Contact:

Jennifer Schwegman, KC Associates

651.247.6640

jennifer@kc-associates.com

Minneapolis, Minn., March 24, 2005—KC Associates (KCA)—the only marketing consulting and communications organization in Minnesota focused exclusively on business-to-business information technology products and services—announced today that it has acquired SoftwareMinds.

SoftwareMinds is one of only a few firms that conducts both syndicated and custom in-depth research on operational best practices for IT companies. It also provides business-growth and go-to-market strategy consulting for IT companies, including applications and systems software, IT services, storage, networking and telecommunications firms. Research clients have included both large and small companies such as Microsoft and XIOtech, and purchasers of its syndicated best practices reports have included some the world’s top software and consulting companies such as Qualcomm, SAP, Macromedia, Manhattan Associates and Gartner, Inc.

According to KCA Principal Kirsten Chapman, SoftwareMinds is a natural fit with KCA in many ways—from its virtual business model and industry focus to its goal of helping IT companies implement successful go-to-market strategies. “This acquisition allows KCA to leverage two things on behalf of clients: first, the ability to conduct stringent online, survey-based market and customer research and, second, the ability to offer semi-custom competitive benchmarking at a fraction of the price of purely custom projects by using SoftwareMinds’ extensive database of operational data,” says Chapman.

SoftwareMinds currently offers two syndicated reports for executives of software companies: B2B Software Marketing: Best Practices & Budgets ($995) and Software Product Management: Best Practices ($995). The former has extensive benchmark information regarding marketing budgets and strategy as well as communications programs and tools—all of which are the heart of KCA’s marketing consulting and communications business. The product management report will also prove to be very useful to KCA’s software clients that want to improve and leverage their product management organizations. Both reports will be available to KCA clients for a 50 percent discount.

SoftwareMinds will continue to operate as a separate entity, offering its trademark syndicated and custom research as well as strategic consulting. Plans are to launch a new subscription-based, ‘evergreen’ benchmark service for software and IT services companies later this year.

About SoftwareMinds

SoftwareMinds, LLC is a research and consulting company focused on providing hard-to-find best-practices metrics and competitive benchmark data, as well as high-level business growth strategy, go-to-market and applied best practices consulting for IT companies, including applications and systems software, IT services, storage, networking and telecommunications firms. This virtual operation is comprised of research analysts and senior-level consultants who have spent years helping to grow and manage businesses in these sectors—from startups to huge global leaders. The company’s information products range from syndicated best-practice studies and custom operational benchmark reports to identifying and documenting key performance metrics and conducting operational assessments.

SoftwareMinds has research partnerships with the Software & Information Industry Association (SIIA) and Pragmatic Marketing, the global leader in high-tech product management training, as well as its strategic relationship with Culpepper & Associates, the leading provider of financial and HR metrics for high-tech companies. For more information about SoftwareMinds, visit www.softwareminds.com.

About KC Associates

For more than 15 years, KC Associates has provided marketing consulting and communications services forB2B information technology (IT) companies. Unlike traditional firms and agencies, KC Associates is a virtual organization comprised of seasoned information technology-specific marketing professionals, each with 10 or more years’ experience in the IT industry. KC Associates’ services span the entire market development spectrum–from least-cost go-to-market planning and product marketing consulting to reasonably priced marketing communications, public relations and event management.

In 2004, KC Associates earned the No. 23 place on The Business Journal's annual list of the top 25 Twin Cities public relations firms and is the only company listed that focuses solely on the IT products and services market.

Clients have ranged from two-person service organizations, to mid-sized software firms such as International Decision Systems and ShowCase Corporation, to multibillion-dollar companies, including Deluxe Corporation and Lucent Technologies. For more information about KC Associates, visit www.kc-associates.com.