Tenth Floor Merges into Bridgeline Software

Bridgeline Software, Inc. (NASDAQ: BLSW) announced that Tenth Floor, Inc. has merged into Bridgeline Software. Founded in 2001, Tenth Floor is a web application development company that has developed their own SaaS-based web application management software product named BASE-10. The Company specializes in the areas of content management and e-commerce applications. Tenth Floor is headquartered in Cleveland, Ohio with a satellite office in Minneapolis, Minnesota. Tenth Floor has over 260 customers in industries including financial services, technology, government, healthcare and sports marketing. Approximately 200 of Tenth Floor’s customers pay the Company a monthly subscription fee, monthly managed service fee, or annual software maintenance fee. Currently, Tenth Floor has an annualized sales run rate of approximately $4 million per year. The Company’s 2007 unaudited annual sales were approximately $3 million and the Company was profitable. Tenth Floor co-Founder and Chief Executive Officer, Anthony Pietrocola, has joined Bridgeline Software's executive management team as Executive Vice President and General Manager of Bridgeline Software - Cleveland. Co-Founders Scott Weiss and Matt Glaze have also joined Bridgeline Software's management team. Bridgeline Software acquired Tenth Floor, Inc. for a total of $4 million, including the purchase of approximately $650 thousand of Tenth Floor net working capital (cash, accounts receivable, less liabilities). The $4 million acquisition consisted of $504 thousand in cash, $96 thousand of repayment of a bank line of credit, 640 thousand shares of Bridgeline Software common stock, and the opportunity to receive up to an additional $1.2 million in cash over a 12 quarter period based on certain minimum operating income goals being achieved. The Bridgeline Software common stock issued is subject to a 1 year lock-up agreement. http://www.bridgelinesw.com, http://www.tenthfloor.com