Leading Technology Research Group Names Hyland Software as Challenger within Enterprise Content Management Market

CLEVELAND � January 7, 2004 – Hyland Software, Inc., developers of OnBase enterprise content management (ECM) software and a leading, global provider of electronic document management solutions, today announced it has been ranked as a market challenger in META Group�s recently released METAspectrum(SM) for the enterprise content management (ECM) market. META Group (Nasdaq: METG) is a leading research and consulting firm that focuses on information technology and business transformation strategies.

The new METAspectrum evaluation provides an objective assessment of companies providing Enterprise Content Management Tools. �Organizations should establish appropriate weightings for various vendor evaluation criteria, with specific focus on the future strategic content-handling requirements of the enterprise,� said Charles Brett, program director, META Group. �Because acquisition and consolidation in the ECM market will continue to accelerate through 2004, users should aggressively evaluate vendors� long-term financial position, viability, and strategy.�

Hyland Software was positioned in the challenger segment of the METAspectrum analysis, and specifically was recognized for its strength in the categories of architecture and functionality; deployment time; product development and enhancements; and cost-of-ownership.

�We are extremely pleased with our advanced rating in this year�s METAspectrum evaluation,� said Bill Priemer, Hyland Software�s vice president of Sales and Marketing. �Our key differentiators, including architecture, functionality, deployment time, cost-of-ownership, scalability and product development, enhancements and support, continue to propel Hyland Software, and OnBase, to the next level. And we look forward to focusing on these differentiators to ensure we deliver on our core goal, which is to enable organizations to operate more efficiently and effectively.�

OnBase is enterprise software that combines the technologies of document imaging, document management, enterprise report management and workflow into a single web-enabled application. By dynamically organizing and controlling the delivery of documents and interactively managing the business processes in which these documents are used, OnBase allows organizations of all sizes to streamline their work processes and share information among their employees, business partners, and customers.

OnBase is a premier offering in the category of software commonly called enterprise content management. ECM systems manage virtually every kind of document – images, host generated reports, application files, HTML and XML forms, emails, video clips, PDFs, etc. – as well as every stage of the document lifecycle, from creation/input to storage, retrieval, revisioning and distribution. OnBase touts a highly evolved architecture that utilizes a single SQL database, a single configuration interface and infinite possibilities for user interaction. As a result, OnBase provides more out-of-the-box functionality than any other ECM system.

OnBase is designed for the rapid deployment of enterprise-class document solutions and for the continual expansion and enhancement of those solutions over time. Enterprise-class means that while appropriate for departmental applications, OnBase is capable of handling thousands of users, terabytes of data and more than a million transactions per day on a single PC-based server. OnBase is completely configurable using the point-and-click technique, resulting in rapid deployment of one of the industry�s most extensive feature sets.

OnBase is a single, integrated application that can be implemented on a modular basis, allowing customers to invest only in functionality that addresses their immediate needs and then incrementally, cost-effectively add features and users as needed. This creates a solution that combines the functionality of custom code with the reliability and cost-of-ownership of an off-the-shelf application and allows our customers to realize a rapid return on investment.

OnBase solutions are implemented in weeks as opposed to months, and employees are completely comfortable with the system after just a few hours of training. Both of these factors allow most customers to realize a return on investment within the first year of use.

�We developed METAspectrum to enable IT professionals to quickly evaluate vendors based on their ability to deliver on the presence and performance criteria that matter most in a given market,� said Corey Ferengul, senior program director, META Group. �With the shift toward higher-value services in the web hosting market, performance as demonstrated with existing customers is substantially more important than a vendor’s market presence. Well-defined services and high-levels of customer satisfaction are key in this space�

About METAspectrum

METAspectrum(SM) evaluations from META Group (Nasdaq: METG) provide IT professionals with a view into critical market success factors and vendor positioning. METAspectrum delivers comprehensive evaluations of both technology markets and vendor product offerings. There are multiple market evaluations planned for release in 2003 and beyond. METAspectrum evaluations are updated quarterly, biannually, or annually, depending on the characteristics of individual markets. To view completed market evaluations, or learn more about the METAspectrum methodology, visit www.metagroup.com/metaspectrum.

METAspectrum(SM) market evaluations and results are the sole property of META Group, Inc. and are Copyright � 2002 META Group, Inc. All rights reserved. Permission to use the results requires prior written approval from META Group, and should not be deemed an endorsement of any company or product.

About Hyland Software

Hyland Software, established in 1991, is the leading provider of rapidly deployable enterprise content management solutions. Hyland develops OnBase, enterprise-class software that combines integrated document management, business process management and records management in a single web-enabled application. OnBase manages virtually every kind of document (images, reports, statements, application files, web pages, HTML forms, video, etc.) as well as every stage of the document lifecycle (creation/input, storage, retrieval, revision, distribution and publishing), and seamlessly integrates with hundreds of line-of-business applications. OnBase is used by thousands of commercial organizations and government agencies to streamline operations, reduce costs and share information with employees, partners and customers.

As a customer-driven organization committed to providing world-class service and support, the company is dedicated to developing integrated document management solutions that are deployable at both the departmental and enterprise levels. Headquartered in Cleveland, Ohio, Hyland has offices located throughout the United States, Latin America, Europe and Japan.
Visit www.onbase.com for more information.