CONTACT INFORMATION

Peace Software
www.peace.com

PORTLAND, OR., February 9, 1999 - Peace Software International, a leading provider of customer information systems (CIS) and billing systems for the deregulated utilities market, today announced commitments for $10 million in equity financing. The company also announced new appointments to its Board of Directors, including Jeffrey Horing, partner, Insight Capital Partners; Jake Tarr, managing director, Arete Ventures; and John W. Blend III, former president of worldwide sales and marketing and director for Indus International, and a special partner with Insight Capital Partners.

Insight Capital Partners led the equity financing, which also included Arete Ventures. Insight Capital Partners' advisory board, which includes prominent industry leaders such as Manny Fernandez, CEO of Gartner Group, and Ray Lane, president and COO of Oracle Corporation, will serve in an advisory capacity to Peace Software. The advisory board will assist with ongoing management issues, including the recruiting of executive talent and establishing of strategic relationships for Peace Software. In addition, Arete Ventures, which specializes in identifying investment opportunities in the deregulated utility market through its Utility Competitive Advantage Fund, will offer expertise in, and inside knowledge of, Peace's target market. Arete has selected Peace Software as its portfolio company for customer information services (CIS) software for the utility market.

"Our investment partners and new board members will give the company a strong foundation to Continue its rapid growth," said Brian Peace, president and founder, Peace Software. "Peace's leading CIS product, Energy, delivers total customer care, and its unique browser interface enables utility customers to easily access service provider web sites for interactive information about billing, real-time pricing, contract management, and energy trading. This infusion of capital and board leadership will allow us to invest more aggressively in sales,
development and marketing to become a major supplier of billing and CIS software to utility customers worldwide."

Leveraging the experience gained in the New Zealand and Australian deregulated utility markets, Peace is expanding rapidly in the North American market. Customers in North America include Enron, BCGas and InSite/Pepco.

"The relationships with Insight Capital Partners and Arete Ventures, which has over 17 utilities investors in their fund, will help extend Peace Software's leadership position, particularly in the North American market," added Brian Peace. "Peace is committed to the North American market, offering a strong customer service and support infrastructure."

"Peace's technology and market presence are several years ahead of its competitors', and the company is in a strong position to be a leading provider of CIS software for the deregulated utilities market," said Jeff Horing, partner, Insight Capital Partners. "Rarely is there an opportunity to work with a company that is so strongly established with technology, customers and management quality."

"The deregulation of the $270 billion utility industry is creating huge business opportunities for technology providers such as Peace," said Jake Tarr, managing director, Arete Ventures. "Utility companies are shifting their competitive focus from asset-based to information-based in order to thrive in the global economy. Key among their needs is customer-information software, such as Peace's Energy product, which allows the utility to service customers in new ways, including over the Internet."

"We believe that there is opportunity for Peace to be a market leader," said John Blend, special partner, Insight Capital Partners. "The market for deregulated customer-information software serving the deregulated utility market is projected to grow at an impressive rate over the next five years, and utilities are turning to vendors with proven technology and installation expertise to help them deploy advanced customer-information systems."

Peace's Energy Product: Poised to Deliver in the Deregulated Utility Market The Peace Software Energy™ product is a comprehensive customer management and billing system designed and customized for energy service provider clients. Energy includes all functions needed for energy service providers (ESPs) to Deliver total customer care, including Internet customer service, ESP consolidated billing or commodity-only billing, enrollment, and settlements. It is unique in providing a browser user interface, enabling electricity customers to easily access
service provider web sites for interactive information about billing, utility usage and support.

Peace's Energy product also provides complex data analysis and 3-D visualization of consumption and demand profiles and risk management. It offers complex billing, real-time pricing, contract management and energy trading to address the commercial/industrial segments needs, and its three-tier architecture ensures scalability. This allows the utility to implement for commercial/industrial accounts initially and add the residential client base subsequently.


About InSight Capital Partners
InSight Capital Partners has raised more than $200 million since its founding in 1995 and has rapidly become one of the largest global investors in software and software-related businesses. The firm has offices in New York and Aspen, Colorado. Current InSight investment holdings include i2 Technologies (NASDAQ: ITWO), Manugistics (NASDAQ:MANU), Exchange Applications, Optum Software, Beechwood Data Systems, and ActionSystems. For additional information, please visit the InSight web site at www.insightpartners.com.

About Arete Ventures
Arete Ventures, founded in 1983, manages venture funds for 13 U.S. and 3 European utilities. In addition to the Utility Competitive Advantage Fund, targeted at $100 million in committed capital, Arete also manages the Utech Funds, $95 million in capital. The Utech Funds, now essentially fully invested, made investments in entrepreneurial companies addressing growth markets related to the utility industry.

About Peace Software International
Peace Software International develops and implements the Energy Customer Information System for gas, electric, and water utilities. Peace's systems are web browser-based solutions that operate on open hardware and relational databases. Peace's experience around the world in deregulated markets uniquely enables the company to provide competitive advantage to Customers. Additional information about Peace is available at www.peace.com.

# # #