Slide 1: Presentation to eXcelon: eXcelon and Progress Software
Joseph Alsop Co-Founder & CEO Presentation to eXcelon 21 October 2002 eXcelon and Progress Software
Slide 2: Legend and Safe Harbor Statement
Legend In connection with the merger, eXcelon plans to file a proxy statement with the Securities and Exchange Commission (the"SEC") and mail the proxy statement and related materials to stockholders of eXcelon. Stockholders of eXcelon are urged to read these materials when they become available bec
Slide 3: Agenda
Agenda Answer questions you may have about us: Who we are? What do we do; where are we going? Why are we excited about joining forces? .... and answer ANY other questions you have.
Slide 4: Progress Software Corporation management
Progress Software Corporation Corporation Corporation Corporation Dave Ireland President the Progress Company Rick Reidy Senior VP, Product and Business Development Joseph W. Alsop CEO and Co-Founder Greg O'Connor President Sonic Software Corporation Pete Sliwkowski VP, Progress Products Jim Freedma
Slide 5: Progress Software Corporation
the Progress Company Progress Software Corporation
Slide 6: Progress Software Corporation at a glance
Progress Software Corporation .... in well over 100 countries ....including over 70% of the Fortune 100 .... to 50,000 end-user companies .... deployed at over 100,000 sites .... with over 2000 ISV & ASP partners .... offering over 5000 applications .... and over 2 million users We provide Developme
Slide 7: Total Revenue
Q4 FY01 Q3 FY01 Q2 FY01 FY02 Q1 FY01 FY02 $80 $0 FY02 Progress Software Corporation Total Revenue $Millions $67 $66 $61 $64 $69
Slide 8: Earnings per Share
Q2 FY01 FY02 Q1 FY01 FY02 Q4 FY01 Q3 FY01 $.30 $.0 FY02 Progress Software Corporation Earnings per Share $U.S. $.13 $.15 $.13 $.06 $.14
Slide 9: Recent Results Balance Sheet
Cash $197M Debt -0- A/R DSO* 56 *Accounts receivable, days sales outstanding Recent Results Balance Sheet - August 31, 2002
Slide 10: Geographic Revenue Analysis
% Revenue Q3 Geographic Revenue Analysis Q3-02 Q3-01 % Revenue EMEA 47% Asia/Pacific 6% North America 40% Latin America 7% EMEA 43% Asia/Pacific 6% North America 43% Latin America 8%
Slide 11: Progress Software History 1981 to 2002
Progress Software History 1981 to 2002
Slide 12: 1981-1982 Founding
1981-1982 - Founding The company was called Data Language Corporation. DLC was founded by 3 MIT Graduates Clyde Kessel Chip Ziering Joe Alsop The first employee was Mary Szekely
Slide 13: Data Language Corporation (DLC)
Data Language Corporation (DLC) DLC offices were a dentist's office in Billerica, Massachusetts USA The roof leaked DLC extensions only had one digit Mary Szekely: "We had no secretary or receptionist at first, but we had a portable phone. So I would answer it and say "I will connect you to the pres
Slide 14: Milestones
Milestones August 9, 1984: First customer ship - version 2.2 1985-7: Took on European subsidiaries, company name changed to Progress Software 1991: PSC goes public; progress.com registered 1997: Cumulative PSC revenue exceeds $1,000,000,000 December 1999: SonicMQ 1.0 Shipped 2000: Cumulative PSC rev
Slide 15: 2001: Three new companies
2001: Progress Software Corporation starts three new companies the Progress Company Dave Ireland, President Sonic Software Corporation Greg O'Connor, President NuSphere, then PeerDirect Corporation Lorne Cooper, President Milestones
Slide 16: The Progress Company
the Progress Company Progress Software Corporation
Slide 17: www.progress.com
www.progress.com
Slide 18: Slide 18
Slide 19: The Progress Company
the Progress Company Progress Software Corporation
Slide 20: Agenda
Agenda Who we are? What do we do? Why are we excited?
Slide 21: The Progress Company team
Gus Bjorklund VP, Technology VP, Technology Pete Sliwkowski VP, Products the Progress Company Company Company Company Jeff Ray VP, Worldwide Field Operations David Ireland President Bob Palumbo VP, Marketing Ed Sugrue VP, Services Carlos Ciruelos Director, Finance Chris Clabaugh VP, ASPen Business U
Slide 22: The Progress Company
the Progress Company We simplify the job of creating the world's best business applications. Develop, Deploy, Manage, & Integrate
Slide 23: Solving Customer Problems
MANAGE Solving Customer Problems DEVELOP DEPLOY INTEGRATE Business Applications
Slide 24: OpenEdge: Simple, Integrated, Open
Applications Application Framework Integration Services Application Server Data Management Client Processing Business Processing Analytical Processing App. Mgmt. • Security Development Tools OpenEdge: Simple, Integrated, Open
Slide 25: Lowest Cost of Ownership for Embedded Infrastructure
Lowest Cost of Ownership for Embedded Infrastructure Aberdeen Group Dec. 2001 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Oracle9i Development Tools Deployment DBA Cost Training Support Progress OpenEdge Initial Licenses Development Tools Deployment DBA Cost Training Suppo
Slide 26: Revenue By Market
*ASP/ISV 65% the Progress Company Revenue By Market *ASP/ISV Application Service Provider/Independent Software Vendor Direct 35%
Slide 27: The Progress Company Model
5,000 Applications $5B End User Solutions 2,000 ASPs/ISVs ISV ISV ISV ASP tPC ISV Model the Progress Company
Slide 28: Power of Our Community
ISV ASP ISV Power of Our Community *ASP/ISV Application Service Provider/Independent Software Vendor Progress Technology End-user Customer
Slide 29: And we do that...
And we do that... .... in well over 100 countries .... over 70% of Fortune 100 .... 50,000 end-user companies .... deployed at over 100,000 sites .... over 2,000 developer partners .... over 5,000 applications
Slide 30: Businesses Rely on Progress
Busi nesses Rely on svog ress. ——: 1 {é The te = | Sevcamers Yi HOS in ome Charles Schwab [itoMtamaauue £3) C9 Ft once: fohmson«Gohnsen SONY. NCR MA SCHOLASTIC Home Mis. Genny” Monsanto oS pNOEA. _* < 8
Slide 31: adidas
adidas Goal: Reach new customers by Launching new e-commerce site Partnering with ISV & managed services Progress application saved online store "...our thestore.adidas.com web site provides our web customers with up-to-the-moment product availability information, and fulfills their online orders wi
Slide 32: Snapple
Snapple Goal: Save time and money by Optimizing transaction processing Providing Internet scalability Extending ERP to web order processing "The resilience and cost (of ownership) of the Progress database are incomparable, far exceeding the performance of leading database alternatives." Joe Holland
Slide 33: Who Makes Progress
Who Makes Progress... Who Makes Progress...
Slide 34: Progress & its Partners - Leaders in Business Applications
Progress & its Partners - Leaders in Business Applications E-Commerce CRM Customer Service Front Office Portfolio of Applications Industries
Slide 35: Synergy
Synergy Database roots High performance Business critical We are both market leaders! Blue Chip customers Embedded deployments Location
Slide 36: Leverage
Leverage Worldwide field organization Mutual customers tPC has very little presence in Telco Complimentary database technologies Employee skills
Slide 37: Benefits
Benefits Customers Strong, stable, committed vendor Revenue New markets within respective customer bases Products Technology sharing to strengthen product lines Employees Additional opportunities
Slide 38: The Progress Company
the Progress Company We simplify the job of creating the world's best business applications.
Slide 39: Slide 39
Slide 40: Sonic Software
Sonic Software Greg O'Connor Monday, October 21, 2002
Slide 41: Standards-based messaging pioneer
Standards-based messaging pioneer Inventor of the ESB Market leader in integration products for the real-time enterprise (c) 2002, Sonic Software Corporation 81
Slide 42: Sonic Software team
Greg O'Connor President James Connolly Financial Analyst Bill Cullen VP, Engineering Gordon Van Huizen VP, Product Management Tim Dempsey VP, Marketing David Peter Managing Director EMEA Operations Stuart Ransom VP, North American Sales David Chappell VP and Chief Technology Evangelist Hub Vandervoo
Slide 43: Sonic Software: Recognized, Established, Product History
Sonic Software Recognized: #1 standards-based MOM (c) 2002, Sonic Software Corporation 85 Established: Over 200 Global 1000 customers Product History: 12/1999 SonicMQ 2.0 - J2EE certified pub/sub & P2P 09/2000 SonicMQ 3.0 - Transactional marketplace 06/2001 SonicMQ 3.5 - XA and Bridges 12/2001 Sonic
Slide 44: Sonic Product & Services Revenue
Sonic Product & Services Revenue Total Reported Revenue (in thousands) Q1 Q2 Q3 Q4 Total FY00 $380 $350 $820 $850 $2,400 FY01 $1,100 $1,700 $2,300 $2,900 $8,000 FY02 $2,900 $4,300 $3,600 $10,800
Slide 45: MOM Market
MOM Market 2000 2001 2002 2003 2004 2005 Traditional MOM 324 348 365 398 423 429 Standards-based MOM 10 20 30 60 120 240 Sonic Software Estimates:
Slide 46: SonicMQ Competitive Advantages
0 500 1000 1500 Durable Publish/Subscribe 50 250 500 MQSeries 5.2 SonicMQ 4.0 Number of Connections SonicMQ Competitive Advantages Superior Performance Low latency High throughput Linear Scalability Supports more connections Dynamic Routing Architecture End-to-End Reliability "Once and only once" de
Slide 47: Messaging Application Categories
B2B Communication (B2Bi) Database Replication Network Monitoring Enterprise Application Integration (EAI) Mobile Synchronization It's an asynchronous world... Messaging Application Categories (c) 2002, Sonic Software Corporation 95
Slide 48: Introducing SonicXQ Enterprise Service Bus
Introducing a standards-based, service-oriented architecture for integrating enterprise applications and business partners. The first product to deliver on the promise of the Enterprise Service Bus (c) 2002, Sonic Software Corporation 97
Slide 49: Gartner's View
Data Center Application Legacy Application Trading Partner's Application Opportunistic Application Purchased Package Enterprise Enterprise Nervous System Application in Autonomous Subsidiary Worldwide Grid Brokers and BPM ODS & Data Warehouse Shared Business Components Virtual Enterprise Copyright (
Slide 50: Integration market at critical inflection point
Integration market at "critical inflection point" (c) 2002, Sonic Software Corporation 101
Slide 51: Integration Trends
Integration Trends Three major disruptions: Standards-based integration Service-oriented architectures Highly distributed environments Global enterprises will deploy enterprise service bus Foundation for the Real-Time Enterprise Single infrastructure for both application and real-time data integrati
Slide 52: Disruption in Integration Market
Disruption in Integration Market 2001 2002 2003 2004 2005 2006 Integration Broker Suites 1460 1575 1750 1995 2245 2460 Enterprise Service Bus 0 20 50 105 240 490 Sonic Software Estimates: (c) 2002, Sonic Software Corporation 105
Slide 53: e 2002, Progiess Software Corporation
e 1 2002, Progiess Software Corporation
Slide 54: Enterprise Service Bus
Enterprise Service Bus Partner System J2EE Application Legacy System or Packaged App ..NET Application SonicXQ Enterprise Service Bus Web service SOAP/HTTP SOAP/HTTP SOAP/HTTP JCA JMS or JCA
Slide 55: Enterprise-Scale Architecture: The Sonic Difference
Warehouse Sales Partners Finance Enterprise-Scale Architecture: The Sonic Difference Invoicing Service Credit Check Service J2EE Application Legacy System or Packaged App ..NET Application SOAP/HTTP JCA JMS or JCA Portal App Message Server Message Server Routing Service Message Server Transformation
Slide 56: SonicXQ Enterprise Service Bus
SonicXQ Enterprise Service Bus Standards-based Integration Web services and JCA endpoints Key XML processing services Distributed Processing Flexible managed deployment of distributed services Efficient process management Enterprise-class Backbone End-to-End Reliability Comprehensive Security Linear
Slide 57: Industry Analyst Validation
Industry Analyst Validation "A new form of enterprise service bus (ESB) infrastructure - combining MOM, Web services, transformation and routing intelligence - will be running in the majority of enterprises by 2005. Roy Schulte VP and Research Fellow, Gartner Inc. These high-function, low-cost ESBs
Slide 58: Told Ya So
7 TOLD YA SO, TOLD YA SO! The sound of scalable e-biz SonicXQ gives developers a set of secure, reliable BPM services
Slide 59: Sonic and the Gartner Application Integration Quadrant
Sonic and the Gartner Application Integration Quadrant Copyright (c) 2002 ? Sonic
Slide 60: Extending the Enterprise Service Bus
Extending the Enterprise Service Bus Distributed core integration components Superior standards-based connectivity Superior XML handling Global deployment capability Design flexibility First-class tool set What does it take to fulfill the vision?
Slide 61: How did we get here?
How did we get here?
Slide 62: Research, Research, Research
(c) 2002, Sonic Software Corporation 125 Research, Research, Research MetaStorm Mercator NeoCore Rio Labs Savvion SeeBeyond Shinka Systinet Taviz Trilog Velocigen XML Global DAT Data Mirror EnterWorks FiveSight Hummingbird Informatica InfoShark Intalio Iona Ipedo ItemField iWay Focus on data and pro
Slide 63: Why eXcelon?
(c) 2002, Sonic Software Corporation 127 Why eXcelon? Shared standards-based integration vision Recognized XML technology leaders Complementary, best-of-breed components Scalable and performant XML processing Rich development environment Orchestration and partner integration Accelerate Sonic Strateg
Slide 64: Advanced XML Processing
(c) 2002, Sonic Software Corporation 129 Advanced XML Processing XML document aggregation and transitory storage State transition and conversation management Sophisticated transformation patterns Distributed caching for local performance Handle schema diversity and evolution XML processing accelerat
Slide 65: World-class Toolset
(c) 2002, Sonic Software Corporation 131 World-class Toolset Best-of-breed XML Tools Ability to create, edit, and debug XML documents, schema and transformation maps XML Query builder Comprehensive Orchestration Capabilities Workbench for modeling integration flows Integrated with itinerary manageme
Slide 66: Enhanced Partner Integration
(c) 2002, Sonic Software Corporation 133 Enhanced Partner Integration Standards-based partner connectivity Industry-leading ebXML implementation Reliable message exchange Sophisticated conversation management Configuration by and enforcement of partner profiles (CPA) at runtime Collaborations (BPSS)
Slide 67: Proven Foundation
Proven Foundation High-performance storage engine Cache-Forward architecture for scalability Over 4000 customers Strong target market synergy Road-tested in mission-critical applications Small-footprint PSE Pro(tm) for Java Embedded DB for persistent messaging services ObjectStore(r) (c) 2002, Sonic
Slide 68: Sonic & eXcelon: Extending the Enterprise Service Bus
Warehouse Sales Partners Finance Sonic & eXcelon: Extending the Enterprise Service Bus Invoicing Service Credit Check Service J2EE Application Legacy System or Packaged App ..NET Application SOAP/HTTP JCA JMS or JCA Portal App Message Server Message Server Routing Service Message Server Transformati
Slide 69: Sonic Product Line Overview
Sonic Product Line Overview Product Offerings Sonic Workbench (Stylus Studio, BPM, Runtime) Sonic Stylus Studio Sonic XIS Sonic BPM SonicXQ SonicMQ Sonic IBM WebSphereMQ Adapter Sonic TIBCO TIB/Rendezvous Adapter (c) 2002, Sonic Software Corporation 139
Slide 70: Credibility, Momentum, Critical Mass
Credibility Momentum Critical Mass (c) 2002, Sonic Software Corporation 141
Slide 71: Are you ready?
Are you ready? Progress Software Corporation and eXcelon Corporation held a conference call at 10:00 am on October 21, 2002, to discuss the proposed acquisition by Progress Software Corporation of eXcelon Corporation. The webcast of the conference call may be accessed from Progress Software Corporat