REDWOOD CITY, Calif. -- SupportSoft, Inc. (Nasdaq: SPRT), a leading provider of Real-Time Service Management software, and Core Networks Incorporated, a privately held Canadian software company based in Halifax, Nova Scotia, today announced that they have signed a definitive merger agreement under which SupportSoft will acquire all, or substantially all, of the assets of Core Networks for approximately US$17 million in cash. The transaction is subject to customary closing conditions. SupportSoft anticipates that the transaction will close in September 2004 and will be accretive to earnings per share within 12 months of closing.

Established in 1998, Core Networks specializes in software products for network monitoring, management and activation of advanced digital services for DSL and cable broadband providers. Core Networks’ software products are evolving into a comprehensive portfolio of solutions for network management and monitoring, usage policy management, firmware upgrade management and remote management of home network devices.

“SupportSoft’s proven strength in providing digital service providers (DSPs) with the software solutions they require to efficiently expand their customer offerings for the ‘triple play’ of high speed data, voice and video delivery, now becomes even stronger through the acquisition of Core Networks,” said Radha Basu, SupportSoft Chairman and CEO. “Comprehensive service automation -- especially for the ‘last mile’ leading to a subscriber’s home or small business -- is essential to creating a great customer experience. We believe the integration of Core Network’s real-time networking products with SupportSoft’s Real-Time Service Management platform uniquely positions our combined offering as the first true, end-to-end solution for IP-based digital services.”

SupportSoft Inc.