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Small to Medium Sized Businesses Choose BlueTie Free Email and Calendar Solutions
Within Six Months, 35,000 Businesses Migrate to BlueTie Free Applications for Featuretisements

ROCHESTER, N.Y., May 22, 2007 — BlueTie, Inc., a leading provider of hosted email and calendaring solutions for small to mid-sized businesses (SMB) and service providers, today announced that more than 35,000 new business customers have subscribed to BlueTie Free email and calendar solutions since its launch six months ago. BlueTie Free is a Web-based application that features shared contacts and files, spam and virus protection for email, domain support, 5GB of storage per user, and up to 20 users per business customer.

Fueling the growth is BlueTie's ability to provide value-added business services within the application through its Featuretisement model. BlueTie bypasses traditional online advertising used to monetize free email applications. Its Featuretisements technology, a new advertising model for Web-based business software, molds featured offerings as relevant functionality to users. Using a cost per action-based model, business partners pay only when their services are being used in the BlueTie application. Business.com, MapQuest and Orbitz (demo: http://travel.bluetie.com) are the first partners making their added-value services available on BlueTie Free. Additional planned offerings include blogs, dinner reservations and entertainment ticket purchasing.

"Traditional online advertising has to change its mindset when dealing with the small business market. Just because these companies use free or low-cost business applications, it doesn't mean that they will sacrifice on the quality of user experience and functionality," said David Koretz, president and CEO of BlueTie. "The Featuretisements model works because we are offering relevant services that match the natural workflow of our users. It becomes easier for business users to tackle common tasks if the tools they need are available with a click of the mouse within one application window."

With hundreds of thousands of users already subscribed to its paid solutions, BlueTie launched a free offering six months ago to target business with 20 users or less. BlueTie Free has experienced exponential growth in the past six months with a 25% increase in customers every month.

About BlueTie, Inc.

BlueTie is the leading provider of hosted email and calendaring solutions for small to mid-sized businesses (SMBs) and service providers worldwide. BlueTie revolutionized the Software as a Service sector in 1999 by introducing the first hosted suite of small business collaboration, and again in 2006 with the launch of Featuretisements - a new way to monetize applications. BlueTie continues to lead the SaaS movement by delivering incredibly simple applications that are fast, inexpensive and reliable. BlueTie's software is licensed by channel partners, ISPs and other service providers. For more information about BlueTie, visit www.BlueTie.com or call 1-800-BlueTie.

For Further Information Contact:

Rob Chamberlin, BlueTie, 585.586.2000 x1025, rchamberlin@bluetie.com