Bridgeline Merges with Purple Monkey

Chicago-Based Purple Monkey Studios Merges into Bridgeline Software          

BURLINGTON, Mass., Sept. 4 2007 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), a provider in cloud-based Web Content Management, eCommerce and Marketing Automation software, announced that Purple Monkey Studios, Inc. has merged into Bridgeline Software, expanding the company's presence into the Chicago, Illinois area.

Established over 12 years ago, Purple Monkey is a developer of award-winning web applications that specializes in web content management solutions, interface design, and eTraining applications. Purple Monkey operates in the Chicago region, serving over 50 customers including Motorola, Marriott International, American Medical Association, McGraw Hill, Discovery Communications, and the American Academy of Pediatrics.

Purple Monkey's co-Founder and Chief Executive Officer, Russ Klitchman, joined Bridgeline Software's executive management team as Executive Vice President and General Manager of Bridgeline Software - Chicago. Co-Founder and President, Steven Saraceno, has joined Bridgeline Software's executive management team as Senior Vice President of Business Development of Bridgeline Software - Chicago.

For the year ending December 31, 2006, Purple Monkey Studios had unaudited annual revenues of $3.3 million and was profitable. Bridgeline Software acquired Purple Monkey for a total of $3.5 million, including the purchase of $380 thousand of Purple Monkey's net working capital (cash, accounts receivable, less liabilities). The $3.5 million acquisition consisted of $495 thousand in cash, $210 thousand of repayment of a bank line of credit, 476,846 shares of Bridgeline Software common stock, and the opportunity to receive an additional $900 thousand in cash over a 12 quarter period based on certain minimum operating income goals being achieved. The Bridgeline common stock issued is restricted from sale pursuant to a 1 year lock-up agreement. To learn more about Purple Monkey Studios, please visit www.purplemonkey.com"We are very excited about our merger with Bridgeline. Their disciplines in selling and development methodologies will enhance our business. In addition their iAPPS framework and product line is very impressive, something we believe our customers will be interested in," said Russ Klitchman, CEO of Purple Monkey.

Steven Saraceno, Purple Monkey President said, "We have worked very hard over the last 12 years to successfully build Purple Monkey into one of the premier web development companies in the Chicago area. Our merger with Bridgeline Software will accelerate our abilities to take our business to the next level and beyond."

Thomas Massie, Bridgeline Software's President and CEO, stated, "We are very excited about our merger with Purple Monkey. They have an outstanding team, excellent leadership, and long-term relationships with great customers. Russ and Steven are excellent additions to our senior management team."

About Bridgeline Digital

Bridgeline Digital, The Digital Engagement Company™, helps customers maximize the performance of their full digital experience - from websites and intranets to online stores and campaigns. Bridgeline's Unbound (formerly iAPPS®) platform deeply integrates Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics to help marketers deliver digital experiences that attract, engage, nurture and convert their customers across all channels. Headquartered in Burlington, Mass., Bridgeline has thousands of quality customers that range from small- and medium-sized organizations to Fortune 1000 companies. To learn more, please visit www.bridgeline.com or call (800) 603-9936.