Convio, Inc. Continues Strong Quarterly Performance, Increases Year-Over-Year Revenue by 60 Percent

Leading On-Demand Software Provider for Nonprofits Reaches Major Company Milestone, Generates Positive Cash Flow from Operations

Convio, Inc. — the leading provider of on-demand software and services that help nonprofits use the Internet for building strong constituent relationships and driving support — today announced another quarter of record growth, increasing third quarter revenue by 60 percent year-over-year. The company also achieved a major milestone during the third quarter by generating positive cash flow from operations.

"Generating positive cash flow is always a major accomplishment for a venture-backed company, and it is even more impressive that Convio reached this milestone ahead of plan," said Chris Hollenbeck, Managing Director, Granite Ventures. "This achievement demonstrates the stability of Convio's operations, and the company continues to prove itself as a strong market leader while managing significant growth at a steady and healthy pace."

During Q3 2006, Convio secured a spot on Inc. magazine's prestigious Inc. 500 list which recognizes the fastest growing private companies in the country. Additionally, Convio landed on Deloitte's "Texas Technology Fast 50" list honoring the fastest growing technology companies in the state.

Convio also made an important addition to its executive team during the third quarter, naming technology industry veteran Dick Tusia as the company's new vice president of services. Tusia has more than 25 years of experience in enterprise software deployment and professional services, and brings to Convio a strong track record of building and leading worldwide services organizations at high-growth technology companies.

"These are all clear indications of Convio's strong progress in achieving continued growth — generating positive cash flow, receiving industry recognition for our corporate performance and attracting key technology industry veterans to help lead our team to the next level as a company," said Gene Austin, CEO, Convio, Inc. "Staying focused is a critical component to our growth and market leadership, and also is important for ensuring that our nonprofit customers can continue achieving great results and making huge strides in accomplishing their missions."

Convio serves more than 600 nonprofit organizations and is well-regarded across the nonprofit sector as a thought leader in online fundraising and marketing. The company's inaugural customer conference, happening October 23-24 in Washington, DC, has generated significant interest among its customers and is now sold out. The Convio Customer Summit 2006 will feature company experts, partners and leading nonprofit groups with sessions focused on helping organizations become more effective at fulfilling their missions through strategic use of the Internet.

About Convio

Convio is the leading provider of on-demand software and services to help nonprofits use the Internet strategically to build strong relationships with constituents for driving fundraising, advocacy and other forms of support. Convio has online solutions for fundraising, advocacy, Web content management, event fundraising, ecommerce and email communications. All solutions include the Constituent360™ platform, a sophisticated, online marketing database that centralizes constituent data and integrates with offline databases.

Convio has been named 2005 "Private Company of the Year" by the Austin Business Journal. The company's clients include American Red Cross, American Diabetes Association, American Society for the Prevention of Cruelty to Animals, AVON Foundation, Easter Seals, Farm Aid, Mothers Against Drunk Driving, National Multiple Sclerosis Society, National Trust For Historic Preservation, Ronald McDonald House Charities, The Susan G. Komen Breast Cancer Foundation and Thirteen/WNET New York. For more information, please visit www.convio.com.


Press Contact:
Karoline McLaughlin
Director, Corporate Communications
Convio, Inc.

Convio, Inc. Continues Strong Quarterly Performance, Increases Year-Over-Year Revenue by 60 Percent | Convio