NexPrise, Inc. Reports Results for the Third Quarter of 2004 CARLSBAD, Calif., Oct. 21 /PRNewswire-FirstCall/ -- NexPrise, Inc. (OTC:NXPS.OB) (BULLETIN BOARD: NXPS.OB) , a provider of business process automation and management applications, today announced results for the three months ended September 30, 2004. For the third quarter of 2004, NexPrise reported bookings, which represent contracted revenue for the next twelve months, of approximately $587,000, a decrease of 48% from the third quarter of 2003 and a decrease of 44% from the approximately $1.0 million of bookings reported in the second quarter of 2004. Revenues, which are comprised of customer agreements recognized evenly over the length of the contracts and up front perpetual license fees, were approximately $1.0 million for the three months ended September 30, 2004, an increase of 26% from the comparable period in 2003 and an increase of 52% over the second quarter of 2004. Costs and expenses in the third quarter of 2004 were approximately $1.4 million, a reduction of 55% from the costs and expenses of approximately $3.2 million, reported in the third quarter of 2003. As of September 30, 2004, NexPrise's cash, cash equivalents and short-term investments were approximately $2.6 million. Total cash and short term investments used in the third quarter of 2004 was approximately $1.0 million, approximately $600,000 less than that used in the third quarter of 2003 after adjusting the 2003 figure for the $1.0 million received for the sale of an investment. The net loss per share in the third quarter of 2004 was $0.18, a 72% improvement from the $0.65 net loss per share reported in the same quarter last year. About NexPrise NexPrise, Inc., provides document management applications that can enable the secure storage and sharing of key documents, the automation of processes through creation of simple and complex workflows and the management of programs through action item tracking and document revision control. These solutions complement and expand on currently installed enterprise systems and allow for the ongoing process improvements companies require to meet their changing business demands. NexPrise, Inc. is headquartered in Carlsbad, California. For more information, please visit http://www.nexprise.com/. Safe Harbor Statement This press release contains "forward-looking" statements, as that term is used in Section 21E of the Securities Exchange Act of 1934, about NexPrise, Inc. Forward-looking statements are denoted by such words as "contracted revenue" or "can enable" and similar terms and phrases. These types of statements address matters that are subject to risks and uncertainties, which could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, NexPrise's ability to collect revenues associated with such contracts and its ability to continue to generate business from new contracts. In addition, our forward-looking statements should be considered in the context of other risk factors discussed in our filings with the Securities and Exchange Commission, including but not limited to our on Form 10-K and 10-Q filings, available online at http://www.sec.gov/ . All forward-looking statements are based on information available to the company on the date hereof, and the company assumes no obligation to update such statements. NEXPRISE, INC CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) Sept 30, December 31, 2004 2003 ASSETS unaudited audited Current assets: Cash and cash equivalents $1,094 $991 Short-term investments 1,500 5,000 Accounts receivable 296 743 Prepaid expenses 429 321 Other current assets 190 362 Total current assets 3,509 7,417 Property and equipment, net 75 40 Intangible assets, net 35 139 Other long-term assets, net 242 317 Total assets $3,861 $7,913 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $81 $94 Accrued compensation 299 552 Accrued expenses 1,201 1,158 Deferred revenue 1,204 1,590 Total current liabilities 2,785 3,394 Notes payable 11,843 11,843 Commitments and contingencies Stockholders' deficit: Preferred stock, no par value: 2,500 shares authorized: none issued or outstanding -- -- Common stock, $.0002 par value; 20,000 shares authorized; 3,238 and 3,237 shares issued and outstanding 10 10 Additional paid-in capital 631,771 631,774 Deferred compensation (14) (143) Accumulated deficit (642,687) (639,118) Accumulated other comprehensive income 153 153 Total stockholders' deficit (10,767) (7,324) Total liabilities and stockholders' deficit $3,861 $7,913 NEXPRISE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Net revenues $1,024 $814 $2,350 $2,537 Costs and expenses Cost of product licenses and services 297 238 851 824 Cost of amortization of purchased technology 34 491 102 1,473 Research and development 463 749 1,649 2,099 Sales and marketing 263 1,068 1,265 2,989 General and administrative 362 631 1,541 2,247 Restructuring & settlement (benefit) -- -- -- (493) Total costs and expenses 1,419 3,177 5,408 9,139 Operating loss (395) (2,363) (3,058) (6,602) Interest expense (189) (189) (567) (567) Interest income and other, net 7 57 56 218 Investment losses -- 400 -- 287 Loss from continuing operations (577) (2,095) (3,569) (6,664) Gain from discontinued operations -- -- -- 334 Net loss $(577) $(2,095) $(3,569) $(6,330) Basic and diluted loss per share from continuing operations $(0.18) $(0.65) $(1.10) $(2.06) Basic and diluted gain per share from discontinued operations $-- $-- $-- $0.10 Basic and diluted net loss per share $(0.18) $(0.65) $(1.10) $(1.96) Weighted average common shares outstanding used in computing basic and diluted net loss per share 3,238 3,233 3,238 3,229 DATASOURCE: NexPrise, Inc. CONTACT: Jerome Natoli of NexPrise, Inc., +1-650-327-6850, or Web site: http://www.nexprise.com/

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