Bainbridge Island, Washington – March 13, 2007: Avalara (http://www.avalara.com) – the market's only small and medium business (SMB)-oriented provider of on-demand, web-based sales tax compliance services, today launched a major upgrade of AvaTax, which has gone live for over 10,000 AvaTax users. This March '07 upgrade release offers new AvaTax Dashboard functionality, along with significant enhancements to the AvaTax for Microsoft Dynamics GP connector.

"This dramatic new March '07 upgrade release delivers dozens of enhancements, all of which are designed to offer AvaTax users better visibility and more control of data," Jared Vogt, Chairman and CEO of Avalara, explained. "We are responding to partner and customer feedback by incorporating new report offerings and deeper integration of AvaTax Connector options. This upgraded release enhances usability for our clients – improving their productivity – and makes sales tax compliance even easier," Vogt said.

Built to meet the sales tax compliance needs of Avalara's core business clients – SMB businesses that conduct business across taxing jurisdiction boundaries, the March '07 upgraded release delivers new reports, allowing users to reduce the time it takes to gather, consolidate and report on tax data, as well as saving time required to both set-up and manage the system. New and enhanced reporting includes:

• New Document Line Detail Report – the AvaTax upgrade offers users line-by-line visibility into historical tax rate information, including details on tax jurisdiction and rate calculations – AvaTax now delivers this at the time the document is generated
• New Transaction Tab – AvaTax Dashboard users now have deeper visibility into their document status – this allows users to streamline the reconciliation of their data against their ERP or accounting system
• Tools Tab Enhancements – AvaTax streamlines the management of item numbers and eliminates error-prone data entry process – using this upgrade, AvaTax users can now import item numbers
• New Administrative Reports – making set-up and maintenance of the AvaTax system even easier by providing users a printable summary of the set-up detail

In addition to this range of new reporting capabilities delivered to all AvaTax Dashboard users, the March '07 upgrade release also offers dozens of enhancements specifically designed for users of the AvaTax Connector for Microsoft Dynamics GP. By increasing depth to the integration between AvaTax and Microsoft Dynamics GP, enhancements implemented in the March '07 upgrade release include refinements to the user interface, additional administrative control options, and greater visibility into data from within the Microsoft Dynamic GP system.

"Among the enhancements to the AvaTax Connector," Vogt pointed out, "Microsoft Dynamics GP customers can now run AvaTax reconciliation reports directly within the Microsoft Dynamics GP product. By simply entering a date range, with a click of a mouse our Microsoft Dynamics GP clients will be able to reconcile their Microsoft Dynamics GP and AvaTax information – in real time – right on their screens."

Additional enhancements to the AvaTax Connector for Microsoft Dynamics GP include:

• Usability Enhancements – the upgraded AvaTax tightly aligns with the interface standards in Microsoft Dynamics GP, making the interface more intuitive for users to navigate
• User-by-user Parameter Set - up Functionality – the upgraded AvaTax gives administrators, upon deployment of AvaTax, more control over the interface and the operations of both Microsoft Dynamics GP and AvaTax
• Entity Use Code Functionality – the upgraded AvaTax allows users to set up categories of non-taxable customers
• Set-up of Specific Tax Codes for Shipping Methods – the upgraded AvaTax offers end-users greater flexibility in mapping shipping codes to shipping methods

An SMB market-leading, Web-service-based sales tax solution, AvaTax instantly and accurately calculates sales tax for clients in any of the more than 12,500 tax regions in North America; provides detailed, real-time reporting; and automatically generates pre-populated sales tax returns. Currently, more than 10,000 licensed AvaTax users run an average of five to seven sales tax calculation transactions through Avalara's sales tax engine every second. AvaTax comes integrated with SMB financial applications serving more businesses than any other solution on the market today, including Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics AX, Intuit's QuickBooks, Sage Software's Sage MAS 90 ERP, Sage MAS 200 ERP, Sage MAS 500 ERP, and Sage Accpac ERP. Additionally, with AvaTax On-Demand™ developers can integrate Avalara's sales tax Web service with any e-commerce, third party or custom-build solution with use of a comprehensive Software Developer's Kit (SDK).

Headquartered on Bainbridge Island near Seattle, Washington, Avalara is changing the sales tax landscape by delivering innovative and affordable solutions to small and mid-sized businesses. Avalara's mission is to transform the sales tax compliance process by creating cost-effective, state-of-the-art solutions. Avalara does so through integrated, on-demand, Web-based services that provide transparent transactions, accurate tax compliance, painless administration and effortless reporting.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.