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OutStart Reports Strong Third Quarter 2007 Results

Company achieves seventh consecutive quarter of profitability

Boston, MA – October 17, 2007

OutStart, the leading provider of eKnowledge software solutions for learning and knowledge sharing, today announced it achieved its seventh consecutive quarter of strong operating profits and a positive cash flow.  Additionally, revenues from new customers were up 50 percent over the same period last year.

“The third quarter results are right on target,” said Massood Zarrabian, president and CEO of OutStart. “We have sizable orders from existing customers and an impressive list of new customers in the quarter.  The results show that we are delivering solutions that businesses need to empower customers, partners and employees with the learning and knowledge they require. As always, we thank them for their ongoing support and business.”

 “I am very pleased with our financial performance and increasing financial strength through the summer months,” said Dan Kossmann, OutStart’s CFO. “OutStart’s employees and managers are working very hard to build great products, attract new customers and to assure that our existing clients are successful. This hard work is reflected in our strong and steadily improving performance metrics.”

About OutStart
OutStart software powers formal and on-demand learning, knowledge sharing and community/expert collaboration solutions that enable knowledge workers – employees, partners, and customers – to perform their roles far more efficiently and effectively.  AgustaWestland, Autodesk, British Telecom, CVS Caremark, the US Navy, Verizon Wireless and others rely on OutStart to increase individual and organizational performance, improve knowledge transfer and lower operating costs.  Located in Boston, Mass., OutStart has offices throughout the U.S. and Europe and can be found on the web at www.outstart.com