Stratify Sees 270 Percent Growth in 2006

Law Firms and Fortune 100 Companies Save More Than $250 Million and 1.4 Million Hours with Stratify eDiscovery Services.

MOUNTAIN VIEW, CA — January 23, 2007— Stratify, Inc., one of the largest providers of electronic discovery services, announced continued strong growth in revenue, market penetration, personnel, facilities and operational infrastructure in 2006. The growing need for advanced electronic discovery services that help law firm and Fortune 100 clients efficiently handle electronic information and maximize review rates was stimulated by the recent changes in the Federal Rules of Civil Procedure. Stratify’s reputation as a technologically innovative and reliable provider of end-to-end services to the fast-growing electronic discovery market has allowed the company to deliver on this client need and fuel its growth.

“Stratify's emergence as a leader in the eDiscovery market is no surprise. The Stratify team understands legal market needs and has the demonstrated skill set to meet those needs. They have delivered highly productive, state-of-the-art capabilities such as concept-based review and visual email analytics to the desktop of our professional and para-professional teams” states Adam Landa, Esq. litigation partner at Greenberg Traurig, LLP. “In addition to providing a top-quality document review tool, the easy-to-use Stratify application provides our teams the ability to analyze and investigate our matters in new, more efficient ways. Stratify has shown us, over and over again, that they understand the discovery process, and that they are committed to evolving their processes and solutions to make us more productive and meet our ever-changing eDiscovery needs.”

Revenue and customer growth

Stratify posted a 270 percent growth in revenue in its legal discovery services business for the fiscal year ending December 31, 2006 compared to the same period in 2005. In addition, the company’s client roster expanded by 100% to include 80% of the AmLaw 50 as well as some of the largest multinationals on the Fortune 100.

Much of this growth is due to continuous improvements to the reliability and usability of the Stratify Legal Discovery service, which provides clients with industry-leading throughput and review efficiencies in both European languages and complex languages such as Chinese, Japanese, Korean, and Arabic. Stratify customers consistently report review rates that are up to four times faster than in-house systems and double that of traditional online system rates. These rates translate into an estimated overall savings of more than $250 million and 1.4 million hours for Stratify clients in 2006.

Working with leading law firms and corporations, Stratify handled some of the largest eDiscovery matters during 2006 including civil and criminal litigation and government investigations. Clients relied on the scalability of the Stratify Legal Discovery service as Stratify handled several multi-terabyte cases simultaneously, each involving hundreds of reviewers.

Personnel and facilities growth

In 2006, Stratify increased its overall personnel roster to more than 140 employees, with a 100% growth in project management and data processing staff to enable reliable and speedy service to its growing clientele and business, together with expansion of its engineering team as it continues to lead the market with innovative technology. Stratify also moved to expanded headquarters facilities in Mountain View, California and doubled its new East Coast office in Boston, Massachusetts, adding significant project management staff to support its rapidly-growing East Coast client base.

With the addition of new staff, Stratify increased number of matters under active management during 2006 by 150%. Client data processed increased 240%, representing the ongoing growth in matter volumes Stratify now supports. To meet the demands of its growing case load and ensure reliable service delivery to its customers, Stratify made heavy investments in new infrastructure, enhancing its data storage capabilities with new SAN and NAS storage devices that increased active data storage to more than 200 terabytes. At the same time, Stratify invested in new datacenter facilities to expand server capacity to more than 300 servers to provide rapid-turnaround data processing and hosting for Stratify’s expanding clientele.

Wendy Lea joins Board of Directors

Stratify’s phenomenal growth extends to its board of directors with the appointment of Wendy Lea. Ms. Lea will serve as a key contributor to Stratify’s strategic growth plans, bringing more than 20 years of sales and marketing strategy and alliance expertise for venture-backed startup companies to the board.

"It is exciting for me to be part of a fast-growth company like Stratify,” said Ms. Lea. “I look forward to adding my experience with Fortune 500 companies, enterprise software, and e-business to help accelerate Stratify's continued path toward success in the exciting eDiscovery market.”

Ms. Lea is Chairman of the Board for Newmerix, a provider of enterprise application lifecycle management software, a board member for Metallect and the Forum of Women Entrepreneurs & Executives, and an advisory board member for StillSecure, Beam and Amazon Consulting. Previously, Ms. Lea led Siebel Systems' eBusiness Consulting division, which provided channel strategy to Siebel's global customers. She joined Siebel in 1999 as a result of its acquisition of OnTarget, Inc., a provider of sales and marketing process to the high technology industry, where she held the position of VP of Marketing and Alliances.

Stratify, Inc.

Stratify currently provides Electronic Discovery services to many of the AmLaw 250 and leading Fortune 500 corporations. 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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