Pragmatech Software Attracts $8 Million in Funding; Commonwealth Capital Ventures, Kodiak Venture Partners, and North Bridge Venture Partners Further Investment

NASHUA, N.H.--(BUSINESS WIRE)--Jan. 24, 2005--Pragmatech Software, Inc., the leading provider of sales productivity and proposal automation applications, today announced that it has received an additional venture capital infusion of $8 million in Series A funding. Three first round investors, Commonwealth Capital Ventures, Kodiak Venture Partners, and North Bridge Venture Partners, have participated in the second investment and serve on the company's Board of Directors. The expanded investment will drive Pragmatech's sales, marketing, and continued growth initiatives.

"Over the past 18 months, Pragmatech has experienced tremendous growth, with deployments of our award-winning technology increasing around the globe," said Brian Zanghi, President and CEO, Pragmatech Software, Inc. "Our investors recognize the effect of Pragmatech's solutions on the corporate bottom line. This additional investment will solidify our position as the leader in the proposal automation sector as well as enable us to further enhance our technology to meet the evolving demands of our enterprise customers."

"Our additional investment in Pragmatech is a strong endorsement of its technology, management team, and anticipated explosive growth," said Rich D'Amore, General Partner, North Bridge Venture Partners. "Pragmatech is a trailblazer in the proposal automation sector, and its solutions have revolutionized the method by which Fortune 500 and 1000 companies create customer-facing selling documents. Our additional investment in Pragmatech will enable its technology to become the industry standard among sales and marketing teams worldwide."

"Pragmatech's seasoned management team, customer-acclaimed technology, and expanding revenue base are the elements of a highly successful enterprise worth further investing," said Elliot Katzman, Partner, Kodiak Venture Partners. "Kodiak is eager to continue its stake in the rapid expansion of a well-managed, high-growth organization."

"Pragmatech is a solid organization that over the past decade has offered extremely effective technology to the nation's leading companies," said Justin J. Perreault General Partner Commonwealth Capital. "Our continued guidance combined with Pragmatech's strong management team and partners will serve as the foundation for a company that will continue to impact the business processes of streamlined focused organizations in a range of markets."

About Pragmatech

Pragmatech Software, Inc., is the leading provider of sales productivity and proposal automation software. The company delivers proven solutions to field sales, marketing, proposal, and bid teams in Fortune 1000 companies, including those in hardware/software, telecommunications, healthcare, distribution, manufacturing, and financial services/insurance. Pragmatech's solutions automate the process of creating customer-facing selling materials, such as proposals, presentations, and RFP responses, helping companies increase sales productivity, drive down the cost of sales, and encourage best practices across the sales force. Over 1 million proposals and other selling documents have been prepared with Pragmatech software since the company was founded in 1994. Pragmatech is headquartered in New Hampshire and has offices throughout the United States, in Reading, UK, and in Sydney, Australia. For more information on Pragmatech, visit www.pragmatech.com.

About Commonwealth Capital

Founded in 1995 by a team of experienced venture capital investors, Commonwealth Capital is a leading early-stage venture capital firm focused on opportunities in the Communications Infrastructure and Software and Services sectors. With over $350 million of committed capital under management, the firm's partners have invested in more than 130 high-growth companies that are leaders in their industry categories. Commonwealth Capital's offices are located in Waltham, MA. For more information, visit www.commonwealthvc.com.

About Kodiak Venture Partners

Kodiak Venture Partners is a Waltham, Massachusetts, based venture capital firm focused on seed and early stage investments in emerging communications/IT, semiconductor, and software companies. With a focus in the eastern regions of the U.S. and Canada, Kodiak Venture Partners builds relationships with entrepreneurs seeking accelerated market success. Kodiak's investment partners are successful high-technology business entrepreneurs who take a high-impact, hands-on approach to forming, operating, building, and funding market leaders. For more information, visit www.kodiakvp.com.

About North Bridge Venture Partners

North Bridge Venture Partners is an active, early-stage venture capital fund based in the Boston, Massachusetts, area. Working closely with entrepreneurs, North Bridge adds value by providing strategic guidance, specific industry knowledge, team-building skills, and an in-depth understanding of both private and public financings. In addition, the firm's broad network of industry experts, current portfolio companies, public companies, and most importantly, the people that built them, are valuable resources for entrepreneurs. For more information, visit www.nbvp.com.