Adoption of Bottomline’s Legal eXchange™ Solution Continues to Increase Among Leading Insurance Organizations

Ability to Identify Cost Drivers and Work More Collaboratively with Outside Counsel to Improve Case Outcomes and Reduce Indemnity Fuels Demand

PORTSMOUTH, NH – July 01, 2008 – Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, today announced continuing momentum for its legal spend management solution, Legal eXchange, among the nation’s leading insurance organizations. With claims litigation costs rising, more insurers are selecting Bottomline’s solution to better align case handling strategies and budgets in order to secure the best possible outcomes for their businesses and policyholders.

Among the group of insurers to recently select Bottomline’s solution are Ophthalmic Mutual Insurance Company and MDAdvantage. Supported by an active network of 5,300 law firms, Legal eXchange has been deployed by many of the nation’s leading property & casualty insurers, including Liberty Mutual, Safeco, ACUITY and Shelter Insurance.

“We’ve made a significant investment to build out a team of professionals who understand the nuances of the insurance industry and it’s gratifying to see our clients benefit from their time, energy and expertise,” said Tom Gaillard, Vice President and General Manager of Bottomline Technologies. “Our ability to provide advanced capabilities for legal spend management to a diverse group of insurance organizations is indicative of our unparalleled focus on client success.”

Through the use of Legal eXchange, insurance claims departments can manage legal spend more efficiently through comprehensive budgeting, invoice management and reporting. With the ability to access and analyze data electronically, users can collaboratively align and manage budgets and case handling strategies with outside counsel, while also establishing benchmarks from which future performance can be measured. Complementing the solution’s functionality are Bottomline’s on-staff experts, who help new customers gain significant return on investment by configuring e-billing guidelines and workflow that map closely to the client’s business processes.

“From an insurer’s perspective, the ability to move beyond simple invoice management is one of the determining factors in selecting Legal eXchange,” said Karen Fettig, Legal eXchange Product Manager, Bottomline Technologies. “By expanding the solution’s functionality to help insurers identify and analyze major claims litigation cost drivers such as matter venue, and matter severity and complexity, for example, we’re able to provide our customers with the information they need to answer important questions relative to the overall cost of a claim and the expenses they can expect to incur in planning a defense.”

Bottomline Technologies was recently named to the 2008 Insurer’s Choice, an annual ranking of the top technology providers serving the insurance industry. Organized by research advisory firm Financial Insights and Tech Decisions magazine, Bottomline was identified as a preferred vendor by insurance professionals in six of the survey’s nine categories, including analytics, workflow, financials and operations.