Digital Fuel Annual Revenues Soar 145%

Digital Fuel, the leader in SLA management solutions, doubles its global customer base, adds strategic partnerships, and continues expansion
of existing deployments

Digital Fuel's solid performance and record year was highlighted by significant new customer wins including Telefonica, Capital One, Bearing Point, and more.  Existing customers including P&G, O2 and Siemens Business Services continue to expand their deployment of Digital Fuel's industry leading SLA management solution, ServiceFlow™.  Digital Fuel's market leadership also led to competitive selections with important service provider partners. These partners are leveraging Digital Fuel's SLA management solution to deliver new capabilities to their customers.

"Our record year underscores and affirms our performance and market leadership," said Yisrael Dancziger, President and CEO, Digital Fuel.  "Our approach meets the needs of service providers and other enterprises that want to improve their business results from automation in SLA, SLM, and ITIL.  In FY06, Digital Fuel's solution delivered increased business value for our customers in record time.  Using ServiceFlow, our customers lowered their cost to serve, improved their quality and compliance, and automated the management of SLA and contractual obligations at a lower cost of ownership than any other alternative." 

In FY06, Digital Fuel successfully competed and won deals with large global leaders. These deals helped double Digital Fuel's customer base across North America, UK, Germany, France, and Spain.  Digital Fuel's growing customer base represents deeper market penetration in a wide range of important industries that depend on business improvements from SLA and contractual obligations management:  Financial Services, Manufacturing, Telecommunications, Network Services, Entertainment, Insurance, Government, Aerospace & Defense, Consumer Products and more.

Digital Fuel also had a breakthrough year in strategic partnerships, resulting in significant new growth channels for the company.   The company's flagship product, ServiceFlow, was selected to drive key SLA, SLM and ITIL projects with: 

1. one of the world's largest enterprise software vendors;
2. a leading provider of business network communication solutions;
3. a leading provider of cellular devices and services; and
4. a leading service provider of IT and business process services.

"Our focused strategy produced excellent results in 2005.   This year we will continue to grow a profitable and sustainable business that delivers high-quality products and services to our global customers," continued Yisrael Dancziger.  "I am extremely proud of our talented and dedicated team who relentlessly perform in a bottom-line, results-oriented culture."

According to Mark Kremer, Partner at Benchmark Capital, "Digital Fuel represents an excellent business with growing revenues, an expanding, prestigious customer base, a very large market, and a proven solution to meet global needs that are greatly underserved.  As a member of the board, I am very pleased with the company's impressive performance last year."

About Digital Fuel

Digital Fuel is the leading provider of business service management (BSM) software solutions, helping service providers and enterprise service organizations manage the performance, financial, and regulatory aspects of IT, telecommunications, and business process services.  Digital Fuel has the largest deployments for SLA management and service cost management in the world, with thousands of concurrent users, SLAs, KPIs, metrics, cost formulas, and pricing rules.  With Digital Fuel's patented visual approach, our customers are deployed rapidly to quickly drive business value from automating the management of service offerings, agreements, service cost, and performance with their service customers and vendors.  ServiceFlow manages billions in business and IT services at companies and governments around the world such as Procter & Gamble, General Electric, Cummins, Capgemini, BT, IBM, SITA, Siemens Business Services, O2, Atos Origin, Telefonica, Transport of London, CSC and many others.  Digital Fuel is headquartered in San Mateo, California, with offices across North America and Europe.  Learn more at http://www.digitalfuel.com.