Objectivity Reports First Quarter Profits up 29 Percent; Growth and Adoption in the Expanding Security and Intelligence Markets Credited

Business Wire, Oct 26, 2004

SUNNYVALE, Calif. -- As government adoption rates accelerate for its leading high performance database for real-time knowledge-based management solutions, Objectivity, Inc., today announced results for the quarter ended September 30, 2004, reporting an increase in net income of 29 percent on an increase in revenue of 30 percent compared to the same period in 2003. The company continues to strengthen its financial position with cash, cash equivalent and short-term investment balances increasing 16 percent and working capital (current assets less current liabilities) increasing 29 percent as compared to the prior three month period ended June 30, 2004. "We have seen increased government business as a result of our strengthened relationships with leading prime contractors, key channel partners and our government customers," according to Jay Jarrell president and CEO of Objectivity.

Government Market Success

The company attributes its continued success to the growth and adoption from the expanding security and intelligence markets that benefit significantly from Objectivity/DB. Objectivity/DB is a distributed, real-time database that enables its government agency customers to use Objectivity/DB as an engine for gaining knowledge from multiple data sources. Many of Objectivity's government customers are performing data fusion from geospatial and sensor data, others are storing and correlating vast amounts of disparate information such as text, images, video and voice for investigation or security and intelligence applications. To increase business from our government markets, Objectivity has built strategic alliances and partnerships in addition to signing new government resellers. Furthermore, Objectivity has strengthened relationships with leading prime contractors and the government customer base.

"We anticipate increasing momentum in the government sector as our government agency customers team to solve their common security challenges," adds Jarrell. "The Objectivity solution is gaining favor as the unique, high-end data repository for real-time, knowledge-based and data fusion applications. We see domestic and ally government agencies collaborating on their respective security and intelligence needs using Objectivity/DB. Additionally, we're also experiencing increased revenues from our traditional markets worldwide."

"By offering the industry's best object-oriented resources combined with our unique high-performance database and strong partners, we continue to be the clear choice for complex high-end applications with real-time requirements," according to Leon Guzenda, chief technology officer for Objectivity.

About Objectivity, Inc.

Objectivity, Inc. is the leading provider of databases for real-time knowledge-based management solutions. The company's flagship product, Objectivity/DB, manages and analyzes complex information and relationships as well as very large volumes of data for mission-critical, real-time applications. Objectivity/DB enables leading telecommunications infrastructure providers to deliver faster more reliable services, government agencies to develop real-time knowledge-based and data fusion applications, and the most prominent scientific and process control companies to analyze very large volumes of information or bring higher quality products to market faster.

Objectivity, Inc. is headquartered in Sunnyvale, Calif., USA. For more information, contact the company by sending e-mail to info@objectivity.com, visiting http://www.objectivity.com or calling 408-992-7100.

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