Press Releases

Intellitactics Achieves Largest Revenue Quarter in Company History; Marks Thirteen Straight Quarters of Record Revenue Growth

Quarter punctuated with notable wins in financial services, federal government and telecommunications

Reston, VA, October 3, 2005—Intellitactics, Inc. continued its revenue growth trend with its thirteenth record-breaking quarter. The mix of new business included significant wins in the financial services and telecommunications vertical markets and in government installations. This quarter comes on the heels of unprecedented performance in the first quarter, in which the Company overachieved its revenue plan with significant wins in the healthcare vertical and the adoption of the Company’s security information management (SIM) solution by Managed Service Providers.

The Company also announced a 100% renewal rate for the quarter, and that investments from existing customers seeking to extend their implementations to new locations or add new device support contributed to record quarterly revenues. Intellitactics’ financial success continues to fuel its increasing expansion of sales and marketing presence, as well as investment in research and development, to take advantage of increasing market interest in Security Information and Event Management solutions.

“Our strengths validate our reputation as a high-quality solution provider, and continue to put us in front of prospective clients with advantages over our competition,” states Randall K. Davis, president and CEO of Intellitactics. “While regulatory drivers such as Sarbanes-Oxley, HIPAA and Gramm-Leach-Bliley are accelerating demand, more organizations choose Intellitactics Security Manager for its ability to deploy resources on threats that pose the greatest risk and help them balance the safety of their enterprise with the pursuit of business opportunity. We continue to experience strong growth in all of our key vertical markets, and we see the market for our security information and event management solutions continuing to expand. To leverage market requirements, we are on track to deliver in quarters three and four significant new capabilities that add to our already strong value proposition.”

Intellitactics provides enterprise security management for the companies and agencies with the most to lose if they fail to protect critical information assets. The company’s flagship solution, Intellitactics Security Manager, simplifies the management of complex security landscapes and provides unprecedented control to organizations to rapidly and comprehensively identify information security incidents, deploy resources on the threats that pose the greatest risks, and verify and validate that internal controls required for regulatory compliance are effective. Intellitactics Security Reporter, released in April of this year, is an automated log monitoring and reporting application that provides a starting point for companies looking to implement a comprehensive security program.

About Intellitactics, Inc.
Headquartered in Reston, VA, Intellitactics provides the world’s leading enterprise security management solution used by security analysts, operations, and risk officers to achieve cost-effective regulatory compliance; mitigate risk by automating security operations; and accelerate incident resolution to ensure the availability of critical business services. Intellitactics' industry leading Security Manager empowers organizations to simplify the complex mandate to be secure and compliant with just one solution. Security Manager combines event, alert, and incident management to mitigate exposure to cybercrime, with extensive automated analysis and reporting. A strong complement to Security Manager is Intellitactics™ SAM, which measures security value and features security assurance metrics™ on a configurable dashboard. Intellitactics was awarded Common Criteria Certification in December 2004, making it the first software provider to earn this certification as a security information and event management solution. Founded in 1996, Intellitactics is backed by JMI Equity Fund LP and Lazard Technology Partners and is ranked by well-known industry analysts as a market leader known for innovative solutions and a commitment to customer success. Visit us at www.intellitactics.com.

Contact
Pam Casale
Director, Press and Analyst Relations
marketing@intellitactics.com
877-746-7658