Autonomy Continues Record-Breaking Growth and Profitability

CAMBRIDGE, England and SAN FRANCISCO , August 8 /PRNewswire-FirstCall/ -- Autonomy Corporation plc (LSE: AU; LSE: AU.L), a global leader in infrastructure software for the enterprise, today announced that the first half of 2007 has been the most...

CAMBRIDGE, England and SAN FRANCISCO , August 8 /PRNewswire-FirstCall/ -- Autonomy Corporation plc (LSE: AU; LSE: AU.L), a global leader in infrastructure software for the enterprise, today announced that the first half of 2007 has been the most successful in Autonomy's 11-year history. The challenge of providing effective solutions for all information regardless of format or location is reaching primetime status, and Autonomy's Meaning-Based Computing -- the company's market leading approach to processing enterprise information -- is widely being recognized as the answer. Autonomy's rapid and persistent growth -- and its unrivalled financial performance -- continues to position the company as the technology vendor and partner of choice in the market.

"Today, enterprise customers demand not only exceptional innovation from vendors but also financial stability and the reassurance that you will be there to support them over the years, providing the ability to expand their platform as their needs dictate," said Autonomy CEO Dr. Mike Lynch . "Autonomy's stellar performance to date provides this reassurance." Other leading measures of Autonomy's recent success include:

* Autonomy's share price has risen 58% since January.

* The last quarter (Q2) was the 30th consecutive quarter of profitability, the highest second quarter and half-year revenues and profits in our 11-year history, and the company crossed a $4 billion market cap.

* Q2 saw organic license growth of over 30%

* Approximately 40% of revenue in Q2 came from repeat customers.

* Autonomy saw a positive cash flow from operations of $39.0 million, up 62% from 2006 and a now has a positive cash balance of $75 million with no net debt.

* U.S. Department of Defense granted Autonomy with a Special Security Agreement

* The blinkx demerger was completed with successful share placing

* The acquisition of ZANTAZ was announced; a seminal moment in Autonomy's history that generated positive reactions by leading customers, financial and industry experts.

* Standardisation deals consistently increased in the first half of the year including those with Morgan Stanley, Vanguard, Nationwide US, Nissan, the Metropolitan Police and a number of government agencies.

* Autonomy now has near-complete dominance in the OEM market with virtually every major software sector using Autonomy. The total number of OEMs is more than 350 and includes such names as EMC, FileNet, Vignette, Cisco, Oracle, Siemens, Interwoven, Symantec, Novell, EDS, IBM, Citrix, BEA, Xerox, Unisys, Kana, TIBCO, Supportsoft and Adobe.

Key Market Drivers Favor Meaning-Based Computing

Autonomy's strategic value in the enterprise has risen with the proliferation of unstructured information and with changes in regulatory requirements. In addition, Autonomy's high-end "Meaning-Based Computing" solution is increasingly becoming a competitive differentiator. Meaning-Based Computing enables computers to understand the relationships that exist between disparate pieces of information and perform sophisticated analysis operations with real business value, automatically and in real-time. Meaning-Based Computing extends far beyond traditional methods such as keyword search which simply allow users to find and retrieve data. Keyword search engines for example cannot comprehend the meaning of information; these products were developed simply to find documents in which a word occurs.

With an ever increasing win rate, Autonomy's more holistic approach to unstructured information has attracted a wave of new and repeat customers in 2007 including Credit Suisse, Morgan Stanley, HSBC, Standard & Poors, Vodafone, Telecom Italia, Deloitte, Coca Cola, Dow Jones, CNN, The Telegraph, Reed Business, Mercedes Benz , McAfee, EMC, Lockheed Martin, City of London Police, NATO and a wide range of governments. This stream of customers is so strong that the Financial Times recently noted, "Autonomy's search technology is becoming a de facto standard for companies," ( July 4 , 2007).

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