Baird Venture Partners: Smarttime Completes Equity Financing

For further information, contact:

Michael J. Panagakos
Vice President, Field Operations
SmartTime Software, Inc.
(508) 598-3830
mpanagakos@smarttime.com

Bill Filip
Baird Venture Partners
(610) 975-0929
wfilip@rwbaird.com

Mike Forgash
Zon Capital Partners
(609) 452-1653
mikeforgash@zoncapital.com

Investors include Baird Venture Partners and Zon Capital Partners;
Endorsement of SmartTime’s Total Workforce Optimization Software Solutions

FRAMINGHAM, Mass., June 29, 2004 – SmartTime Software, Inc. today announced the completion of an equity financing with a prominent group of venture capital investors led by Baird Venture Partners, an active investor in human capital technology companies, and joined by Zon Capital Partners. This investment represents strong investor support for SmartTime’s Total Workforce Optimization solutions that combine Time & Attendance automation, full-featured Employee Scheduling and labor analytics for large and mid-tier enterprise-class companies.

“This investment is an endorsement of SmartTime’s unique strategic value as industries move to achieve the balance between tight labor management, increased operational efficiencies, employee satisfaction and the delivery of high-quality goods and services,” stated Kevin Rhone, President and CEO of SmartTime. “SmartTime is emerging as a leader in providing workforce optimization solutions that deliver a rapid return-on-investment while streamlining key operational processes. Since critical labor transaction data and staffing metrics are immediately available for analysis, the mission-critical workforce can be intelligently deployed and strategically managed to give businesses a vital competitive edge.”

SmartTime’s Total Workforce Optimization product suite offers enterprise-class, strategic workforce management solutions that work together or separately to emulate the flow of the enterprise work cycle. SmartTime’s flexible solution is designed to support installations for both medium-size businesses and very large, widely dispersed enterprises across a multitude of industries, including manufacturing, transportation, healthcare, professional services and hospitality. The solution is designed to seamlessly integrate with the existing application and infrastructure environment.

“SmartTime’s enterprise-class, workforce management solutions have already gained strong customer acceptance,” stated Bill Filip, Partner with Baird Venture Partners. “This financing round will enable the company to rapidly expand its high-quality installed base. We are confident that the company has the resources and strategic vision to be an excellent partner for maximizing workforce efficiencies.”

“It is rare to find a company with as rich and deep a management and employee team as there is at SmartTime,” said Mike Forgash, Partner with Zon Capital Partners. “The combination of this team with a set of products and services that are a step ahead of the market makes for a very exciting opportunity.”

The financing provides SmartTime with working capital for continued development of its SmartWorks(tm) enterprise-level solutions, now being deployed in a variety of key industry sectors. In addition, SmartTime will use the proceeds to expand its sales, marketing and client services resources, accelerate new product development efforts and pursue strategic acquisitions.

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About SmartTime Software, Inc.
SmartTime is a leader in strategic workforce management solutions for large, diverse workforces and mid-tier enterprises. By optimizing and effectively managing labor resources, businesses can maximize workforce efficiencies to achieve a strong competitive advantage and increased profitability. The SmartWorks(tm) Suite of automated Time, Attendance and Employee Scheduling applications enables organizations to effectively manage their workforce through intelligent labor deployment automation and accurate compensation processing. It gives businesses the capability to analyze and make informed decisions about the effectiveness of their workforce and the processes that are critical to the bottom line.

Founded in 1986, SmartTime is headquartered in Framingham, Massachusetts. For more information, visit www.smarttime.com or contact Michael J. Panagakos, Vice President of Field Operations at (508) 598-3830.

About Baird Venture Partners
With more than 40 professionals in the United States and Europe, Baird’s global private equity business has raised and managed $1 billion in capital. Baird Venture Partners (BVP) makes venture capital investments in early- to growth-stage companies primarily in the areas of Business Services, Healthcare/Life Sciences and Technology. Baird Capital Partners (BCP) provides late-stage growth capital or change-of-control capital to U.S. middle- market companies in the areas of Business Services, Communications, Consumer, Healthcare/Life Sciences, and Industrial Products and Technology. Granville Baird Capital Partners (GBCP) is a long-established private equity manager targeting mid-market growth companies in the UK and Germany with a focus on Business Services, Healthcare, Industrial Products & Services and Technology. For more information, please visit Baird’s Private Equity website at www.bairdprivateequity.com.

About Zon Capital Partners

Zon Capital invests in expansion stage software, communications, semi-conductor and business services companies, primarily located in the Mid-Atlantic region of the United States. Zon leverages its managing directors’ operating and venture investing experience to partner with seasoned entrepreneurs and help them build valuable businesses. Zon Capital is a venture capital fund headquartered in Princeton, New Jersey with offices in Radnor, Pennsylvania. For more information, please visit Zon’s website at www.zoncapital.com.