May 2002

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Our Vision

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• Established 1984• Restart 2000

– new management team with new market opportunity

• VC funding – $7.0M equity funding to date (TechnoCap, Innovatech)– $2.0M venture debt in Nov/2000 (MM Venture Partners)

• Product Line – COTS enterprise software that automates the core

financial and business transactions of government

Overview

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Hummingbird, PCDocs, Megalith, Provenance, closed multi-million dollar software sales to governments in US and Canada. Previously established partnerships IBM, SAIC, PWC, and EDS.

Bruce Lazenby, President/CEO

Management TeamDon Gibbons, CFO

Gordon Graham, VP MarketingChris Iles, VP eGovernment Solutions

Mike McTaggart, VP eFinancials SBU John McCarthy, VP Sales

Managed international systems for Canada’s largest Federal Department ($12B). Led FreeBalance to record sales.

CIBC investment banker $200M to $1.8B deals in Canada and Asia. As CEO, restructured a midsize company which resulted in an acquisition.

Deloitte and Touche, 40 multi-million dollar contracts. Jetform, 6-fold increase in services revenue. Eftia, built services division from 1 to 50 people in one year.

Former President of AMS Canada - 60% increase in revenue and a 20% improvement in margins.

ObjecTime 16-fold sales increase, sold to Rational for $60M. Re-positioned Choreo as network integrator, sold to Burntsand.

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• Government is the largest customer in the world– US Federal expenditures on IT and related services alone are

US$36B in 2001 growing to US$60B in 2006 (Washington Technology)

• Governments around the world are beginning to move their services on-line

• Billions are being spent to undertake this transformation

The Opportunity

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• FreeBalance Collaborator Series™– enterprise software solution for granting, permitting,

licensing, regulatory filings and financial management– FreeBalance eGrants™(newest Collaborator product)

• product for full lifecycle management of government grants• only product to include SF 424 Forms, IAEGC Data

Elements, and CFDA Codes• designed with FreeBalance 5A™ Process in mind

What we Offer

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eGov Opportunity

2003$52.1 billion(U.S. Federal IT Budget)

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5A Process

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United States– Federal Financial Assistance

Management Act of 1999 (Public Law 106-107) effective 2001

Canada– Treasury Board Guidelines on

Transfer Payments – Report of the Auditor General of

Canada– All government departments online

by 2004

eGov Deadlines

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eGrants Software and Services

eGrants Market

5 year total

US$1.5B

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• First step – become the dominant provider of eGrants software in the North

American Federal Government market by leveraging reputation, experience, contracting vehicles and partner relationships

• Next Step– lever this success into eGrants successes in State/Provincial

market• Ultimately

– leverage sales for other Collaborator Series products in related markets worldwide

Mission Goals

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Competition

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• Unique, configurable, government-focused, “COTS” product• Won the battle for “mind share”

(“Top 10 Companies to Watch” in US Federal Market – FCW)

• Established relationships• Early wins – Past Performance and Qualifications• Mastered the Government Sales Cycle

– GSA / DISO / 8A / SB / Sole Source– Built $81M pipeline over 2 years– 18 years experience working exclusively with government

Competitive Advantage

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ProspectsProspect Alliance Details Value

PwC wins prime contract U.S. Department Health and Human Services. Subcontractors included EDS, Oracle, and FreeBalance. Total US$328.4M with US$2-4 eGrants software

US$2-4M

IBM also bids FreeBalance on the U.S. Department of Health and Human Services HIGLAS project. PwC won the contract.

US$2-4M

IAEGC introduction. Invited to 2nd demo. RFP release in 30 days. Influencing RFP.

US$800K

All bid FreeBalance in response to RFI. RFP scheduled release in Q2. Lead agency in Department of Justice.

US$280K-1.5M

Introduced by Accenture. Negotiating replacement of TRW systems.

US$1.5M

Deploying country-wide software licenses for management of all government offices.

US$2.1M

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• Revenue company ($4.3m 2001)• Exceeded Q1 2002 financial targets• eGrants product released version 2.0 (Sep 01)• Market position established • Key wins established• Key SI relationships in place • Strong Management Team

Milestones Achieved

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• Close $5M financing round (Q2/02)• Close 4 new strategic customer sales in U.S.

Federal Government (Q3/02)• Grow sales and marketing team (Q2/02)• Obtain first State win (Q2/02)

Next Milestones

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Financial Snapshot

(C$ 000’s) 1999A 2000A 2001A 2002F 2003F 2004F

Licenses 1,329 1,529 1,438 2,710 6,800 11,900

AMS 911 1,310 1,321 1,735 2,169 2,711

Services 1,026 1,193 1,489 2,331 3,400 5,950

Total Revenue 3,265 4,032 4,248 6,776 12,369 20,561

EBITDA (1,835) 230 (2,216) 408 1,589 3,546

Cash Position 217 1,595 110 4,618* 3,711 6,325

*Assumes $5.6M financing round closed in Q2 2002

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The Bottom Line