Coghill Capital Wants Kintera's (KNTA) Gruber To Give Up CEO Role

In a 13D filing on Kintera, Inc. (Nasdaq: KNTA), Coghill Capital disclosed a 9.9% stake (3.98 million shares) in the company. The firm also disclosed a letter sent to the Company's Board of Directors requesting that the Board consider making changes to current management. The firm changed their filing status from 13G to 13D indicating their more active related to the investment.

In the letter the firm said, "CCM would like to express to the board of directors of Kintera its support for change in the Chief Executive role of the Company. Specifically, we are in support of a change whereby Harry Gruber relinquishes control of the day-to-day operations of Kintera. While we fully acknowledge Harry's significant contribution to the development of Kintera, thus far we believe that he is not the ideal manager to continue at the helm of the Company."

A Copy of the Letter:

Dear Board Members,

Coghill Capital Management, LLC ('CCM') manages a fund which owns3,979,407 shares of Kintera, Inc. ('Kintera' or 'the Company') common stock, equating to an effective ownership of 9.9%.

CCM would like to express to the board of directors of Kintera its support for change in the Chief Executive role of the Company. Specifically, we are in support of a change whereby Harry Gruber relinquishes control of the day-to-day operations of Kintera. Whilewe fully acknowledge Harry's significant contribution to the developmentof Kintera, thus far we believe that he is not the ideal manager to continue at the helm of the Company.

In our view, Harry's track record with respect to managing Kintera has demonstrated an ongoing inability to achieve business goals and objectives resulting in destruction of shareholder value, as well as the squandering of a considerable market opportunity for which Kintera's solution is well suited to take advantage of. Kintera's lack of acquisition integration and cost rationalization have led to massive and ongoing losses necessitating several equity financings that have been significantly dilutive to existing shareholders. Unrealized performance projections and consistent cash burn have caused theinvestment community to become disenchanted; as evidenced by Kintera's current $1.30 stock price (as of close on February 5, 2007), which is a fraction of the Company's $7.00 per share IPO price in 2003.

As Harry is both the Chairman and Chief Executive of the Company, weare concerned that he has the ability to exert undue influence over strategic and operational decisions without meaningful checks and balances. Further, as we view a certain level of dialogue between boards of directors and investors to be important and constructive, we are especially concerned with Kintera's policy of prohibiting independent board member communication with the investment community. In this particular case, we view such communication to be key to catalyzing change and we support Harry's replacement with a professional manager as a necessary step to drive Kintera to sustained profitability.

Very sincerely,

Clint Coghill

President & CIO of Coghill Capital Management, LLC