Overview of IP Technologies for the Blackboard Commerce Suite™ Presented by: Michele Neyers, Blackboard Sr. Solutions Engineer April 13, 2005

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.

Blackboard’s IP Technologies Session Objectives –To review the IP based solutions offered for the Blackboard Commerce Suite and discuss how these technologies may benefit you/your card programs Innovation –Facilitate discussions around available IP technologies and how campuses are taking advantage of these solutions Results/Outcomes –Provide attendees with an understanding of: Blackboard’s IP based products and solutions The benefits of IP over traditional serial technologies Options and considerations around making the switch to IP

RS-485 RS-232 ? ? Converters Lantronix box DB25 Male Digiboard CP16 Terminal Server ? The Past: A Quick Look at Serial Communications

Blackboard’s Product Strategy Leading institutions are wiring their campuses to connect people and resources in new and powerful ways. In moving beyond Meal Plan Administration, these institutions are deploying their core technologies in an effort to establish a dynamic and cohesive commerce and access network. Blackboard’s product strategy is to help our clients meet their objectives by developing and supporting the core technologies that enable a true Networked Transaction Environment™.

Introducing the Networked Transaction Environment Networked Transaction Environment: A true networked transaction environment exists 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, facilities access and web-based services.

Networked Transaction Environment

The Present and Future: How is Blackboard positioned for IP Technology? Currently Available IP Native Bb and Third Party Hardware: –IP Converter, IPCONV U –IP Vending reader, VR/MDBMP 1 –IP Copy reader, CR –IP Access Control reader, SA3000 series 1,U –IP Debit/Activities Terminal, AT3000 2, U –NCR RealPOS70 and RealPOS20 W –Micros WS4 3 –Micros Eclipse WS 3 –Micros Keyboard WS4 3 –Bb/Sequoia Wireless Handheld Reader (uses TIA) 1 Also supports RS-485 (Unix only) W Currently available for Windows Edition only 2 Also supports RS-232 (Windows) and RS-485 (Unix) U Currently available for Unix Edition only 3 Requires Micros 9700; also supports b wireless through PCMCIA slot

The Present and Future: How is Bb positioned for IP Technology? Bb IP Hardware currently ‘In Development’*: –IP Laundry Reader Wireless connectivity option to washers/dryers –IP Value Transfer Station (VTS)/Card Management Center (CMC) –IP BbOne Reader Enhanced capabilities to work with off-campus merchants utilizing high speed internet connections *=release not yet scheduled

“TIA Building Block” Print/Copy Management Transaction Integration Agent FULL AES ENCRYPTION 128 bit – Government Standard 3 rd Party Point of Sale Bookstore Systems The Present and Future: How is Blackboard positioned for IP Technology?

Bookstore POS/Inventory Management –Booklog (Computerworks of Chicago) –BUDGEText –Follett/JDA –Nebraska Book Company Third Party Commerce/POS: Campus Video Solutions Catapult POS (Aramark) InfoGenesis Informed Decisions/CASHNet Micros 9700 Radiant Systems Ratex Business Solutions Sequoia Retail/POS Tangent/Venue1 USA Technologies (e-Suds) Blackboard Building Blocks™ Partners who have certified their products to the IP-based TIA specification:

The Present and Future: How is Blackboard positioned for IP Technology? Print Management Envisionware Equitrac GoPrint Systems Pharos UnipriNT Sequiam Software VendPrint Complete list:

The Value Proposition: Why make the switch to IP? Economical Considerations –IP devices allow the campus to leverage the investment made in the existing network infrastructure –Potential for recurring costs for dedicated copper wiring Leased lines, dry circuits, POTS (dial-up) lines –Time and materials costs Troubleshooting and repair Expensive to replace wiring that is not easily repairable –Communications Hardware Recurring maintenance charges Repair or RMA charges Replacement costs over time Upgrades to backend system to support serial connections

The Value Proposition: Why make the switch to IP? Technical & Security Considerations –Special skill set required to maintain serial connectivity Leverage existing IP/Network resources –Blackboard® IP devices offer added security in the form of full encryption AES 128-bit Government Standard –DHCP and Static IP addresses supported –Eliminates extraneous equipment –Less equipment = Less connections = Less points of failure –Increased device up-time (the network has to stay up!) –IP devices can be more easily managed and configured remotely across the network –Higher data transmission speeds and more reliable than a standard serial data connection –Blackboard manufactured & supported devices*

Finding the Right Migration Path: Things to Consider Know what you already have –Review existing readers and communication protocols deployed –Document and categorize reader locations & protocols in use –Visit the sites if you’re not sure what is deployed Ask your IT Support Team for help –Involve your IT/Network team to determine IP/network availability at the targeted reader locations –Determine locations where IP connectivity may not be possible Discuss possibilities for wireless –Determine overall cost estimate for adding new connections –Discuss ways that your IT/Network Support team might be able to assist in the transition, deployment of new readers and/or the on-going ‘care and feeding’ of deployed readers Consider executing a Service Level Agreement (SLA)

Finding the Right Migration Path: Things to Consider Start small and work your way up –Consider existing ‘pain points’ and locations that experience chronic communications issues –Consider drop-in replacements that can easily be converted to IP at a later time –Consider instituting a policy to use IP readers and connectivity in all new reader deployments (where applicable) Develop a comprehensive plan –Determine whether you will need to perform an upgrade before you can deploy any of Blackboard’s IP technology –Develop a 1, 2, 3 or 5 year transition plan and budgets –Align this transition with existing equipment amortization schedules and overall replacement strategies –Work with your Blackboard Regional Account Executive/Account Manager

Closing Thoughts … Innovating Together in ‘05: –Know the technology and solutions available to you –Speak with other clients on their efforts and success around deploying Blackboard’s IP based technologies –Set up meetings with Blackboard to assist you in your planning efforts Resources Available: –Always remember BtB: –Client listserv –IP Reader Workshop and the Hardware Lab Follow up Contact(s): –Michele Neyers, IF YOU ONLY REMEMBER 1 THING: –Blackboard’s IP technologies and solutions have been built to help you achieve a true Networked Transaction Environment