Five and Under

[ToshacH]

(Applies to: BWAYE)

Breakaway Solutions Responds to Nasdaq Letter

CONSHOHOCKEN, Pa., May 7, 2001 /PRNewswire via COMTEX/ -- Breakaway Solutions,
Inc. (Nasdaq: BWAYE), a Full Service Provider (FSP) of integrated strategy,
implementation and application hosting solutions for collaborative ebusinesses,
today announced it received correspondence from the listing department of the
Nasdaq Stock Market indicating that the Company does not currently comply with
the shareholder approval, voting rights and bid price listing requirements set
forth in Nasdaq Marketplace Rules 4350(i)1(A), 4351, and 4450(a)(05),
respectively.

Breakaway Solutions believes that it did and does comply with the shareholder
and voting rights rules and had structured the transaction as advised by its
outside counsel. The Company has already replied to Nasdaq, and will be
discussing Nasdaq's position at an oral hearing to be held on May 17, 2001.

Separately, the Company anticipates filing its Form 10-K prior to May 17, 2001.
Thereafter, Breakaway Solutions anticipates its original "BWAY" ticker symbol to
be reinstated.

About Breakaway Solutions

Breakaway Solutions, Inc. (Nasdaq: BWAYE) is a leading Full Service Provider
(FSP) specializing in defining, creating, and operating sustainable digital
businesses for Global 3000 collaborative e-business enterprises through
strategy, implementation, and application hosting services. Headquartered in
Conshohocken, PA, Breakaway Solutions has a network of regional offices and
Internet Solutions Centers in major cities across the U.S. and in Europe, as
well as 11 Application Hosting facilities in North America, Europe, Asia and
Australia. Breakaway Solutions can be reached at 800/925-7100 or at
www.breakaway.com.

Except for the historical information contained in this announcement, the
matters discussed in this announcement are "forward-looking statements" (as that
term is used in the Private Securities Litigation Reform Act of 1995) that
involve risks and uncertainties, including risks relating to the attractiveness
of Breakaway's Full Service Provider model to its current and prospective
customers, likely variations in quarterly revenues and operating results, the
ability to realize benefits from acquisitions and strategic alliances, risks in
conducting business outside the United States, the adoption and acceptance of
application hosting services by growing enterprises, personnel and customer
retention, ability to raise additional capital, equity dilution, business
change, product acceptance and customer demand, variation in quarterly results,
competition, and growth management detailed from time-to-time in Breakaway
Solutions, Inc.'s filings with the Securities and Exchange Commission. Breakaway
Solutions, Inc. draws the reader's attention to the factors described in its
Quarterly Report on Form 10-Q for the Period Ended Sept. 30, 2000 under the
heading "Factors That May Affect Future Results." Any such forward-looking
statements speak only as of the date such statements are made, and the company
undertakes no obligation to publicly release the results of any revision to
these forward-looking statements or otherwise update or supplement this
announcement or the risk factors contained in its filings with the Securities
and Exchange Commission.


Contact:

Joanna Bolles Jennifer Meyer
Public Relations Manager PAN Communications, Inc.
Breakaway Solutions, Inc. [e-mail]
[e-mail] 978/474-1900
978/823-1644

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SOURCE Breakaway Solutions, Inc.


CONTACT: Joanna Bolles, Public Relations Manager of Breakaway Solutions,
Inc., 978/823-1644, or [e-mail]; or Jennifer Meyer of PAN
Communications, Inc., 978-474-1900, or [e-mail]

URL: http://www.breakaway.com
http://www.prnewswire.com

(C) 2001 PR Newswire. All rights reserved.

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KEYWORD: Pennsylvania
INDUSTRY KEYWORD: CPR
ECM

STOCK SYMBOLS: [(bwaye)]