Hooked on Phonics Selects Bridgeline Software to Power New eCommerce Initiatives

Leader in Educational Products Selects Bridgeline to Significantly Strengthen Business-to-Consumer and Business-to-Business Online Store Capabilities

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| Source: Bridgeline Digital, Inc.

BOSTON, Sept. 4, 2008 (GLOBE NEWSWIRE) -- Bridgeline Software, Inc. (Nasdaq:BLSW), a developer of SaaS-based web application management software and award-winning web applications, announced today that Hooked on Phonics, operated by Smarterville Productions, LLC, a leading creator of educational products, has selected Bridgeline to redesign and redevelop its marquee web properties, www.hookedonphonics.com and www.shopgpn.com. Through the deployment of Bridgeline's proprietary state-of-the-art, .NET-based eCommerce system, Hooked on Phonics looks to improve their online store capabilities and increase existing eCommerce sales. Bridgeline's solution provides an easy to use, feature-rich platform that allows store owners to personalize product offerings, improve marketing effectiveness and leads, and offer value-added services that generate more satisfied online customers. Additionally, by utilizing Bridgeline's teams of design, usability testing, and search engine optimization experts, Hooked on Phonics seeks redeveloped web properties and an integrated eCommerce system that are intuitive, easy to find, and conversion oriented.

Hooked on Phonics was created in 1987 and has since been used by more than 2 million families to help teach children critical reading, math, and study skills. Its groundbreaking approach and adoption of phonics-based in-home learning, along with extensive television and radio advertising, quickly made Hooked on Phonics a household name. "Hooked on Phonics benefits from outstanding brand recognition and highly-regarded educational products by both parents and teachers," says Judy Harris, Chief Executive Officer of Smarterville. "We appreciated the opportunity to work with Bridgeline to enhance our customers' experience on our site."

The new eCommerce system enhances Hooked on Phonics' capabilities around product promotion, customer service, and overall system administration. Many of the automated features of Bridgeline's system will be utilized including BOGO (Buy One Get One free), bundling, and cross-sale. For example, cross-sale items can be displayed during the shopping and checkout processes reminding customers that they may also be interested in other related items. Additionally, a "refer a friend" viral marketing feature will be utilized to enhance word-of-mouth promotion. Bridgeline's built-in Customer Service Chat feature will also be integrated, providing shoppers with an immediate, real-time response to their questions and requests. From a system management stand-point, Hooked on Phonics will now have the ability to control both their business-to-consumer (www.hookedonphonics.com) and business-to-business (www.shopgpn.com) eCommerce stores from the same administrative back-end. Bridgeline's dashboard technology will provide a real-time overview of Hooked on Phonics' online stores and offer data intelligence reports on sales trends, buyer demographics, and profit margins as well as system alerts on inventory levels, order fulfillment status, production issues, and shopping cart abandonment. Bridgeline will also maintain and support the back-end infrastructure for Hooked on Phonics in its state-of-the-art managed services hosting environment.

Bolstering the Hooked on Phonics software implementation are Bridgeline's teams of web services professionals. Bridgeline's User Centered Design process ensures that design and user experience are core considerations of a project's web development lifecycle. The net effect is increased traffic, improved visitor retention, higher conversion levels, and reduced long-term development costs.

About Hooked on Phonics

Hooked on Phonics is a leading creator of educational products for families that are fun, successful and easy to use. The company works with professional educators, interactive designers, writers, artists and parents to develop step-by-step learning systems that help teach children critical learning skills to help them succeed in school and in life. Hooked on Phonics products are available at major retailers worldwide and online at www.hookedonphonics.com.

About Smarterville, Inc.

Smarterville Productions LLC is a leading creator of supplemental educational products and media for parents and teachers. More than two million families and thousands of schools have turned to Smarterville and its portfolio of award-winning education products and media, such as Hooked On Phonics and the PBS series, Reading Rainbow.

About Bridgeline Software

Bridgeline Software is a developer of SaaS-based web application management software and award-winning web applications that help organizations optimize business processes. The iAPPS Product Suite is an innovative SaaS solution that unifies Content Management, Analytics, eCommerce, and eMarketing capabilities - enabling business users to swiftly enhance and optimize the value of their web properties.

Combined with award-winning application development services by Microsoft Gold Certified development teams, Bridgeline Software helps customers to cost-effectively maximize the value of their rapidly changing web applications. Bridgeline Software's teams of developers specialize in web application development, usability engineering, SharePoint development, rich media development, and search engine optimization.

Bridgeline Software is a recipient of the Inc. 500 award for America's fastest growing companies and currently has over 600 customers ranging from middle market organizations to divisions within Fortune 1,000 companies that include: DTCC, Smithers-Oasis, Marriott International, Berkshire Life, Honeywell, PODS, Budget Rent A Car System, John Hancock, AARP, Claire's Stores, National Financial Partners, American Dental Association, CadaretGrant & Co., PerkinElmer, UBS, JBHanauer & Co., Omgeo, William T Grant Foundation, American Academy of Pediatrics, and Partners Healthcare.

Bridgeline Software is headquartered near Boston with additional locations in Atlanta, Chicago, Cleveland, Denver, Minneapolis, New York, Washington, D.C., and Bangalore, India. To learn more about Bridgeline Software, please visit www.bridgelinesw.com.

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All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions including the risks described in our filings with the Securities and Exchange Commission that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. We expressly disclaim any obligation to update any forward-looking statement.

Bridgeline Software, Inc.
Brian Bolton, Director of Marketing
781.497.3013
bbolton@bridgelinesw.com