Attunity Ltd. (ATTU)

[midastouch017]

Attunity Reports Third Quarter 2005 Results
Wednesday November 2, 8:10 am ET

License revenue increased 22% over third quarter 2004
Completed a strategic OEM agreement with one of the world leading software vendors


BURLINGTON, Mass.--(BUSINESS WIRE)--Nov. 2, 2005--Attunity, Ltd. (NASDAQ: ATTU - News), a leading provider of enterprise information integration software, today reported its financial results for the third quarter ended September 30, 2005.

Revenues for the third quarter of 2005 were $3,346,000, representing an increase of 15% over revenues of $2,917,000 in the third quarter of 2004. Operating loss for the third quarter of 2005 was $958,000 compared with an operating loss for the third quarter of 2004 of $2,676,000. Net loss from continued operations for the third quarter of 2005 was $1,161,000 or ($0.07) per share compared with net loss from continued operations for the third quarter of 2004 of $2,813,000 or ($0.18) per share.

Revenues in the first nine months of 2005 increased 10% to $11,176,000 from $10,211,000 for the same period in the prior year. Operating loss for the first nine months of 2005 was $1,835,000 compared with an operating loss for the first nine months of 2004 of $2,567,000. Net loss from continued operations in the first nine months of 2005 was $2,453,000 or ($0.15) per share, compared with net loss from continued operations of $2,885,000 or ($0.19) per share in the first nine months of 2004.

"We are pleased with the continued year over year growth in license revenue, especially via direct sales, which grew over 50% from the same period last year. I believe this is a direct result of the efforts we have been implementing in that direction since last year," said Aki Ratner, CEO of Attunity. "In addition, I am happy to announce the completion of a strategic OEM agreement with one of the world's leading software vendors. This agreement is further proof of the faith the industry's leading corporations have in Attunity's technology, vision and future. The agreement will start generating revenue from the fourth quarter."

Highlights of the Quarter

License revenue increased 22% over the third quarter of 2004.
Direct license sales growth of over 50% year over year.
Completed a strategic OEM agreement with one of the world's leading software vendors.
New product - trial installations were implemented quickly and received much enthusiastic feedback.
Released Attunity Integration Suite (AIS) version 4.8, with significant enhancements to Attunity Stream software.
Major customer wins across industry segments, as represented by: L'Oreal, Orange Mobile, CanWest, LexisNexis, Texas Gas and Standard Life.
"Regarding our new and innovative software solution, I am very encouraged from the excitement and positive feedback we have received from the trial users, as we continue on track to launch the new product within the next two months," continued Mr. Ratner, "the immense interest in our new product, which targets business managers at all levels, has led us to shift company resources towards accelerating its adoption in the market."

Attunity Conference Call

The company has scheduled a conference call and simultaneous Web-cast at 10 AM Eastern Time on

November 2, 2005. To participate in the call, U.S. callers can dial 800-329-9097 and international callers can dial [phone] and enter the pass code 16883676 five minutes prior to the start time. The call will be available for replay through the end of November 9, 2005 by dialing 888-286-8010 (in the US) or [phone] (international) and entering the pass code 41828156. This call will also be broadcast live on the Internet. To register and view the Webcast, go to http://www.attunity.com/investors. An online replay will be available approximately two hours after the call.

About Attunity:

Attunity is a leading provider of enterprise data integration software. Using Attunity's products, companies can seamlessly connect to data sources, stream data changes across the enterprise, and federate heterogeneous information to achieve a single view of their business. Employing a unique distributed architecture, Attunity software runs natively on enterprise data servers, turning locked data silos into an efficient Information Grid. The result is significantly enhanced performance and reduced cost of ownership.

Attunity software solutions are used world-wide for Data Warehousing, Operational Data Stores, and a variety of Information Integration initiatives, including service-oriented integration to the mainframe as part of EAI projects, legacy data access for business intelligence and reporting, real-time and efficient ETL based on change data capture, and single customer views from disparate information sources. Also, Attunity is a trusted partner for industry leaders like IBM, Oracle and HP who embed Attunity software into their products and solution offerings.

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