Presented By Timothy Aaron - Director, Blackboard Consulting

1. Return-on-Investment (ROI)Value-of-Investment (VOI)Measuring the Value of a Comprehensive Commerce Suite Presented By Timothy Aaron - Director, Blackboard Consulting Tom Bell – VP, Industry Relations, Blackboard April 12, 2005

2. A word from our lawyers… • Any statements in this presentation about future expectations, plans and prospects for Blackboard and other statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the factors discussed in the "Risk Factors" section of our most recent 10-K filed with the SEC. In addition, the forward-looking statements included in this press release represent the Company's views as of April 11, 2005. The Company anticipates that subsequent events and developments will cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to April 11, 2005. Blackboard, in its sole discretion, may delay or cancel the release of any product or functionality described in this presentation.

3. Welcome • Session Objectives • Outline a model for measuring net campus value of deploying a comprehensive commerce suite • Understand how to quantify the components of measuring return & value of the commerce suite • Innovation • Understanding how to create, sell and implement a comprehensive plan for deploying the commerce suite • Results/Outcomes • Maximization of ROI & VOI of the commerce suite

4. It starts with a vision… The Networked Transaction EnvironmentTM

5. INSTITUTIONAL BENEFITS EXPLORATORY SUPPORTED STRATEGIC MISSION CRITICAL TRANSFORMATIVE:THE NETWORKED TRANSACTION ENVIRONMENT Business Efficiency Distributed Management Student & Faculty Service Safety and Security New Revenue Opportunities Phase 5 Phase 2 Phase 3 Phase 4 Phase I TIME …and it translates to value

6. Overview • What… • Increased Revenues • Decreased Expenses • Increased Services • Increased Security • How… • Blackboard Transaction System™ • BbOneSM • Blackboard Community System™ • Result…Net Value

7. Measuring ROI and VOI InvestmentOperations Direct Benefits Indirect Benefits Net Campus Value

8. Investment: Start Up • Card Production • Host Hardware and Software • Card Readers • Communications • Installation and Training • Office Set-up

9. Investment: Expansion • Card Software • Card Readers • Communications • Public Relations

10. Operating Costs • Labor • Equipment and Supplies • Maintenance and Repair • Public Relations • Depreciation • G & A

11. Direct Benefits • Increased Revenues • Integrated Accounts & Activities • Expansion Efforts • New Sales Opportunities • Decreased Expenses • Elimination of Duplicative Card Effort • Elimination of Cash • Distributed Management • Systems Integration

12. Increase Revenues • Integrated Accounts & ActivitiesGrow revenue opportunities by capturing funds for on campus use • Package Flexible Spending Accounts……and market to parents, students and employees • Account Management……allow for easy review of transactions and the deposits of additional funds online, anytime and anywhere (and anyone)

13. Increase Revenues (continued) • Expansion EffortsGrow revenue opportunities by extending acceptance of integrated accounts throughout the campus environment • Point of Sale • Vending, Copies, Laundry • Printing • Event/Activity Access

14. Increase Revenues (continued) • With New SalesGrow revenue by selling more items direct to students, employees and parents online and off-campus • Students and employees……capturing off-campus spending via the card leads to higher card office revenues through shared revenues…online marketplace allows for nearly unlimited expansion • Unique markets……allowing parents/others to order packages online (and market to them via internet)

15. Decrease Expenses • Eliminate Duplicative Card EffortReplacing all existing cards and related transaction systems on campus with a universal transaction environment reduces multiple equipment, maintenance and operating expenses • Elimination of CashReplacing cash sales with card sales helps to lower the handling costs associated with cash as well as the losses/shortages that inevitably occur

16. Decrease Expenses (continued) • Distributed ManagementAllowing individual departments to manage their privileges and locations decreases the overall operating expenses • Systems IntegrationAutomated data integration allows for near-real time data flow between systems ensuring accurate privilege management while reducing the need for manual processes between departments

17. Measuring the Impact • Increase Revenues On a base of $5,000,000, the increased revenues over 3 years could be $2,750,000 to over $5,000,000.

18. Measuring the Impact (continued) • Decreased Expenses *Assumes 3 to 5 systems replaced by single card **Assumes a base of $5,000,000 (with 33% cash) and that 67% of the cash is converted to card. ***Assumes FTE at $25,000 with 12% Fringe Benefits

19. Indirect Benefits • More Efficient Operations • Better Customer Service • Improved Safety and Security • Enhanced Contract Management with Distributed Reporting

20. More Efficient Operations • Eliminate Cash Handling • Direct Connection to Campus Accounting • Survey and Research without Major Labor • Integrate Existing Systems

21. Better Customer Service • 24 x 7 x 365 via Web • Efficient Shopping on-line • Current and Up-to-Date Information always available • Customer can self serve

22. Improved Safety and Security • Full Encryption of data meeting or exceeding Government Standards • Improved “Risk Management” procedures • Better protection of university assets • Managed access improves campus safety

23. Enhanced Contract Management with Distributed Reporting • Campus keeps the books not the vendor • Reports track usage to measure performance • Survey to assess vendor performance • Distributed reporting maintains priviacy

24. Net Campus Value • Investment Required • Operating Expense • Direct Benefits • Indirect Benefits NetCampusValue

25. Case Studies from the Field

26. University of Washington Expands Vending Wirelessly Approach • Utilize Blackboard’s native IP vending readers with wireless network connectivity • Added 17 additional wireless-enabled vending machines – targeting total expansion up to 60 Outcomes • Contributes to 300% increase in overall vending sales • Annual increase estimated to exceed $1.5MM • Targeting over 18,000 wireless IP-enabled transactions annually

27. Building New Revenues by Simplifying Accounts Client Objective • Give students more flex spending choices on and off campus • Desire to tightly manage conversion to single account with increased deposits capability Blackboard Delivery • Business analysis, planning, change management controls, and system reconfiguration services Client Outcomes • Smooth and timely delivery of account reconfiguration • 35% overall increase in deposits and commission revenue

28. Clemson Integrates with Local Community with Targeted Financial Results Approach • Launch off-campus merchant program with existing and successful Tiger 1 Card • Partner with BbOne for Merchant recruitment, payment processing Outcomes • Total merchant sales of $550,000 over 5 months • Focused program launch with targeted student marketing • Net receipts to Tiger 1 Card projected at $100,000 annually Gross Merchant Sales

29. Tulane Achieved Client Service Automation for Card Services, Housing Approach • Automated integration between Blackboard Transaction System, RMS, and Persona • Automated integration utilizing Blackboard’s Building Blocks™ technology and Blackboard Consulting Outcomes • Single entry of Cardholder information • Elimination of entry error and significantly improved customer service for over 7,000 residential students

30. Harvard University Automates Merchant Processing Approach • Utilize web-based reporting and integration tool • Select merchant criteria and direct integration to Oracle financials payment processing Outcomes • Elimination of 50 person-days annually • Automation of payment processing to over 110 merchants weekly and monthly • Staff resources redirected to additional activities

31. In Closing… • Innovating Together in ‘05: • Fully deploying the Blackboard Commerce Suite™ creates significant value for the campus • Direct benefits can be quantified as part of an ROI calculation but additional indirect benefits are created and should be part of a net value understanding • Resources Available: • Network Transaction Environment Whitepaper • ROI Whitepaper (is this still around?) • Follow up Contact(s): • Tom Bell • Tim Aaron • IF YOU ONLY REMEMBER 1 THING: • A return on investment and the value of your investment is maximized through the expansion and deployment of the Blackboard Commerce Suite on campus, off campus and online