SciQuest Experiences First Cash Flow Positive Year in 2006

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RESEARCH TRIANGLE PARK, N.C., January 11, 2007 – SciQuest, Inc. today announced that it topped previous record growth in 2005 with pivotal results throughout 2006, most significantly marked by the company’s first cash flow positive year in company history, and nearly 100% revenue growth over 2005. Primarily focused, to date, in the life science and higher education markets in the United States, SciQuest’s global expansion into the European marketplace further establishes the company as the top provider of on-demand supplier management and procurement automation solutions.

“2006 proved to be a momentous year for SciQuest as we hit several major milestones including cash flow generation for the year, a positive earnings quarter, and the expansion of numerous customer and partner relationships,” said Stephen Wiehe, president and CEO of SciQuest. “SciQuest has established a true foothold in the industry with proven solutions that provide our customers with 80%+ contract compliance, up to 20% savings on every dollar under management, and ROI within year one with millions in recovered savings.”

SciQuest signed approximately $30 million in new business in 2006, marking a 55% increase over 2005. The company experienced an 88% increase in revenue over 2005, totaling $16.2 million in 2006. Further, SciQuest has over $100 million in contracted backlog revenue, attributable to its Software-as-a-Service (SaaS), subscription-based revenue model. SciQuest was additionally recognized by the Triangle Business Journal’s Fast 50 program which acknowledges private companies in the Research Triangle Park area of North Carolina with the greatest revenue growth over a three-year period.

SciQuest added numerous new customers to its roster in 2006, including such higher education institutions as the South Dakota Board of Regents, In addition, several existing organizations renewed or expanded their relationship with SciQuest including the Pennsylvania State University. The company also entered into a number of strategic partnerships with such companies as Amazon.com and Oracle.

Using SciQuest solutions, the South Dakota Board of Regents, which includes six public universities and two schools serving special K-12 populations, marked the highest number of sourcing events in the first month of implementation in SciQuest history. During that time, South Dakota hosted over 120 solicitations for goods and services and during Q1 2006, posted nearly 200 solicitations and approved more than 700 supplier registrations through Sourcing Manager. By expanding its relationship with SciQuest, Penn State is providing its more than 4,000 users with access to 12 live suppliers and during 2006 the university processed more than $12 million dollars through more than 45,000 orders.

SciQuest also established itself within the international market with the addition of a UK-based presence to support prospects and customers in the EMEA region. Several leading universities, commercial, and life science organizations in the European region have signed on with SciQuest.

SciQuest employee growth in 2006 included a 26% increase in net new positions to support the incremental growth of the business.

In the coming year, SciQuest will continue this growth rate as it experiences further expansion to the European Union, deeper penetration into existing markets and new revenue opportunities through several partner relationships that will be announced in early 2007.


About SciQuest

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.

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Media Relations:

Laura Grover
SciQuest, Inc.
919.659.2159