Bridgeline Software Files Registration Statement for Proposed Initial Public Offering

December 12, 2006

Woburn, MA, December 12, 2006- Bridgeline Software Inc., announced today that it has filed a registration statement with the Securities and Exchange Commission in anticipation of a planned initial public offering of its Common Stock. The proposed initial public offering will include 3,000,000 shares of common stock. The offering may increase to approximately 3,450,000 shares of common stock if the underwriters exercise in full their over-allotment option. The company plans to list its shares on the NASDAQ Stock Market under the ticker symbol "BLSW", and the Boston Stock Exchange under the ticker symbol “BLS”.

Joseph Gunnar & Co. will act as the Lead Underwriter for the offering. A copy of the prospectus relating to these securities may be obtained when available from Joseph Gunnar & Co., 30 Broad Street, New York, NY 10004.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different.