Actuate Acquisition of performancesoft Garners Support from Industry Analysts; Combined Approach Will Improve Management Effectiveness and Enable Breakthrough Corporate Performance throughout the Enterprise.

SOUTH SAN FRANCISCO, Calif. -- Actuate Corporation (NASDAQ:ACTU), the world leader in Enterprise Reporting and Performance Management Applications, today announced that it has received industry analyst support for its acquisition of performancesoft, a leading provider of Performance Management solutions, software and services. (See press release issued on January 6, 2006, entitled Actuate Acquires performancesoft, Inc. to Extend Performance Management Throughout the Enterprise.)

The driving factor behind the acquisition is to increase the sphere of influence of Performance Management beyond the finance and budgeting functions; thereby providing companies with a more complete offering that will enable them to proactively address operational factors in real time across departments. Actuate expects that the combined technologies will present customers with a powerful, highly differentiated Performance Management solution that will deliver significant end-user benefits.

"performancesoft is/was arguably the leading provider of dashboard and scorecard applications, with some 500 implementations world-wide," said Philip Howard, Bloor Research, "Actuate Gets Busy", January 13, 2006. "Perhaps even more surprisingly it managed to do this while not having any business intelligence capability per se: it just marketed dashboards and scorecards. However, Actuate completes this picture so that a single vendor (Actuate) will now be able to offer this full set of capabilities. The company's respective customer bases are also complementary: Actuate has traditionally been strong in financial services while performancesoft has had most success in government, utilities and so on; so there should be significant cross-selling opportunities."

"BI and BPM can no longer live without each other, and the time is right for these technologies to merge." Forrester Research, Keith Gile, Connie Moore, Business Process Management (BPM) Meets BI And Performance Management (xPM) Head On, July 27, 2005. "Looking at business processes from the BI side, all operational and tactical BI applications -- including every form of xPM solutions -- require business process definitions. User organizations are clamoring for more value out of their investment in BI, and performance management represents one huge area of customer interest."

"The acquisition of performancesoft by Actuate zeros in on a key trend for organizations to combine business performance management (BPM) and business intelligence (BI) strategies as part of information transformation initiatives. As successful BPM initiatives require a move out of finance and into operations, the demand for management reporting increases," said Kathleen Wilhide, research director, Compliance and BPM Solutions at IDC. "Together, Actuate and performancesoft deliver corporate visibility and detailed analysis that span the needs of different users while enforcing information consistency."

"This is a timely and opportune acquisition for Actuate, and one that will serve its market position and customer base well," said Dr. Wolfgang Martin, founder of European analyst house Wolfgang Martin Team. "The marriage of BI and Performance Management technologies make such applications a valuable tool for truly integrating BI into entire business processes. The more people in an organization actually use BI and reporting in their day-to-day operations, the more a company's bottom line will profit from those technologies."

"Performance Management was always intended to serve the entire organization and help manage the business for effective outcomes," said Mark Smith, SVP Research - Performance Management at Ventana Research. "Through Actuate and performancesoft's proven technology and customer base they will be able to meet a growing market demand for applications that support business management."

About Actuate Corporation

Actuate Corporation is the world leader in Enterprise Reporting and Performance Management Applications that empower 100% of users to achieve breakthrough corporate performance. Actuate provides the most scalable, reliable, flexible and high-performing reporting capabilities for every application in the enterprise. Customers use Actuate to deliver information in context to users inside and outside the firewall as Performance Management and Customer Self-Service applications, managed spreadsheet applications and Java reporting applications.

Actuate has over 3,500 customers globally in a range of industries including banking, insurance, manufacturing, communications, and government. Founded in 1993, Actuate has headquarters in South San Francisco, Calif., with offices worldwide. Actuate is listed on the NASDAQ exchange under the symbol ACTU. For more information on Actuate, visit the company's Web site at www.actuate.com.

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