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Witness Systems Announces Q2 Results

July 30, 2004

Witness Systems, a provider of performance optimization software and services, announced its financial results for the quarter ended June 30, 2004. Q2 revenue was $34.4 million with net income coming in at $1.5 million, or $0.06 per share, up from $0.02 per share in the first quarter and a loss last year.

Excluding hardware, second quarter revenue was $32.4 million, an increase of six percent from the first quarter and an increase of 20 percent from the $27.0 million of adjusted revenue reported in the second quarter of 2003. Second quarter license revenue of $12.2 million represented an increase of 11 percent over the same period one year ago, and a five percent sequential increase from the first quarter.

During the second quarter, Witness Systems also added 59 new customers, 23 of which licensed the company’s Voice over Internet Protocol (VoIP) software.

For more info, www.witness.com.