Arena Solutions Announces Continued Sales Growth for Q3 2008

FOSTER CITY, CA : Arena Solutions, the leading provider of on-demand product lifecycle management (PLM) software for manufacturers of all sizes, today announced that continued growth in new customer adoption, combined with a net retention rate of 135 percent, fueled the company's quarter-over-quarter sales growth of 48 percent and year-over-year sales growth of 35 percent for its third quarter ended September 30, 2008.

In Q308, Arena continued to attract new customers from the electronics, medical device and clean technology markets, where efficiency and accuracy are critical success factors. Before adopting Arena PLM, most of these companies relied on Microsoft Excel to manage critical product information, but found that tool to be a liability as their businesses became more complex.

Existing customers, who've used Arena PLM to increase accuracy, boost productivity, and improve their competitive advantage, not only renewed their Arena PLM subscriptions during the quarter, but also increased their investments at an unprecedented rate, demonstrating that in a down economy, the support Arena PLM provides in helping companies succeed and grow is more important than ever.

During the third quarter, the adoption of Arena PLM among clean technology companies looking to accelerate product development to meet growing demand was notable. Among these companies are Kinetics, which has provided process and mechanical solutions to the solar energy market for more than 10 years; Grid Net, a smart metering company that could help modernize the nation's digital energy grid and contribute to trimming the country's power usage by 10 percent, reduce greenhouse gas emissions by 25 percent and eliminate the need for $80 billion in new power plants; Coulomb Technologies, which is responsible for building a curbside network of charging stations for electric cars; and the Grand Cayman-based d. Light, which provides innovative solar-powered lighting solutions to regions without electricity.

In addition, there was continued demand from medical device manufacturers, such as Alpha Med-Surge, Invivo Diagnostic, Avedro and Intrapace. For each, using Arena PLM to manage product data for compliance is critical for maintaining their competitive position.

"We've seen so many growing companies make a quick and successful move from Microsoft Excel to Arena PLM. Instead of the chaos that comes from managing product information in complicated spreadsheets, Arena offers a collaborative environment for centralizing, controlling and analyzing this complex and constantly changing data," said Craig Livingston, chief executive officer of Arena Solutions.

Debunking the myth that PLM implementations are lengthy and arduous, approximately 60 percent of new customers that purchased Arena PLM during the third quarter completed the entire implementation process within that 12 week period.

Other significant highlights of Q3 2008:

-- Arena Solutions was included among the top 200 private technology
companies of 2008 by Nollenberger Capital Partners Investment Banking Team.
Arena was selected for its compelling solutions, broad market, solid
management, demonstrated results and defensible intellectual property.

-- Arena surpassed its 99.5 percent service level agreement for the tenth
consecutive quarter, with 100 percent scheduled uptime in Q3 2008 and a
continued commitment to building and delivering the most secure, reliable
PLM solution available.