Recommind Closes 2006 With Record Growth

Revenue, Customer and Personnel Growth, Product Expansion and Analyst Validation Accelerate Strong Momentum

SAN FRANCISCO, JANUARY 18, 2007 – Recommind, a leading enterprise search and categorization company, today announced that rapid revenue growth, unique new products, and the signing of myriad new large enterprise customers created a record-setting year for the company and are driving momentum for the company's continued success in 2007. In 2006, Recommind grew revenues 100 percent over the previous year, received strong validation from the analyst community, added top industry talent to the management team, and opened new sales offices in the U.S. and Europe. The company also successfully introduced several new products addressing the enterprise search, categorization and eDiscovery needs of enterprise customers, while extending its leadership position among the world's largest law firms. Continued strategy execution in 2007 will build on Recommind's banner 2006 as converging industry trends redefine the role of enterprise search and its potential for revolutionizing information categorization, access and retrieval.

"We are delighted to report that Recommind achieved or exceeded its most ambitious objectives in 2006," said Robert Tennant, Recommind's CEO. "Our extraordinary momentum has been further boosted by the industry's enthusiastic reaction to the announcement of our MindServer 5.0 enterprise search and categorization platform earlier this month. We are well positioned to build on our successes and play a major role in the direction of next-generation search, categorization and eDiscovery solutions."

Record Revenue and Customer Growth
Recommind's 100 percent increase in revenues was fueled by continued success in the legal market, in which Recommind enjoys leadership status among the world's largest law firms. During 2006, Recommind solutions were chosen by numerous leading law firms, including Dewey Ballantine LLP, Bryan Cave LLP, and Nixon Peabody LLP, as their firm-wide enterprise search and information access solution. Recommind also expanded aggressively into the enterprise market by using its patented categorization and search technology to help enterprises manage huge quantities of information and intellectual assets, in the process signing significant agreements with several as-yet-unannounced global enterprise customers.

Industry Recognition
Recommind was positioned in the "visionaries" quadrant of the Information Access Technology Magic Quadrant, from Gartner, Inc., a research and advisory firm. Recommind believes this recognition helps validate the company's innovative approach to solving the complex issues of enterprise information access and its success across a wide range of market segments. KM World also named Recommind to its list of the "100 Companies that Matter in Knowledge Management" for the third consecutive year, and recognized Recommind's Projects & Expertise application as the KM World "Trend-Setting Product of 2006." The application was selected out of 1500 products from approximately 300 vendors.

New Products and Integrations
Recommind introduced several key products in 2006, including Auto-File, a categorization product that automatically extracts filing information from documents and populates data fields with relevant details such as author, client, document type, jurisdiction, court, judge, case number, governing law, plaintiff, and defendant to increase the speed and accuracy of document filing for legal firms. This was followed by the introduction of Projects & Expertise, which delivers a 360-degree view of an organization's projects and people by integrating information from multiple corporate systems including time and billing systems, personnel records and CRM applications.

Also introduced in 2006, MindServer 4.2 for enterprises delivers breakthrough information access capabilities to enterprises. Full enterprise search integration with Microsoft Office SharePoint Server 2007 enables Recommind and Microsoft customers to quickly implement Recommind enterprise search within Microsoft Office SharePoint Server 2007 and establish a powerful information hub.

Company Expansion
The company continued to attract top talent to its management team, adding Craig Carpenter as vice president of marketing and business development; Anne Kroger as director of U.S. operations; and Peter Charles as director of professional services. The company also opened new offices in New York and London to support continued rapid growth in North America and Europe.

New Partnerships
Recommind also entered into partnership agreements with key players in the content management, enterprise software and system integration spaces. The company's partnership with Interwoven enables Interwoven customers to easily incorporate MindServer's advanced search and categorization capabilities within the context of Interwoven's ECM solutions. An agreement with Toronto-based ii3, a full-service knowledge management firm, allows ii3 to resell the MindServer product suite. These important new partnerships extended Recommind's reach to new customers in the professional services and knowledge management markets.

"Recommind is strategically positioned at the nexus of two enormously important trends," said Tennant. "Customers in all markets are increasingly using enterprise search to integrate applications across the enterprise, while efficient and accurate eDiscovery capabilities are becoming essential as companies need to locate and secure documents for a variety of purposes - not least of which are litigation and regulatory compliance. We expect 2007 to eclipse our achievements of 2006 and look forward to continued rapid growth."

About Recommind
Recommind’s enterprise search and categorization platform automatically organizes, manages, and distributes large volumes of information from multiple sources. With faster access to the right information, organizations can save time, enhance the quality of work product, increase the value of information assets, and improve competitiveness and profits. Customers include Bertelsmann, National Library of Medicine, Cleary Gottlieb, Shearman & Sterling, the Australian Government, and Morrison & Foerster. Recommind is headquartered in San Francisco and has offices in New York, London, and Bonn, Germany.

For more information, email info@recommind.com, or go to www.recommind.com.