Customer Facing BSM Software Leader Digital Fuel Accelerates Momentum, Success with Record-Setting Fiscal Year First Half

SAN MATEO, CA, USA – August 23, 2007 Digital Fuel, the leader in customer-facing Business Service Management (BSM) software solutions, today announced that it has booked a record number of new customer accounts in the first half of 2007, escalating revenue for the 14th consecutive quarter. Combined with an increase in bookings of more than 230% compared to the first half of 2006, the company has realized the most successful first half in its history. In addition to the record number of new bookings, Digital Fuel has garnered 100% renewals with existing customers, demonstrating the high degree of customer satisfaction with the ServiceFlow™ BSM software solutions.

ServiceFlow BSM Software Now Benefiting Close to 500 Companies

With the significant acquisition of new accounts in the first half of 2007, Digital Fuel is nearing the milestone of 500 companies globally benefiting from its ServiceFlow BSM software solutions. This marquee list of service providers and enterprises from across the Americas, EMEA and Asia-Pacific regions includes such global leaders as Arqiva, AXA, BP, Dell Managed Services, EMC, Freightliner, IBM, HHS (U.S. Dept. of Health and Human Services), Nestlé, SciSys Ltd., Unisys, Wipro Technologies, and Xerox, to name but a few.

Accelerated Momentum with Existing BSM Software Customers

Digital Fuel is also realizing incremental growth with existing customers of its BSM software as these commercial service providers experience improvement in new business and the level of service they provide to their managed accounts. For example, Siemens IT Solutions and Services (an industrially-integrated global service provider), Capgemini (a global leader in consulting, technology and outsourcing services), and Telefonica SA (the leading telecommunications operator in the Spanish- and Portuguese-speaking world) have secured new engagements resulting in additional ServiceFlow solution deployments.

“We are experiencing tremendous growth and remarkable momentum in 2007 as a growing number of commercial service providers and internal enterprise service organizations recognize the business value delivered through our ServiceFlow BSM software solutions,” said Yisrael Dancziger, President and CEO of Digital Fuel. “We are making strong inroads worldwide as demonstrated by our impressive list of new and renewing customers. This continued growth is clear validation that Digital Fuel’s unique customer-facing approach to business service management and our commitment to the success of our users are driving immense value to both our customers and the accounts they serve.”

Digital Fuel Expands BSM Operations for Increased Business Value

Digital Fuel is doubling its field organization, adding staff in its teams for customer service, sales teams, and business consulting. These additions will enable Digital Fuel to offer even more resources to assist its customers implement the ServiceFlow SLA Management and Service Financial Management solutions to deliver increased business value in each of their service customers. To learn more about the company and its ServiceFlow BSM software solutions, visit the Digital Fuel website at www.DigitalFuel.com.

About Digital Fuel

Digital Fuel is the leading provider of business service management (BSM) software solutions, helping service providers and enterprise service organizations manage the performance, financial, and regulatory aspects of IT, telecommunications, and business process services. Digital Fuel has the largest deployments for SLA management and service cost management in the world, with thousands of concurrent users, SLAs, KPIs, metrics, cost formulas, and pricing rules. With Digital Fuel’s patented visual approach, our customers are deployed rapidly to quickly drive business value from automating the management of service offerings, agreements, service cost, and performance with their service customers and vendors. ServiceFlow manages billions in business and IT services at companies and governments around the world such as Procter & Gamble, General Electric, Cummins, Capgemini, BT, IBM, SITA, Siemens Business Services, O2, Atos Origin, Telefonica, Transport of London, CSC and many others. Digital Fuel is headquartered in San Mateo, California, with offices across North America and Europe. Learn more at http://www.digitalfuel.com.