Made2Manage Acquired

Venture firm targets provider of solutions for small, midsize manufacturers, distributors

Indianapolis — June 9, 2003 — With all the mergers and acquisition hubbub in the marketplace about Oracle, PeopleSoft and J.D. Edwards — not to mention Baan and SSA GT — another acquisition that might have slipped under many a supply and demand chain executive's radar screen last week brought together Made2Manage Systems and an affiliate of Battery Ventures.

Publicly traded Made2Manage, which provides enterprise software for small and midsize manufacturers and distributors, will be acquired and taken private by Battery Ventures, a venture capital firm focused on technology investments, with nearly $2 billion in committed capital.

Under the terms of the agreement, an affiliate of Battery Ventures will acquire Made2Manage for about $30 million in cash. The deal is subject to approval from the company's shareholders and is expected to close in the third quarter of Made2Manage Systems' fiscal year 2003.

In a statement, Made2Manage said that its acquisition by Battery will allow it to better serve the business needs of its customer base, as well as continue new product development initiatives, optimize sales and marketing efforts, and evaluate complementary acquisition candidates to improve its position in the space.

The company will continue to operate as Made2Manage Systems, with employees and operations remaining headquartered in Indianapolis. The provider has been public since 1997 and had 2002 revenues of $30 million. It boasts a customer base number about 1,600.

The company's management team was said to be supporting the acquisition as the most effective way to improve the company's position in the small and midsize enterprise software market.

"We are proud of what we've achieved as a public company in the small and midsize enterprise software market," said Made2Manage Systems CEO, Dave Wortman. "However, to have access to the talent and resources that Battery Ventures can bring to our organization is truly exciting. Our ability to deliver superior products and services to our customers will be significantly enhanced by our relationship with Battery."

Upon completion of the acquisition, Made2Manage Systems will be a wholly owned subsidiary of Battery Ventures' affiliate, BV Holding Company.