Addressing Shareholders at IONA Technologies' 2005 Annual General Meeting, CEO Peter Zotto Outlined Progress and Continued Focus to Deliver Sustainable Performance and Infrastructure Software Market Leadership.

DUBLIN, Ireland -- Chairman, Kevin Melia, asserted the commitment and focus of the IONA team and Board

Addressing shareholders at IONA Technologies' 2005 Annual General Meeting in the Berkeley Court Hotel, Dublin, Chief Executive, Peter Zotto and Chairman, Kevin Melia outlined the company's progress and continued focus to deliver sustainable performance and infrastructure market leadership.

"Today, I'm happy to report solid progress and success against our stated objectives and strategy in 2004 and outline where we intend to take IONA in 2005 and beyond," said Mr Zotto. "An execution of our strategy through committed focus of management and the entire team saw IONA exit 2004 positioned for sustainable performance with an enhanced market standing and as an industry leader and innovator in the emerging Enterprise Service Bus (ESB) market sector.

Twelve months ago we spoke about the need to enhance our value proposition for Artix(TM) and work towards accelerating the market adoption of this new technology, while maintaining our CORBA market leadership. To date, we have received strong validation for Artix from independent analysts, customers and partners. Both existing CORBA customers and customers new to IONA, including O2, Deutsche Post, Marconi, Beijing Mobile, Raymond James and AT&T, have chosen Artix for their ESB solution. In addition, new partners have begun to approach IONA about collaborations based on Artix. IONA is increasingly recognised as a pioneer, a leader and a visionary at the forefront of the Enterprise Service Bus (ESB) market by leading international analyst firms Gartner, Butler Group and Current Analysis. While making excellent progress with Artix, we continued to enhance our CORBA market leadership with the release of a series of updates to IONA's Orbix(TM) product line designed to meet specific customer and market requirements."

Mr Zotto continued, "We intend to build on IONA's established technological strengths and combine these attributes with a greater customer orientation to build leadership in the infrastructure software market." Noting the increasing opportunity presented by the open source movement, he said, "With Artix and our strategic use of open source in the Celtix program, we are driving the adoption of Service Oriented Architecture (SOA), a powerful new enterprise computing model that has emerged to make IT more responsive, agile and efficient. In response to our Celtix program we have received broad industry recognition as an influential and innovative industry player. The Celtix program places IONA at the centre of an important industry trend, drives the market for broader SOA adoption, and will generate new revenue opportunities for IONA. We will continue to broaden our Artix product line to offer extensible infrastructure software products that enable our customers to migrate to SOA through an on-demand approach that promotes incremental adoption.

The continued focus on expanding our partner network, to create new revenue opportunities and broaden our SOA product offering, remains an important part of the company's strategy. We intend to build on existing marketing and technology relationships with companies such as Sun Microsystems and leading systems integrators including BearingPoint and CSC. We will further complement this partner network to include relationships with regional and specialist solution providers, such as MetaSecure, that focus on the SOA market or a particular vertical."

Mr Zotto added, "In connection with these advances in our industry marketing efforts, we strengthened the senior management team in the sales, marketing and product development areas. The addition of these new executives brings a wealth of experience to IONA gained in both emerging market companies and enterprise marketing disciplines. I am very pleased by the continued energy and focus of the IONA team. With this market-oriented and experienced management team I am confident we have the right people, pursuing the right strategy with the right products at the right time to build leadership in the infrastructure software market and sustain IONA's objectives."

Chairman, Kevin Melia concluded, "Together with the Board, the IONA team remains firmly focused on delivering sustainable performance. The clear execution against the stated strategy in 2004 is evidenced by continued sequential growth of Artix revenue, a better aligned cost base, and balance sheet strength. We are confident that IONA will deliver performance, leadership and growth."

Editors Note: Please see management profile at http://www.iona.com/info/aboutus/management/welcome.htm

About IONA

For more than a decade, IONA(R) Technologies (NASDAQ: IONA) has been a world leader in delivering high-performance integration solutions for Global 2000 IT environments. IONA pioneered standards-based integration with its CORBA-based Orbix(R) products. Artix(TM), IONA's extensible Enterprise Service Bus, enables existing enterprise systems to be integrated with an organization's common infrastructure components.

IONA is headquartered in Dublin, Ireland, with U.S. headquarters in Waltham, Massachusetts and offices worldwide. For additional information about IONA, visit our Web site at http://www.iona.com.

IONA, IONA Technologies, the IONA logo, Orbix, High Performance Integration, Artix, Mobile Orchestrator and Making Software Work Together are trademarks or registered trademarks of IONA Technologies PLC and/or its subsidiaries. CORBA is a trademark or registered trademark of the Object Management Group, Inc. in the United States and other countries. All other trademarks that may appear herein are the property of their respective owners.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements concerning plans and objectives of management, expectations regarding future financial performance, profitability and market positioning, growth, demand and opportunity. The forward-looking statements made are neither promises nor guarantees and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated or indicated, including risks and uncertainties relating to the launch of IONA's integration software; growth in market demand for Web services and integration; IONA's sales model; volume, timing and seasonal patterns of product sales; impact of competitive products and pricing; development, launch and market acceptance of new and improved products; IONA's cost reduction efforts; the integration of any future acquisitions; undetected errors in software; and general economic conditions, including their effect on the acquisition of new accounts and the time required to close sales transactions. For a more detailed discussion of the risks and uncertainties, please refer to our most recent Annual Report on Form 20-F and other periodic reports and registration statements filed with the Securities and Exchange Commission. You should not place undue reliance on any such forward-looking statements in this press release, which are current only as of the date when made. You should not expect that these forward-looking statements will be updated or supplemented as a result of changing circumstances or otherwise, and IONA disavows and disclaims any obligation to do so.