Harmony Information Systems Raises $28 Million in Series B Financing from JMI Equity, Updata Partners, ORIX Venture Finance and Comerica Bank

Funding will Accelerate Expansion of Industry Leading Health and Human

Services On-Demand Software Solutions

    RESTON, Va., Oct. 31 /PRNewswire/ -- Harmony Information Systems, Inc.,
 (Harmony) the industry-leading provider of software solutions for the
 health and human services (HHS) sector, today announced that it has raised
 Series B equity and debt financing totaling $28 million. The round was led
 by existing Harmony investors JMI Equity and Updata Partners, with ORIX
 Venture Finance and Comerica Bank also participating as new investors in
 Harmony.
     Harmony will use the funding to accelerate the expansion of its sales
 and marketing team, develop new on-demand and on-premise software solutions
 for public and private HHS organizations, increase its consulting service
 offerings and address new and existing growth opportunities across the
 broad range of service programs in the HHS sector. Additionally, Harmony
 will continue to provide quality support to its existing customer base in
 43 states, the District of Columbia, Puerto Rico and Canada.
     "JMI and Updata, both known for their software expertise and
 specialized investments in growth capital for technology companies,
 continue to demonstrate their strong commitment to Harmony's growth and
 ongoing success," said Tonya Harmon, CEO and Founder of Harmony. "This
 funding further validates our model for development and delivery of
 world-class solutions that enable case management professionals to meet the
 needs of clients, while optimizing care efficiency and quality."
     In connection with the Series B funding, John Burton, Managing General
 Partner of Updata, will join Updata General Partner Tim Meyers and JMI
 General Partner Brad Woloson on the Harmony Board of Directors.
     "We are proud of our affiliation with Harmony and the strong growth the
 company has achieved," said Mr. Woloson of JMI. "Harmony's recent merger
 with Synergy has created a company with an expanded geographic footprint
 and added financial resources at its disposal. This coupled with Harmony's
 long- standing commitment to providing its customers with software and
 services that enhance their ability to serve the needs of their
 constituencies, has positioned the company for continued success and
 additional profitable growth over the long term."
     "Harmony's deep domain expertise in the HHS sector, combined with its
 quick delivery of customizable software solutions, has resulted in
 significant customer wins and momentum with federal, state, local and
 tribal agencies, and large and small non-profit providers," said Mr. Meyers
 of Updata. "Through its new on-demand offerings, we believe that Harmony
 will be able to address the broadest market of HHS providers with a great
 return on investment for their clients while yielding significant financial
 strength for the company."
     On Monday October 29, 2007 Harmony announced its merger with the
 leading software solutions provider to HHS entities serving the aging
 market. The new Harmony combines entities with two decades of experience
 that have built significant customer bases by providing superior solutions
 that, unlike their competitors, can be in production after only months
 versus years. For more information on the landmark merger between Harmony
 and Synergy, visit www.harmonyis.com
     About Harmony Information Systems, Inc.
     Harmony Information Systems, Inc. offers the health and human services
 profession an integrated suite of software solutions as well as
 comprehensive education and consulting services. Harmony's Web-based
 information management framework is designed for organizations-public and
 private-that administer a broad array of programs or services. Harmony's
 enterprise approach draws critical data from disparate data sources to
 create a single, fully integrated, consistent, and comprehensive client
 view, resulting in overall improvements in operational efficiency and
 effectiveness. For more information visit www.harmonyis.com.
     About JMI Equity
     JMI Equity, based in Baltimore and San Diego, is a private equity firm
 exclusively focused on investments in growing software and business
 services companies at all stages of their lifecycles. Founded in 1992, JMI
 has invested in more than 85 companies throughout North America and has
 approximately $1.3 billion of committed capital under management. JMI
 provides the first institutional capital to self-funded companies, partners
 with management teams to acquire or recapitalize market leading companies
 and selectively makes investments in early-stage companies. Representative
 investments include Blackbaud, DoubleClick, Harmony Information Systems,
 Kronos and Unica. For more information on JMI, visit www.jmiequity.com.
     About Updata Partners
     Based in Reston, Virginia and Edison, New Jersey, Updata Partners is a
 leading venture capital firm that invests in growth stage information
 technology companies with innovative intellectual property enabling market-
 leading products and services. Led by an investment team averaging more
 than 20 years of operational and private equity experience in the
 technology industry, Updata Partners seek investments where the combination
 of financial backing and operating expertise will accelerate growth. With
 over $400 million under management, the firm also selectively provides
 recapitalization and management buyout financing. For more information,
 visit www.updatapartners.com.
     About ORIX Venture Finance LLC
     ORIX Venture Finance (OVF) provides enterprise financing to mid- and
 late- stage venture-capital-backed companies via acquisition financing,
 expansion capital and working capital term loans and credit lines, and
 equity co- investments. The Venture Finance team, staffed with highly
 seasoned venture lending professionals, meets the challenges facing growth
 companies by structuring flexible financing packages that meet their unique
 needs. OVF is a stable, reliable partner dedicated to supporting the growth
 and success of professionally backed companies with a range of debt
 products. For more information, visit www.orixventurefinance.com.
     About Comerica Bank's Technology & Life Sciences Division
     Comerica Bank's Technology & Life Sciences Division is one of the
 nation's leading technology banking practices, offering a wide range of
 financial services tailored to corporate customers, entrepreneurs and
 professions. Veteran bankers provide credit and financial services and
 products to young, growing, professionally backed technology and life
 sciences companies, as well as their more mature counterparts. The
 Technology & Life Sciences Division serves all major U.S. technology
 centers from offices coast-to coast with its headquarters in Palo Alto,
 California. Comerica Bank is a subsidiary of Comerica Incorporated, a
 financial services company headquartered in Dallas that is among the 20
 largest banking companies in the U.S. with $59.8 billion in total assets at
 September 30, 2007. For more information, visit www.comerica.com.
     Press Contacts:
     Kyle F. Flaherty for Harmony Information Systems
     Horn Group
     781-356-7166
     kflaherty@horngroup.com
 
     Chuck Dohrenwend for JMI Equity
     Abernathy MacGregor Group
     212-371-5999
     cod@abmac.com
 
     Robin Dvorak
     Updata Partners
     703-464-7278
     rdvorak@updata.com
 
 

SOURCE Harmony Information Systems, Inc.