Niku Announces the First Comprehensive Solution for the Selection, Control and Evaluation of Federal IT Investments.

REDWOOD CITY, Calif. -- Niku Corporation (Nasdaq:NIKU):

--New CPIC Accelerator for Clarity(TM) Streamlines and Speeds OMB 300 and 53 Submissions

--Niku Enhances Integrated CPIC Solution to Address Entire Federal IT Capital Planning and Investment Control (CPIC) Process

In a move designed to help federal agencies maximize and align IT investments with agency mission, Niku Corporation, the leading vendor of IT Management and Governance (IT-MG) solutions, today announced the CPIC Accelerator for Clarity(TM). The CPIC Accelerator(TM) enables agencies to improve the quality and speed of OMB 300 and 53 business case submissions. With the addition of the CPIC Accelerator to its Integrated CPIC Solution, Niku offers the first software system that manages all three phases of the IT Capital Planning and Investment Control (CPIC) process - select, control and evaluate. With this coordinated approach to IT Management and Governance, agencies can easily identify IT investments that will best support the core agency mission, while meeting increased compliance and legislative mandates critical to the funding process.

"As a Niku customer, we have seen the flexibility and ease-of use of the Clarity system first-hand," said Julie Labra, lead IT specialist at the Centers for Medicare and Medicaid Services (CMS). "This will enable us to better align our IT investments with our agency's mission and goals to provide health security and prescription drug coverage to all Medicare beneficiaries."

With legislative mandates such as the Clinger-Cohen Act, and the IT requirements set forth in the President's Management Agenda, a coordinated approach to the CPIC process and IT Management and Governance is more critical than ever for federal agencies. IT continues to be one of the largest areas of agency spend and is mission critical for virtually every agency program, whether civilian, defense or homeland security. Agencies must avoid failed IT initiatives, reduce redundancies and adopt a results-oriented, business-driven approach, as mandated by the Federal Enterprise Architecture. As a result, in addition to fulfilling their traditional responsibilities, federal IT organizations must now also address the stringent requirements of these performance-based mandates. These factors combine to make an integrated approach to CPIC and IT-MG a necessity for federal agencies.

"Niku has extensive expertise in helping organizations manage successful IT-MG initiatives, with more than 375 active commercial and public sector customers worldwide," said David Hurwitz, chief marketing officer of Niku. "As a proven leader and expert in this space, Niku is dedicated to helping federal agencies efficiently address their new IT management and governance responsibilities so they can spend more time on their citizen-centered missions."

CPIC Accelerator for Clarity

The CPIC Accelerator for Clarity enables the collaborative collection and submission of data for OMB Exhibit 300 and 53 business cases, including real-time monitoring of submissions via executive dashboard views, and auto-population of relevant data from projects to OMB forms.

Features in the CPIC Accelerator include:

--OMB Exhibits 300 and 53 generation and submission

--Auto-population of risk inventory and relevant data from projects to OMB 300 forms

--CPIC parallel work-flow processes to automate the creation and approval process

--Collaboration among multiple stakeholders on an OMB 300 business case, project or any other investment object

--Real-time monitoring of submissions via executive dashboard views

--Support of Federal Enterprise Architecture standards

Integrated CPIC Solution

The Integrated CPIC Solution delivers one integrated system to support the entire CPIC select, control, evaluate framework. Built on the market-leading IT-MG solution, Clarity from Niku, the Integrated CPIC Solution enables agencies to spend less time on IT-MG and more time on meeting agency mission. With this release, the Integrated CPIC Solution also includes new functionality for earned value analysis and Section 508 compliance.

For More Information

To learn more about the CPIC Accelerator and the Integrated CPIC Solution, please join Niku's complimentary webinar, "Mission Accomplished through Integrated-CPIC," on May 10, 2005 at 2:00 pm EDT. Register at http://www.niku.com/go/federal/webinar.

Availability and Pricing

The CPIC Accelerator module is priced at $96,000 and is available this month. Niku products and professional services are available on GSA schedule #GS-35F-0330J through partner IMMIX. For more information, call 866-846-NIKU or visit http://www.niku.com/go/federal.

About Niku

Niku Corporation (Nasdaq: NIKU) is the leader in IT Management and Governance (IT-MG) solutions and two-time winner of the Gartner PPM Summit "Best Vendor" award. More than 400,000 users at industry-leading companies depend on Niku software to maximize their "Return on IT." Niku's customers include leading governmental organizations such as the Centers for Medicare and Medicaid Services (CMS), the National Institute of Health (NIH), agencies within the US Department of Defense (DOD), the Minnesota Bureau of Criminal Apprehension, the California Department of Health Services, Oakland County Michigan, the UK's Office of Government Commerce (OGC), the Queensland Department of Primary Industries, the South Australia Police Department, the Norwegian Labor Department, and the Swedish Police. With headquarters in Silicon Valley, Niku serves global customers from more than 20 offices worldwide, including Niku's Federal Solutions Center in Bethesda, Maryland.

For more information, contact [e-mail] or visit http://www.niku.com.

Niku and the Niku logo are registered trademarks, and Clarity is a trademark of Niku Corporation in the United States and certain other countries. All other trademarks, trade names, and/or product names are used solely for the purpose of identification and are the property of their respective owners.