Netegrity, Inc. unveiled a new strategy for Secure Relationship Management (SRM). The SRM platform integrates access control, single sign-on, identity management, portal, and provisioning services for rapidly building, managing, and delivering interactive e-business portals. A centralized “Management Dashboard” provides a single point of administration for all of the services delivered through the SRM platform. As part of this strategy, Netegrity signed a definitive agreement to acquire DataChannel, a leading provider of enterprise portal solutions. DataChannel will provide the centralized presentation and integration services for the SRM platform. The consideration for the acquisition is $15 million in cash and 2.5 million in shares. Valuing the shares at yesterdays stock price of $15 per share and including assumption of debt, would result in a total purchase price value of approximately $54 million. Netegrity expects this transaction to contribute sales of approximately $20 million in 2002. The transaction is expected to be accretive to earnings per share before amortization of intangibles beginning in Q2 2002. It is anticipated that the closing will occur in December 2001, subject to regulatory approvals. Netegrity will brand, package, and immediately sell DataChannel Server 5.0 as Netegrity Interaction Server. Netegrity will also create a Netegrity Secure Relationship Management Suite that will bundle SiteMinder, Delegated Management Services, Netegrity SiteMinder Affiliate Services, and Netegrity Interaction Server. Pricing will be on a per user basis. The Netegrity Interaction Server and the Netegrity Secure Relationship Management Suite are available immediately.