Kintera Reports First Quarter 2007 Financial Results.

SAN DIEGO -- Kintera,[R] Inc. (NASDAQ: KNTA), a leading provider of software as a service (SaaS) to the nonprofit and government sectors, today reported financial results for its first quarter ended March 31, 2007.

Revenue for the first quarter 2007 was $10.7 million, which is an increase of eight percent compared to $9.9 million for the same period last year. First quarter revenue exceeded the guidance provided during last quarter's financial results call.

The company reported that costs associated with the restructuring plan, which was announced during the fourth quarter and fiscal year 2006 earnings conference call, are estimated to be $2.4 million, or $0.06 per diluted share.

On a GAAP basis, net loss for the quarter was $8.3 million, or $0.21 per diluted share, which is an improvement of 16 percent or $0.08 per diluted share, compared with a net loss of $9.9 million, or $0.29 per diluted share, for the same period last year. Net loss excluding the impact of restructuring charges in the first quarter was $5.8 million, or $0.15 per diluted share.

Earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and restructuring charges (adjusted EBITDA) was a loss of $3.8 million, or $0.09 per share, in the first quarter of 2007, compared to a loss of $7.5 million, or $0.21 per share, in the first quarter of 2006. This is an improvement of approximately 50 percent or $0.12 per share year-over-year. Adjusted EBITDA also exceeded the guidance provided during last quarter's financial results call.

"Kintera is focused on delivering value and service to nonprofits via our core social CRM business. As a result, Kintera is continuing to drive revenue, while improving operating performance," said Richard N. LaBarbera, Kintera CEO. "We continue striving to create value for our stakeholders, including Kintera clients, employees, shareholders and community, and are taking the necessary steps to achieve our financial objectives."

Excluding the restructuring costs previously mentioned, operating expenses for the first quarter 2007 totaled $13.8 million. This is a decrease of nineteen percent year over year, from $17.1 million in the first quarter 2006.

Cash, cash equivalents and marketable securities at March 31, 2007 were $14.8 million. Deferred revenues were $18.0 million at March 31, 2007 compared with $13.2 million at March 31, 2006.

Kintera recently took the following actions to address and strengthen the company's financial results:

* After reviewing all acquired technology, solutions and resources, the company has divested of several solutions which are not core to Kintera's social CRM platform. The transfer of the divestitures was designed to minimize impact on customers and employees. Kintera's social CRM platform provides technology for constituent engagement, donor management and fund accounting.

* As announced in last quarter's financial results announcement, Kintera is reducing its headcount by 16. All affected employees will have exited the business by June 30, 2007.

* Kintera has and continues to move resources closer to customers in order to best address client needs. Strategic locations, including Atlanta, Boston, Dallas, Denver, New York, Northern California, Southern California and Washington, D.C., have been staffed with geographically focused sales, services and support personnel.

Earnings Call

Kintera will host a conference call and slide presentation on Thursday, May 10, 2007 at 1:45 p.m. PDT to discuss the company's financial results and forecast. The conference call can be accessed by dialing toll-free 800-295-4740 (617-614-3925 for international calls), using conference code 67169652. A live Webcast slide presentation and replay of the call via the Internet will be available at www.kintera.com/webcasts.

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About Kintera, Inc.

Kintera[R], Inc. (NASDAQ: KNTA) provides software as a service to help organizations quickly and easily reach more people, raise more money and run more efficiently. The Kintera Sphere[R] technology platform empowers The Giving Experience[TM], and features a social constituent relationship management (CRM) system, enabling donor management, e-mail and communications, Web sites, events, advocacy programs, wealth screening and accounting.

For more information about Kintera software and services, visit www.kintera.com.

Kintera, Kintera Sphere, and The Giving Experience are either registered trademarks or trademarks of Kintera, Inc. in the U.S. and/or other countries.

Forward-Looking Statements

This press release contains, in addition to historical information, forward-looking statements. Such statements are based on management's current estimates and expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Kintera is providing this information as of May 10, 2007, and expressly disclaims any duty to update information contained in this press release.

Forward-looking statements in this press release include, without limitation, express and implied statements regarding Kintera's anticipated operating results, including anticipated expense reductions, and the growth in the market for Kintera's services. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied here. Readers are referred to the documents filed by Kintera with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: 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; 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. The information contained in this press release is a statement of Kintera's present intention, belief or expectation and is based upon, among other things, the existing industry conditions, market conditions and prices, the economy in general and Kintera's assumptions.

Kintera may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Kintera's assumptions or otherwise. Kintera undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Note Regarding Use of Non-GAAP Financial Measures

Certain of the information set forth herein, including adjusted EBITDA, adjusted EBITDA per share, and operating expenses and net losses excluding restructuring charges, are considered non-GAAP financial measures. Kintera believes this information is useful to investors because it provides a basis for measuring the Company's available capital resources, the operating performance of the Company's business and the Company's cash flow, excluding non-cash and non-recurring items that would normally be included in the most directly comparable measures calculated and presented in accordance with generally accepted accounting principles. The Company's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company's operating performance and capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies.

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