Managed Objects Ends 2005 With 54% Year-over-Year Revenue Growth; Company beating giants, newcomers alike to maintain its stronghold as leader of $1B Business Service Management market

MCLEAN, Va.--Feb. 1, 2006--Managed Objects, the Business Service Management (BSM) Company, announced today 54 per cent year-over-year revenue growth for 2005, achieved as the company continued to outpace industry heavyweights and new market entrants with consistent growth, profitability and product innovation.

Growth in demand for BSM continues to skyrocket. According to Forrester Research October 2005 report IT Asset Management, ITIL and the CMDB: Paving the Way for BSM, "The No. 1 issue we still hear from IT executives is the challenge of re-architecting IT services to business demands. We believe that BSM will increasingly become the end goal for organizations...The BSM side of the market will continue to be a dynamic area of high innovation, particularly around better defining business processes, dynamically mapping business needs to IT services, and enabling true end-to-end service delivery chains for the extended enterprise."

Managed Objects has positioned itself at the forefront of the industry, helping drive this demand by pioneering initiatives for accelerated ITIL adoption, federated CMDB implementations, business service level agreements and executive-level dashboards that provide business leaders a clearer understanding of IT's impact.

"IT organizations are looking to models and tools that help them achieve greater control of their infrastructures while helping them convey to business leaders the impact of their work - and this is precisely what we do," said Siki Giunta, CEO of Managed Objects. "As a company we believe we don't just inhabit the sweet spot in the IT service management market - we created it."

"In a year marked by challenges for once-lauded industry giants, Managed Objects' consistent growth, continued product innovation, and undaunted leadership of the BSM market has far exceeded our expectations," said Kevin Burns, managing principal at the venture capital firm Lazard Technology Partners and chairman of Managed Objects' board of directors. "The company is well-positioned in 2006 to extend its lead with an approach and offerings that outpace the competition, big or small."

    A summary of the company's key highlights for 2005:

    --  The fourth quarter of 2005 marked its fifth consecutive
        quarter exceeding 50 percent growth over the same period in
        the previous year

    --  The acquisition of 50 new customers in such verticals as
        financial services and insurance, pharmaceuticals, energy
        services, service providers, telecommunications,
        manufacturing, retail and federal government

    --  The second consecutive year with 100% contract renewal from
        all existing customers

    --  Continued growth in the channel and new strategic partnerships
        with Ericsson, Xaman, and 2 global resellers in South Africa

    --  Expanded presence in the Asia-Pacific region with the opening
        of a sales headquarters in Singapore and the signing of a
        reseller agreement with Network Shanghai, China's largest
        systems management software reseller

    --  Extensive innovations to the company's suite of products
        including:

        --  automated construction of federated CMDBs with Business
            Service Configuration Manager

        --  discovery and dependency mapping capabilities with
            Business Technology Insight

        --  expanded support for 3rd party discovery, service desk and
            asset management tools

    --  Numerous industry awards and accolades including being named
        to Deloitte & Touche's Technology Fast 50 and a "Hot Stock" in
        Washingtonian Magazine

About Managed Objects

Managed Objects is the Business Service Management Company. Business Service Management (BSM) aligns IT with the business by integrating network, system, application, end user, and business metric information into real-time business service dashboards. Through Managed Objects' BSM platform, companies effectively monitor, manage, and report on the services IT delivers to the business - services like online trading and e-commerce. Consistently acknowledged by the analyst community as best in class, Managed Objects has more BSM implementations in place than any other company. That is why AIB, Auchan, CSC, Credit Suisse, DISA, Fidelity Investments, JPMorganChase, NIH, Progress Energy, Reuters, TIAA-CREF and other global organizations rely on Managed Objects' BSM technology. For more information, visit www.managedobjects.com.