Identify Software Achieves Record Growth in 2004.

NEW YORK -- Company Significantly Expands Customer Base, Global Presence, and Technology Leadership with Its AppSight(TM) Black Box Flight Recorders for Software

Identify Software, the leader in application problem resolution software, today announced record-breaking sales, significant customer wins, and significant technology advances in 2004. With fourth quarter sales that drove the strongest quarter in company history, Identify's sales in 2004 more than doubled compared to 2003, and quadrupled compared to 2002. The record revenue growth was fueled by the addition of over 100 new customers, doubling of average deal size, a significant increase in repeat business, and expanded operations in the U.S., Asia Pacific, and Europe.

The rapid return on investment delivered by Identify's flagship product, the AppSight Application Problem Resolution system, continues to drive significant new customer wins for Identify, including Q4 sales to: Agfa Corporation, API Software, Inc.; DMP (Data Management Products, Inc.), INEA, LifeMasters Supported SelfCare, Inc.; Omgeo, ONI Medical Systems Inc., Research in Motion (RIM), Station Casinos, TD Waterhouse, and The TriZetto Group Inc.

"Global 2000 companies have an average of 500-1000 software applications supporting their critical business processes," said Cameron Haight, Research VP at Gartner, Inc. "Application problems can cause major delays and budget over-runs in application delivery, and once those applications are in production, problems can result in significant revenue and productivity losses. By investing in technology solutions that accelerate the application problem resolution process, companies can realize immediate savings and major business benefits."

AppSight has been proven to help customers resolve software application problems up to 70 percent faster, to reduce test cycles, accelerate application delivery, reduce support costs, and improve the availability and performance of business-critical applications. Leveraging patented AppSight Black Box software technology, AppSight Black Box monitors application execution and captures a synchronized, real-time log of user actions, system events, performance metrics, configuration data, and code execution flow--much like the "black box" flight recorder on an aircraft captures a real-time record of a flight. The AppSight Black Box logs can be replayed and analyzed to quickly pinpoint the root cause of all kinds of application problems--performance, configuration, user mistakes, or code errors. With comprehensive problem analysis and cross-platform support for J2EE, Microsoft Windows, and Microsoft .NET environments, Identify has set the industry standard for a complete solution for application problem resolution.

Identify deepened its technology lead in the problem resolution market in 2004, introducing AppSight version 5.0 in May, 2004 and version 5.5 in November. With version 5.0, Identify became the only vendor to offer full problem resolution solutions for Microsoft .NET, Microsoft Windows, and J2EE operating environments. Version 5.0 also introduced patent-pending technology that minimizes the performance impact of deploying problem resolution technology in a live production environment by automatically tuning the amount of recorded information to remain within preset thresholds. With the availability of AppSight 5.5, Identify became the first vendor to provide the ability to resolve problems in applications with a heterogeneous infrastructure--with different components running on Microsoft Windows, Microsoft .NET Framework, and J2EE application servers. Using the AppSight Console, application support and development teams can now "follow in the footsteps" of an individual transaction--from the client, to the Web server, and into tiered J2EE and .NET application servers to determine the root cause of a problem.

"Our success in 2004 confirms our leadership in the application problem resolution market," said Identify CEO Yochi Slonim. "Over 500 customers have validated the depth and breadth of our solutions, our third consecutive year of growth is well beyond the growth pace of the market, and our successful expansion in Europe and the Asia Pacific region all underscore our ability to consistently execute."

About Identify Software

Identify(R) is the leader in application problem resolution software, helping hundreds of enterprises and software vendors speed application delivery, increase application quality, performance, and availability, and reduce application support costs. The company's AppSight Application Problem Resolution System leverages unique, patented Black Box Application Flight Recorder technology to capture, communicate, and determine the root cause of application problems, thereby dramatically accelerating problem resolution processes across the application lifecycle. Founded in 1996, Identify is a global organization, with operational headquarters in New York and offices in Israel and throughout the U.S., Europe, and Asia Pacific. For more information about Identify, please visit www.identify.com or call 800.364.5467.

Note: Identify is a registered trademark and AppSight is a trademark of Identify Software Ltd. All other company and product names contained herein are the marks of their respective holders.