Spescom Software Announces Strategic Initiatives for 2005 and Beyond; Company Outlines Strategic Plan for Growth and Leadership in Enterprise Content and Configuration Management Sector

Business Wire,  April 14, 2005  

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SAN DIEGO -- Spescom Software, Inc. (OTCBB: SPCO), a developer of next-generation enterprise software solutions that organize and manage widely disparate computer data for the world's most complex organizations, announced today its Strategic Initiatives for the remainder of 2005 and beyond. The announcement was made by Carl Mostert, CEO of Spescom Software.

Mr. Mostert stated: "With many exciting things happening within our market and company, we are announcing our strategic initiatives - which outline what we believe to be a promising future for our company. We have positioned ourselves to become a leading provider of solutions based on our powerful enterprise content and configuration management platform. The worldwide explosion in the growth of computer-generated data that has accompanied the rise of the Information Age has created an enormous need for solutions to manage the sprawling data assets of large and complex enterprises. However, these data management requirements have long ago outstripped the management and change-tracking capabilities of the separate software applications that contain them. Large and highly complex organizations, whether they are managing nuclear power plants, the Space Shuttle, or submarine fleets, simply cannot operate with optimal safety, security or efficiency under the fragmented computing and software environments that have evolved."

Spescom's proprietary eB software platform is a proven information management solution with the unique ability to manage multiple types of structured and unstructured computer data on a single software platform. Spescom's eB software enables not just the consolidation of multiple systems into a single coherent platform, but also has built-in business process rules for effective management of change, catering to the constantly changing environment caused by maintenance and expansions to plants or systems. Mission-critical functions for complex industrial, military and manufacturing organizations, such as utilities and other large enterprises require the effective and user-friendly management of many millions of pieces of individual computer-based documents and other types of data. Spescom's solutions provide a new generation of content and data management capabilities that address a range of critical business issues including regulatory compliance, asset information and change management, as well as document and records management. With an existing blue-chip customer base, we have been laying the foundation for achieving our goal of becoming a major player in a large and growing market.

During 2004 Spescom's key achievements included the following:

--Solidified our flagship product eB(TM) as one of the premiere ECM solutions, providing cost-effectiveness, scalability and flexible architecture to our clients.

--Released a test version of our latest eB Version 14 platform based on the Microsoft .Net framework.

--Continued to build our client base of blue-chip companies, including such industry leaders as Entergy, Constellation Energy, Network Rail and Lloyds Register. These customers serve as a key launching pad in the sales environment, as they provide excellent customer references that will testify to the performance of Spescom's products and services.

--Increased substantially the number of potential new business opportunities pursued as our market profile has heightened.

--Experienced our third consecutive year of significant margin improvement (72% gross margin in FY 2004), as well as positive EBITDA in FY 2004.

With that said, the following are our key initiatives for the coming year:

Strategic Initiative 1 - Increase focus on selected target markets:

Our existing blue-chip customer base is a key asset of the company as well as a source of recurring revenues. We will continue to provide the highest level of support and will also pursue new opportunities within these enterprises. A key component of our corporate strategy, and one that we feel will pay significant dividends, is to focus on selected industries. While our solutions have universal appeal, we feel that the targeting of specific markets, particularly those in which companies tend to follow the lead of technological innovators, is the smartest direction for a company of our size, and which in our opinion will lead to the fastest growth. Specifically, we intend to focus aggressively on the energy industry -- utilities, and the oil and gas sectors -- in which we already have a strong customer base and proven value proposition. To that end, in January we presented and demonstrated eB at the daratechPLANT2005 event in Houston, the leading gathering of power and process industry executives in the U.S. We continue to actively market our solutions into this sector by attending relevant industry events, creating industry advisory councils and identifying suitable partners.

We have also employed industry experts from the energy sector, to further expand our footprint in this market. Our goal is to leverage these experts, along with a strong focus on sales and key account management, to help us broaden our target markets and convert more of our current opportunity pipeline to revenue.