Integration Eliminates Tedious Work and Complexity Associated with Calculating, Collecting, Reporting on and Remitting Taxes in over 12,500 Tax Regions

BAINBRIDGE ISLAND, Wash.--Avalara (http://www.avalara.com), the market’s only small and medium business (SMB)-oriented provider of on-demand, web-based sales tax compliance services, has today announced at Microsoft Convergence, the company’s annual customer conference, the release of a custom AvaTax integration to Microsoft Dynamics AX. With the integration developed jointly by Avalara and two-time Microsoft Business Solutions U.S. Partner of the Year Iteration2, AvaTax’s easy plug-in capabilities offer Microsoft Dynamics AX users the ability to automate sales tax management without any change to existing workflow.

Avalara can be found at Convergence at Booth Number 901 – On Site Contact – Andrea Anderson: 218-329-1794.

“Companies that continue to use manual error-prone methods for processes associated with sales tax, are not only at risk of penalties during an audit, but they are also wasting time and resources that could be better aligned with other activities – activities that add value to the business,” according to Mike Gillis, CEO of Iteration2, a Microsoft Gold Certified Partner and reseller of Microsoft Dynamics AX. “Operating as an integral part of the Microsoft Dynamics AX solution, AvaTax now provides end-users, for the first time, with an effective solution for automating those tedious and time-consuming tasks. By integrating AvaTax with their Microsoft Dynamics AX solution, end-users ensure that their company is in compliance. They also reduce their exposure to audit penalties, and free themselves to focus on revenue-generating activities for their businesses.”

With over 3000 Microsoft Dynamics end-users already using AvaTax for Microsoft Dynamics GP, Microsoft Dynamics NAV or Microsoft .NET-based applications, this new integration extends the ability to instantly validate the customer’s address, provide a correct sales tax calculation for each transaction, automatically pre-populate returns and furnish up-to-the minute, detailed reporting to users of Microsoft Dynamics AX.

“For nearly three years, we have been providing state-of-the-art, on-demand sales tax calculations and management services to a growing number of end-users in the fast-growing SMB market,” Avalara’s CEO, Jared Vogt, said. “While we now serve more than 10,000 end-users, we are excited to finally be able to offer AvaTax to the Microsoft Dynamics AX marketplace. Many users of Microsoft Dynamics AX have business models that put them at risk for sales tax compliance, and with AvaTax, they can now relieve themselves of that burden and get back to focusing on generating bottom-line activity.”

The Beta version of the integration for Microsoft Dynamics AX releases in March, with the general v.1.0 integration release scheduled for July of 2007. Because AvaTax is a web-based, on-demand solution, early adopters will notice no difference as they transition from beta to 1.0. Pricing for this new integration – and for all AvaTax services – are scalable, based on volume. This means that the price is affordable for businesses of all sizes, and for users of Microsoft Dynamics AX, the monthly cost of AvaTax starts at $200. AvaTax for Microsoft Dynamics AX is sold exclusively through the Microsoft Dynamics AX and Avalara Authorized Partner Channel members. Microsoft Dynamics AX customers can contact their software solution business partner, or they can call Avalara at 206-780-7000 or toll free at 877-780-4848 and selecting extension 1 from the menu options to learn more about this new integration.

About Iteration2

Iteration2 provides its clients with a superior enterprise software implementation experience that is more attractive and affordable than solutions from SAP and Oracle. Combined with Microsoft’s integrated technology stack and unsurpassed financial strength, this provides a growth platform for today and tomorrow. Iteration2 is a Microsoft Gold Certified Partner and leading provider of Microsoft Dynamics AX, Dynamics CRM, Dynamics SL, Business Intelligence (BI), SharePoint, and Field Services. Microsoft Dynamics is a line of financial, customer relationship and supply chain management solutions that help businesses work more effectively.

Iteration2 is the first-ever back-to-back U.S. MBS Partner of the Year for 2005 and 2006. Iteration2’s industry focus, enterprise software domain experience, and exceptional capabilities with Dynamics and Microsoft platform and tools provide its clients with clear strategic business advantage. Iteration2 is based in Irvine, CA, and has sales offices in strategic locations throughout the United States. Please visit the company’s website at www.iteration2.com.

About AvaTax™

An SMB market-leading, Web-service-based sales tax solution, AvaTax instantly and accurately calculates sales tax for clients in any of the more than 12,500 tax regions in North America; provides detailed, real-time reporting; and automatically generates pre-populated sales tax returns. Currently, more than 10,000 licensed AvaTax users run an average of five to seven sales tax calculation transactions through Avalara’s sales tax engine every second.

AvaTax comes integrated with SMB financial applications serving more businesses than any other solution on the market today, including Microsoft Dynamics™ GP, Microsoft Dynamics NAV, Microsoft Dynamics AX, Intuit’s QuickBooks, Sage Software’s Sage MAS 90 ERP, Sage MAS 200 ERP, Sage MAS 500 ERP, and Sage Accpac ERP. Additionally, with AvaTax On-Demand™ developers can integrate Avalara’s sales tax Web service with any e-commerce, third-party or custom-build solution with use of a comprehensive Software Developer’s Kit (SDK).

About Avalara

Headquartered on Bainbridge Island near Seattle, Washington, Avalara is changing the sales tax landscape by delivering innovative and affordable solutions to small and mid-sized businesses. Avalara’s mission is to transform the sales tax compliance process by creating cost-effective, state-of-the-art solutions. Avalara does so through integrated, on-demand, Web-based services that provide transparent transactions, accurate tax compliance, painless administration and effortless reporting.