Managed Objects' Revenues Increase More Than 50 Percent For Fourth Consecutive Quarter; Business Service Management Leader Cites Trends in ITIL Adoption, CMDB Interest and Outsourcing Among the Drivers for Continued Growth.

MCLEAN, Va. -- Managed Objects, the Business Service Management Company, announced third quarter sales increased 52 percent over the same quarter the previous year, making Q3 the fourth consecutive quarter of sustained 50 percent-plus growth. The company, known for its solution that simplifies the management of complex IT infrastructure, cited accelerated demand from the Global 2000 for its Business Service Management (BSM) solution as a key reason for its record growth.

As one of the underlying trends driving its consistent growth, Managed Objects cites a cross-industry movement to improve IT operational processes. This is increasingly accomplished through the adoption of best practice models such as the IT Information Library (ITIL) - a practice that the company has long advocated.

"IT organizations are under intense pressure to deliver higher quality service, while lowering IT expenditures," said Managed Objects CEO, Siki Giunta. "By managing IT as a set of services that are aligned with the business, our customers are better able to provide higher service levels without increasing costs. Our BSM solution, with its vendor-neutral integration approach, enables organizations to effectively monitor, manage and measure the services IT provides to the business - in a manner that is meaningful to business leaders."

Managed Objects' virtual configuration management database (vCMDB(TM)) provides a federated approach to CMDB implementation by leveraging existing IT management technology investments to support a comprehensive view of IT infrastructure elements, their properties and their relationships with other configuration items. This approach enables enterprises to speed their adoption of ITIL.

Additional revenue drivers stem from business leaders' demands that IT organizations either provide real-time insight into IT service quality metrics such as availability and performance - or face the specter of outsourcing. As a result of this trend, large enterprises and service providers are investing in Managed Objects' service level management (SLM) solution, which provides customizable role-based dashboard views of IT's impact on the business. In fact, agreements with service providers were among the largest new customer deals Managed Objects inked this quarter.

"Managed Objects is clearly seeing first-hand a renewed sense of confidence among IT executives, coupled with increases in IT spending budgets," added Giunta. "This has aided our ability to find and win new customers, but it is also important to note that our existing base of customers consistently return to us for additional software and professional services as we bring new products to market. This fact speaks volumes about the high quality of our product innovations and our company."

A summary of Managed Objects quarterly highlights include:

--Signed nearly a dozen new deals in both the U.S. and Europe, of which about one-half were expansion projects with existing customers.

--Launched two major new partnerships with the global IT operations services company Atos Origin. In the first agreement, Atos Origin's North America Consulting and Systems Integration division selected Managed Objects' BSM software as the centerpiece of its landmark new professional services offering, called Service Cockpit. In the second, Atos will sell and support Managed Objects' BSM solution in the French market, vastly expanding the BSM vendor's footprint in France.

--Opened a new market opportunity within the small- and medium-sized enterprise market space by inking a deal with Xaman Plc. a provider of managed services to 40 mid-market customers that will use Managed Objects BSM software to monitor and manage those services.

--Recognized as one the fastest growing companies in Virginia on this year's 2005 Technology Fast 50 Program by Deloitte & Touche LLP. Rankings are based on the percentage revenue growth over five years from 2000-2004 and this year was the fourth time that Managed Objects ranked among the fastest growing technology companies.

About Managed Objects

Managed Objects is the Business Service Management Company. Business Service Management (BSM) aligns IT with the business by integrating network, system, application, end user, and business metric information into real-time business service dashboards. Through Managed Objects' BSM platform, companies effectively monitor, manage, and report on the services IT delivers to the business - services like online trading and e-commerce. Consistently acknowledged by the analyst community as best in class, Managed Objects has more BSM implementations in place than any other company. That is why AIB, Auchan, CSC, Credit Suisse, DISA, Fidelity Investments, JPMorganChase, NIH, Progress Energy, Reuters, TIAA-CREF and other global organizations rely on Managed Objects' BSM technology. For more information, visit www.managedobjects.com.