alfabet Stretches Lead in Enterprise Architecture Software Market, Announces Record Results for First Six Months of 2007.

Revenue up 27%, Bookings up 85% in First Half of 2007 vs. Same Period in 2006; Firm Grows Employee Base 29% Since Start of Year

CAMBRIDGE, Mass. -- alfabet Inc., a leading software provider in strategic IT planning and enterprise architecture management, today announced record results for the first half of 2007.

alfabet, which celebrated its 10th anniversary this year, enables companies to see, analyze, control and align IT initiatives with business priorities continuously. Its planningIT software is unique in tightly coupling business priorities and IT returns with current and future initiatives.

Revenue was up 27% and bookings by 85% for the first six months of the year vs. the same period in 2006 - well above the market average of 12-20% growth, according to a recent Forrester report [The Forrester Wave[TM]: Enterprise Architecture Tools, Q2 2007 by Henry Peyret, April 25th, 2007].alfabet now has about 16,000 users in more than 40 countries. To help deliver against this increased demand, alfabet grew its employee base by 29% since the beginning of 2007.

Other highlights for the year included the following:

* In January, alfabet AG closed its 3rd round of funding. The $4-million round was led by TVM Capital and Cipio, the two primary existing VC investors in the company.

* In March, alfabet was one of two vendors named as Gartner's "Cool Vendors in Enterprise Architecture." The report noted that ignoring the crucial concerns that alfabet addresses will result in "at best, haphazard alignment between IT and the business strategy."

* Also in March, Software AG and alfabet announced a joint technology solution for end-to-end SOA planning and governance.

* In April, Forrester Research Inc. recognized alfabet as having one of the top two offerings in enterprise architecture: see The Forrester Wave[TM]: Enterprise Architecture Tools, Q2 2007 by Henry Peyret, April 25th, 2007

* In May, alfabet officially launched its U.S. operations with headquarters in Cambridge, Mass. CEO Erik Masing relocated to this office.

* In June, alfabet announced Release 3.0 of planningIT for enterprise architecture planning and management. The latest version includes several major enhancements designed to help companies plan and manage their IT systems more strategically and efficiently.

"Today's companies are paying much more attention to planning and managing their IT strategically and efficiently," said Erik Masing, CEO and founder of alfabet. "This trend is reflected in the strong growth we've seen during the past six months and market interest in our planningIT solution. For the remainder of this year, we plan to build on our latest successes and solidify alfabet's leadership position in the strategic IT planning and management space."

About alfabet (www.alfabetinc.com)

alfabet enables companies to see, analyze, control and align IT initiatives with business priorities continuously. Its planningIT[R] software is unique in tightly coupling business priorities and IT returns with current and future initiatives. Competitive point solutions offer modeling or repository functions with a static view of priorities, architecture and infrastructure. alfabet provides a holistic, integrated and collaborative approach that offers continuous transparency into how IT and business information, processes and roles are changing and need to be managed over time.

The company serves a global user community of 16,000 IT professionals in more than 40 countries in a variety of industries, including automotive, financial services, telecommunications, logistics, high-tech and others. Its customers include international corporations such as AMB Generali, BP, DaimlerChrysler, Deutsche Bahn and T-Systems. Founded in 1997, alfabet is based in Berlin with U.S. headquarters in Cambridge, Mass.

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