EAST NORRITON, PA (June 12, 2001) -- ActiveStrategy, Inc. (www.activestrategy.com) announced today that it has received $2 million in equity financing from two venture capital firms and several individual investors. The venture capital firms include Shea Ventures of Walnut, California, and Kendryx Enterprises of Breckenridge, Colorado and Blairstown, New Jersey. The individual investors include William R. Timken, a co-founder and retired Vice Chairman of the Board of Hambrecht & Quist (H&Q) of San Francisco, California and Roy L. Rogers, General Partner of Rogers Investment Corp. of Menlo Park, California.

Proceeds from the private placement will be used in the sales, marketing, and development of ActiveStrategy's recently introduced portal-based, enterprise-wide software application ActiveStrategy Enterprise™ -- as well as to complete the company's technical support and training infrastructure as the organization emerges as the leader in Enterprise Strategy Execution (ESE). A growing area of business thought that expands on existing performance measurement methodologies, ESE holds that in order for corporations to achieve maximum business results, organizations must focus and empower every employee toward a common strategy. ActiveStrategy Enterprise™ is the first commercially available application that provides corporations with an enterprise-wide solution to fully engage the power of the Balanced Scorecard, Six Sigma, the Baldrige Criteria and other performance management methodologies now gaining popularity with corporations worldwide.

"Initial market reception of ActiveStrategy Enterprise™ has outstripped even our own expectations," begins Jack Steele, Chairman and CEO of ActiveStrategy, Inc. and one of the nation's leading experts on ESE. "We have hit the market at an extremely opportune time. It's estimated that more than 40% of corporations are now using some form of the Balanced Scorecard- and are achieving great bottom-line results through its deployment. Our new application goes far beyond just reporting of scorecard metrics and automates the entire strategy execution process, providing the means to identify key management strategies and then deploy and communicate them directly to the teams and individuals responsible for enhancing performance throughout the corporation."

"ActiveStrategy represents a tremendous application of technology to address a fundamental area of difficulty for corporations," says Bill Timken, the former H&Q veteran. "By significantly impacting the ability of organizations to execute strategies, ActiveStrategy will usher in a new era of improved business results and corporate competitiveness."

The private placement will also accelerate ActiveStrategy Enterprise™ marketing and support efforts to strategic and technical integration consulting partners-many of whom are now demanding a new generation of enterprise software designed to drive performance within their clients' organizations.

"The major consulting organizations thrive on new technologies that deliver measurable bottom-line benefits to their clients," states John Kennedy, General Partner, Kendryx Enterprises. "With an application that both delivers results and enables the consultants to be intimately aware of their clients' business needs, ActiveStrategy Enterprise stands poised to emerge as the clear application of choice for the strategy consulting space."

Since 1968, the Venture Capital Division of J.F. Shea Co., Inc. has helped make the technology revolution a reality. Their investments in private start-up companies have grown into such industry leaders as Compaq Computer, Altera, Brocade, and Exodus. Today, their investments span the nation, from Silicon Valley in Northern California to the eastern United States.

Roy L. Rogers is General Partner of Rogers Investment Corp. During 15 years as a Managing Partner with Hambrecht & Quist, Mr. Rogers served in a broad range of roles, including Director of Institutional Services and Director of Research, as well as senior positions in corporate finance and venture capital.

Kendryx Enterprises, L.P. is an early stage Venture Capital firm based in Breckenridge, CO and Blairstown, NJ, with investments in both domestic and international internet-based businesses. John Kennedy, the General Partner, founded Kendryx in 1999, after selling CorNet International, Ltd., the Customer Relationship Management software company that he founded in 1986, to Dendrite International.

ActiveStrategy, Inc. is the world's first organization focused on developing and deploying enterprise-wide software for organizations seeking to harness the power of Enterprise Strategy Execution (ESE). An emerging area of business thought, ESE holds that in order for a business to achieve maximum results, the organization must focus and empower every employee toward a common strategy. ActiveStrategy Enterprise, the company's enterprise-wide application, provides organizations a framework to develop and focus key corporate strategies and then communicate, deploy and monitor the execution of these strategies to everyone within the organization. ActiveStrategy Enterprise works hand-in-glove with Balanced Scorecard and other management performance methodologies including the Baldrige Criteria and Six Sigma. But it goes much further. By automating key business processes affecting every employee, ActiveStrategy Enterprise allows for the enterprise-wide execution of strategy -- thereby providing the most powerful tool yet for operational success.

For more information on ActiveStrategy, Inc., please contact Greg Matusky or Amy Martin Quinn, 610-642-8253 or aquinn@gregoryfca.com.

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