Dear Valued Client,

We are very pleased to announce that Kintera Inc., a leading provider of “software as a service” to nonprofit organizations, has signed a definitive agreement with Intuit to acquire American FundWare, Inc., provider of FundWare accounting software. The acquisition, which is subject to customary closing conditions, is expected to close in the next 30 days.

Kintera's innovative fundraising software features a Web interface for users and donors, and proven functionality that helps nonprofit organizations increase donations, reduce fundraising costs and build awareness and affinity for a cause.

Kintera and FundWare product developers plan to build accounting functionality into the Kintera Sphere™ enterprise-grade software platform, providing a unified system for nonprofits and governments to manage, and grow, their business. Kintera expects to continue the enhancement and support of FundWare 7.30 for individual installations, as well as for Kintera's software as a service application. The first release of FundWare accounting software functionality available in the Kintera Sphere platform is expected to be in the first quarter of 2005.

For our government clients, Kintera views the FundWare acquisition as an opportunity to grow its presence in the government sector. Rest assured that FundWare will continue to be a leading government financial accounting solution.

You've been asking us for years to help your organization grow stronger and gain market share. Now, two “best of breed” solutions – the solid, robust accounting of FundWare and the innovative power of Kintera Sphere – will enable you to gain the efficiency, transparency and growth needed to further your mission.

This is the beginning of a great new chapter in our history, and we look forward to a successful future with your organization.

Thank you for your continued support,

Michael Potts
Vice President
American FundWare, Inc.
cc:
Harry E. Gruber, M.D.,
Chief Executive Officer and Chairman of the Board of Directors
Kintera Inc.

Frequently Asked Questions

Q: Is this acquisition a good move for FundWare?
A: Yes. Kintera shares our same business values and focus on helping nonprofit organizations and governments foster a powerful sense of community to achieve their mission. Kintera is committed to organizations like you and they have a rich offering of products and technology including their Kintera Sphere™ enterprise-grade software platform, providing a unified system for nonprofits and governments to manage, and grow, their business.

Q: Are there any plans to discontinue the FundWare product?
A: Absolutely not! Kintera is pleased to add a top-rated accounting solution to its product offering.

Q: How will this transition affect my organization and my operations?
A: It's business as usual for the FundWare team, which means we'll be available to help you just as we always have been. Authorized Consultants and Resellers will continue to be a major part of our FundWare team for both current and new clients. All of us are dedicated to making this transition as smooth as possible, without any disruption to our clients' needs and support.

Q: Will there be any major changes to the FundWare product?
A: Not in the short term. In the longer term you may see changes, as Kintera is an innovative company, with considerable experience developing new technology to meet growing market needs.

Kintera and FundWare product developers plan to build accounting functionality into the Kintera Sphere™ enterprise-grade software platform, providing a unified system for nonprofits and governments to manage, and grow, their business. Kintera expects to continue the enhancement and support of FundWare 7.30, for individual installations as well as for Kintera's software as a service application. The first release of FundWare accounting software functionality available in the Kintera Sphere platform is expected to be in the first quarter of 2005.

Q: How can I learn more about Kintera?
A: For information about Kintera, please visit www.kintera.com . 

Q: Whom do I call if I have questions?
A: If it is product related, please call your Authorized FundWare Reseller or the FundWare support line at 1-800-227-7575. If your questions are about the acquisition, please feel free to call your Client Sales Representative, or email Michael Potts at michael.potts@kintera.com.