OutStart Positioned in the Visionary Quadrant for 2005 Learning Management System Magic Quadrant; Evaluation Based on Completeness of Vision and Ability to Execute

Business Wire, Dec 8, 2005

BOSTON -- OutStart, the leading provider of software solutions for learning and knowledge-sharing, today announced it has been positioned by Gartner, Inc. in the visionary quadrant in the "Magic Quadrant for Learning Management Systems report".(1) According to the report, "visionaries" are vendors that have a strong market understanding and ability to anticipate shifting market drivers.

Each year, Gartner evaluates the LMS market and includes the top vendors in its coveted LMS Magic Quadrant. To quality for consideration, vendors must develop their own LMS products and services, be in the space through a public go-to-market strategy, have at least $5 million in LMS software license and related service revenues and be regularly referenced by Gartner prospects or clients as a focused player in the market. Gartner analysts evaluate each vendor's ability to execute; its market viability, including installed base, pricing, customer satisfaction and product migrations; comprehensiveness of its offering; and completeness of vision. Gartner defines vendors listed in the Visionary quadrant as having a clear vision of market direction and are focused on preparing for that, but they can still improve in terms of optimizing service delivery.

"Our LMS products have earned praise from even the most demanding clients," said Massood Zarrabian, president and chief executive officer for OutStart. "We believe Gartner's recognition confirms customers' choice of our technology, and provides them greater confidence in our ability to anticipate and fulfill their future LMS and overall learning needs."

Magic Quadrant Disclaimer

The Magic Quadrant is copyrighted October 28, 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About OutStart

OutStart software powers solutions that help make people more effective in a fraction of the time and cost. Unlike traditional training or knowledge management approaches that take too long, cost too much and fail to address the entire need, OutStart's applications address the way people learn through a combination of formal training, knowledge sharing and expert collaboration that is available on-demand. Customers like Empire BlueCross BlueShield, Elsevier Health Sciences , Steelcase, the U.S. Navy, Verizon and Westland Helicopters 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.

(1)Gartner Research "Magic Quadrant for Learning Management Systems, 2005" by Waldir Arevolo De Azevedo Filho and James Lundy. October 28, 2005