarter of 2006 as compared to $200,000 in the same quarter a year ago. Maintenance revenues decreased 20.9% to $458,000 in first quarter of 2006 from $579,000 in the first quarter of 2005. Total revenues for the first quarter of 2006 were $599,000, a 32.0% decrease from the first quarter of 2005 revenues of $881,000. Of the total revenue decrease in the first quarter of 2006, $138,000 relates to the fact that FirstWave now receives a percentage of revenues from M1 Global’s sales (33% of license revenues and 20% of services revenues); however, the costs relating to making such sales are borne by M1 Global so the amounts received by FirstWave from these revenues benefit the bottom line.

Although revenues decreased during the first quarter 2006 as compared to the same period last year, the bottom line improved primarily due to the M1 Global relationship and the significant reductions in our operating expenses associated therewith.

Discontinued Operations
As previously announced on June 3, 2005, FirstWave entered into the Stock Purchase Agreement with AllAboutTickets LLC, now known as First Sports International, to sell its UK Subsidiary. As a result of this sale, there were no discontinued operations results during the first quarter of 2006 compared to a loss of $427,000 in the first quarter of 2005. The impact of this transaction on reported financials is explained in the Company’s annual report and Form 10K which have previously been filed.

Other
FirstWave reported a cash balance of $409,000 at March 31, 2006, and continues to carry no debt. This was the second consecutive increase in quarter-over-quarter cash balances. With the $500,000 received from the Galactus transaction on May 2, 2006 for the assignment of the Company’s .Net Integrated Development Environment (“IDE”), as described in our May 5, 2006 Form 8-K filing with the Securities and Exchange Commission and the related press release, and the anticipated collection of the $300,000 note payment due on June 3, 2006 from First Sports International, we believe our cash balance will show a significant increase at June 30, 2006.

The May 2 transaction increased our cash balance by $500,000, less nominal transaction costs. After deducting the capitalized software development costs associated with the IDE, the benefit to our bottom line will be approximately $340,000 for the quarter ending June 30, 2006. Given our current expense structure, we believe we will report net income for the quarter ending June 30, 2006 compared to a net loss from continuing operations applicable to common shareholders of $439,000 for the quarter ended June 30, 2005.

Financial results for quarters subsequent to June 30, 2006 will also benefit from the absence of the recent $153,000 per quarter in amortization of software development costs which will no longer be incurred since these capitalized costs have now been reduced to zero.

“We have been extremely pleased with the transactions the Company has made and believe that continued improvement in both cash and financial performance will help the Company to grow,” said Richard T. Brock, President and CEO of FirstWave.“We believe that with our reduced expense levels and with a strategy to build applications in markets where we can gain competitive advantage, we will continue to see progress.”

Company reports positive outlook from the sale of the UK Subsidiary
and the relationship with M1 Global

ATLANTA (February 6, 2006) - FirstWave Technologies, Inc. (NASDAQ: FSTW), a web-based, CRM solutions provider, today announced financial results for the fourth quarter and year ended December 31, 2005.

Continuing Operations
The loss from continuing operations for the fourth quarter of 2005 decreased 92% to $230,000, including dividends, or $0.08 per fully diluted share, from a loss of $2.9 million in the fourth quarter of 2004, or $1.08 per fully diluted share. For the full year of 2005, the loss from continuing operations decreased 65% to $1.86 million, including dividends, or $0.68 per fully diluted share, from a loss of $5.3 million, or $1.97 per fully diluted share, in 2004.

Software license revenues decreased 27% to $137,000 in the fourth quarter of 2005 from $187,000 in the fourth quarter of 2004. Services revenues decreased 81% to $47,000 in the fourth quarter of 2005 as compared to $244,000 in the same quarter a year ago. Maintenance revenues decreased 23% to $436,000 in fourth quarter of 2005 from $566,000 in the fourth quarter of 2004. Total revenues for the fourth quarter of 2005 were $622,000, a 38% decrease from the fourth quarter of 2004 revenues of $1.0 million. $110,000 of the total revenue decrease in the fourth quarter of 2005 relates to the fact that FirstWave began receiving a percentage of revenues from M1 Global’s sales (33% of license revenues and 20% of services revenues); however, the costs relating to making such sales are borne entirely by M1 Global so the amounts received by FirstWave from these revenues totally benefit the bottom line.

For the full year of 2005, the Company reported a decrease in software license revenues of 37% to $551,000 from $876,000 in 2004, and a decrease in services revenues of 46% to $623,000 from $1.1 million in 2004. Maintenance revenues decreased 19% to $2.0 million in 2005 from $2.5 million in 2004, and total revenues decreased 29% to $3.2 million in 2005 from $4.5 million in 2004.

As more fully explained above, the decreases in license and services revenue is in part the result of a shift in the product marketing approach from a direct model to a channel model as reflected in the relationship with M1 Global. Maintenance revenues, however, fell at a much lesser rate than the other revenues, which stems from a high level of maintenance renewals from existing customers.

Although revenues decreased during the fourth quarter and for the full year of 2005, the bottom line improved primarily due to the M1 Global relationship, which results in FirstWave receiving 33% of license revenues and 20% of services revenues without incurring any of the associated expenses, rather than receiving 100% of the revenues and carrying 100% of the related costs.

Discontinued Operations On June 3, 2005, FirstWave entered into the Stock Purchase Agreement with AllAboutTickets LLC to sell its UK Subsidiary. As a result of this sale, there were no discontinued operations results during the fourth quarter of 2005 compared to net income of $213,000 in the fourth quarter of 2004. For the full year 2005, the Company reported a loss from the discontinued operations of $457,000 prior to the sale compared to earnings of $410,000 for all of 2004. The $457,000 loss from discontinued operations in 2005 was partially offset by a gain on the sale of the UK subsidiary of $327,000.

Other
FirstWave reported a cash balance of $360,000 at December 31, 2005, and continues to carry no debt. This was the first increase in quarter-over-quarter cash flows from operations since the fourth quarter of 2004.

“As explained in my letter filed with this announcement and available on our web site, both the sale of the UK Subsidiary and the outsourcing agreement with M1 Global have had positive impacts on FirstWave,” commented Richard Brock, President and CEO of FirstWave. “Operating at a greatly reduced expense level, we anticipate seeing movement toward profitability and continuing positive cash flows in the future.”

FirstWave will hold its first quarter earnings conference call on Thursday, February 9, 2006, at 4:00 P.M. EST. To participate in the call from the United States or Canada, please dial 866-256-3815 approximately five minutes prior to the start time. To participate in the call from outside the United States or Canada, please dial 703-639-1212 five minutes prior to the start time.

Salesboom.com, industry leader of pre-integrated on demand CRM and ERP unveiled Salesboom Version 8. Packed with new AJAX and RIA features to save users time, v8 also includes Human Resource Management, Employee Management, Commissions and Expense Management, unlimited custom tabs and fields and over 120 new features. Building on our all inclusive Software-as-a-Service that includes pre-integrated front and back-office software on demand, Salesboom v8 stretches the boundaries of business computing by delivering an offering not yet seen in the on demand CRM space. Salesboom v8 will be a no cost, seamless upgrade for all current Salesboom customers, registered 30-day web trial users.

Much work on v8 also went into upgrading the customization and Integration capabilities of the on demand platform that powers Salesboom CRM. “I would be lying if I told you this release was not our biggest release to date, with v8 we feel we have built the foundation to graduate Salesboom to new heights.” Our partners and customers are ecstatic says Rami Hamodah, President and Co-founder of Salesboom.

Adding Rich Internet Application (RIA) components as part of the CRM makes Salesboom more intuitive and time saving for users, which increases adoption of the CRM. With many new features such as Salesboom Suggest, Contact and Lead Rolodex, and AJAX Calendar Salesboom users are empowered with greater control and maneuverability of information while cutting down on navigation time and page refreshes. “With v8 one of our main goals was to orient our products to look and feel more like a desktop application, providing our users with greater fluency of movement and data control”, commented Troy Muise, CEO and Co-founder of Salesboom. Our customers are the guiding light, and we are proud to fulfill their requests such as Expense Tracking, HR, Employee Management, Mass Data Management, and enhanced Mail Merge features that will further simplify our users day.

Salesboom, industry leading on demand CRM provider, has unveiled its Salesforce Migration Magic Button, enabling seamless Data Migration for disenchanted Salesforce customers. Salesboom’s magic button offer comes on the heels of yet another crash by Salesforce.com, its 4th publicly acknowledged crash in as many months. It is obvious that Salesboom, with a fully refundable Service Level Agreement and guaranteed up time of 99.8%, is tabling an offer to not only leverage current disgruntled Salesforce.com customers, but to also uphold the on demand reputation.

“Being an industry leader is always going to come with added scrutiny and criticism, however, not even Salesforce.com can hide from this run of failures. It’s becoming a bit of a farce really; four crashes in four months. In this on demand industry it would be foolish for us to stand idly by while our competition fractures the platform we stand on.” says Rami Hamodah, President and Co-founder. With the Magic Button offer coinciding with the release of Salesboom Version 8.0 which introduces a full suite of Human Resource Management capabilities built into Salesboom Professional and Enterprise Editions, Salesboom is poised to continue its phenomenal growth rate. “We have positioned ourselves very well against Salesforce.com. From what were seeing, CRM customers are tired of having their data held hostage and the anticipated pain of migration is significant.” commented Troy Muise, CEO and Co-Founder of Salesboom.com. The Magic Button breaks the chain that binds users to Salesforce.com and frees them from the hassles of switching to Salesboom. And with the highest user adoption rates in the industry, our customers are happy to stay.

“In light of these SFDC shortcomings, Salesboom has refrained from jumping on the bandwagon and criticizing Salesforce.com for the outages. However, the frequency and seeming inability to control the outages jeopardize the good will of the on demand industry as a whole and means we have to set the record straight.” commented Hamodah. “We want people to know that Salesboom is a very tried, tested and reliable system that can be migrated to within hours. Customers who fear the outages can easily find safe haven with Salesboom.”

CONTACT INFORMATION

Rami Hamodah, 902-446-4312

rami@salesboom.com

Salesboom.com, industry leading on demand CRM & ERP provider announced today that Selling Power Magazine chose Salesboom as one of the top 6 on demand CRM leaders in the March 2006 issue. The issue features a ranking of the top 50 Sales Web sites in the world, without mention of salesforce.com.

Selling Power’s announcement lends greater credence to the work of Salesboom in its advancement of the hosted Customer Relationship Management (CRM) and Enterprise Resource Panning (ERP) markets. With its 3rd consecutive quarter of over 100% growth and currently providing a service to over 23,000 subscribers in over 148 countries, today’s announcement comes with little surprise for Salesboom CEO and Co-founder Troy Muise. “It has been a very exciting three years for us, and our rapid ascent up the CRM ladder is a direct result of our determination and timely innovation,” said Muise.

Currently circulating over 160,000 issues for 500,000 readers in 67 countries, Selling Power is the leading international sales management publication. “It is a staple of sales magazine circulation and continually serves as a measuring stick for our industry leaders,” commented Muise. “Selling Power’s recognition of Salesboom CRM is testament to the strength and value of our product, and solidifies our position as a leader in the on demand CRM Market.

“I am reluctant to speculate why Salesforce was absent from this list, but I can tell you that Selling Power carries a lot of weight in our industry, and to see Salesboom receiving attention over Salesforce is a real tribute to the quality of our products and the people behind it,” said Muise. Salesboom intends to build off this momentum as we head into the second quarter with plans to release V8, with full Human Resource Planning capabilities integrated into our on demand ERP.

CONTACT INFORMATION

Rami Hamodah, 902-446-4312

rami@salesboom.com

Salesboom.com, industry leading on demand CRM & ERP provider has released parts of legal documents exchanged between Salesforce.com (NYSE:CRM) and its direct competitor, Salesboom Inc. In the documents, Salesforce.com senior Vice President and former General Counsel David Schellhase openly accuses Salesboom, on more than one occasion, of attempting to “trade off the goodwill created by salesforce.com” citing the similarities of the two companies’ names. Salesboom President Rami Hamodah responded, denouncing the Salesforce.com accusation as an “absurd statement” and stating that SFDC appears to be engaging in “intimidation practices”. The documents go on to further accuse Salesboom of attempting to trade off the goodwill created by salesforce.com through various industry-standard terms, such as the Hosted Model employing an intrinsic “Zero Software Promise”. These documents reveal a menacing side of Salesforce.com not previously seen in the Hosted CRM market.

“To say that this letter has proven that even a company the size of Salesforce.com isn’t beyond reproach is an understatement”, commented Rami Hamodah, President and Co-founder of Salesboom. “The fact that such a prominent Salesforce.com executive like Mr. Schellhase has the audacity to accuse Salesboom of any wrong doing; creates the impression that the document is being used as a way to bully smaller competition out of the CRM space. If Salesforce.com and others want to wage corporate warfare, be my guest, but Salesboom does not intend to be drawn, nor bullied, into an unsubstantiated argument. Rather we pledge to continue our long-standing policy of focusing on innovation”.

Salesboom has since documented continued incidents of Salesforce.com employees misrepresenting their information in an attempt to gain access to the Salesboom system, a direct violation of the Salesboom Terms and Conditions of using the Salesboom.com service. In a Salesboom rebuttal to the Salesforce.com allegations, Salesboom finds “it very disturbing that an organization of the size and stature of Salesforce.com be condoning such disgraceful business activities”, and feels that “it is against the goodwill continually shared between all other friendly competition in this explosive market space.”

For more information, or copies of the released portions of the documents in question, interested parties are asked to contact Salesboom directly at 1.877.CRM.SALE or legal@salesboom.com.

CONTACT INFORMATION

Rami Hamodah, 902-446-4312

rami@salesboom.com

Delivering on its commitment to provide customers with solutions that meet both current and future business needs, SalesboomTM is announcing the expansion of its market-leading on demand Customer Relationship Management (CRM) service to include Human Capital Management (HCM) solutions. To be introduced with Salesboom Version 8 at the end of first quarter 2006, this latest addition will expand on current Enterprise Resource Planning (ERP) functionality integrated across Marketing, Sales, Service/Support and HR.

Salesboom v8 will focus on customization and Employee Relationship Management (ERM) tools such as HR Policy Tracking, Paid-Time-Off Vacation Requests (PTOs), employee Expense Tracking, Commissions and Compensation Tracking as well as a Recruiting Management solution - fully integrated with the Salesboom CRM service. As always, these enhancements to Salesboom will be available free of charge to existing customers.

“We Listen to our customers”, commented Rami Hamodah, president and co-founder of Salesboom.com. “Our entire product roadmap for 2006 and 2007 was created based on the input of more than 2000 customers requesting features to complement our on demand CRM offerings”.

The anticipated SalesboomTM v8 release will also include many enhancements to it’s on demand CRM offering such as Field-Level-Security, unlimited Custom Fields, data cleansing, and private labeling opportunities for Salesboom Resellers.

“Effectively managing human capital is a fundamental part of any business and should be integrated with any CRM system.” commented Troy Muise, CEO and co-founder of Salesboom.com. “Our customers have been asking for the ability to manage all their employees from within Salesboom and we have answered their requests with Salesboom v8.”

CONTACT INFORMATION

Rami Hamodah, 902-446-4312

rami@salesboom.com

Salesboom.com, industry leading provider of innovative and cutting edge On-Demand CRM Customer Relationship Management solutions today announced the release of Salesboom.com v7.0, introducing a host of new features. Among the new features available with today’s v7.0 release, Salesboom has rolled out an enhanced customizable security model focusing on modular user profile management, record-level and field-level security and more restrictive controls over user login hours and IP addresses. The new Salesboom release focuses on business process management, and workflow automation tools introduced to all editions -Team, Professional, Enterprise, and Automotive. The release also includes never-seen before features in any other CRM system, such as a Zip Code proximity search tool for leads, accounts and other records; as well as enhancements to most other modules of the Salesboom.com online CRM system. The new features, introduced today, are already available to all current subscribers of the Salesboom.com CRM software, as well as 30-Day Free Trial users.

“It thrills me to see Salesforce.com copy our features, six months after we first introduced them in 2005″ commented Rami Hamodah, President and Co-Founder of Salesboom Inc. referring to new features introduced by Salesforce.com Winter 06 release. Originally first-introduced by Salesboom.com in 2005 such as reoccurring tasks and events, an accessibility user interface for the visually impaired, amongst many more. “Watch Salesforce.com copy us again and introduce zip code proximity search to its online CRM system six months later”. “It might be simple, but just like many other unique salesboom.com features; it’s thoughtful, useful and important to any CRM user.”

The new Salesboom v7.0 release includes enhanced business automation and workflow management features such as Big Deal Alerts, case routing and escalation rules, lead routing and distribution, workflow re-assignment rules, support hours rules and customizable auto replies. A more robust shared calendar, and search features are also included. “We are under the radar; yet we are doing so well. With such a potentially explosive market, we expect 100% growth per quarter for quarters to come.” said Troy Muise, CEO and Co-Founder of Salesboom.com.

The new Salesboom v7.0 offering is available immediately for all Salesboom subscribers and also 30-Day Free CRM Trial users. More information is available at http://www.salesboom.com. Interested parties may also contact Salesboom directly at 1.877.CRM.SALE or via e-mail at rami@salesboom.com.

CONTACT INFORMATION

Rami Hamodah, 902-446-4312

rami@salesboom.com