ZANTAZ Growth as a Market Leader Fueled by Unique Combination of Flexible Product Offerings, Legal Discovery Expertise, and Professional Services That Bridge a Company's Archiving and Discovery Requirements

ZANTAZ, Inc., the global leader in content archiving and electronic discovery solutions, today disclosed the findings of an IDC Vendor Profile*. According to the report, ZANTAZ "continues to realize strong year-over-year revenue growth as a result of both organic development and well-thought-out strategic acquisitions." The Profile also notes that ZANTAZ is the leader in email archive applications with more than one-quarter of the worldwide market, and IDC expects ZANTAZ to play "a material role" in the broader file and application content archiving market based on flexible product offerings and providing a breadth of professional services that "bridge its customers' current discovery projects and future archiving opportunities." ZANTAZ is also cited for its electronic discovery expertise, which gives it "a competitive differentiation over those competitors that offer only hosted archive services." The entire Vendor Profile can be viewed at http://www.zantaz.com/news/resources/white_papers_list.php .

"The IDC Vendor Profile validates the strategic direction we have carefully crafted over the last several years," said Steve King, president and CEO, ZANTAZ. "Today we have the right blend of talent, technology, and expertise in place to meet the incredibly complex content archiving and electronic discovery requirements of the world's largest and most sophisticated enterprise customers. But we will not rest on our laurels. The next several years will bring even more demanding customer challenges, and ZANTAZ is committed to helping our customers successfully meet these challenges just as we've done these past ten years."

According to the Vendor Profile, regulatory compliance, electronic discovery, storage optimization, and institutional knowledge management are all driving the double-digit growth in the archiving market. IDC estimates that in 2005, 52 percent of the $611 million worldwide archiving software market was derived from email archiving applications, and the research firm forecasts the worldwide archiving market to grow to $1.67 billion by 2010, a CAGR of 22 percent over the next five-year period.

In describing ZANTAZ' competitive advantages, IDC cited:

--  Flexible product offerings of licensed software, hosted services, and
    a combination of the two, providing customers with more choice instead of
    forcing them to choose a single model
--  "Bridging" professional services, such as media restoration and tape
    cataloging, that help prepare customers for legal discovery and enable
    legacy data to be brought into the ZANTAZ archive
--  Legal discovery expertise and "strong institutional knowledge at the
    intersection of information technology, electronic discovery, and
    litigation readiness," which clearly differentiates ZANTAZ from its
    competitors

"Companies striving to meet their goals for compliance, electronic discovery readiness, and operational efficiency will look to vendors that can reduce data center complexity and solve complex challenges with comprehensive solutions that are still flexible enough to meet very specific needs," said Laura DuBois, research director, storage software at IDC. "With its breadth of offerings, choice of delivery models, and deep understanding of customer requirements, ZANTAZ has clearly differentiated itself as a vendor ready to help companies navigate a very complex future in information management."

Founded in 1996, ZANTAZ has been a leading innovator in the content archiving market. The company has also grown its business over the last several years by acquiring Educom, a licensed email archiving software firm; Steelpoint Technologies Inc., for its litigation support and electronic discovery services; and, most recently, the data classification, policy management, and supervision technologies developed by Singlecast to provide enhanced intelligent workflow, review, and control of electronic data. According to the Vendor Profile, ZANTAZ is unique in both the flexibility and depth of its products, from content archiving to end-to-end electronic-discovery and litigation-readiness services.

In commenting on ZANTAZ' future, the Vendor Profile maintains a positive outlook based on the company's following strengths:

--  Expertise in legal discovery, litigation readiness, and archiving,
    which allows it to speak the language of the chief legal council, risk
    manager, compliance officer, and CIO
--  Circle of influence with the legal community, where the corporate
    general council increasingly wants a say in the IT decision
--  Complementary positioning that lets ZANTAZ position its solutions both
    on a reactive and on a strategic basis
--  Strategic use of the company's Enterprise Archive Solution (EAS)
    policy engine to pull more content into the hosted Digital Safe, which can
    be expanded from email to files, SharePoint data, and beyond
--  Microsoft  partnership, which enables ZANTAZ, a Microsoft Gold
    Certified partner, to leverage EAS in Microsoft go-to-market promotions,
    and through the Microsoft Hosted Messaging and Collaboration (HMC) partner
    program to help HMC service provider partners host email management and
    archiving services
--  Horizontal content archiving, including files and message archiving,
    and plans to add additional content types
--  Aggressive international expansion, especially in Western Europe