Bottomline Technologies Receives U.S. Patent for Automated Invoice Validation Capability

PORTSMOUTH, NH – October 22, 2008 – Bottomline Technologies (NASDAQ: EPAY), a leading provider of collaborative payment, invoice and document automation solutions, today announced that the company has been granted a technology patent by the United States Patent and Trademark Office for advanced capabilities enabling the automated, rules-based validation of invoice data.

In receiving this patent, which supports functionality inherent in Bottomline’s Legal eXchange™ and Bottomline Business eXchange™ solutions, the company further strengthens its competitive differentiators within the legal spend management and accounts payable automation markets. This patented technology helps to ensure vendor compliance with billing guidelines by automatically extracting and validating invoice data against a set of pre-determined business rules.

“Intellectual property rights are a strategic asset to our business and we actively pursue patents related to innovative product capabilities that truly set us apart in the market,” said Rob Eberle, President and CEO of Bottomline Technologies. “The technology represented in this patent allows our customers to exploit new, more effective approaches to spend management, which is one of the most significant benefits associated with electronic invoice processing.”

Among the most widely deployed legal spend management solutions today, Legal eXchange enables corporate legal and insurance claims departments to significantly increase process efficiencies and achieve a more informed approach to managing legal expenses with capabilities for automated invoice receipt and review. The Bottomline Business eXchange helps corporations to accelerate the transition from paper to electronic invoicing by streamlining the flow of invoices between buyers and suppliers for greater control and visibility into the accounts payable process.