Kelly Services. American Lung Association. Of Illinois

1
FrontRange Corporate Overview

• Michael McCloskey
• Customer Webinar
• June 14, 2005

2
FrontRange The SME Market Leader
FrontRange Solutions is the leading independent
provider of service management and CRM
applications designed specifically for the SME
and distributed enterprise markets.
3
Creating the Next Generation
FrontRange is creating the next generation
Business Application supplier by providing
service management, CRM, and voice applications
on an integrated platform which provides our
customers with
Enterprise Class Functionality
Fast Implementation and Fast Time-to-Benefit
Low Total Cost of Ownership
High Ease-of-Use
Affordability
4
FrontRange- Business UpdateKey Strategies and
Initiatives

• Michael McCloskey
• Customer Webinar
• June 14, 2005

5
Review of Strategic Decisions

• Created a Market Leadership Strategy Targeted
  Customer Retention and Growth Markets
• Aligned Our Product Strategy to Optimize
• Our Installed Base
• Large High Growth Markets
• Multiple Application Strategy on a Single
  Platform
• Strengthened Team
• Added New Senior Management Team-Now together
  almost Two Years
• Added More than 200 New Employees Over Last Two
  Years
• Great Combination of New and Existing Employees
• Created a Winning Culture

6
Review of Strategic Decisions

• Strengthened Development
• Created Bay Area Development Center
• More Than 75 are New/added in last Two Years
• Focused on Platform..then Applications
• Executed New Sales Strategy
• Built Hybrid/High Touch Sales Model
• Created a Geographically Dispersed Sales Force
• Added 39 New Sales Representatives in Last Two
  Years
• Added Enterprise Capability to Augment Channel
• Strengthened Marketing
• Strengthened Product Management/Product Marketing
• Added 16 Marketing Employees in Pleasanton
• Strong Combination of New and Existing

7
Review of Strategic Decisions

• Created a Market Leader Mentality
• Winning Culture
• Maniacal Focus on Execution
• Strong Belief in Our Strategy
• Created a Global Capability
• Strong Cross-Pollination Across Geographies
• Released 9 Languages plus English to Fuel
  Expansion
• Strengthened Global Customer Support
• Strengthened PSO
• Added Significant Enterprise Resources
• Building Pleasanton Solution Center
• Strengthened Financial Performance
• Strong Results compared to the Industry

8
FY 2005 Performance Positions FrontRange for the
Future

• Seven Consecutive Quarters of Sequential Growth
• Licenses Up Over 110
• Revenues up Over 45
• Losses to over 10 Operating Profits
• Re-Built and Re-Architected FrontRange
• Built New Development Capability
• Built Global Sales Capability
• Aligned Towards High Growth Markets
• New Products Emerging
• Well Positioned for Success

9
FrontRangeStrategic Summary

• Michael McCloskey
• Customer Webinar
• June 14, 2005

10
FrontRange Strategic Summary

• We are the market leader and a global company
• FrontRange is designed from the ground up for
  the SME and distributed enterprise markets
• FrontRange product strategy provides customers
  with industry-leading products and a roadmap for
  the future
• FrontRange is creating a complete ecosystem
  around our offerings, as well as New Best
  Practices Applications of our Solutions
• We have the right strategy and management team
  for success
• We have a powerful financial model with leverage
  That Provides our Customers Confidence for the
  Future

11
FrontRange Leader in the SME and Distributed
Enterprise Markets
FrontRange Is the Market Leader

• Global presence, partners in 49
  countries,customers in 47 countries, etc.
• Over 1.7M customers, over 130,000 companies,
• Strong brands Goldmine and Heat
• FrontRange architected for the distributed
  enterprise

12
FrontRange Leader in the SME and Distributed
Enterprise Markets
FrontRange Is the Market Leader

• Global presence, partners in 49
  countries,customers in 47 countries, etc.
• Over 1.7M customers, over 130,000 companies,
• Strong brands Goldmine and Heat
• FrontRange architected for the distributed
  enterprise

13
FrontRange Leader in the SME and Distributed
Enterprise Markets
Proven Products/Exciting Roadmap

• 100,000s successful implementations
• Prolific product plan/vision worthy of leadership

14
FrontRange Leader in the SME and Distributed
Enterprise Markets
Proven Products/Exciting Roadmap

• 100,000s successful implementations
• Prolific product plan/vision worthy of leadership

15
FrontRange A Global Market Leader
16
FrontRange Has Produced Industry-Leading Products
Over Many Years
17
Award-Winning Products
18
Award-Winning Products
19
Award Success 2004
20
Award Success 2005
21
Over 140,000 Companies Chose FrontRange Because
We Deliver Proven Products and Have a Product
Vision for the SME and Distributed Enterprise
Markets
22
HEAT Is Used in More than 70 Industries
Furniture, Home Furnish Equipment (70)
Engineering/Management (124)
Membership Organizations (43)
Banking (54)
Bell Howell CompuWare Linens 'N Things
Nintendo of America, Inc. Pioneer Electronics
Bechtel Corp Colorado Division of Wildlife
Draper Laboratories New Line Cinema
Corporation Raytheon E Systems
BankFirst Commerce Bank Federal Reserve Bank of
Cleveland Fleet Services Corp Virginia Credit
Union
American Federation of Teachers AARP Chicago
Mercantile Exchange Focus on the Family
National Association of Home Builders
Education (315)
Health Services (215)
Printing/Publishing (43)
Retail (35)
Blue Cross Blue Shield HealthNet, Inc. Johns
Hopkins University Of Chicago
Boston College Columbia Business School Harvard
Business School Loyola University Pepperdine
University
Bertelsmann Services, Inc. Harcourt John Wiley
Sons, Inc. McGraw Hill Companies R.L. Polk
Company
Galyans Trading Company Nikon, Inc. Publishers
Clearing House Smithsonian Zale Corporation
Insurance Carriers (46)
Government (106)
Food (29)
Communications (28)
Arizona Dept. of Transportation City of Des
Moines/Action Center City Of Fort Worth Florida
Department of State New York City HRA
Birds Eye Foods Campbell Soup Co. Coca-Cola
Company Atlanta ConAgra Coors Brewing
Company Dreyers Grand Ice Cream Land O'Lakes, Inc.
Avaya, Inc. Bell Mobility Cingular Time Warner
Cable The Weather Channel
Blue Cross Blue Shield CIGNA/Tel-Drug Systems
HealthNet Investors Title Insurance Company
Liberty Life Corp.
23
GoldMine Is Used in More Than 70 Industries
Engineering/Management (124)
Publishing and Printing (51)
Automotive (10)
Durable Goods (230)
BMW Paarlberg Motors (Pty) Ltd. Car Mart
Mexico eNissan.com Mack Trucks Wesco
Manufacturing Volvo Cars Of North America, LLC
Avid Technologies, Inc. Applied Control
Engineering, Inc. Centerbeam, Inc. Digitek
Solutions Belden, Inc.
Steinway Sons Yamaha Corp. of America Michigan
First Aid Safety Co. Mallory Company GroupComm
Systems, Inc.
Banta Book Group Chicago Tribune John Wiley
Sons, Inc.
Computers/Periph/Software Related Services (802)
Telecommunications(51)
Management Consulting Services (157)
Banking/Credit (94)
American Institute of Management BeNow,
Inc. Innovative Technology Application,
Inc. iMedia Pro Synchronicity Monster.com
Bank of America First Federal Bank of
California First National Bank of Colorado First
National Bank of Omaha
ATT Broadband Digital World Services Sprint PCS
Bell Howell Compaq Computer PC Magazine Ingram
Micro Lockheed Martin
Civic/Social/MembershipOrganizations (51)
Retail (49)
Personal Services (12)
Business Services (500)
Office Depot, Inc Men's Warehouse Saks Fifth
Avenue
Administaff All Temps Personnel Kelly Services
American Lung Association Of Illinois American
Red Cross Girl Scouts of the USA
American Health Care Partnership, Inc. CHSI of
Nevada Data Max IDG World Expo SSI Group
24
FrontRange Has a PowerfulGlobal Partner Network
25
A Global Partner Network
FrontRange Offices GoldMine Partners HEAT
Partners GM/HEAT Partners
26
FrontRange Recognizes That Markets Are
Converging and Creating the Next Big Opportunity
27
Market Convergence Is Creating New Needs
28
FrontRange SolutionsMeets Market Needs
Market Opportunity
29
FrontRange SolutionsMeets Market Needs
Market Opportunity
30
FrontRange SolutionsMeets Market Needs
Modular Approach
Incident Change Problem Release
Discovery Asset Mgt.
CampaignMgt.
IP ContactCenter
Software Compliance
GoldMineCE
HEAT HPD
InteractionMgt.
31
FrontRange Target Markets
32
FrontRange Market Focus
33
FrontRange Product Strategy
34
Product Strategy

• Deliver new modules to existing GoldMine and HEAT
  customers with complementary capability
• Broaden technology platform footprint to enable
  FrontRange to focus on new large/growth markets
• Enhance existing products with adjacent market
  functionality
• Implement quarterly product release cycle to
  improve product momentum
• Deliver Enterprise Class Functionality, with
• Low License Costs
• Fast implementation and Time to Benefit
• High Ease of Use
• Low IT Costs
• Customer service

35
HEAT Product Strategy

• Heat is a Core Product and FrontRange has made a
  long term commitment to HEAT
• Ongoing HEAT improvements protect customer
  investments
• ITSM Modules complement and extend HEAT
  capabilities
• New synergies provided by
• Contact Center
• Infrastructure Management

36
HEAT Product Roadmap

HEAT 8.5 ATG as a Service, Web Client Advanced
Self Service HEAT 8.3.6 German, Russian, Italian,
Spanish, French, Polish
6.1.0 Field Svc HEAT anywhere HEAT
8.5 German, Russian, French, Spanish, Polish, Ital
ilan
HEAT 9.0 Variable Tier Full data migration
HPK 8.0.3 HEAT 8.0.3 Polish French HEAT
8.3.6 508 Compliance ITSM Integr. 5.0.4
Knowledge Mgmt. HAT 8.3 Scanner Update
HEAT/ GM 7.0 compatibility iHEAT 8.3 5.0.5
KM Russian German Polish, Spanish,
Port., Italian, French
FY06
FY07
37
ITSM Designed for HEAT Customers

• ITSM modules complement and extend existing HEAT
  capabilities
• ITSM modules are optional for HEAT customers
• HEAT customers can add ITSM modules to their
  existing HEAT system in any combination and at
  their own pace
• New modules are compatible with HEAT 8.3

38
ITSM Product Roadmap
6.1.0 Field Svc PDA Support
6.2 Analytics Disconnected client
6.0 Failover, DiscoverNET Integration 6.0 Frenc
h, German Russian, Polish Chinese
5.0.3 Outlook, IM, IPCC, KM Lotus Notes,
integration 5.0.4 Advanced Self Service KM BP
Improvements Improved Query Support, Quick
Action 5.0.2 Polish, French Chinese
5.1.0 GMEE Int. Queue Mgr, Scheduling 5.1 Spanish
Port, Italian Japanese 5.0.5 KM Russian German Po
lish (beginning of qtr) Spanish, Port., Italian,
French (end of qtr.)
FY06
FY07
39
GoldMine Product Strategy

• GoldMine is a Core Product and FrontRange has
  made a long term commitment to GoldMine
• Ongoing GoldMine improvements protect customer
  investments
• New SMRM Modules complement and extend GoldMine
  capabilities
• New synergies provided by
• Contact Center
• Customer Service

40
GoldMine Roadmap
Product
FY07
FY06
41
GoldMine Enterprise Edition
Product
FY07
FY06
42
Hosted Solutions
Product
FY07
FY06
43
FrontRange Foundation

• Great technology now combined with great
  applications
• Differentiates vs old and closed architectures
  from Siebel, BMC, CA, Oracle, Best, Peregrine
• The right tools for partners
• Web based
• .NET
• XML and Web Services
• BPML
• Open Database

44
Summary

• Customer investments in HEAT and GoldMine are
  protected
• HEAT and GoldMine Roadmaps provide new releases
  through 2006 and beyond
• New ITSM modules are available to current HEAT
  customers
• New Infrastructure Management and Communication
  Management modules complement HEAT
• New SMRM modules will be available to GoldMine
  customers in October
• Hosted solutions coming in late 2005/early 2006

45
Product Strategy Roadmap

• June 14, 2005

46
FrontRange Product Families
47
FrontRange Solution Families
Sales and Marketing RelationshipManagement
IT Service Management
InfrastructureManagement
CustomerService
Contact Center
Contact Management
Incident
IP Contact Center
Lead Management
Network
Interaction Management
Change
Patch
Entitlement
Quoting
Campaign Management
Problem
Inventory
Workflow
Self Service
Historical and RT Reporting
Sales Management
Release
Asset
Incident
Contact Management
Availability
Software
Knowledge
Forecasting
Configuration
Compliance
Content
Analytics
Analytics
SLM
Lease/Contract
Voice SS
GoldMine CE
Knowledge
GoldMine Enterprise
FCC ASP
HEAT HPD
PM
Web SS
SM ASP
CS ASP
GoldMine ASP
IM ASP
48
Product Strategy Summary
49
Solution Architecture
Incident Change Problem ReleaseAvailability Confi
guration SLM HEAT HPD SM ASP
Network Patch Inventory Asset Software Compliance
Lease/Contract PM IM ASP
Contact Mgt Entitlement Workflow Incident Knowledg
e Content Voice SS Web SS CS ASP
IP Contact Center Interaction Mgt Self
Service Reporting Contact Mgt Analytics Knowledge
FCC ASP
Lead Mgt Quoting Campaign Mgt Sales
Mgt Forecasting Analytics GoldMine CE GoldMine
Enterprise GoldMine ASP
Apps
Sales Marketing RelationshipManagement
IT Service Management
InfrastructureManagement
CustomerService
Solution Set
Contact Center
Application Services Outlook Integration
Business Object Security Dashboards
Reporting Web UI/Mobile/ASP Windows UI
Platform
Common Services Dashboard Reporting Business
Rules Security Multi-tenancy Customization
Licensing
Data Liaison LDAP CIM SNMP SOAP HTTP
TCP/IP
Products
50
FrontRange Retains Your Investment by Providing
Add-on Modules
51
Product Family Roadmap Summary
Incident Change Problem ReleaseAvailability Confi
guration SLM HEAT HPD SM ASP
IT Service Management
Network Patch Inventory Asset Software Compliance
Lease/Contract PM
InfrastructureManagement
FrontRange Application Integration Platform
IP Contact Center Interaction Mgmt Self
Service Reporting Contact Mgmt Analytics Knowledge
FCC ASP
Contact Center
Contact Mgmt Entitlement Workflow Incident Knowle
dge Content Voice SS Web SS CS ASP
CustomerService
Lead Mgmt Quoting Campaign Mgmt Sales
Mgmt Forecasting Analytics GoldMine
CE GoldMineEnterprise GoldMine ASP
Sales Marketing RelationshipManagement
Products
Platform
Solution Set
Apps
52
Financial Strategy
53
License Revenue Growth
38.1
39.9
42.6
43.0
43.5
44.0
35
Q1
Q2
Q3
Q4
Q2
Q3
Q4
est.
FY 04
FY 05
54
Total Revenue GrowthM
Q1
Q2
Q3
Q4
Q2
Q3
Q4
est.
FY 04
FY 05
55
Operating Income
8.3
9.5
10.4
10.6
11
11.5
-4.7
Q1
Q2
Q3
Q4
Q2
Q3
Q4
est.
FY 04
FY 05
56
Geographic Revenue
57
Product Mix
IPCC 1
IPCC 3
IPCC 3
ITSM 10
GoldMine 33
GoldMine 31
GoldMine 32
GoldMine 30
HEAT 67
HEAT 68
HEAT 65
HEAT 57
Q4 FY04
Q2 FY05
Q3 FY05
Current Quarter
58
ITSMCustomer Traction - 38
21
12
9
2
South Africa
APAC
EMEA
North America
59
New ITSM Customers for Q4

• CSG Systems American Medical Association
• Brinks Fujitsu
• PA State Credit Union Queensland Rail
• Ministry of Foreign Affairs The Warehouse
• Daimler Chrysler Softlabs
• Bank of England Essex Police
• OpenText Network Dynamics
• Sitel Avanade

60
Strong Mix of Partner vs. Direct
Total Revenue
Direct 36
Direct 32
Partner 64
Partner 68
FY 2004
FY 2005
61
FrontRange Performance is Among Strongest in the
Industry

• The Positives
• We have a Strategy to Create a Market Leader
• We Possess Strong Leadership and a Committed Team
• We Address Markets that Are Large and Growing
• We have a Great Blend of Strong Existing and New
  Products
• We Are in the Early Stages of a New Technology
  Cycle
• We Have Strong Financial Performance and Momentum

62
FrontRange FY 2005 Strategic Summary

• Michael McCloskey
• Customer Webinar
• June 14, 2005

63
FrontRange Strategic Summary

• FrontRange used FY 2004/2005 to prepare for FY
  2006
• FrontRange is designed to Be the Market Leading
  Multiple Application Provider on a Single
  Platform
• Entering early phases of prolific new product
  introduction cycle
• Growth drivers are strong markets, significant
  new products, geographic expansion, and channel
  expansion
• We have the right strategy and management team
  for success
• We Are Focused on the Customer

64
Creating the Next Generation
FrontRange is creating the next generation
Business Application supplier by providing
service management, CRM, and voice applications
on an integrated platform which provides our
customers with
Enterprise Class Functionality
Fast Implementation and Fast Time-to-Benefit
Low Total Cost of Ownership
High Ease-of-Use
Affordability
65
FrontRange Strategic Evolution
To deploy Enterprise Class applications with
the positive attributes of our core HEAT and
GoldMine business

• Fast time-to-benefit
• Low TCO
• High ease-of-use
• Low cost

On a common integrated platform for the service
management, CRM, and Communications markets
66
And Incorporate Into Expanded Product Strategy
Incident Change Problem ReleaseAvailability Confi
guration SLM HEAT HPD SM ASP
Network Patch Inventory Asset Software Compliance
Lease/Contract PM IM ASP
Contact Mgt Entitlement Workflow Incident Knowledg
e Content Voice SS Web SS CS ASP
IP Contact Center Interaction Mgt Self
Service Reporting Contact Mgt Analytics Knowledge
FCC ASP
Lead Mgt Quoting Campaign Mgt Sales
Mgt Forecasting Analytics GoldMine CE GoldMine
Enterprise GoldMine ASP
Apps
Sales MarketingRelationshipManagement
IT Service Management
InfrastructureManagement
CustomerService
Solution Set
CommunicationManagement
Application Services Outlook Integration
Business Object Security Dashboards
Reporting Web UI/Mobile/ASP Windows UI
Strategy and Tactics
Common Services Dashboard Reporting Business
Rules Security Multi-tenancy Customization
Licensing
Data Liaison LDAP CIM SNMP SOAP HTTP
TCP/IP
Products
67
We Have Now Taken Two Families
HEAT
GoldMine
ITSM
I/M
IPCC
68
And Put Them Together Technologically
HEAT
GoldMine
ITSM
I/M
IPCC
69
Creating a Strategic Bridge
New Products

• Core Products
• 90 of Revenue
• 140,000 Customers
• Primary Focus

• Add Modules to Core
• New Applications
• New Technology Capability
• Interoperability
• Investment Retention

70
FrontRange Summary

• Strong Product Plans for Heat and GoldMine
• Enhanced/New User Interface
• New Web Capability
• Many New Modules and Product Applications
• Strong Emphasis in R D Enabling New Products
• Focused on Investment Protection for Heat and
  GoldMine

71
Thank You For Attending

• Michael McCloskey
• Customer Webinar
• June 14, 2005