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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For Further Information Contact:
Joanna Bolles Ken Peters
Breakaway Solutions, Inc. PAN Communications, Inc.
617-960-3458 978-474-1900
[email protected] [email protected]
BREAKAWAY SOLUTIONS ANNOUNCES
CLOSING OF $39 MILLION PRIVATE PLACEMENT
ADDITIONAL CAPITAL TO DRIVE CONTINUED GROWTH
OF LEADING FULL SERVICE PROVIDER TO THE GROWING ENTERPRISE
BOSTON, MA -- MAY 30, 2000 -- Breakaway Solutions, Inc. (NASDAQ: BWAY), a
leading Full Service Provider (FSP) of integrated strategy, e-business
implementation and application hosting solutions to growing enterprises,
today announced that it has closed a private placement of 1.5 million shares
of its Common Stock with various mutual funds managed by Putnam Investments.
The purchasing funds included the Putnam OTC and Emerging Growth Fund, the
Putnam New Century Growth Fund, and the Putnam Voyager Fund II.
The proceeds of the sale will be used for Breakaway Solutions' general
corporate purposes, continuing to fuel its rapid growth -- specifically, its
international expansion initiatives, the growth and rapid acceleration of
Breakaway Solutions' application hosting solutions group, and the further
development of Breakaway Solutions' MarketMover(TM) and wireless platforms.
In addition, the company expects to continue making investments in Breakaway
Solutions' brand development.
"The ability to act quickly and decisively is crucial to success in this
market," said Gordon Brooks, President and CEO of Breakaway Solutions. "Putnam's
investment further validates our market leadership and business model, while
affording the additional resources that will allow us to make those rapid
moves."
ABOUT BREAKAWAY SOLUTIONS, INC.
Breakaway Solutions, Inc. (NASDAQ: BWAY - NEWS) is a Full Service Provider (FSP)
of e-business solutions that allow growing enterprises to capitalize on the
power of the Internet.
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Breakaway Solutions offers strategy, e-business implementation and application
hosting solutions optimized for growing enterprise clients. Headquartered in
Boston, Massachusetts, Breakaway Solutions has a network of regional offices and
Internet Solutions Centers in major cities across the U.S. and in London, as
well as 11 Application Hosting facilities in North America, Europe, Asia and
Australia. Breakaway Solutions can be reached at 617-960-3400 or at
HTTP://WWW.BREAKAWAY.COM.
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, the adoption and acceptance of application hosting services by
growing enterprises, personnel and customer retention, ability to realize
benefits from acquisitions and strategic alliances, 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 March 31, 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.
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