Bottomline Technologies Expands Capabilities in Healthcare and Acquires European Reseller

Portsmouth, NH - 5 December 2011

Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, today announced the expansion of its healthcare technology suite with an agreement to acquire substantially all of the assets of Logical Progression, an early stage company focused on the development of mobile document automation solutions for the healthcare industry. Logical Ink®, the company's first innovative technology, will be offered as part of Bottomline's growing healthcare solutions portfolio.

"The team at Logical Progression has developed a truly innovative platform and we are excited to make their technology available to the market and our customers." said Pete Heydt, Director of Healthcare Sales at Bottomline Technologies. "Across our product set we are focused on developing intuitive, user friendly applications, and this acquisition advances that effort with both technology and talent."

Bottomline also announced today its acquisition of IDT Ltd., a longtime partner and reseller of Bottomline's document automation solutions in the United Kingdom and Europe. The acquisition extends Bottomline's market reach and adds more than 140 customers to Bottomline's customer base.

Bottomline expects the acquisitions to contribute approximately $100,000, $200,000 and $400,000 of revenue and be dilutive by approximately $0.01, $0.02 and $0.01 in the second, third and fourth quarters, respectively. The transactions are projected to be accretive to core net income in fiscal 2013 and beyond. In connection with the acquisitions, Bottomline granted 60,000 shares of restricted common stock to four employees who have joined Bottomline. These stock awards vest over four years and are considered inducement grants under Nasdaq Stock Market rules.

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