Attunity Announces $5 Million Equity Investment.

Business/Technology Editors

BURLINGTON, Mass.--(BUSINESS WIRE)--Oct. 24, 2001

Attunity Ltd. (NASDAQ: ATTU), a leader in business process, application and data integration solutions, today announced that it has closed an equity financing with Special Situations Funds.

"I am very pleased to have this investment from Special Situations Funds, an investor that has a long and successful history in building stockholder wealth," said Paul MacKay, chief executive officer of Attunity. "We have strengthened our working capital to accelerate the expansion of our sales organization and to increase the market awareness of Attunity, its products and services. Our products are technically superior and well regarded by customers but to date have largely been sold without the benefit of sustained sales and marketing efforts. This investment is a major milestone in an aggressive strategy to claim our rightful position as a market share leader for integration technology."

Pursuant to the terms of the transaction, Special Situations Funds invested $5 million in exchange for 3,846,156 million ordinary shares of Attunity stock, plus 2,884,617 four year warrants at $1.75 and 961,539 four year warrants at $2.25 callable at $3.00 and $4.00 share prices, respectively. If exercised, the warrants will raise an additional $7,211,541 million, bringing the total financing to $12,211,541 million.

"On our drive to profitability we have made focused reductions in operating expenses without affecting our ability to significantly grow revenues in the future," said MacKay. "In these turbulent economic times, Attunity has been able to increase revenue sequentially over the past three quarters and today secure an investment that will propel us to the next level of success."

Information technology is rapidly evolving to a service-oriented style of computing which presents tremendous market opportunities for software companies that can deliver on these next-generation requirements. Attunity's solution enables enterprises to transform existing applications and data into standards-based services and then assemble them into fully automated business processes. With the ability to reuse any service or process across virtually any network or protocol, Attunity's customers have already achieved productivity gains in excess of 50 percent in the development of new business processes and applications, significantly reducing their time to market while establishing a scalable, high performance integration infrastructure for the future.

About Attunity Ltd.

Attunity(TM) is a leading provider of eBusiness solutions that deliver dynamic business process, application and data integration within and across enterprises. Attunity gives organizations the power to leverage their IT investments by automating and managing business processes within the enterprise and with partners, suppliers and customers over the Internet.

The company's portfolio of software and services work in concert. Its eBusiness Integration Suite utilizes the standards-based technologies of Attunity Connect(TM) and Attunity BPI(TM) to insure rapid ROI while maintaining business agility for the future.

Attunity delivers production-proven software and services to more than 1,000 companies worldwide and has strategic alliances with Oracle, Compaq and other world-class partners. Attunity products are available through direct sales and support offices in the United States, Israel, the United Kingdom, France, the People's Republic of China and Australia, as well as through full-service distributors Mitsui, in Japan; IDISA, in Mexico; Legato Solutions & Services Pte Ltd, in Singapore; SPL, in South Africa; Chang-Sung Systems, Inc. and Innodigital Company Ltd. in Korea; and Netmaker Technology Company, in Taiwan. For more information, visit www.attunity.com or send email to [e-mail].

Copyright (c) 2001 Attunity Ltd. All rights reserved.

Attunity, the Attunity logo, Application Adapter Framework, Attunity AAF, Attunity B2B, Attunity B2BEngine, Attunity B2Bdesigner, Attunity Connect and Web Services Process Integration are trademarks and "This Way to B2B" is a service mark of Attunity Ltd. All other marks are the property of their respective owners.

(Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors, including but not limited to risks and product technology development, market acceptance of the products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, both here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.)