Portrait Software Announces Interim Results for the Six Months Ended 30 September 2009

Strong US & European growth and improved operating margins

Henley-On-Thames, 25th November 2009 - Portrait Software, a leading provider of Customer Interaction Optimization software, today announces its interim results for the six months ended 30 September 2009, which show an increase in revenue and profits.

Licence sales more than doubled, driven by strong demand for analytics and customer marketing applications. In addition, sales of Portrait’s award-winning Uplift analytics application contributed to US region revenue growth of 19%. A landmark deal at a major UK supermarket bank, the first reseller win by Fiserv Bank Solutions for Portrait’s customer marketing applications, also contributed to a strong performance by the company’s Partner channel.

“Our continued focus on sales and marketing execution, supported by market leading software applications and world class delivery, is being rewarded by profitable growth,” says Luke McKeever, Chief Executive of Portrait Software. “Demand for Portrait’s predictive customer analytics and customer marketing applications remains high, driven by a shift in market priorities away from new customer acquisition towards customer retention and customer centricity.

“Our strategy of selling applications which extend and evolve existing systems, rather than replacing them, means we can offer rapid pay-back at a price and timescale other vendors simply cannot match. At a time when IT and marketing budgets continue to be subject to scrutiny, our ability to deliver same year ROI coupled with outstanding customer references is winning us more and more deals. In turn, this approach is also delivering continued success for the cross selling initiatives within Portrait’s extensive client base, demonstrating real endorsement of the value of our products, and of Portrait’s sales, support and technical staff who deliver them.

“We are delighted that the first half was significantly ahead of our internal plan, continuing the successful momentum of the six months which preceded it. Our sales pipeline for the second half is strong across the full range of our applications, giving us confidence that the full year will show profitable growth.”