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Kintera Acquires the Business of GivingCapital, Provider of Web-Based Software for Donor-Advised Funds
[September 21, 2004]

Kintera Acquires the Business of GivingCapital, Provider of Web-Based Software for Donor-Advised Funds

SAN DIEGO --(Business Wire)-- Sept. 21, 2004 -- GivingCapital administers over $250 million in charitable assets for money center banks, major brokerage firms and leading financial services institutions

Kintera(R) Inc. (Nasdaq:KNTA), a leading provider of "software as a service" to nonprofit organizations, announced today that it has acquired the business of GivingCapital(TM), which offers on-demand solutions for donor-advised funds and other wealth management products to prominent financial institutions including Smith Barney and Franklin Templeton Investments. Utilizing a web-based software platform, GivingCapital administers over $250 million in assets to provide nonprofit organizations with additional revenue streams while giving Internet convenience to philanthropists.



GivingCapital partners with leading financial services institutions - including money center banks, major brokerage firms, trust companies and other asset management firms - to enable individuals with philanthropic interests to efficiently manage their charitable giving. According to The Chronicle of Philanthropy's annual gift fund survey results released in May 2004, donor-advised funds are growing rapidly. Assets at the nearly 90 organizations that provided figures for 2002 and 2003 are up almost 10%, with a collective value of over $11 billion in donor-advised fund assets.

"The financial sector is seeking new ways to strengthen relationships with their clients by providing philanthropic services," said David Kreda, co-founder and former president of GivingCapital. "89% of Americans give to charity, according to the Independent Sector, a coalition of foundations, nonprofit organizations, corporations and individuals. But many of these consumers want to give back to the nonprofit community more effectively, and leave a legacy that will keep on giving for years to come."


Continued Kreda, "Donor-advised funds offer an excellent way for donors to meet their philanthropic goals by making an irrevocable contribution of personal assets (cash, stocks, bonds, appreciated securities) to a nonprofit organization that administers the fund, when it is the most tax advantageous time to do so. Consumers can then, at their leisure, decide which nonprofit organizations they would like to support. In other words, the individual has a 'bank account' for future charitable giving."

GivingCapital joins KindMark and Donation Depot, recent Kintera acquisitions, in forming the Kintera Directed Giving program whose mission is to help consumers direct their gifts through workplace giving and donor-advised funds. Kintera believes that there is significant operating synergy between workplace giving and donor-advised funds for validation of the nonprofit organization status and check distribution services.

"We welcome GivingCapital employees as the newest members of the Kintera 'Brain Trust,' which brings together the best and brightest entrepreneurs in the ePhilanthropy industry," added Harry Gruber, CEO of Kintera. "The technology developed by GivingCapital for wealth management products brings value to the industry by helping individuals set up donor-advised funds, and provides the online efficiency to manage these funds."

GivingCapital's turnkey software and services offer the financial sector an online presence, as well as customer service and comprehensive reporting functions. The company's industry-leading technology handles all ongoing activity - from account opening to contribution processing to grant distribution - freeing financial service firms from operational and technical issues.

No financial terms were disclosed for the acquisition.

Kintera will hold a conference call this morning, September 21, 2004 at 8:45 a.m. Eastern Time, which will be hosted by Harry E. Gruber, M.D., president, chief executive officer and chairman of the board of directors; James A. Rotherham, chief financial officer; and Dennis N. Berman, executive vice president, corporate development and vice chairman of the board of directors. The conference call can be accessed by dialing toll free 800-688-0836 (617-614-4072 for international calls), using conference code 99432376.

About GivingCapital, Inc.

GivingCapital, Inc. (www.givingcapital.com) provides organizations with the capability to increase assets through the creation, distribution, and processing of complex wealth management products and services, including a donor-advised fund solution. GivingCapital's independent, online donor-advised fund program is the company's premier charitable giving product. The program offers financial service companies a comprehensive technology solution for providing a "private-labeled" giving program to their clients. GivingCapital provides the technology, processing, operations, and marketing expertise required to support a donor-advised fund.

About Kintera Inc.

Kintera(R) Inc. (Nasdaq:KNTA) is an innovative provider of software as a service that helps nonprofit organizations foster a powerful sense of community to achieve their mission. Kintera's Knowledge Interaction(TM) technology strengthens an organization's community by providing volunteers, members, donors and staff web-based tools to efficiently fulfill their tasks and share real-time data and information. The company's Internet innovations include its Friends Asking Friends(R) solicitation program and Kintera Sphere(TM), an enterprise-grade software system that provides content management, contact management, communication tools, commerce applications, community-building features and reporting functions. Kintera's technology is built on a unified database and payment processing engine. A web browser is all that is needed to use Kintera Sphere to help increase donations, reduce fundraising costs and build awareness and affinity for a cause. For more information, visit Kintera at www.kintera.com.

Kintera, Kintera Sphere, Friends Asking Friends, and Knowledge Interaction are either registered trademarks or trademarks of Kintera, Inc. in the U.S. and/or other countries.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements (including, without limitation, express or implied statements regarding online philanthropy solutions) that involve risks and uncertainties. These forward-looking statements represent our estimates and assumptions only as of the date hereof. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, without limitation: our limited operating history; our history of losses; our dependence on increased acceptance by nonprofit organizations of online fundraising; lengthy sales cycles for major customers; our need to manage growth; risks associated with accounting for and processing large amounts of donations; risks associated with the integration of acquired operations; the rapidly changing technologies and market demands; and other risks identified in our filings with the Securities and Exchange Commission. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

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