IMlogic Reports Record Quarter as Revenue Jumps 175 Percent, and Two Key Industry Analysts Cite Company’s Market Dominance

Waltham, MA, October 11, 2005 - IMlogic Inc. today announced record revenue and customer base growth in Q3 2005 as the company continues to strengthen its leadership position in the enterprise instant messaging management software market as highlighted in Q3 reports from industry analyst firms IDC and The Radicati Group. From July through September, IMlogic grew quarterly revenues by 175 percent over the same period last year spurred by the rapid adoption of instant messaging management and security within corporate environments. IMlogic increased its customer base to over 750 enterprise customers and more than one million seats under management, including deployments at one of the largest telecommunications companies in the world, one of the leading global business/IT services consulting companies and one of the world ’s largest financial credit bureaus.

“Being chosen as the dominant industry player by well-established experts such as IDC and Radicati validates our corporate mission and proves that we’re addressing a rapidly growing need for comprehensive instant messaging management software,” said IMlogic President and CEO Francis deSouza. “With both enterprise IM use and predatory viruses on the rise, companies are increasingly turning to IMlogic IM Manager to block cyber attacks, comply with internal and external use policies and take advantage of IM’s real-time communications benefits.”

Some of the company’s Q3 highlights include:

selected as IM management market leader with greatest market share and fastest growth rate in extensive IDC report;

selected as dominant vendor and clear market share leader in IM management space by The Radicati Group;

launched the Real-Time Threat Protection System (RTTPS), the industry’s first preemptive security solution to predict and combat “zero-day” attacks targeting instant messaging networks;

introduced the IMlogic IM Manager SMARTGig 6000, a secure, plug-and-play IM management appliance to help companies manage instant messaging with best-of-breed compliance and security;

launched first integrated IM and e-mail hygiene service with leading message management provider Postini;

significantly grew global revenues, including greater than 200 percent growth in EMEA;

announced marquee customers such as Archipelago, which operates the world’s largest fully-electronic stock exchange; The Seattle Times, the largest daily newspaper in Washington State; as well as one of the largest telecommunications companies in the world, one of the leading global business/IT services consulting companies and one of the world’s largest financial credit bureaus, and

IDC predicts that the market for IM management and security will be the fastest growing segment of the $736 million enterprise IM application market expected by 2009. The Radicati Group anticipates enterprise IM to jump from an installed base of 51 million users in 2005 to 126 million in 2009.

IMlogic, Inc. is the market leader in enterprise software for instant messaging, the world’s fastest growing communications medium of all time. The largest Fortune 1000 companies across the financial services, energy, healthcare, government, media, telecommunications, technology, and manufacturing industries depend on IMlogic to manage, control and secure corporate IM usage, while satisfying compliance requirements associated with real-time electronic communications. For more information on IMlogic call 877-IMlogic or visit www.imlogic.com.