Please set aside a few minutes to carefully read this entire email.

Fellow Netchemians,

Today is a big day in Netchemia history.

When we started Netchemia 14 years ago, our goal was simple: Leverage technology to improve the
lives of those we serve. We quickly realized that the biggest impact we could make was in the K-12
market, and since then, we have been focused to serve the talent management needs of K-12
education.

We believe that by providing intuitive software to recruit, hire, develop and retain top talent,
we can help teachers and school leaders dramatically affect student achievement.

We have been very successful in our endeavor by building a fantastic team and an impressive list of
customers that love to work with us. In the process we have made an impact in a market that matters.
Now it is time to take the next step in our evolution.

I am pleased to announce that Netchemia will be joining forces with PeopleAdmin, the leader in talent
management solutions for higher education.

Based in Austin, Texas, PeopleAdmin helps higher education and government institutions improve
operational efficiency, minimize risk, and organize the entire talent management lifecycle. Its flagship
product, SelectSuite®, is the leading talent management solution for colleges and universities.
PeopleAdmin serves more than 700 customers and employs over 120 employees.

We are excited about doing this for three main reasons:

Execute on our vision faster. Now is the right time to join forces with PeopleAdmin because
there is a huge opportunity to leverage each other's strengths and move even faster towards our
long term vision. Like us, the PeopleAdmin team is passionate about education and works hard
to improve the processes that help make learning possible. They share our vision, and together,
we’ll have the resources to be the dominant provider of talent management solutions for the
entire education space. Together, PeopleAdmin and Netchemia will serve 3 million school
administrators across 3,000 educational organizations, which in turn support 15 million students
across the U.S. and Canada.

More opportunities for our employees. Today is the culmination of the tremendous progress we
have made, thanks to the contributions of talented and hardworking individuals like you. A
larger organization (over 200 employees combined) that is aligned with our values offers our
team members exciting opportunities to grow both personally and professionally as we create
more robust and diverse career paths, improve our model for professional development, and
grow our culture.
 More and better products for our customers. This integration provides an opportunity for us to
accelerate our product development, continue to innovate and grow our market-leading
customer experience to continue delighting our customers.

These are extraordinary times for education, and we’re fortunate to be able to play a leading role in
helping teachers thrive. We should feel good about that, and we should be proud of what we do. I’m
excited about our company. I’m confident in our people. And I know we are at the right place and time
to accomplish great things.

There is a detailed FAQ attached, but first, let me address the top 3 burning questions that I'm guessing
many of you will have.

Q. How will this affect my current job at Netchemia?

You can expect business as usual. Your job is just as secure as it was a month ago. From this
point forward, PeopleAdmin will have offices in both Austin and Prairie Village. Your hard work
has contributed to our ongoing success and helped Netchemia take advantage of this
opportunity. We ask that you continue your efforts to make our company successful and to
ensure our clients have the proven technology and quality support they need.

Q: Will the Netchemia culture change?

Our culture at Netchemia is unique and always evolving, because one of our core values is to
embrace the entrepreneurial experience. What happens to our culture is up to us, which has
always been true. Just like before, we are in control of how our culture evolves. A big part of the
reason why PeopleAdmin is interested in us is because they recognize the value of our culture,
our people, and our brand. This is about making the combined company’s brand, culture, and
business even stronger than it is today.

Q Are you and the executives still continuing as part of the team?
Yes, we have no plans to leave. We believe that we are at the very beginning of what's possible
for our vision and are very excited about the future and what we can accomplish together with
PeopleAdmin. Part of the reason for doing this is so that we can get a lot more done more
quickly. I know you will have many other questions about what happens next. The integration
process will carry on for several months as we work to bring the organizations together and
leverage all of our mutual strengths. We will communicate with you openly throughout this
process, and ask that you continue doing the great work you’ve been doing that has led us to this
point.

Finally, I recognize the suddenness of this announcement. As you know, key to our core values is to have
direct and honest communication. I would have preferred to share much earlier that we were in
discussions with PeopleAdmin, but the legal nature of the process does not allow for that level of
openness.
Attached is list of frequently asked questions regarding this exciting development. Please use these
FAQs as a guide when interacting with customers. If you have additional questions, please don’t hesitate
to contact me or another member of the executive team. We’ll be happy to answer any questions in
order to make this a seamless integration as we join forces with the PeopleAdmin team.

Sincerely,

Carlos Antequera
Chief Executive Officer
Netchemia