SciQuest Announces Record-Breaking Growth in 2005

RESEARCH TRIANGLE PARK, N.C., January 11, 2006 -- SciQuest, Inc. today announced that it experienced record-breaking growth throughout 2005, driven in part by a 100% growth in bookings over 2004 and a 20% increase in new customers. Overall momentum includes expanded referral and channel partnerships, extended relationships with multiple customers including an international pharmaceutical organization implementing global e-procurement expansion, and numerous industry honors. Additionally, the launch of two new solutions created to support the mid-market and provide assistance and support in contract negotiations and management also boosted 2005 growth.

"We are proud of the significant acceleration in customer and corporate momentum SciQuest experienced in 2005," said Steve Wiehe, president and CEO of SciQuest. "As we continue to expand into additional markets and create new opportunities, we are prepared to support all of our customers' growing needs and maintain this growth pattern in the coming year."

SciQuest posts record-breaking sales, provides new offerings
In 2005, SciQuest experienced significant growth and increase in overall sales. Additional 2005 growth highlights include a greater than 12% increase in supplier participation in the SciQuest Supplier Network (SQSN) over the previous year and more than 65,000 activated non-catalog suppliers.

SciQuest further boosted its 2005 sales activities by expanding its service with current life science and higher education customers including four of the largest pharmaceutical providers and several large universities. These customers significantly increased their user base with the addition of numerous locations, extended terms of agreement and maintenance and support contracts.

In conjunction with exceptional growth, SciQuest unveiled two additions to its suite of e-procurement offerings in 2005:

• SelectSite Express, designed for the commercial market, and HigherMarkets Express, designed for the higher education market, provide mid-sized organizations a comprehensive, web-based e-procurement solution that comes completely pre-configured, allowing for quick implementation with minimal IT support. For additional information, please refer to: http://www.sciquest.com/midtiersolutions/
  
• SciQuest's Contract Manager offers significant time-savings and strategic value that will drive greater ROI from SciQuest's solutions, most importantly providing contract visibility, tracking and analysis capabilities. For additional information, please refer to: http://www.sciquest.com/enterprisesolutions/pa.php

Industry recognizes SciQuest and its customers with honors
Further demonstrating its success this past year, SciQuest and its customers received honorable acknowledgement from the industry.

• Customer Notre Dame received the 10th Annual Achievement in Procurement Award from the National Purchasing Institute (NPI). This prestigious award honors organizations that demonstrate excellence in procurement, specifically in the areas of innovation, professionalism, e-procurement and leadership.

"By implementing SciQuest's HigherMarkets solution, we have significantly enhanced our procurement processes and the value we deliver our con¬stituents. The buyND initiative has given us a powerful tool for promoting preferred suppliers and introducing contract pricing to campus," said Tim Gibney, assistant vice president for procurement services, The University of Notre Dame. "The end result allows us to deliver impressive process savings for our university."

• Arizona State University was named by Campus Technology Magazine as a 2005 Technology Innovator as a result of implementing SciQuest's Chemical and Supplies Manager.

• SciQuest was named to Supply & Demand Chain's Executive 100 for the second consecutive year, recognizing the company as a top solutions provider assisting leading enterprises in enabling their supply and demand chains for competitive advantage.

About SciQuest, Inc.
SciQuest provides on-demand supplier enablement and procurement automation solutions that reduce operating costs, drive end-user adoption, bring more spend under management and increase visibility into organization-wide spending. Through SciQuest solutions, organizations gain immediate cost savings and rapid ROI.

Organizations can quickly enable a critical mass of suppliers through the SciQuest Supplier Network (SQSN) and leverage SciQuest Managed Services to fully manage catalog data and order delivery on an ongoing basis, significantly reducing the need for in-house IT and support resources. With an integrated supplier base, organizations can maximize on-contract spending and gain real-time visibility and reporting capabilities throughout the entire order process.

In addition to a source-to-settle suite of e-procurement applications, SciQuest also offers supplier and order management modules that seamlessly integrate with existing ERP and enterprise financial systems, driving greater return from existing investments.

For more information about SciQuest, please visit www.sciquest.com, or call 919.659.2100.

SciQuest and SelectSite are registered trademarks of SciQuest, Inc. HigherMarkets is a trademark of SciQuest, Inc.

Media Relation Contacts:

Molly Thompson
Crossroads Public Relations
919-605-0022
mthompson@crossroadspr.com

Chuck Vitello
SciQuest, Inc.
919-659-2141
cvitello@sciquest.com