Presented by Dan Gretz, Sr. Director, BbOne Operations April 13, 2005 BbOne SM – Built for Success

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 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, 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, Blackboard, in its sole discretion, may delay or cancel the release of any product or functionality described in this presentation.

3 Welcome Session Objective: –Learn how BbOne generates incremental university revenue and expands student services Innovation –Students may pass easily between campus and the local community while maintaining the convenience of one cashless transaction system Results/Outcomes –Institutions are improving the total student experience and their bottom line using BbOne

4 MISSION CRITICAL EXPLORATORY TIME SUPPORTEDSTRATEGICTRANSFORMATIVE: THE NETWORKED TRANSACTION ENVIRONMENT Phase I Phase 2Phase 3Phase 4 Phase 5 A single department solution When any student, teacher, or member of the university community can use a universal account on campus, off campus, and online for all commerce transactions, activities and facilities access and web services. INSTITUTIONAL GROWTH The Path to the Networked Transaction Environment™ Multiple departments supported by a dedicated administrator Institution wide support for all campus transactions and event access with back-office systems A central account for all members of the institution that can be utilized both on and off campus and maximum student and faculty convenience.

5 MISSION CRITICAL EXPLORATORY TIME SUPPORTEDSTRATEGICTRANSFORMATIVE: THE NETWORKED TRANSACTION ENVIRONMENT Phase I Phase 2Phase 3Phase 4 Phase 5 INSTITUTIONAL BENEFITS The Benefits of a Networked Transaction Environment Business Efficiency Distributed Management Student & Faculty Service Safety and Security New Revenue Opportunities

6 MISSION CRITICAL EXPLORATORY TIME SUPPORTEDSTRATEGICTRANSFORMATIVE: THE NETWORKED TRANSACTION ENVIRONMENT Phase I Phase 2Phase 3Phase 4 Phase 5 INSTITUTIONAL GROWTH The Products for a Networked Transaction Environment Blackboard Commerce Suite Bb Transaction Sys (1 department) Bb Transaction Sys (institution wide) BbOne Bb Community Sys Bb Transaction Sys (institution wide) BbOne Bb Community Sys

BbOne Overview

8 Seamlessly integrates with the Blackboard Transaction System™ Easily expands the purchasing utility of the ID card to off-campus vendors Utilizes existing campus discretionary accounts Manages merchant recruitment, terminal deployment, funds settlement, and merchant support Provides marketing and account management resources dedicated to maximizing program performance

9 What We Are Solving For? Increasing number of schools expanding off- campus Need to offer greater student services Desire to generate incremental revenue Universities lack the resources to recruit, manage and settle their own merchant network Successful in-house programs strain current resources and hinder performance and service Need for safe, cashless transactions off-campus Need for effective marketing support

10 Blackboard’s BbOne Partnerships

Program Benefits and Success Factors

12 BbOne Program Benefits University Generate revenue from off-campus sales Increase depositing levels and interest float Offer an enhanced student service Enhance town-gown relations Maximize the investment in your transaction system Parents & Students Safe, secure and convenient payment platform School-endorsed program including approved merchants Private local network Valuable student budgeting toolMerchants Access to proprietary funds, otherwise not available to merchants Access to official university channels such as card program web sites and deposit mailers On-campus promotion

13 BbOne Program Impact Depositing & On-Campus Spending During the First Three Years After the BbOne Implementation Discretionary deposits grow by more than 85% over the 3-year period Deposits increase an average of 25% in the first year Discretionary on-campus spending increases by 25% during the 3-year period The first year sees a slight decrease in on-campus spending but subsequent years offset that with near straight-line growth * Average results are based on discretionary depositing and spending data provided by current BbOne clients.

14 BbOne Program Success Factors Robust on-campus card program including laundry, vending, copying, and door access Multiple depositing channels including web and deposit mailings prior to each term Concise online and offline marketing of the card program and account functionality Balanced off-campus merchant network including food and service vendors that complement on-campus offerings Include key categories such as grocery, convenience, pharmacy, bookstore, and gas

Program Elements

16 Marketing Manager Expert marketing of university card programs Operations Support Provides fast, professional terminal services and back-end merchant support Merchant Sales Specialist Skilled at efficient negotiating with local and national businesses Program Manager Monitors program performance, manages results and executes program components Program Elements BbOne Account Team 4

17 Merchant Management Merchant research & recruitment Terminal Set-up & Support In-store signage

18 Funds Settlement Automated secure settlement process using bankcard technology and best practices Daily ACH processing of payments from University Clearing Account Monthly fee collection & university royalty payment Merchant and university reporting Dispute management and resolution

19 Funds Settlement Reporting Monthly University ReportMerchant Periscope Report

20 BbOne Marketing Services Clients can leverage our marketing expertise and economies of scale to achieve their ROI objectives Geared toward the core strategic goals of: Increasing cardholder deposits and usage Educating cardholders Building a card program brand Blackboard provides strategic development and creative support of collateral such as: Pre-term deposit mailings, card program brochures, flyers, and card office signage

21 Marketing Menu Deposit Mailer Pre-term mailings to parents have proven to be the most effective way to stimulate deposits. BbOne manages all aspects of production and fulfillment. Brochure Brochures provide information about new spending options available and promote the entire card program. Flyers Market on- and off-campus locations and other card program information with this useful piece that can be posted on campus, used as a mailbox stuffer, or passed out at events.

What’s New?

23 IP Connectivity Growing scale of BbOne to 40+ client sites is attracting national partner interest. Merchant need for fast processing drives development of high speed device for off- campus transactions. National Partners Online Merchant Application Coming soon, merchants will be able to complete their BbOne application online, making for faster more efficient set-up of new vendors.

24 Related Presentations “The George Washington University and Bb One” DATE: Wed. April 13th TODAY: 4:05 – 4:55 pm “The Journey Off Campus” DATE: Wed. April 13th TIME: 3:05 – 3:55 pm

25 Closing Slide Innovating Together in ‘05: –BbOne provides a cost-effective, revenue-generating solution for expanding card programs off campus –BbOne has the program management and marketing experience to help grow your overall card program, including on-campus spending and dining –BbOne provides parents the level of control they desire and students the flexibility they need Follow up Contact(s): –Dan Gretz, Senior Director of Operations, BbOne Phone: , ext. 2230

Questions?