SPS Commerce Secures Additional $18 Million in Venture Capital Funding

ST. PAUL, Minn.--()--May 19, 2003--

 -- Newest Venture Capital Investment Allows SPS To Extend Leadership in the Supply Chain Integration Service Market -- 

SPS Commerce, the No. 1 provider of Supply Chain Integration Services for small and mid-sized businesses, today announced the completion of an $18 million Series B round of financing. This round of funding includes significant participation by a new investor, River Cities Capital Funds, along with contributions from existing investors St. Paul Venture Capital, CID Equity Partners, Adams Street Partners, Granite Private Equity, Svoboda Collins & Company, Pacific Capital Ventures and Axiom Venture Partners. SPS Commerce will use the funding to enhance its position as the leader in the supply chain integration services market through acquisition and expansion into new vertical segments.

"Our extensive experience in the e-commerce, EDI and retail sectors helped us identify SPS as the likely category winner," said River Cities Capital Funds Principal Murray R. Wilson. "SPS Commerce, with its combination of flexible hosted service model, effective customer acquisition/deployment strategies and adroit partner selection, is well suited to leverage its clear leadership position in the supply chain integration service market."

"Any well-funded market leader in this economy has the chance to solidify their position through a number of available value-priced acquisitions. Because of SPS Commerce's strong business model based on recurring revenues, now coupled with a positive cash flow, they can utilize this new financing to directly target acquisitions to extend their leadership position in the supply chain services market," stated Michael Gorman, General Partner at St. Paul Venture Capital.

This latest round of funding follows a stellar first quarter in which the company reached profitability and increased market traction with a number of significant customer acquisitions. Through its expansive suite of hosted Supply Chain Services, SPS has become the de-facto e-business division for many small- and mid-sized enterprises (SME) as they look to improve their trading relationship with large enterprise customers through automated electronic transactions.

"This latest round of funding clearly validates our vision of a suite of supply chain services provided through a cost-effective hosted model for SMEs," said SPS Commerce President Archie Black. "The roster of impressive clients, including new clients like Costco and expanded relationships with leaders such as West Marine, continues to grow and the new business front is very strong. We look forward to using this funding to complete a number of acquisitions that will allows us to more rapidly expand the reach of our network and broaden the scope of service offerings for our valuable customers."

About SPS Commerce

SPS Commerce is the leading provider of hosted supply chain integration services. The company specializes in managing trading partner enablement and management programs to increase the depth and/or breadth of integration with trading partners -- especially small and mid-sized partners. Our solution has helped key enterprises, including more than 80 large retailers and distributors, electronically enable and integrate over 45,000 trading partners into their e-supply chain. For more information, visit www.spscommerce.com or call (651) 603-4400.

SPS Commerce is a registered trademark of SPS Commerce Inc., spscommerce.net and the SPS Commerce logo are the property of SPS Commerce, Inc. All other names and trademarks are the property of their respective holders.

Contacts

SPS Commerce
Jim Frome, 651/603-4400
jfrome@spscommerce.com
or
SHIFT Communications
Derek Lyons, 617/681-1238
dlyons@shiftcomm.com

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Contacts

SPS Commerce
Jim Frome, 651/603-4400
jfrome@spscommerce.com
or
SHIFT Communications
Derek Lyons, 617/681-1238
dlyons@shiftcomm.com