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 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).

"The search and discovery market is one of the fastest growing software markets today," said Susan Feldman , Research Vice President, Content Technologies at IDC. "That's because search is the only simple to use gateway to enterprise information. The technology has become pervasive and IDC expects the search and discovery market to continue its growth trajectory in 2007. Autonomy provides both a broad information management and access platform and a set of solutions to address problems like compliance, information-based workflow, and contact center response and reporting. This breadth of vision positioning Autonomy as both an infrastructure player and provider of focused solutions is a wise approach in a chaotic fast-changing market."

Meaning-Based Computing Also Drives Partner Momentum

Autonomy also has experienced an ever-increasing number of SIs and VARs announcing their commitment to build their business around Autonomy's Meaning-Based Computing, awarding Autonomy preferred partner status. Unisys and WM-Data, a division of LogicaCMG, are just two such examples from 2007. This trend looks set to continue. During an informal poll of 250 attendees at the Autonomy Partner Summit held in May of this year, 52% identified Meaning-Based Computing as the technology that will have the greatest impact in the way that we interact with information and computers in the next ten years.

"Autonomy is leading the industry on both complete product offerings and innovation and its success in larger deals will act as a catalyst for more standardization deals and its emergence as the dominant corporate standard" (Citigroup, July 2007).

About Autonomy

Autonomy Corporation plc (LSE: AU. or AU.L) is a global leader in infrastructure software for the enterprise and is spearheading the meaning-based computing movement. Autonomy's technology forms a conceptual and contextual understanding of any piece of electronic data including unstructured information, be it text, email, voice or video. Autonomy's software powers the full spectrum of mission-critical enterprise applications including information access technology, BI, CRM, KM, call center solutions, rich media management, information risk management solutions and security applications, and is recognized by industry analysts as the clear leader in enterprise search.

Autonomy's customer base comprises of more than 17,000 global companies and organizations including: 3, ABN AMRO, AOL, BAE Systems, BBC, Bloomberg, Boeing, Citigroup, Coca Cola, Daimler Chrysler, Deutsche Bank, Ericsson, Ford, GlaxoSmithKline, Kraft Foods, Lloyd TSB, NASA, Nestle, the New York Stock Exchange, Reuters, Shell, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. Autonomy also has over 300 OEM partners and more than 400 VARs and Integrators, numbering among them leading companies such as BEA, Business Objects, Citrix, EDS, IBM Global Services, Novell, Satyam, Sybase, Symantec, TIBCO, Vignette and Wipro. The company has offices worldwide.

The Autonomy Group includes: ZANTAZ, the leader in the archiving, e-Discovery and Proactive Information Risk Management (IRM) markets; Cardiff , a leading provider of Intelligent Document solutions; etalk, award-winning provider of enterprise-class contact center products and Virage, a visionary in rich media management and security and surveillance technology.

Autonomy and the Autonomy logo are registered trademarks or trademarks of Autonomy Corporation plc. All other trademarks are the property of their respective owners.

SOURCE Autonomy Corporation UK



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