Corticon Technologies Achieves Third Consecutive Record Year.

Record Growth in Revenue, New Customers and Partners, and Profitability

REDWOOD CITY, Calif. -- Corticon Technologies, the leader in model-driven Business Rules Management Systems (BRMS), today announced that it has continued its growth trend of the prior two years by again almost doubling its year-to-year growth in customers and new business bookings. Adjusted free cash flow was again significantly positive for the year. The results are for Corticon's FY 2006, which ended August 31, 2006. Corticon is a privately held corporation.

"2006 has been another tremendous year for the company," said Dr. Mark Allen, founder and CEO of Corticon. "I am very pleased by the company's progress in the last 12 months, but I am even more pleased with the successes our customers have seen and the recognition that seems to be emerging for what makes Corticon's solution so different from our competitors' offerings. The company has made progress on all fronts and early traction in our new fiscal year suggests our plans to continue our industry leading growth of the past three years is very realistic."

Key highlights which contributed to Corticon's progress covers several critical areas of their business including:

* Financial: Corticon's compounded annual growth rate (CAGR) in new business bookings over the three year period ended August 31, 2006 was 82% as compared with the Business Rules market (CAGR) of 17%* over the same period. Corticon was again cash positive in fiscal 2006 as it was in fiscal 2005 with the business producing an adjusted operating margin (bookings over operating expenses) of almost 10% in fiscal 2006.

* Customer: Corticon doubled its customer base in 2006. Ninety percent of Corticon's customers are Fortune 500 companies, with concentrations across financial services, telecommunications and government. Corticon's customer base generally reflects all major vertical categories. Corticon's customer base is regionally broken out as follows: 40% North America; 40% EMEA and 20% Asia-Pacific.

* Partners: Corticon established critical new partnerships and delivered new business with partners including; Adobe Systems, IBM, EDS, Global360, and IDS Scheer.

* Product: In 2006, Corticon delivered Version 4 of its industry leading Business Rules Management System. Key innovations included the industry's first model-driven database access capabilities for a business rules system which acts as an alternative to stored procedures and SQL coding. Also introduced was Corticon Collaborator, a system that allows business teams to effectively manage access, security and deployment of business rules based solutions.

* Technology: Corticon's first patent was issued in 2006 (United States Patent 7,020,869). The patent; "Business Rules User Interface for Development of Adaptable Enterprise Applications," relates to the numerous innovations introduced in the award-winning Corticon Business Rules Modeling Studio, a core part of the Corticon BRMS.

* Market Validation: Building on top of Gartner positioning Corticon in the Leader Quadrant in the Gartner Business Rules Magic Quadrant. Forrester Research reported that Corticon Leads in Business Rules Platforms for Business Analysts in their Forrester Wave: Business Rules Platforms report for 2006. Corticon was also named by Intelligent Enterprise in their "Companies to Watch." In addition, the company was named a Jolt! Productivity Winner by Dr. Dobbs Journal.

* Team: Key new team members have joined at all levels of the company. Gino Padua joined as SVP Worldwide Sales rounding out Corticon's management team. Jim Thanos, a well recognized sales and marketing executive joined Corticon's board. The company has doubled its worldwide employee base during FY2006.

* Based on the 2006 IDC Report Worldwide Business Rules Management Systems 2006-2010 Forecast and 2005 Vendor Shares (September 2006 - Document 203627)

About Corticon Technologies, Inc.

Corticon's Business Rules Management System gives companies the ability to model and automate recurring decisions within their enterprise systems. Many of the world's most successful organizations rely on Corticon-powered solutions to drive IT efficiencies and operational excellence through decision automation. Consistently recognized as a leading rules vendor by industry analysts and thought leaders, Corticon's patented BRMS is the only solution with a model-driven design environment that guarantees the consistent, efficient and reliable execution of a company's business rules and policies. Corticon is a privately held company headquartered in Redwood Shores, CA, with worldwide distribution through an extensive partner network. Corticon's products are in use today at many of the world's largest banks, insurance carriers, media companies, telecom providers and government organizations, collectively automating millions of decisions per day. Corticon can be reached at www.corticon.com or at [phone].