2007 Hailed As A Breakout Year For Knoa Software.

Company Expands with Strategic Hires and New Offices, Adds Board Members; Enhances EPM Solution and is Recognized by Industry Leaders for a Unique Focus on the End-user

NEW YORK -- Knoa, the leading provider of user experience and performance management software, today announced that 2007 has been a breakout year, as demand for experience and performance management solutions increased across a number of industries, worldwide. Knoa's highlights from the year include significant customer growth, a new field operations center, continued product innovation, an expanded Board and market leadership recognition by several prestigious industry analysts and organizations.

"In 2007, we focused on aggressive execution and realized tremendous customer success, product innovation and growth of our partner relationships," said Thad Eidman, president and CEO of Knoa Software, Inc. "We see even more opportunity ahead, as companies with extensive investments in enterprise software realize they need to focus on end user experience, proficiency and performance to remove the last remaining barriers to their return on that investment."

Customer Success

Adoption of Knoa's pioneering solutions accelerated among Global 1000 enterprises across all industries in 2007. Knoa experienced a 300 percent increase in revenue from the previous year. Vertical market momentum remains strong across the consumer products, manufacturing, telecommunications, technology, healthcare and pharmaceutical markets. In consumer package goods, companies such as Kraft Foods, ConAgra and Solae are among those using Knoa software to squeeze the most productivity from their enterprise applications. Pharmaceutical leaders such as Pfizer have also selected Knoa. In healthcare, companies such as Medtronic and McKesson have turned to Knoa to optimize their enterprise software deployments. In the technology sector companies such as IBM and Ingram Micro are now using Knoa's software to improve end user experience and performance.

Technology Innovation

In June, Knoa announced the general availability of Knoa Experience and Performance Manager (EPM) 4.5. The product breaks new ground by giving organizations the insight to simultaneously boost worker productivity and optimize application performance with a single software tool. "This company is built on our technology vision to provide a single universal user management platform that can serve the needs of all stakeholders," said Eidman. "With one version of the truth, from the end-users perspective, IT and business management can effectively work together to drive productivity and operational excellence." Knoa EPM 4.5 delivered several new features, including enhanced end-user metrics for response times, system errors and user errors. "As we look ahead to 2008," said Eidman, "Our scheduled release of new products will come at a very fast pace. In many cases, these individual products will have as much functionality as entire companies in our space today. This is the power of the single universal user platform technology that we have developed."

Industry Achievement

During 2007, Knoa was recognized for its innovation and market leadership by prestigious industry organizations. In September, Knoa EPM was named a leader in The Forrester Wave: "Passive Agent End User Experience Monitoring," Q3 2007, Forrester Research, Inc. In this report for IT Infrastructure and Operations professionals, Knoa EPM received the highest current offering score and was described by Forrester as an especially good fit for buyers that want to focus on true end-user experience monitoring. Forrester also noted that Knoa is an especially good fit for buyers who want a product that crosses IT operation and application development boundaries. "In an integrated IT organization that cares for the end user experience, it is probably as important to create applications that are easy to use and minimize usability issues as it is to provide good online performance," wrote Forrester's JP Garbani. "Knoa's product allows the whole IT organization to work together on improving end user productivity."

Knoa was also recognized by EPSScentral LLC, the leading worldwide provider of Electronic Performance Support Systems (EPSS) and Performance Centered Design (PCD[TM]) methods. EPSS selected Knoa as an award recipient for its annual Performance Centered Design (PCD) Awards. Knoa EPM was selected for its ability to identify end-user experience and performance issues quickly to save organizations significant dollars in implementation, training and support.

Organizational Growth

Knoa saw significant growth in 2007 as well. The company filled out its executive ranks with the appointments of software industry veterans Jerry Dolinsky and Lori Wizdo, in the newly created roles of executive vice president of Worldwide Field Operations and vice president of Marketing, respectively. Each brings more than 20 years of experience and a track record of success in driving growing companies.

In addition, Knoa appointed industry luminary Virginia Gambale to its board of directors. A successful investor and technology leader, Ms. Gambale was recognized as one of the top three CIOs on Wall Street; is listed as one of Forbes Magazine's Great Communicators; and was recently named by Directors and Boards Magazine as one of 12 "Directors to Watch." In her role, Ms. Gambale is helping company executives further refine Knoa's strategy and vision as well as position the company as a leader in experience and performance management. Ms. Gambale was elected to Knoa's board of directors due to her wealth of industry knowledge and expertise, as well as her overarching commitment to performance management and metrics.

In the third quarter, Knoa disclosed the location of a new field operations center in Minneapolis, Minn. The new offices are a result of the company's year-over-year growth and the need to expand facilities to accommodate sales and training initiatives for continued success. This center will house demand side functions such as sales, sales engineering, professional services and channel management.

"Knoa's market-leading position is underscored by our rapid growth rate in 2007," said Eidman. "In 2008, Knoa will continue to raise the bar in user experience management, providing our customers greater insight into application, end-user and business performance. As we close 2007 and look ahead to 2008, we are confident that we will continue to expand our leadership position with innovation that keeps generating industry firsts, and customer value."