Stratify Exceeds 2005 Projections

Plans to Accelerate Growth in 2006

Company’s Growth in Revenue and Increased Market Penetration Shows Momentum for Next Generation Electronic Discovery Services

MOUNTAIN VIEW, CA — January 11, 2006— Stratify, Inc., a leader in advanced electronic discovery services for the legal market, announced unprecedented growth in revenue, market penetration, personnel, facilities and operational infrastructure in 2005. The rising demand for the new generation of technology-assisted Electronic Data Discovery (EDD) services is helping Stratify accelerate its own growth by leveraging its reputation as a "smart," cost-effective and reliable provider of end-to-end services to the fast growing electronic discovery market.

“Electronic discovery is no longer in ‘transition’ from paper-based discovery, instead requiring “smart” solutions built from the ground-up to increase efficiencies and control costs, and that’s driving our growth faster than expected,” said Ramana Venkata, CEO, Stratify, Inc. “Our success now and in the future is predicated on our unique ability to deliver a complete discovery service based on advanced technology that is flexible, scalable and easy to use, and developed from the ground up with direct input from senior litigators to ensure that we continue to deliver high-value, cost-effective solutions.”

Revenue and customer growth

Stratify posted a 395 percent growth in revenue in its legal discovery services business for the fiscal year ending December 31, 2005 (over the same period in 2004). In addition, the company’s client roster expanded significantly to include many of the AmLaw top 30 law firms, as well as some of the largest multinationals on the Fortune 100. Much of this growth is due to continuous improvements to the usability and scalability of the Stratify Legal Discovery service, which provided clients with industry leading throughput and review efficiencies in multiple languages, as well as the ability to reliably deliver high-volume native file and TIF productions on schedule to meet client production deadlines. Also during 2005, Stratify rendered DOJ Second Request discovery services to parties in some of the largest multi-billion dollar mergers of the year. These were provided on-time, within budget and Stratify’s productions merited uniform praise.

Personnel and facilities growth

This past year, Stratify more than doubled its overall personnel roster to more than 115 employees, with growth focused on the project management and data processing staff to enable reliable and speedy service to its growing clientele and business. Many of Stratify’s project managers have strong legal backgrounds, with prior experience as attorneys and litigation support managers at firms such as Latham & Watkins LLP, Bingham McCutchen LLP and Skadden, Arps, Slate, Meagher & Flom LLP, as well as other eDiscovery firms. This high level of legal professionalism and experience enables Stratify to provide dedicated service to its clients, including project design, case management, review assist in search and analysis, and production.

Stephen Whetstone, Esq., a former litigation partner at Testa Hurwitz & Thibeault, LLP, in Boston, Massachusetts, also joined Stratify’s executive team as vice president Client Development & Strategy in 2005. Whetstone, who specialized in securities, patent and intellectual property, and other complex commercial litigation, brings a strong legal background to the organization and is helping shape the company’s strategy and develop industry leading internal processes and procedures.

In 2005, Stratify doubled its office space in its headquarters in Mountain View, California as well as its office space in Bangalore, India. In February 2006, the company will also be expanding its East Coast presence with the opening of an office in Boston, Massachusetts. The new office will have project management and attorney overlay staff to provide closer and more rapid support to its clients in the Northeastern United States.

Operational Infrastructure growth

In an effort to better cater to the rapid growth in the number and average size of discovery matters serviced by Stratify in 2005, the company invested heavily in new infrastructure. Stratify significantly expanded its data center to accommodate new storage, computing and Web hosting devices. Active storage capacity now exceeds 70 terabytes, with more than 200 servers providing real-time application and database support to Stratify clients. The company also increased bandwidth connectivity to its data center to accommodate traffic for very large cases. Even for document review projects involving 400-500 simultaneous users, the bandwidth utilization rates remain below 10 percent of available capacity.

Stratify’s data security, which includes data encryption and a state-of-the-art data center health monitoring system, is among the most sophisticated in the industry, which was recently validated when Stratify underwent and passed an extensive audit of its physical and network security before starting work for one of the country’s top financial services companies.

Stratify, Inc.

Stratify, which currently provides Electronic Discovery services to many of the AmLaw 100, is the first electronic discovery solution that creates concept folders to reduce the universe of reviewable documents, enable faster and more accurate review and facilitate early case assessment and the efficient management of complex litigation. Stratify’s patented “intelligent” technology has been battle-tested in the US intelligence community and large-scale enterprise deployments.

Founded in September 1999, Stratify is a privately held company that has received funding from Mobius Venture Capital and In-Q-Tel, the venture capital arm of the CIA. Stratify is headquartered in Mountain View, California. For more information about Stratify, please visit www.stratify.com.

Stratify and Discover More are registered trademarks and Stratify Legal Discovery and Stratify Visual Email Analytics are trademarks of Stratify, Inc.

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