AppIQ Increases Market Share, Posts Sixth Straight Quarter of Revenue Growth; Record Number of New Customers in Q2 2005 Increases Customer Base to 250.

BURLINGTON, Mass. -- AppIQ(TM), Inc., the Storage Management Software Company(TM), today announced that it posted its sixth consecutive quarter of revenue growth in its second fiscal quarter ending June 30, 2005. Revenue increased 85% over Q2 2004 as more than 70 new customers acquired AppIQ's open Storage Area Network (SAN) management and Storage Resource Management (SRM) solutions, bringing the company's worldwide customer base to 250. Eighteen existing customers also made repeat purchases during the quarter to bring more of their heterogeneous storage infrastructures under the command and control of AppIQ's integrated solution family. Hewlett-Packard, which began offering its OEM version of AppIQ StorageAuthority(R) Suite in Q2, joined other AppIQ strategic OEM partners Hitachi Data Systems, Engenio, SGI, and Sun Microsystems and AppIQ value-added resellers in making strong sales contributions.

"We continue to burnish our track record of solid business results, solidifying our position as the leading independent supplier of open storage management software solutions," said Dave Lemont, CEO, AppIQ. "The increase in repeat orders signifies expanding enterprise implementations of our product family, which is an important milestone for a market that, until now, has been typified by shelfware, proprietary device managers, and tactical, throw-away point tools. We look forward to continued market penetration now that HP has joined HDS, Engenio, SGI, and Sun in offering our software through its worldwide distribution channels."

In addition to the company's business results, AppIQ continued to distinguish itself as a storage management software leader with other notable accomplishments in Q2 2005:

--Honored as one of Red Herring's Top 100 Private Companies of North America for 2005. In selecting AppIQ as one of the Top 100, Red Herring's editorial staff rigorously evaluated more than 900 private companies through a careful analysis of financial data and subjective criteria, including quality of management, execution of strategy, and dedication to research and development.

--Introduced AppIQ StorageAuthority Suite R4.0, the latest release of AppIQ's SAN management and SRM product family, with a new module for centralized management of distributed NetApp(R) filers, a new backup reporting and fault analysis module for VERITAS NetBackup, and a new application module for Microsoft SQL Server.

--Won the Most Valuable Product (MVP) Award in the Storage Management Software category in the 2005 MVP awards program jointly sponsored by InfoStor magazine and the Association of Storage Networking Professionals (ASNP). Winners were selected exclusively by end-users, who voted for AppIQ StorageAuthority Suite as the best storage management software solution over Computer Associates BrightStor Storage Resource Manager, EMC ControlCenter, IBM TotalStorage Productivity Center, and VERITAS CommandCentral.

--Received IBM TotalStorage Proven(TM) validation following rigorous testing of AppIQ's solution family with the IBM(R) Enterprise Storage Server(R) (ESS) storage systems, adding to the robust support that AppIQ already has for the IBM TotalStorage DS4000 series (formerly IBM TotalStorage FAStT) storage systems, and making AppIQ solutions an ideal match for customers of IBM storage solutions.

--Presented with customer Gillette at the Gartner PlanetStorage 2005 conference on how enterprises can centrally manage remote IT assets, reduce the costs associated with remote data center management, increase service level response times, and secure SAN operations, access, and control with SRM software.

--Passed the first Storage Networking Industry Association Conformance Testing Program (SNIA-CTP) for storage management applications - the only management solution to do so in all four test categories using out-of-the-box product features. AppIQ StorageAuthority Suite and OEM versions of the AppIQ product family offered by Hewlett-Packard (HP Storage Essentials), Hitachi Data Systems (HiCommand(R) Storage Services Manager) , and Sun Microsystems (Sun StorEdge(TM) Enterprise Storage Manager Advanced Applications) represent four of the nine products that passed the test. These AppIQ and "Powered by AppIQ" products also discovered the broadest range of asset information for each resource category.

About AppIQ

AppIQ(TM), Inc. is a leading provider of open Storage Area Network (SAN) management and Storage Resource Management (SRM) solutions. Customers worldwide in almost every industry rely on AppIQ software to comply with storage service levels, reduce operational costs, and improve IT's ability to respond to business opportunity. AppIQ StorageAuthority(R) Suite and "Powered by AppIQ" solutions are "Enabling the storage utility"(TM) for today's data-intensive enterprise by seamlessly integrating storage resource visualization, provisioning, monitoring, reporting, and policy-based automation, and by correlating the availability of business-critical applications with SAN configuration, capacity, and performance. AppIQ products are sold across all continents through strategic OEM partners Engenio, Hewlett-Packard, Hitachi Data Systems, SGI, and Sun Microsystems, and a global network of resellers. AppIQ is based in Burlington, MA, USA. For more information, visit www.appiq.com.

Copyright (C) 2005 AppIQ, Inc. AppIQ, SmartGuide, and The Storage Management Software Company are trademarks and StorageAuthority is a registered trademark of AppIQ, Inc. in the United States and in other countries. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.