Jenzabar Reports Record 2002 Year; New Products, Customer Wins and 19 Percent Revenue Growth Reflect Market Share Gain

CAMBRIDGE, MA-March 1, 2003- Jenzabar, Inc., a leader in software solutions for higher education, today announced that demand for its Jenzabar Internet Campus Solution product suite pushed revenues to record levels in 2002. Gross revenues for 2002 totaled approximately $50 million, a 19 percent increase from the previous year. In addition to growing revenues in 2002, Jenzabar increased its profit margins by streamlining its operations and driving further efficiencies from all of its products. Gross profit margins increased in 2002 to 61 percent of net revenues, a 7 percent increase from the previous year. Jenzabar's revenue growth and business efficiencies resulted in operating cash flow (EBITDA) of over $6 million in 2002, the strongest level of cash flow profitability the Company has reported since its inception.

"2002 proved to be a tremendous year for Jenzabar because we sold more technology solutions, supported more customers and invested more in the development of next-generation technology than in any previous year in our history," said CEO and Chairman Bob Maginn. "Our record financial results for the year also speak to our strong operating performance. We delivered higher revenues and stronger operating cash flow profitability in 2002 and ended the year with a significantly enhanced cash balance. We will work even harder in 2003 to continue developing technology solutions that will help our more than 700 customers considerably improve their businesses."

Year 2002 Highlights

i³ Strategy

• Initially launched in 2001, Jenzabar's i³ Strategy was successfully implemented in 2002 and will continue its progress in 2003 and beyond with over 20 Data Marts and CRMs scheduled for release and continuous upgrades and added features to be introduced. The i³ Strategy of Intelligent, Integration and Internet encapsulates the features and functionality of Jenzabar's Internet Campus Solution (JICS). The i³ strategy includes business practices and the JICS product suite to help colleges improve educational practices, campus operations and efficiencies.

New Customers

• In 2002, Jenzabar increased its customer list to more than 700. Sales wins were closed with such schools as Avila University, Bluefield College, Capitol College, Carl Albert College, Central Florida Community College, Claflin University, Columbia College Chicago, East Central University, Franklin W. Olin College of Engineering, Iowa Valley Community College, Jarvis Christian College, Joint Military Intelligence College, Livingstone College, Pomona College, Pennsylvania College of Optometry, Ranken Technical College, Robert Morris College, Seton Hill University, Shaw University, Shorter College, Sinte Gleska University, United Tribes Technical College, University of Mobile, Upper Iowa University and Valley Forge Christian College.

New Technology Solutions

• Jenzabar made great strides in enhancing and building the industry's best education software solutions. The Jenzabar Internet Campus Solution (JICS) is the only fully integrated, Web-based elearning software solution that seamlessly integrates each end of a college campus, from students to administrators to faculty, and delivers role-based access to administrative and academic information. Combined with the company's i³ Strategy of Intelligent, Integration and Internet that encapsulates the features and functionality of JICS, Jenzabar is poised to take a larger share of the higher education software market in 2003.
• In 2002 Jenzabar introduced five new Constituent Relationship Management (CRM) Portlets, including CRM Admission OfficerÔ, CRM Advancement OfficerÔ, CRM StaffÔ, CRM StudentÔ and CRM Web Events ManagementÔ. These CRM Portlets provide the information and tools appropriate to the user's role on campus, be that of a student, a faculty member, an administrator or a senior executive.
• Jenzabar also released its new Student Exchange Visitor Information System (SEVIS) product. SEVIS is an Internet-based system supporting the Student and Exchange Visitor Program (SEVP), a partnership project between the Immigration and Naturalization Service (INS), the Department of State and the Department of Education.

Jenzabar Partnership Program

• Jenzabar launched the Jenzabar Partnership Program (JPP), designed to even the playing field regarding the terms, conditions and pricing of annual maintenance and support contracts among the hundreds of customers in the Company's client base. Through JPP, Jenzabar customers can subscribe to any of three annual maintenance and support levels, each with varying degrees of service commitments and each with certain defined benefits that institutions can use to maximize the value of their investment. In demonstrating the partnership that Jenzabar has with its customers, the Company extended over $14 million of incentive credits to its customers with the introduction of JPP, that our customers are using to purchase additional software modules or services work.

Sales & Marketing Management Growth

• Jenzabar strengthened its sales force by hiring Frank Dunn as executive vice president of sales. Dunn, the former vice president of sales for PeopleSoft's Higher Education Business Unit, was instrumental in building that arm of PeopleSoft and its sales team into a $250 million business unit. Jenzabar also expanded its sales force by hiring additional account executives to staff offices around the country.

About Jenzabar, Inc.
By improving the exchange of information through powerful business intelligence applications and services, Jenzabar's Internet Campus Solutions and i³ Internet strategy deliver a competitive edge to higher education institutions. Dedicated to supporting and enhancing the educational community, Jenzabar's business units serve 700 higher education institutions worldwide, including students, professors and administrators from private liberal arts, medical, law, state and community colleges. Institutions employing Jenzabar solutions include The Claremont Colleges, Colby College, Daytona Beach Community College, William Mitchell College of Law, Governors State University, Bluffton College, Florida Southern College, Bay de Noc Community College, Berry College and Harvard Medical School.

Jenzabar's offerings include Web-based enterprise software with student, institutional advancement, human resources and financial applications; e-learning solutions; and a higher education enterprise information portal (EIP). Founded in 1998, Jenzabar is headquartered in Cambridge, Massachusetts, and currently employs more than 300 people in regional offices across the United States. For more information, please visit www.jenzabar.net or call Alec Ott at (513) 956-3304.

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Jenzabar Internet Campus Solution and i³ are trademarks of Jenzabar, Inc.