Sigma Partners and Flagship Ventures Expand Initial Investment
Confirming Blue Agave's Position as Performance Management Front-Runner

CAMBRIDGE, MA (Dec. 8, 2003) - Blue Agave Software, Inc. (www.blueagavesoft.com) raised an additional $6 million from its original investors, Sigma Partners and Flagship Ventures, in an up-round that confirms the market's growing demand for performance management software.

The investment caps a year of significant milestones for Blue Agave, which helps consumer goods manufacturers improve operating performance, enhance service levels and drive millions of dollars in increased revenue and profitability. The company launched its core offering, Active Performance Management™ (APM) this fall and announced the substantial benefits already realized by their first commercial customer, a Fortune 1000 consumer goods company.

"We continue to be excited about Blue Agave. In a short time, the team has delivered on a product vision that posed real technology challenges, captured significant benefits for their first customers and has laid a solid foundation for ongoing success," said John Mandile, managing director of Sigma Partners. "Our confidence in the team and the market continues to build — Blue Agave is addressing challenges that all manufacturers face."

Blue Agave's founders have a strong track record of creating successful companies. Their most recent venture, Oberon Software (now part of Vignette Corporation), became the front-runner in enterprise application integration — enabling business processes to operate seamlessly across diverse enterprise applications. The management team has a unique combination of experience in building successful software companies, coupled with deep domain expertise in manufacturing, supply chain, and solution delivery at companies including Deloitte & Touche, IBM, i2, Motorola, Nortel, Oracle, Progress Software, PRTM, PwC and Texas Instruments.

APM solutions leverage this integration and application expertise to deliver powerful performance management capabilities, in the form of targeted solutions, which address consumer goods manufacturers' most pressing operating challenges.

"Manufacturers are under increasing pressure to improve their performance internally and with their customers. The obvious improvements have already been made — the next steps require a new approach," says Joe Chappell, president, CEO and founder of Blue Agave. "What's exciting to me is that we're helping our customers leverage existing systems and information to capture millions of dollars in additional revenue. And, in contrast to traditional implementations that can take anywhere from 12-18 months, our customers are seeing real, measurable benefits in 8-12 weeks."

Blue Agave's APM suite includes ActiveResponse, ActiveInsight and ActiveContinuous Improvement, an end-to-end solution set to improve business performance through identifying and resolving operational challenges, monitoring key aspects of the business against plan, and generating root-cause analysis needed to successfully drive ongoing improvement.

ActiveResponse, available today, proactively identifies process breakdowns —revenue at risk, orders at risk, stock-outs, excess inventory and material shortages —and provides guided resolution via shifting production, inventory, logistics or delivery rapidly and cost-effectively.

The company will use the new funds primarily for product development and to expand its field organization. Blue Agave, headquartered in Cambridge, Mass., can be contacted at www.blueagavesoft.com or at (617) 621-3400.

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Active Performance Management is a trademark of Blue Agave Software, Inc. All trademarks are property of their respective owners.

About Blue Agave Software
Blue Agave Software helps manufacturers raise operational performance and maximize revenue opportunities by improving response to sudden and often unexpected shifts in supply, demand and logistics. Its Active Performance Management suite delivers millions of dollars in incremental revenue and cost savings, and helps companies meet service requirements by proactively resolving the most common operating challenges, such as stock-outs, late orders, excess inventory and material shortages. The software identifies and recommends actions for operational anomalies, monitors key aspects of business performance against company targets and provides root-cause analysis to successfully drive continuous improvement. Blue Agave is a privately held company headquartered in Cambridge, Mass. and can be reached at www.blueagavesoft.com or (617) 621-3400.

About Flagship Ventures
Founded in 1999, Flagship Ventures is an entrepreneurship and venture capital firm comprising a family of funds: OneLiberty Funds, AGTC Funds and NewcoGen Group. Flagship currently invests from $400 million in funds raised in 2000, and manages a total pool of committed capital over $600 million. The Flagship Ventures team consists of 32 professionals focused on creating, financing, and building companies in the life science, information technology, and communications sectors. For more information, please visit www.flagshipventures.com.

About Sigma Partners
A high technology venture capital firm with over a billion dollars under management, Sigma Partners helps entrepreneurs transform ideas into substantial, profitable businesses. The partners have experience as successful CEOs, entrepreneurs and technologists. With this deep operating and technical insight, Sigma helps build teams and strategies that produce sustainable value and successful outcomes. Founded in 1984, Sigma Partners were early investors in companies such as Cascade, Vignette, StorageNetworks, Internet Security Systems and Tradex Technologies. Sigma closed its sixth fund of $600M in February 2001. For more information, please visit www.sigmapartners.com.

Company Contact:
Susan Horlitz
(617) 621-3400 x210
shorlitz@blueagavesoft.com

Media Contacts:
Corporate Ink
(617) 969-9192
Corinne Sheehan
csheehan@corporateink.com