Software Finance and Tax Executives Council (SoFTEC)

NEW HIGH-TECH TRADE ASSOCIATION SERVES FINANCE AND TAX EXECUTIVES

SoFTEC Pioneers Virtual Trade Association Model

(October 22, 1999 - Washington, D.C.) - Representatives from 24 leading high-tech companies today launched the Software Finance and Tax Executives Council (SoFTEC), a new Washington, D.C.-based trade association. SoFTEC will lobby Congress and conduct public awareness campaigns regarding finance and tax policy issues affecting the software industry. Mark Nebergall, former vice president and counsel at the Software and Information Industry Association, will serve as president of the new organization.

"In Washington, there is a crowded field of trade associations all purporting to represent the entire high-tech landscape," said Mark Nebergall, president of SoFTEC. "SoFTEC has a laser focus. Contrary to mainstream association thinking, we don't have the answer to everything. But we are a unique resource to the software industry when it comes to issues affecting finance and tax policy."

"Finance and tax policy can create opportunity or severely diminish reported results," said Jerry Masters, Microsoft Senior Director of Planning and Reporting and SoFTEC Board member. "Current issues for finance and tax executives include accounting for business combinations and revenue recognition, along with Internet taxation and the research and development tax credit. These issues will have a tremendous impact on the future of our industry."

"SoFTEC brings together finance and tax executives from companies that belong to a variety of trade associations," said Karen Kenney, J.D. Edwards Director of Tax Services and SoFTEC Board member. "Before SoFTEC, coordinating our efforts was laborious and reduced our efficacy on Capitol Hill. SoFTEC provides continuity and, to a certain extent, lessens the need to create a coalition every time a new issue appears on the Congressional radar screen.

SoFTEC Launch

SoFTEC is pioneering the virtual trade association model by minimizing overhead and programs that do not directly affect legislation or public policy. "Trade associations have traditionally diversified services to enhance value to potential members," said Nebergall. "Our mission is educating key audiences on finance and tax issues. SoFTEC will evolve with the issues, but remain streamlined. We are committed to doing one thing and doing it well."

The Software Finance and Tax Executives Council (SoFTEC) is a Washington, D.C.-based trade association serving 24 software companies. SoFTEC provides educational resources for policymakers, legislative staff and journalists regarding a number of high-tech tax and finance policy issues, including: Internet taxation, the research and development tax credit, in-process R&D accounting, actions of the Financial Accounting Standards Board, stock option accounting, foreign sales corporation regulation, employee stock purchase plans and wage withholdings, and software revenue recognition.

For information about SoFTEC membership or current initiatives, contact:
Mark Nebergall, SoFTEC President, at (202) 331-9533, or mnebergall@softwarefinance.org.