OutStart Announces Record Results for Q1 2006; Company Continues Success with Major Customer Growth.

BOSTON -- OutStart, the leading provider of eKnowledge software solutions for learning and knowledge-sharing, today announced a record first quarter for 2006. Over the last quarter, OutStart has achieved key customer wins and financial milestones, creating a strong position for the company, its customers and its partners.

"In Q1, thanks to our customers, OutStart continued to strengthen its leadership position," said Massood Zarrabian, CEO and president of OutStart, Inc. "We achieved a number of important financial goals including: finishing the quarter in a cash flow positive position; building total revenue backlog, an increase of 47 percent versus the same period last year; and maintaining our recurring revenue percentage, a key customer satisfaction indication, which now accounts for two thirds of our business. Hitting these goals allows for highly predictable revenue and greater financial stability. Our strong financial position combined with our award-winning portfolio of products makes OutStart an excellent partner for our customers."

Additional Highlights for Q1 2006 include:

--Orders from new customers were exceptionally strong; more then double the same period last year.

--OutStart Participate V2006 was named a 2005 Product of the Year Award by Customer Inter@ction Solutions.

--Announced a philanthropic relationship with LINGOs, a consortium focused on learning in international humanitarian relief and development organizations. OutStart donated licenses of its industry leading eKnowledge portfolio of products and services to LINGOs for use at its member organizations, such as Habitat for Humanity and Save the Children.

--Launched OutStart's Partner Enablement Program, including OutStart SalesZone, an industry-defining resource that is available to OutStart's direct sales team and partners. The SalesZone provides just-in-time access to critical product, competitive and market knowledge and is built on OutStart's eKnowledge set of capabilities that helps organizations improve results by enabling their knowledge workers, including employees, partners and customers to perform their roles more efficiently and effectively.

--Expanded its European, Middle East and Africa presence through a partnership with Allos. The partnership was established to meet the rising demand in these regions for enterprise learning solutions.

"This past quarter was a pivotal one for OutStart," said Dan Kossmann, OutStart's Chief Financial Officer. "Not only are we growing faster than comparable companies, but we are now cash flow positive and are forecasted to remain so."

About OutStart

OutStart eKnowledge software powers formal and on-demand learning, knowledge sharing and community/expert collaboration solutions that enable knowledge workers - employees, partners, and customers - to perform their roles far more efficiently and effectively. Customers like Empire BlueCross BlueShield, Tweeter, ING, Sara Lee, Steelcase, the U.S. Navy, Verizon, AgustaWestland and Unilever rely on OutStart to increase individual and organizational performance, improve knowledge transfer and lower operating costs. Headquartered in Boston, Mass., OutStart has offices throughout the US and Europe and can be found on the Web at www.outstart.com.