Investing in Web Site Quality: Coast Software Secures $5 Million from Premier Institutional Investors

New funding by Bank of Montreal Capital Corporation, Capital Alliance

Ventures Incorporated and RoyNat Capital Incorporated establishes COAST's

leadership position in the fast-growing Web quality management arena



Apr 30, 2001, 01:00 ET from COAST Software Inc.

    OTTAWA, ON, Canada,April 30 /PRNewswire/ - COAST Software, Inc., the
 leading provider of Web quality management solutions, announced today it has
 secured CDN$5 million in financing from prominent institutional investors.
 Bank of Montreal Capital Corporation served as lead investor in the round, and
 was joined by RoyNat Capital and Capital Alliance Ventures Incorporated. The
 funds will be used to expand sales and marketing, and extend COAST's research
 and development activities.
     "Current market conditions make it more imperative than ever that
 companies reap the greatest possible returns from their online operations.
 COAST is uniquely positioned to meet the needs of a growing market, as
 corporations shift priorities to focus on e-business effectiveness," said
 Vipon Ghai, director, Bank of Montreal Capital Corporation. "COAST's mission
 to help managers establish and maintain Web business productivity combined
 with its seasoned management team and proven technology, make the company a
 prime investment opportunity for us."
     Failed Web applications and content integrity issues quickly turn Web
 visitors away. In today's market where every transaction counts, COAST is
 poised to provide significant value to companies by improving overall Web
 business quality. COAST's Web testing and reporting solutions identify and
 analyze errors, while providing technical and non-technical managers with the
 strategic information needed to establish and maintain high-quality business
 practices online. Experienced in Web quality management, testing and
 monitoring, COAST ensures its customers offer superior online experiences to
 Web site visitors, and gain greater understanding of how the Web affects their
 overall business.
     "COAST is solidly positioned for growth and profitability as the company
 establishes its market leadership," said Paul Saunders, president and CEO,
 COAST. "With this round of financing, we will continue to extend our ability
 to provide business and technical managers with mission-critical Web testing
 and reporting offerings, while we develop new innovative solutions to support
 the evolving management needs of e-businesses."
 
     About Bank of Montreal
     ----------------------
     Bank of Montreal Capital Corporation works closely with its parent, Bank
 of Montreal, in developing seamless financing options for Canadian growth
 companies. The Bank has committed $400 million to four separate programs: Bank
 of Montreal Small Business Capital Program, Bank of Montreal Technology
 Investment Program, Bank of Montreal Early Stage Capital Program and Bank of
 Montreal Strategic Investment Program.
 
     About Capital Alliance Ventures Inc.
     ------------------------------------
     Capital Alliance Ventures Inc. is an Ottawa-based labour sponsored
 venture capital fund that invests in technology-based industries. These
 include hardware, software, environmental, telecom/datacom and semiconductor.
 
     About RoyNat Capital
     --------------------
     RoyNat Capital is Canada's leading private sector merchant bank,
 providing specialized financing through senior debt, subordinated debt,
 mezzanine financing and equity to medium-sized businesses through its 22
 branches across Canada. RoyNat Capital is committed to providing total
 business solutions including acting as financial partner and advisor on
 management buy-outs, business mergers and acquisitions, and succession
 financing. RoyNat Capital is a member of the Scotiabank Group.
 
     About COAST
     -----------
     Specializing in comprehensive Web Quality Management solutions, COAST
 arms e-business and technical managers alike with testing, reporting, analysis
 and monitoring of the quality of their Web business. Established in 1996, the
 company is a pioneer in the development of Web site testing solutions. COAST
 enjoys partnerships with numerous industry leaders, including Microsoft,
 Rational Software Corporation and IBM; and its products boast more than
 100,000 licensed users worldwide. From low-cost packaged testing and
 reporting, to fully customized hosted e-services, COAST solutions scale to
 meet the quality management needs and budgets of today's e-businesses.
     For additional information, send e-mail to info@coast.com or visit the
 COAST site at www.coast.com.
 
 

SOURCE COAST Software Inc.
    OTTAWA, ON, Canada,April 30 /PRNewswire/ - COAST Software, Inc., the
 leading provider of Web quality management solutions, announced today it has
 secured CDN$5 million in financing from prominent institutional investors.
 Bank of Montreal Capital Corporation served as lead investor in the round, and
 was joined by RoyNat Capital and Capital Alliance Ventures Incorporated. The
 funds will be used to expand sales and marketing, and extend COAST's research
 and development activities.
     "Current market conditions make it more imperative than ever that
 companies reap the greatest possible returns from their online operations.
 COAST is uniquely positioned to meet the needs of a growing market, as
 corporations shift priorities to focus on e-business effectiveness," said
 Vipon Ghai, director, Bank of Montreal Capital Corporation. "COAST's mission
 to help managers establish and maintain Web business productivity combined
 with its seasoned management team and proven technology, make the company a
 prime investment opportunity for us."
     Failed Web applications and content integrity issues quickly turn Web
 visitors away. In today's market where every transaction counts, COAST is
 poised to provide significant value to companies by improving overall Web
 business quality. COAST's Web testing and reporting solutions identify and
 analyze errors, while providing technical and non-technical managers with the
 strategic information needed to establish and maintain high-quality business
 practices online. Experienced in Web quality management, testing and
 monitoring, COAST ensures its customers offer superior online experiences to
 Web site visitors, and gain greater understanding of how the Web affects their
 overall business.
     "COAST is solidly positioned for growth and profitability as the company
 establishes its market leadership," said Paul Saunders, president and CEO,
 COAST. "With this round of financing, we will continue to extend our ability
 to provide business and technical managers with mission-critical Web testing
 and reporting offerings, while we develop new innovative solutions to support
 the evolving management needs of e-businesses."
 
     About Bank of Montreal
     ----------------------
     Bank of Montreal Capital Corporation works closely with its parent, Bank
 of Montreal, in developing seamless financing options for Canadian growth
 companies. The Bank has committed $400 million to four separate programs: Bank
 of Montreal Small Business Capital Program, Bank of Montreal Technology
 Investment Program, Bank of Montreal Early Stage Capital Program and Bank of
 Montreal Strategic Investment Program.
 
     About Capital Alliance Ventures Inc.
     ------------------------------------
     Capital Alliance Ventures Inc. is an Ottawa-based labour sponsored
 venture capital fund that invests in technology-based industries. These
 include hardware, software, environmental, telecom/datacom and semiconductor.
 
     About RoyNat Capital
     --------------------
     RoyNat Capital is Canada's leading private sector merchant bank,
 providing specialized financing through senior debt, subordinated debt,
 mezzanine financing and equity to medium-sized businesses through its 22
 branches across Canada. RoyNat Capital is committed to providing total
 business solutions including acting as financial partner and advisor on
 management buy-outs, business mergers and acquisitions, and succession
 financing. RoyNat Capital is a member of the Scotiabank Group.
 
     About COAST
     -----------
     Specializing in comprehensive Web Quality Management solutions, COAST
 arms e-business and technical managers alike with testing, reporting, analysis
 and monitoring of the quality of their Web business. Established in 1996, the
 company is a pioneer in the development of Web site testing solutions. COAST
 enjoys partnerships with numerous industry leaders, including Microsoft,
 Rational Software Corporation and IBM; and its products boast more than
 100,000 licensed users worldwide. From low-cost packaged testing and
 reporting, to fully customized hosted e-services, COAST solutions scale to
 meet the quality management needs and budgets of today's e-businesses.
     For additional information, send e-mail to info@coast.com or visit the
 COAST site at www.coast.com.
 
 SOURCE COAST Software Inc.