CLEVELAND – September 13, 2006–Hyland Software today announced the acquisition of Matrix Imaging (Bloomfield Twp., MI), a privately held systems integrator that specializes in delivering enterprise content management (ECM) solutions tailored to help higher education institutions increase administrative efficiencies and more effectively recruit and retain top students. Hyland Software develops the OnBase enterprise content management software suite while Matrix Imaging has been an Authorized OnBase Solution Provider since 1998. Terms of the transaction were not disclosed.

The acquisition of Matrix Imaging provides Hyland with significant domain expertise to help the company more aggressively market, sell and pursue growth in the higher education market. Matrix has sold and supports one-third of the nearly 100 OnBase higher education customers. Further, according to the rankings from the U.S. News & World Report: American’s Best Top Colleges 2007, five of the top 10 universities utilize OnBase.

“Columbia University has worked with Matrix Imaging and Hyland Software for more than four years now. These two companies represent the best software and service in the imaging and workflow industry,” said Char Smullyan, Columbia University’s Director of Undergraduate Admissions and Financial Aid Operations.

“Matrix understands higher education better than anyone out there. Plus Matrix adapts the software to your business practices rather than forcing you to adapt to software. Hyland’s OnBase software is the best ECM solution available today,” said Mike Donahue Ph.D., Director of Admissions at Indiana University – Purdue University Indianapolis. “The combination of these two companies offers huge value to colleges and universities implementing imaging technology.”

ECM industry watchers have noted that customers now expect vendors to provide deep industry expertise in addition to superior technology.

“End-user organizations have been demanding that [ECM] vendors better understand their businesses and tailor their product offerings accordingly. Horizontal’ software vendors must provide vertical market relevance; the alternative is continued value proposition erosion. Simply labeling software with a name aligned to a vertical market is not enough,” stated Tom Eid, Research Vice President at Gartner Inc. in his February 2006 report entitled “Enterprise Content Management Vendors Increase Availability of CEVA Offerings.”

“Matrix Imaging has been Hyland’s most prominent partner in the higher education space and we believe that Matrix’s expertise and talent, combined with Hyland’s reach and resources, will greatly enhance our position as a leading provider of ECM solutions to higher education institutions,” said A.J. Hyland, President and CEO of Hyland Software. “We welcome the addition of the Matrix team to the Hyland family to accelerate our growth in this key target market.”

As a systems integrator, Matrix focuses solely on document imaging, workflow and related technologies that extend the value of a university’s preexisting student information systems for operations such as enrollment and financial management, student services and financial aid. The Michigan office will become a remote office of Hyland Software and function as the Company’s higher education services division.

“We are pleased to be joining Hyland Software and feel this acquisition will allow Hyland and its channel partners to more completely deliver solutions that help higher education institutions meet rising demands for operational effectiveness, cost containment and student satisfaction,” said Jennifer Tysse, principal of Matrix Imaging.

“As a traditional systems integrator with deep vertical expertise, we are excited to have more hands-on access to the development resources at Hyland and the ability to more directly and quickly impact OnBase product enhancement,” said Ian Levine, CTO, Matrix Imaging.

“The marriage of Matrix Imaging’s higher education expertise and Hyland Software’s OnBase solution is exciting. The OnBase ECM suite is extremely powerful and Matrix Imaging understands how to implement OnBase across a university to provide real value and ROI,” said Steve Terry, Director of Client Services, The University of Memphis.

About Hyland Software

Established in 1991, Hyland Software Inc. is the developer of OnBase, a rapidly deployable suite of enterprise content management (ECM) software applications. OnBase is a modular suite of ECM applications that includes document imaging, workflow, electronic document management, COLD/ERM and records management. OnBase allows organizations to manage all digital content, including scanned paper documents, e-mails, faxes, print streams, application files, e-forms, Web content and multi-media files. OnBase is used by businesses and government agencies around the world to reduce the time and cost of performing important business functions and address the need for regulatory compliance through the management, control and sharing of digital content with employees, business partners, customers and other constituencies. For more information about OnBase, please contact an authorized OnBase solution provider or visit www.onbase.com.

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