Item 2.05. Costs Associated with Exit or Disposal Activities

On April 23, 2009, Bottomline Technologies (de), Inc. (the "Company") announced a plan designed to reduce its workforce by approximately 40 full time positions. The Company expects to complete this initiative during the remainder of its current fiscal year ending June 30, 2009, and currently estimates that it will record pre-tax restructuring charges arising from severance related benefits of $1.2 million, inclusive of stock compensation expense of $0.1 million, during the quarter and fiscal year ending June 30, 2009.

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