Building Momentum for Commercial Open Source Applications.

Cupertino, CA (May 15, 2006)

SugarCRM Inc. announced today that it has doubled its commercial customer base in the last six months, attracting more than 600 paying customers since the first edition of its commercial open source customer relationship (CRM) software was released in September 2004. The achievement demonstrates a rapidly accelerating adoption rate, gives SugarCRM a larger customer base than many proprietary CRM vendors, and marks a new milestone in the acceptance of open source enterprise applications by the business community.

SugarCRM's customers include users of both Sugar Professional for small and mid-sized businesses and Sugar Enterprise for larger organizations, with license size ranging from five to 9,000 seats. Both editions offer advanced features, technical support, and a choice of installed, hosted or appliance-based deployment.

Adoption is being fueled by ongoing upgrades to the SugarCRM platform, a low total cost of ownership compared to proprietary applications, the use of open standards enabling low-cost integration with legacy customer databases, and a straightforward user interface without the complexity that frequently causes traditional CRM implementations to fail.

An additional 500,000 users around the globe have downloaded Sugar Open Source, the core SugarCRM application that is available for free. Over 200 extensions and other enhancements have been contributed by the development community and have been downloaded more than 1 million times through SugarForge.org, the online development forum for Sugar Open Source. Enhancements include translation into 40 languages.

"Our CRM platform continues to be the most successful commercial open source enterprise application in the industry, and it is paving the way for a fundamental shift in the way that business software is developed and sold," said John Roberts, Chairman, CEO and Co-Founder of SugarCRM. "Our ability to bring 600 customers on board in less than 18 months clearly shows the market demand for an alternative to the hidden costs, inflexibility, and difficult integration processes associated with proprietary software."