RICHARDSON, Texas, January 28, 2003 ¬ó USDATA Corporation, a leading supplier of industrial automation software solutions, announced today it has successfully completed an equity financing round of $1.5 million. The investment is being made by SCP Private Equity Partners II, L.P. (SCP), the company¬ís largest stockholder.USDATA also announced today that JPMorgan Chase Bank has committed to renew the company¬ís $3.0 million working capital revolver to be completed by January 31, 2003. The $1.5 million equity financing provides the capital support to allow the company to enhance its SCADA and MES product offerings as well as the continued expansion of its sales and marketing efforts including the Xcelerate Solutions Services Group. The bank financing will provide working capital assistance to the company to meet its ongoing operating cash needs. ¬ìUSDATA is a proven technology innovation leader. This investment from SCP will be used to take our products to market in a broader way and allow us to directly interact in the implementation of our products in a way that will provide meaningful value to our customers,¬î said Jim Fleet, interim President and CEO of USDATA. ¬ìThis is something customers have historically requested of USDATA, and I am pleased that, with this investment, we can begin to execute on our plan to get closer to our customers. When I rejoined USDATA, I said that it had a very loyal community of customers and employees. SCP¬ís funding further indicates the commitment that USDATA has to drive stakeholder value by leveraging our strengths and becoming a customer-centric organization that provides real value in its products and services.¬î Pursuant to the terms of the equity financing agreement and for an aggregate purchase price of $1.5 million, the company issued (1) 37,500 shares of Series C-1 Convertible Preferred Stock; (2) a warrant to purchase 18,750 shares of Series C-2 Convertible Preferred Stock at an initial exercise price of $40 per share; and (3) 619,186 shares of its common stock. About USDATANow in its 28th year, USDATA Corporation, headquartered in Richardson, Texas (NASDAQ: USDC), is a leading global provider of software and services that give enterprises the knowledge and control needed to perfect the products they produce and the processes they manage. Based upon a tradition of flexible service, innovation, and integration, USDATA¬ís software currently operates in a variety of industries in more than 60 countries. Customers include seventeen of the top twenty-five manufacturers. USDATA¬ís software heritage has emerged from manufacturing and process automation solutions and has grown to encompass vast product knowledge and control solutions. The company has a global network of distribution and support partners. For more information, visit USDATA on the web at www.usdata.com.This press release contains ¬ìforward-looking statements¬î within the meaning of the Private Securities Litigation Reform Act of 1995 regarding revenues, margins, operating expenses, earnings, growth rates, and certain business trends that are subject to risks and uncertainties that could cause actual results to differ materially from the results described herein. Specifically, the ability to grow product and service revenues may not continue, and the company may not be successful in developing new products, product enhancements, or services on a timely basis or in a manner that satisfies customer needs or achieves market acceptance. Other factors that could cause actual results to differ materially are: competitive pricing and supply, market acceptance and success for service offerings, short-term interest rate fluctuations, general economic conditions, employee turnover, possible future litigation, and related uncertainties on future revenue and earnings as well as the risks and uncertainties set forth from time to time in the company¬ís other public reports and filings and public statements. Recipients of this document are cautioned to consider these risks and uncertainties and to not place undue reliance on these forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.
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