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Keynote Strengthens European Position; Acquires Business of Hudson Williams Europe, an E-Business Performance Consulting Firm with Expertise in SAS Software.

SAN MATEO, Calif. -- Keynote Systems (Nasdaq:KEYN)
-- Hudson Williams Europe, Keynote's 12th Acquisition, was
 Originally the European Subsidiary of Hudson Williams USA,
 Which Keynote Acquired in July 2004

 -- Four Hudson Williams Consultants to Provide Services for
 Assessing, Tuning and Testing Performance of Web Applications
 and Infrastructures

 -- Acquisition Represents Keynote's First European Consulting
 Operation for Portfolio of Service Level Management Solutions

Keynote Systems (Nasdaq:KEYN), the worldwide leader in e-business performance management services, today announced the acquisition of Hudson Williams B.V., a privately held e-business performance consulting firm based in the Netherlands. Hudson Williams B.V. was originally the European subsidiary of Hudson Williams, Inc., an e-business performance management consultancy acquired by Keynote in July 2004. Peter van Gils, the founder and CEO of Hudson Williams B.V., founded the consultancy in 1998 and will join Keynote as the director of European service level management (SLM) services. Terms of this non-material acquisition, Keynote's 12th, were not disclosed.

Hudson Williams Netherlands' team of four highly trained and experienced consultants, all of whom are joining Keynote, provide sophisticated services for assessing, tuning and testing the performance of Web applications and infrastructures with specialized knowledge and focus on integrating Keynote's growing portfolio of SLM solutions with SAS(R), a leading supplier of business intelligence software. The acquisition is important as it represents Keynote's first European consulting operation focused entirely on Keynote's SLM solutions, which help enterprises effectively manage IT system health and its impact on e-business service levels and user satisfaction.

The Hudson Williams B.V. team includes experts in application architecture, networking and server technology, as well as IT financial management. The firm brings depth, focus and experience to its enterprise customers for addressing the increasing challenges of running high performance online applications 24/7/365.

"This acquisition effectively completes the acquisition of Hudson Williams which began when we acquired Hudson Williams, Inc. in July of last year. We are very pleased to have these four highly trained and experienced performance management consultants join Keynote in Europe, as we can now offer to our European customers the same range of deep performance management expertise and innovative SLM technology solutions that we have been offering in the U.S., said Umang Gupta, chairman and CEO of Keynote. "The acquisition underscores our emphasis on international expansion through M&A. We continue to look for companies in Europe and Asia that will expand our consulting expertise in both service level and customer experience management."

About Keynote

Founded in 1995, Keynote Systems (Nasdaq:KEYN), The Internet Performance Authority(R), is the worldwide leader in e-business performance management services. Over 2,100 corporate IT and marketing departments and 20,000 individual subscribers rely on Keynote's growing range of measurement and monitoring, service level and customer experience management services to improve e-business performance by reducing costs, improving customer satisfaction and increasing profitability.

Keynote is viewed as The Internet Performance Authority due to the company's global infrastructure of over 1,600 measurement computers in more than 50 cities worldwide that capture and store on a daily basis over 60 million Internet performance measurements, frequent media citations quoting Keynote's Web performance data and analysis, the company's market-leading Web performance indices for vertical markets and leading customer research that provides critical business insight into online customer experiences, industry trends and competitive Web strategies.

Keynote Systems, Inc. is headquartered in San Mateo, California and can be reached at or by phone in the U.S. at 650-403-2400.

Forward-Looking Statements

This press release contains forward-looking statements that are not purely historical regarding the Company or management's intentions, hopes, beliefs, expectations and strategies for the future. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the Company's current expectations.

Forward-looking statements in this release include, but are not limited to, forecasts concerning Keynote's international expansion plans. It is important to note that actual outcomes and Keynote's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as Keynote's ability to identify acquisition candidates, to successfully negotiate and enter into acquisition agreements on favorable terms, Keynote's ability to retain customers of acquired businesses, Keynote's ability to operate acquired businesses and manage related costs successfully, which businesses may be in locations in which Keynote has little experience, Keynote's ability to retain key employees of acquired companies, Keynote's ability to integrate acquired companies and costs associated with any future. Readers should also refer to the risks outlined in Keynote's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended September 30, 2004, and its quarterly reports on Form 10-Q and any current reports on Form 8-K filed during the fiscal year.

All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information available to Keynote as of the date of this press release, and Keynote assumes no obligation to update any such forward-looking statement or reasons why results might differ.

Keynote, The Internet Performance Authority and Perspective are registered trademarks of Keynote Systems, Inc. Other trademarks are the property of their respective owners. (C) 2005 Keynote Systems, Inc.
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Publication:Business Wire
Date:Feb 3, 2005
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