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BlueTie Growth Prompts Corporate Expansion>

ROCHESTER, N.Y., June 06, 2004 — BlueTie, Inc. a leading developer of business and carrier-class messaging solutions, announced today it has relocated its corporate headquarters to a larger location to support its growing business. Since its inception in 1999, BlueTie has experienced rapid growth in both customers and employees due to the success of its award-winning collaboration applications and software.

BlueTie's new corporate headquarters is a 25,000 square foot, two-story, new construction building, located in the heart of Rochester's technology corridor. All of the Company's corporate staff and functions, including engineering, IT, operations, customer service, marketing and inside sales will be relocated to the new facility. The building will also house a 7,000 square foot state-of-the-art datacenter and NOC (Network Operations Center) featuring large screen projectors and flat panels to provide staff a 24x7x365 real-time view of all production systems. The datacenter will be utilized to exclusively host BlueTie customer solutions.

"During such a tough economic period, we are pleased to be announcing the growth and expansion of our business, we believe this is a testament to the need for our customers to have a low-cost, outsourced alternative for their business." said David Koretz, BlueTie President and CEO. "We are not only surviving, we are thriving, and have experienced exponential growth in both our customer and employee base." Added Koretz, "Our new headquarters building and datacenter will serve to support our customer needs as we continue to successfully execute on our business plan."

As of June 1, 2004 the new BlueTie corporate headquarters building, located at 1050 Pittsford Victor Road, in the Town of Perinton, has been officially opened for business. The Company will be hosting a formal Grand Opening for its employees and customers on June 10, 2004.

"We are thrilled to be able to further our presence here in Rochester, and look forward to bringing even more opportunities to the community," said Koretz.

About BlueTie, Inc.

BlueTie is a leading provider of email and collaboration solutions for small to mid-sized businesses (SMBs) and Service Providers worldwide. BlueTie's software enables SMBs to instantly deploy a business-class messaging solution without investments in hardware, software, or IT support. BlueTie also offers its carrier-class application to ISPs, web hosting providers, and domain registrars seeking an enhanced messaging solution for consumers and SMBs. BlueTie's software provides end-users with desktop, web, and mobile access securely, and includes spam and virus protection, along with collaborative features like shared contacts, calendars, files and instant messaging. BlueTie also offers email auditing and secure file transfer tools for additional security and compliance solutions. BlueTie has been named a Forbes Magazine "Best of the Web" company for 2002, 2003 and 2004. Founded in 1999, BlueTie is a global company headquartered in Rochester, New York. For more information, visit www.BlueTie.com or call 1.800.BLUE.TIE

For Further Information Contact:

Jennifer Balon, BlueTie, 585.586.2000 x1076, jbalon@BlueTie.com