10 May 2007

Portrait Software plc
("Portrait" or "the Company")

Portrait Software Positioned in the Visionaries Quadrant for Customer Data Mining 2007 by Leading Analyst Firm Evaluation Based on Completeness of Vision and Ability to Execute 10th May 2007 - Portrait Software plc (London: PST), a leader in Customer Interaction Optimisation software, has been positioned in the visionaries quadrant in the Gartner Magic Quadrant for Customer Data Mining(i).

Nick Randall, CEO of Portrait Software, commented, "I believe Gartner has recognised our lead technology position in the high growth Customer Analytics market, which is growing at over 20% annually. We sought to develop this exciting market through the acquisition of Quadstone in 2005 and this foresight has resulted in the development of a unique technology and a strategically important first mover advantage in this market. This, combined with the demonstrable and impressive results we have already achieved for our customers opportunity.

"We are pleased to be positioned in the visionaries quadrant by a highly respected industry commentator such as Gartner which we believe also will
enhance our position in the minds of our existing and future customers."

Portrait's customer analytics solutions have delivered quantifiable returns to many organisations worldwide, in particular large financial services, retail and telecommunications companies, who are seeking to gain additional value from their legacy CRM systems. By using Portrait's analytic applications customers have increased sales by over 30%, reduced churn by over 40%, managed risk and reduced fraud.

ENQUIRIES:

Portrait Software plc                                 Tel. 01491 416600
Nick Randall, Chief Executive Officer
Matthew White, Chief Financial Officer

ICIS Limited                                              Mob. 07769 937 626
Tom Moriarty / Caroline Evans-Jones        Tel. 020 7651 8688

About Portrait Software

Portrait Software is a global provider of Customer Interaction Optimisation software that makes every interaction count. Our software is used by
large organisations to deliver great customer service and to dramatically improve customer revenues, profitability and loyalty by applying insight and
intelligent decisioning at the point of customer interaction.

Portrait Software's solutions combine analytical capabilities with a process-centric customer interaction management platform, providing
organisations with the ability to deliver the most highly optimised customer processes across all sales and service channels.

Our 200+ customers are organisations that lead the world's most demanding customer-intensive sectors, Financial Services, Public Services and Telecoms.  These include Nationwide Building Society, The Woolwich, British Telecom, the largest police force in Europe, Washington Mutual, Merrill Lynch, T-Mobile, Fiserv CBS Worldwide, Bank of Tokyo, Bank of New Zealand, China Automobile Association and IAG.

For more information please visit: www.portraitsoftware.com

Portrait Analytics Products

Portrait Customer Analytics powered by Quadstone: Helps customers discover business-critical information about what's most likely to happen in the future and how to profit from this knowledge.

Portrait Uplift Optimizer: Used in marketing campaigns this unique algorithm looks beyond the 'probability of purchase' to a more important dimension:
'expected change in probability of purchase'. It allows users to spend less on marketing campaigns and helps them avoid alienating customers who do not want to be on the end of marketing campaigns.

Portrait Interaction Optimizer : "turbo charges" existing CRM applications by delivering insight to the point of interaction through real-time decisioning.
Helping companies to improve the customer experience, gain additional customer information, sell more profitably, reduce churn and increase campaign performance.

About Gartner Magic Quadrants

The Magic Quadrant is copyrighted May 2007 by Gartner Inc. and is reused with permission. Gartner's permission to print its Magic Quadrant should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner's opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner-defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner Research is intended to be one of many information sources and the reader should not rely solely on the Magic Quadrant for decision-making. Gartner expressly disclaims all warranties, express or implied of fitness of this research for a particular purpose.

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(i) Gartner, Inc., "Magic Quadrant for Customer Data Mining, 2007" by Gareth Herschel, May 4, 2007.