WebCT Announces Record 2001 Financial Results

March 18, 2002

Lynnfield, MA, March 15, 2002 — WebCT, the world’s leading provider of integrated

e-learning systems for higher education, has announced record financial results

for the year ending December 31, 2001. The highlight for the privately held

WebCT was a substantial increase in total revenue: 2001 total revenue increased

292 percent year-over-year.

The Company also announced triple-digit year-over-year increases in every significant

revenue category, including license revenue, which rose 334%; publisher content

revenue, up 869%; and sales and support revenue, which increased 158%. WebCT’s

record 2001 financial results underscore its continued dominance of the higher

education e-learning category.

Two decisive factors contributed to WebCT’s explosive revenue growth in

2001. First, the company continued to add new higher education customers at

a record pace, winning an extraordinary 72 percent of all competitive new business

evaluations in the past year. As a result the Company grew its customer base

by more than 40%, adding more than 750 new institutions to its global customer

network. WebCT, which already had the world’s largest installed customer

base in higher education, now has a course management system network of more

than 2500 institutions in 81 countries around the world.

Leading institutions around the world that have chosen WebCT over the past

year after carefully evaluating two or more course management systems

include: Auburn University; Boulton Institute of Higher Education; Dublin Institute

of Technology Emerson College;e-Cornell; Indiana State University; Monash University;

St Andrews University; San Jose State University; South Dakota Board of Regents;

Tennessee Board of Regents; University of Southern Queensland; University of

Sunderland; and University of Western Sydney.

Internationally, WebCT’s 2001 customer acquisition was particularly strong:

the company signed on over 500 new international customers in 2001 alone. This

growth was fueled by the company’s continued expansion of the localization

program of its platforms in 10 major world languages, and the increase of its

global re-seller network. Notable international institutions that signed new

license agreements with WebCT in 2001 include: City University of Hong Kong,

Ritsumeikan University (Japan) and the India Institute of Technology in Asia;

Heidelberg University (Germany), Neptuno (Italy), Universidad Politecnica de

Madrid (Spain) and Centre National de l’ Education a Distance Francaise (French)

in Europe; Universidad Nacional de Colombia – Bogota, Universidade de Sao Paulo

and Universidad Central De Chile in Latin America; and Rand University in South


“WebCT has the strongest international presence among e-learning firms

and distinguishes itself as the most focused provider of e-learning technology

solutions,” notes education industry analyst Adam Newman of Eduventures.*

Newman also notes that “WebCT demonstrated strong revenue growth during


Eduventures estimates the 2001 higher education e-learning industry at $310

million, and projects it to grow to 1.0 billion in 2005. Eduventures also states

that “e-learning – the tech and related academic services directly involved

in the process of teaching and learning — is the fastest growing component

of the digital campus.”

At the same time that WebCT grew its customer base in 2001, the company also

successfully expanded existing customer relationships, thanks in large part

to the successful rollout of WebCT Campus Edition. In the first nine months

of its availability, WebCT has over 180 campuses that have purchased its Campus

Edition software product. The majority of these sales came from existing customer

upgrades, reflecting the strong commitment WebCT’s customers have made

to supporting their institutional goals of improving academic performance and

access through their campus’ course management system.

“Our significant revenue and customer growth in 2001 demonstrates the

power of WebCT’s business model, which is focused exclusively on e-learning,”

said Carol A.Vallone, president and chief executive officer of WebCT. “Building

on the momentum of last year, we are excited to continue to lead the higher

education e-learning industry, as we prepare to deliver a truly breakthrough

product that will enable institutions to achieve their goals, and take e-learning

to a whole new level.”

“We’re growing our revenue base more quickly than our closest competitors,

and we’re doing so very efficiently, by staying focused on e-learning,

and closely managing our operations and expenditures,” commented John Giordano,

WebCT’s chief financial officer. “We expect a strong 2002, thanks

to a continued strong volume of customer upgrades to our Campus Edition product,

plus the incredible response we’ve already gotten to our next generation


About WebCT

WebCT is the world’s leading provider of integrated e-learning systems for

higher education. More than 2,500 colleges and universities in over 80 countries

worldwide are using WebCT’s products and services to transform the educational

experience of their students. Consortia in 23 American states, four Canadian

provinces, the Association of Jesuit Colleges and Universities, the French National

Center for Distance Learning and the Japanese National Institute of Multimedia

Education (NIME) have licensed WebCT for their member institutions, making it

the de facto standard in higher education. More information about WebCT can

be found at www.webct.com.

For more information, contact:

Karen Gage



Sandy Baird

WebCT Wheeler Baird Group