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Covast Announces Banner Results in Second Quarter 2004
Record Quarter Accompanies Significant New Customer Wins for B2B Solution Provider

ATLANTA and ROTTERDAM – August 12, 2004 – Covast, provider of the recommended electronic data interchange (EDI) solution for Microsoft Corp.’s BizTalk Server, today announced that the company achieved significant results in its second quarter, which ended on July 31st, 2004.

The company saw revenues jump 39% over revenues during the same period in 2003. Additionally, revenues were up 18% over revenues in the first quarter of this year. Contributing significantly to the surge in revenues was the fact that the company brought on twenty-three new customer accounts worldwide, including:

-- Ciba -- Carlson Craft

-- Getronics -- Vattenfall (Sweden)

“Our success is the direct result of having developed our flagship EDI Accelerator product exclusively for the Microsoft BizTalk Server environment,” said Daan Scheer, CEO, Covast. “Covast's EDI technology together with Microsoft BizTalk Server, delivers one integration platform for all of our joint customers’ application-to-application (A2A) and business-to-business (B2B) integration needs.”

Covast’s flagship EDI Accelerator enables complex EDI support within Microsoft BizTalk Server. The combination of Covast’s EDI Accelerator with BizTalk Server enables companies to securely manage the co-existence of EDI and proprietary file formats with open standards such as XML.

During the second quarter, the US Microsoft Technology Centers (MTCs) selected Covast to be available for their customers use. “When customers need EDI functionality, we feel confident providing Covast’s EDI Accelerator product,” said Adam Hecktman, Director of the MTC – Chicago. “Moreover, Covast’s EDI Accelerator is a key component to develop .NET solutions in a heterogeneous IT environment.”

Covast's EDI technology and Microsoft BizTalk Server form a complete B2B solution and a state-of-the-art EDI platform that through ease-of-use greatly reduces support and maintenance costs. The system also offers customers the capability to move step-by-step from expensive Value Added Networks (VANs) to the Internet.

About Covast

Covast provides the Microsoft recommended EDI solution for BizTalk Server. The combination of Microsoft BizTalk Server, the Covast EDI Accelerator and AS2 Adapter delivers the ultimate B2B solution - enabling companies to easily integrate their EDI infrastructures with internal applications and providing a gateway for connecting trading communities. With its European headquarters in the Netherlands and its U.S. headquarters in Atlanta, Covast has strategic relationships with partners and customers including Microsoft, HP, Citrix, Flextronics, Siemens, Ocean Spray, Grampian Foods and ABX Logistics. For more information, visit http://www.covast.com.

NOTE: The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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