CRM Software Industry News

FirstWave Delivers 428% Improvement

ATLANTA, February 5, 2007 - FirstWave Technologies, Inc. (NASDAQ: FSTW) announced today a report from a leading research firm on their experience using FirstWave’s new eMarketing solution. CSO Insights is a research firm that specializes in measuring the effectiveness of today’s sales and marketing organizations. Jim Dickie, partner in CSO Insights, stated that FirstWave’s “response rate of getting executives to click through to our survey was 428% more than we had been achieving. Our reaction was this of course had to be due to the quality of the list they were using. FirstWave acknowledged that might be part of it, but suggested we take their exact approach to send invitations to the executives we had already invited on our own list. Our results—a 251% improvement over what we had previously been generating when left on our own!”

So What Does Better Look Like?

What were the keys to this improvement in performance? “FirstWave showed us their approach was a combination of several factors; list quality; the ability to segment the exact class of executives we should target; optimized delivery methods to get through corporate spam filters; targeted messaging to optimize click-throughs; and analytics that track behavior so that the process can be improved based on the lessons learned from each previous campaign,” continued Dickie.

On November 8, 2006 FirstWave issued two press releases describing a major upgrade of technologies and a major expansion of solution offerings. Firstwave’s focus is to provide internet marketing solutions designed to ensure you’re first: first to reach the right business prospects, first to nurture them — and first in mind when they’re ready to buy. “The CSO Insights Report validates that our new technology and solution offering is on the right track. In our own internal marketing programs using our new technology, we are consistently seeing marketing responses that are 50% above the high end of expected response rates in the marketing industry”, said Richard Brock, CEO of FirstWave. The complete CSO Insights report prepared for distribution to their customers can be downloaded at the FirstWave web site: www.Firstwave.net.

FirstWave has been selected as one of the Top 40 Innovative Technology
companies in Georgia by the Technology Association of Georgia (TAG), the
state’s leading technology organization.

The TAG Top 40 were chosen based on a number of criteria, including: degree of
innovation; scope and financial impact of innovation; likelihood of success; and
promotion of Georgia’s innovative efforts nationally and internationally.
Companies selected to be in the Top 40 also participate in a showcase exhibit at
the Georgia Technology Summit, attracting some 800 of the state’s technology
leaders.

New release exceeds expectations and expands FirstWave’s
potential market and partners

ATLANTA, November 8, 2006 — FirstWave Technologies, Inc. (Nasdaq: FSTW - News), a web-based, demand generation, lead leakage and revenue retention solutions provider, today delivered its most significant release to customers in several years. This release, available immediately, provides the best attributes of marketing list companies, optimized e-mail delivery services, and CRM software solutions bundled together from a single source and offered on a new, monthly subscription service. In conjunction with this release, FirstWave is positioning the Company to take advantage of its full-featured CRM suite while now providing products and services to generate, track and manage leads.

The release benefits marketing, sales and support users as it includes, among many other features: Outlook integration which allows users to spend their time in Outlook and pass/retrieve CRM information to and from FirstWave; sales dashboards to allow quick review of activities, forecasts and more, customer dashboards that give a 360 degree view of customer activities, marketing campaign definition, tracking and management, integration into email marketing lead generation services, real-time metric dashboard reviewing lead results (opens, click-throughs and more), web tracking behavior of each lead giving reps immediate knowledge of “hot” prospects, real-time lead distribution, and marketing, sales and support out of the box reports.

The Company is also providing its customers maximum flexibility in the way they acquire FirstWave products. Three options are offered: perpetual license fees with up-front payments (as traditionally offered), hosting of the application by a FirstWave partner with subscription pricing, or payment on a monthly subscription model with the customer operating the software behind their firewall (the same as if they had paid the traditional up-front software license). FirstWave has expanded the hosted options to enable small and medium businesses to take advantage of the per user monthly charges.

New products, services and enhancements expand the potential market

ATLANTA, November 8, 2006 — FirstWave Technologies, Inc. (Nasdaq: FSTW - News), a web-based, demand generation, lead leakage and revenue retention solutions provider, is taking advantage of its CRM infrastructure products by expanding into solutions on top of those products. Coupled with unique new lead generation services, FirstWave has positioned its Marketing, Sales, and Customer Support modules to reflect the benefits the customer needs to achieve: maximize demand generation, minimize lead leakage, and optimize revenue retention. Current customers will continue to receive significant enhancements to their feature-rich and high-quality software modules. Now they can also have leads generated by FirstWave to feed their CRM modules.

FirstWave has also expanded its delivery methods to include a subscription-based solution. As the market demand for qualified sales leads and the ability to convert opportunities to profits continues to grow, the Company recognizes the importance of delivering more flexibility in delivery and payment options to its customers. FirstWave will continue to offer its perpetual license option but now has expanded to offer subscription based pricing. This subscription based pricing can be delivered either behind the customer’s firewall or hosted by FirstWave as a Software-as-a-Service (SaaS).

The new capabilities coupled with flexible deliver options gives all involved a “win-win”: customers receive qualified leads and opportunities through a delivery mechanism that fits their corporate culture and FirstWave continues to satisfy its customers’ needs with expanded product offerings.

FirstWave’s new delivery option gives the Company several advantages: (1) enabling buyers to focus on providers who can deliver the highest ROI (as measured by the optimal Demand Generation, minimum Lead Leakage, or maximum Revenue Retention) - an area where FirstWave can effectively compete; (2) allowing FirstWave to create a steady stream of relatively predictable recurring revenues as a result of subscription-based transactions in lieu of difficult to forecast, large license sales; (3) allowing FirstWave to expand its market opportunity into the Small and Medium Business market and (4) providing FirstWave the ability to expand its distribution channel by attracting marketing companies as partners (see FirstWave’s “partner page” on its website).

Revenue improvement and increased cash position

ATLANTA, November 8, 2006 - FirstWave Technologies, Inc. (NASDAQ: FSTW) today announced financial results for the third quarter ended September 30, 2006. FirstWave reports revenue improvements in all categories when compared to the amounts reported in the prior quarter and four consecutive quarters of increased cash position.

Third Quarter 2006 compared to Second Quarter 2006

FirstWave’s software revenues of $59,000 increased 40.5% in the third quarter of 2006 as compared to software revenues of $42,000 in the second quarter of 2006, excluding a one-time transaction of software revenues of $500,000. The Company has already closed four transactions in the fourth quarter of 2006 contributing $50,000 in software revenues. A fifth transaction for $28,500 in software revenues has been signed in the fourth quarter subject to an acceptance clause that the Company believes will clear by November 30, 2006. Three of these transactions are with existing customers, while two are with new large customers, providing additional confirmation of the quality and cost-effectiveness of FirstWave’s technologies.

The significant increase in professional services revenues in the third quarter of 2006 of $98,000 as compared to $20,000 in the second quarter of 2006 reflects the improvements from the Company’s direct and channel strategy. Based on work orders already signed in addition to other work orders expected to be signed in the fourth quarter of 2006, FirstWave anticipates continuing improvement in its professional services revenues.

“Excluding the one time transaction of $500,000 in software revenues from the unusual and one time sale of intellectual property to Galactus Software in the second quarter, total revenues for the third quarter of 2006 increased 27.3% to $583,000 from $458,000 in the second quarter of 2006,” said Richard Brock, CEO of FirstWave.

FirstWave has modified its go-to-market strategy by hiring direct sales and professional services staff with the expectation of further boosting revenues and profits. The relationship with M1 Global announced on October 10, 2005 has been profitable and has resulted in small projects with several new customers who are using our product on a hosted basis. M1 Global and FirstWave are continuing to explore ways to improve their respective revenue generation activities, and the outsourcing arrangement has been adjusted favorably to FirstWave to reflect the lower levels of expenses being incurred by M1 on an ongoing basis. Both companies continue to pursue joint opportunities.

During the third quarter of 2006, the Company recorded an impairment charge of $51,000 to write-down an investment to its new carrying value of $15,000. Also recorded in the third quarter of 2006 is a $20,000 compensation charge relating to stock options as now required in accordance with generally accepted accounting principles. Future quarters will also include such non-cash expenses for stock options.

“I am pleased with our results for the third quarter of 2006 which includes a net loss from operations of only $22,000 during a quarter in which we expended considerable effort to make major advances in our technology and to expand the market for our products and services,” said Richard Brock. “Based upon reasonable expectations of revenues and collections, we believe we will continue to realize revenue growth and positive cash flows in the fourth quarter of 2006.”

The Company is also issuing two other press releases today, describing a major upgrade of technologies and a major expansion of solution offerings. Full details of the Company’s new offerings and product enhancements can be found at our enhanced website, www.FirstWave.net. Because of these significant other announcements, the Company has elected to give limited guidance but is not setting a precedent for giving guidance in future periods.

Third Quarter 2006 compared to Third Quarter 2005

Net loss applicable to common shareholders from continuing operations for the third quarter of 2006 improved 84.3% to a net loss of $114,000 from a net loss of $728,000 in the third quarter of 2005. Net loss per basic and diluted share from continuing operations was $0.04 for the third quarter of 2006 compared to a net loss per basic and diluted share of $0.27 per basic and diluted share for the third quarter of 2005. For the nine months ended September 30, 2006, the net loss applicable to common shareholders was $90,000, or $0.03 per basic and diluted share, compared to a net loss of $1,762,000 for the nine months ended September 30, 2005, or $0.65 per basic and diluted share.

Software revenues from continuing operations decreased 75.5% to $59,000 in the third quarter of 2006 from $241,000 in the third quarter of 2005. For the nine months ended September 30, 2006, software revenues from continuing operations increased 56.5% to $648,000 from $414,000 for the nine months ended September 30, 2005. Professional services revenues from continuing operations decreased 50.8% to $98,000 in the third quarter of 2006 from $199,000 in the third quarter of 2005. For the nine months ended September 30, 2006, professional services revenues from continuing operations decreased 63.2% to $212,000 from $576,000 for the nine months ended September 30, 2005. Maintenance revenues from continuing operations decreased 12.7% to $420,000 during the third quarter of 2006 from $481,000 in the third quarter of 2005. For the nine months ended September 30, 2006, maintenance revenues from continuing operations decreased 18.6% to $1,274,000 in 2006 from $1,566,000 for the nine months ended September 30, 2005. Total revenues from continuing operations for the third quarter of 2006 decreased 37.2% to $583,000 from $928,000 in the third quarter of 2005. For the nine months ended September 30, 2006, total revenues from continuing operations decreased 17.8% to $2,140,000 from $2,602,000 for the nine months ended September 30, 2005.

“Our net loss has decreased significantly compared to prior years in part due to the reduction of our expenses to match our lower revenues” said Richard Brock.

Cash Balance
FirstWave reported a cash balance of $963,000 at September 30, 2006 which represents positive cash flows for the quarter of $47,000 and the fourth consecutive quarter of positive cash flows. The Company continues to carry no debt.

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.”

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.

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.

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.”