Breakaway Solutions Announces Closing of $33 Million Financing Led by SCP Private Equity Partners

Newly Appointed CEO Focuses on Company Restructuring to Drive Towards

Profitability; Significantly Reduces Annual Costs



Apr 12, 2001, 01:00 ET from Breakaway Solutions, Inc.

    PHILADELPHIA, April 12 /PRNewswire/ -- Breakaway Solutions, Inc.
 (Nasdaq:   BWAY), the #1 Global Full Service Provider (FSP) of integrated
 strategy, implementation and application hosting solutions for collaborative
 ebusinesses, today announced that it has secured shareholder approval for, and
 is now closing a round of, equity financing totaling $33 million from
 investors including SCP Private Equity Partners, and Internet Capital Group
 (ICG).  On a common stock equivalent basis, the equity investments will be
 made at $0.70 per share with 100% warrant coverage.
     The majority of the financing was previously provided to the Company
 through debt financing, which upon the closing converts to a newly authorized
 class of preferred stock.  The Company has also announced further operational
 and staff restructuring that will help it achieve profitability.
     The proceeds of the financing will be used for Breakaway Solutions'
 ongoing operational purposes, continuing to fuel its drive to profitability --
 specifically its concentration on building deeper relationships with Global
 3000 customers.  The Company will continue to focus on key high growth areas
 which include eCRM, Supply Chain Management, Procurement and Exchanges, and
 mBusiness solutions through the Company's differentiated FSP model.
     "SCP and ICG have an outstanding track record of choosing market leaders
 and we are pleased that they view Breakaway Solutions' integrated delivery
 approach as a compelling customer value proposition and a key driver of our
 success," said Bill Loftus, President and CEO of Breakaway Solutions.  "Our
 mission is to continue to align ourselves with our Global 3000 customer goals,
 to capture new market share through our deep technology experience and proven
 track record, and to streamline our operations to achieve profitability.  And
 with the support from our strategic investors, Breakaway Solutions continues
 to be well positioned to succeed in this marketplace."
     "In today's market, a company needs a differentiated business and delivery
 model to sustain a competitive advantage, withstand rocky economic conditions,
 and to continue to form long-term customer relationships," said Wayne Weisman,
 Partner at SCP and Breakaway Solutions' Chairman. "Breakaway Solutions has
 what it takes to make the necessary company transformations to emerge as one
 of the leaders in this sector." In addition, Breakaway Solutions has announced
 company restructuring which will significantly reduce costs.  These cost cuts
 will include staff reductions of approximately 200 employees of its total work
 force, closings of its Rocky Mountain and London offices, changing its
 solution center in Ft. Lauderdale into a regional sales office, and the
 changing of its headquarters from Maynard, MA to Philadelphia, PA.  The
 Company is committed to profitability and continues to make critical
 administrative cost-cutting measures.
 
     About Breakaway Solutions
     Breakaway Solutions, Inc. (Nasdaq:   BWAY) is the #1 Global Full Service
 Provider (FSP) specializing in defining, creating, and operating sustainable
 digital businesses for Global 3000 collaborative e-business enterprises
 through strategy, implementation, and application hosting services.
 Headquartered in Philadelphia, PA., Breakaway Solutions has a network of
 regional offices and Internet Solutions Centers in major cities across the
 U.S. and in Europe, as well as 11 Application Hosting facilities in North
 America, Europe, Asia and Australia. Breakaway Solutions can be reached at
 978/461-7800 or at www.breakaway.com.
 
     About SCP Private Equity Partners
     SCP Private Equity Partners (www.scppartners.com) is a private equity firm
 focused on later stage companies in high growth industries, with a special
 emphasis on technology. SCP generally invests in companies with commercially
 proven technologies that need capital to implement and market their business
 concepts. SCP targets the information technology, telecommunications, data
 communications, financial services, media and healthcare services industries.
 SCP supports its investment portfolio with a rich base of strategic, operating
 and financial expertise and an extensive networking capacity to access
 capital, recruit management and facilitate favorable strategic alliances. SCP
 has over $750 million under management and is based in suburban Philadelphia.
     Except for the historical information contained in this announcement, the
 matters discussed in this announcement are "forward-looking statements" (as
 that term is used in the Private Securities Litigation Reform Act of 1995)
 that involve risks and uncertainties, including risks relating to the
 attractiveness of Breakaway's Full Service Provider model to its current and
 prospective customers, likely variations in quarterly revenues and operating
 results, the ability to realize benefits from acquisitions and strategic
 alliances, risks in conducting business outside the United States, the
 adoption and acceptance of application hosting services by growing
 enterprises, personnel and customer retention, ability to raise additional
 capital, equity dilution, business change, product acceptance and customer
 demand, variation in quarterly results, competition, and growth management
 detailed from time-to-time in Breakaway Solutions, Inc.'s filings with the
 Securities and Exchange Commission. Breakaway Solutions, Inc. draws the
 reader's attention to the factors described in its Quarterly Report on Form
 10-Q for the Period Ended Sept. 30, 2000 under the heading "Factors That May
 Affect Future Results." Any such forward-looking statements speak only as of
 the date such statements are made, and the company undertakes no obligation to
 publicly release the results of any revision to these forward-looking
 statements or otherwise update or supplement this announcement or the risk
 factors contained in its filings with the Securities and Exchange Commission.
 
     Contact:
     Joanna Bolles
     Public Relations Manager
     Breakaway Solutions, Inc.
     978/823-1644
     jbolles@breakaway.com
 
 

SOURCE Breakaway Solutions, Inc.
    PHILADELPHIA, April 12 /PRNewswire/ -- Breakaway Solutions, Inc.
 (Nasdaq:   BWAY), the #1 Global Full Service Provider (FSP) of integrated
 strategy, implementation and application hosting solutions for collaborative
 ebusinesses, today announced that it has secured shareholder approval for, and
 is now closing a round of, equity financing totaling $33 million from
 investors including SCP Private Equity Partners, and Internet Capital Group
 (ICG).  On a common stock equivalent basis, the equity investments will be
 made at $0.70 per share with 100% warrant coverage.
     The majority of the financing was previously provided to the Company
 through debt financing, which upon the closing converts to a newly authorized
 class of preferred stock.  The Company has also announced further operational
 and staff restructuring that will help it achieve profitability.
     The proceeds of the financing will be used for Breakaway Solutions'
 ongoing operational purposes, continuing to fuel its drive to profitability --
 specifically its concentration on building deeper relationships with Global
 3000 customers.  The Company will continue to focus on key high growth areas
 which include eCRM, Supply Chain Management, Procurement and Exchanges, and
 mBusiness solutions through the Company's differentiated FSP model.
     "SCP and ICG have an outstanding track record of choosing market leaders
 and we are pleased that they view Breakaway Solutions' integrated delivery
 approach as a compelling customer value proposition and a key driver of our
 success," said Bill Loftus, President and CEO of Breakaway Solutions.  "Our
 mission is to continue to align ourselves with our Global 3000 customer goals,
 to capture new market share through our deep technology experience and proven
 track record, and to streamline our operations to achieve profitability.  And
 with the support from our strategic investors, Breakaway Solutions continues
 to be well positioned to succeed in this marketplace."
     "In today's market, a company needs a differentiated business and delivery
 model to sustain a competitive advantage, withstand rocky economic conditions,
 and to continue to form long-term customer relationships," said Wayne Weisman,
 Partner at SCP and Breakaway Solutions' Chairman. "Breakaway Solutions has
 what it takes to make the necessary company transformations to emerge as one
 of the leaders in this sector." In addition, Breakaway Solutions has announced
 company restructuring which will significantly reduce costs.  These cost cuts
 will include staff reductions of approximately 200 employees of its total work
 force, closings of its Rocky Mountain and London offices, changing its
 solution center in Ft. Lauderdale into a regional sales office, and the
 changing of its headquarters from Maynard, MA to Philadelphia, PA.  The
 Company is committed to profitability and continues to make critical
 administrative cost-cutting measures.
 
     About Breakaway Solutions
     Breakaway Solutions, Inc. (Nasdaq:   BWAY) is the #1 Global Full Service
 Provider (FSP) specializing in defining, creating, and operating sustainable
 digital businesses for Global 3000 collaborative e-business enterprises
 through strategy, implementation, and application hosting services.
 Headquartered in Philadelphia, PA., Breakaway Solutions has a network of
 regional offices and Internet Solutions Centers in major cities across the
 U.S. and in Europe, as well as 11 Application Hosting facilities in North
 America, Europe, Asia and Australia. Breakaway Solutions can be reached at
 978/461-7800 or at www.breakaway.com.
 
     About SCP Private Equity Partners
     SCP Private Equity Partners (www.scppartners.com) is a private equity firm
 focused on later stage companies in high growth industries, with a special
 emphasis on technology. SCP generally invests in companies with commercially
 proven technologies that need capital to implement and market their business
 concepts. SCP targets the information technology, telecommunications, data
 communications, financial services, media and healthcare services industries.
 SCP supports its investment portfolio with a rich base of strategic, operating
 and financial expertise and an extensive networking capacity to access
 capital, recruit management and facilitate favorable strategic alliances. SCP
 has over $750 million under management and is based in suburban Philadelphia.
     Except for the historical information contained in this announcement, the
 matters discussed in this announcement are "forward-looking statements" (as
 that term is used in the Private Securities Litigation Reform Act of 1995)
 that involve risks and uncertainties, including risks relating to the
 attractiveness of Breakaway's Full Service Provider model to its current and
 prospective customers, likely variations in quarterly revenues and operating
 results, the ability to realize benefits from acquisitions and strategic
 alliances, risks in conducting business outside the United States, the
 adoption and acceptance of application hosting services by growing
 enterprises, personnel and customer retention, ability to raise additional
 capital, equity dilution, business change, product acceptance and customer
 demand, variation in quarterly results, competition, and growth management
 detailed from time-to-time in Breakaway Solutions, Inc.'s filings with the
 Securities and Exchange Commission. Breakaway Solutions, Inc. draws the
 reader's attention to the factors described in its Quarterly Report on Form
 10-Q for the Period Ended Sept. 30, 2000 under the heading "Factors That May
 Affect Future Results." Any such forward-looking statements speak only as of
 the date such statements are made, and the company undertakes no obligation to
 publicly release the results of any revision to these forward-looking
 statements or otherwise update or supplement this announcement or the risk
 factors contained in its filings with the Securities and Exchange Commission.
 
     Contact:
     Joanna Bolles
     Public Relations Manager
     Breakaway Solutions, Inc.
     978/823-1644
     jbolles@breakaway.com
 
 SOURCE  Breakaway Solutions, Inc.