Redwood Shores, Calif. (3/31/2004) - MetricStream, Inc., a market leader in the enterprise-wide quality and operational compliance market, and Zaplet, a developer of Collaborative Business Process Management software for Corporate Compliance markets including Corporate Governance, internal policy compliance and task management, today announced plans to deliver a solution that brings together Operational Compliance and Corporate Governance into an integrated application suite. This combined solution will allow enterprises to address a wide range of compliance issues including FDA, USDA and Automotive regulations and industry mandates; as well as the Sarbanes-Oxley Act and internal policy compliance. As a part of this strategy, MetricStream and Zaplet have merged their operations into a combined entity, called MetricStream.

Shellye Archambeau, the past CEO of Zaplet, has been named the CEO of MetricStream. Gunjan Sinha, the past Chairman of MetricStream, will assume the position of Executive Chairman of the combined company and will work closely with Ms. Archambeau and the new board to ensure that MetricStream continues to stay in a leadership position in quality and compliance markets. Other members of the executive management team include Ramana Mulpury, co-founder and past CTO of MetricStream, and Gaurav Kapoor, past CFO of MetricStream.

Blue chip investors in the newly merged company include Kleiner Perkins Caufield and Byers, Questmark and Integral Capital. Vinod Khosla, General Partner at Kleiner Perkins Caufield & Byers; Mark Leslie, Director and former CEO of Veritas; Masood Jabbar, retired EVP Global Sales Operations, Sun Microsystems; and Shellye Archambeau will join the existing members of the MetricStream board. "I find the opportunity to create a single application that addresses all compliance issues within an enterprise to be very compelling", said Vinod Khosla, General Partner, Kleiner Perkins. "MetricStream has done an excellent job of executing in the quality and operational compliance markets in manufacturing, FDA, Food and Automotive segments. Zaplet has developed a novel solution for Corporate Governance using their innovative person-to-person collaboration platform and had gained some very promising customers for their solution. I saw this merger as an opportunity to leverage Zaplet's strong collaborative workflow solutions with MetricStream's domain expertise to bring to market a single comprehensive solution that manages quality workflow processes and achieves compliance with all regulations and industry mandates."

"Compliance is now a strategic objective, not just a collection of tactical projects," wrote John Hagerty in The AMR Research Report, February 26, 2004. "As business and IT recognize the overlapping requirements of individual compliance mandates, leaders are taking steps to build out a sustainable architecture that minimizes time and cost while maximizing future reuse."

"The two companies had a very complimentary domain expertise", said Shellye Archambeau, CEO of MetricStream. "The combination of our collaborative process management capabilities with MetricStream's Enterprise Performance Management (EPM) platform provides us a very compelling and unique foundation for our integrated suite of quality and compliance applications."

"Our blue chip customers wanted us to provide collaboration capabilities in our solution and to extend our solution to include Corporate Governance", said Gunjan Sinha, Executive Chairman of MetricStream. "As a result of this merger, we have started delivering a very compelling Corporate Governance solution set, which is fully integrated with our operational compliance and performance management capabilities. Our quality and operational compliance customers will also begin to see person-to-person collaborative resolution capabilities in the Corrective Action and Root Cause Analysis processes in the near future."

About MetricStream
MetricStream is a market leader in Enterprise-wide Quality and Compliance Management and Corporate Governance for global corporations. MetricStream solutions are used by leading corporations in diverse industries such as Automotive, Food, Pharmaceuticals, Manufacturing and Electronics to manage their quality processes, regulatory and industry-mandated compliance and corporate governance initiatives. MetricStream is headquartered in Redwood Shores, California with offices in Atlanta, Georgia, Halifax, Canada and Bangalore, India.

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Bonnie Harris, B3 Communications
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