Active Reasoning Appoints Vice President and General Manager to Lead Shanghai Development Center; Company to Expand Research and Development Team

Business Wire, August 18, 2006

PALO ALTO, Calif. -- Active Reasoning, the leader in IT policy enforcement and controls validation, announced today the appointment of Allen Xu as Vice President and General Manager of the company's Shanghai Development Center, a wholly-owned research and development facility. Xu will manage the Development Center's day-to-day operations as well as assist with growing the research and development team.

With a ten-year track record of success in software development, management consulting, and start-up operations, Allen Xu brings a balance of technical, managerial and entrepreneurial experience to Active Reasoning. Prior to joining Active Reasoning, Allen founded HuaXia Metromedia Information Technology, Ltd (HMIT), a Chinese provider of supply chain execution software and solutions to manufacturers, distributors and logistics service providers. Before HMIT, Allen worked for McKinsey & Company as a management consultant in China on a diversified set of projects including strategy formulation, organizational restructuring, mergers and acquisitions and brand marketing.

"I am excited to join such a dynamic and rapidly expanding organization," Allen Xu said. "Although I had the choice of many opportunities in China's emerging software industry, I selected Active Reasoning because of its dedication to innovation and customer satisfaction and because the company is well positioned in a new market that has tremendous growth potential."

"We are pleased Xu has joined the Active Reasoning team. Xu's history of providing tangible development results and communicating effectively at all levels across the organization will reinforce our ability to scale to meet the increasing demand for our IT Policy Enforcement solution," said Chuck Price, Active Reasoning's Vice President of Engineering.

"Our development team in Shanghai provides Active Reasoning with a strategic advantage as it allows us to develop high quality products quickly, and efficiently," said W.R. "Butch" Winters, Active Reasoning's President and CEO. "By building a deeply educated and skilled team of computer science graduates in China, we not only add significant technical knowledge to our company, but we are also able to concentrate our North American technical resources on the architecture and design elements for creating world-class enterprise software."

About Active Reasoning

With its products installed in 59 countries on six continents, Active Reasoning is the leading provider of IT Controls Automation Software for IT Policy Enforcement. The Active Reasoning platform "operationalizes" standards such as ITIL & COBIT, detecting, validating, and reporting unauthorized changes and out-of-policy actions on the IT infrastructure to help Fortune 500 clients meet SLAs, mitigate operational risk and reduce expenses. Using Active Reasoning, enterprise IT organizations and service providers operationalize ITIL and other best practices to increase the reliability of IT services, mitigate operational risk, and reduce the cost and effort of policy compliance by 30% or more. This is made possible by the combination of Active Reasoning's Policy Management Database(TM), event-based collection of the who, what, when, and where of user actions, and a correlation engine providing real-time policy review and validation. Active Reasoning is backed by top-tier venture partners including ComVentures, ArrowPath Venture Partners, ONSET Ventures, and InterWest Partners. For more information, visit the company's website at www.activereasoning.com.

See a brief product demo at http://www.activereasoning.com/solutions/demo.html

Active Reasoning and Active Reasoning Policy Management Database are trademarks of Active Reasoning, Inc. All other names mentioned herein may be trademarks of their respective owners.