Sypherlink Triples Revenue; Predicts Continued Dramatic Growth

DUBLIN, Ohio, Feb. 6, 2008-- Powered by new customers, expanded channel partnerships and additional investors, information-management-software company Sypherlink grew revenue 300 percent last year and created a foundation for solid growth and expansion in 2008.

"We’re building on the momentum of a very strong performance in 2007 that we expect to carry us well into this year," said Sypherlink CEO James Paat. "We continue to expand our market opportunities and partnership relationships in both the government and commercial markets, develop and promote new product offerings, and put in place the resources to position us for continued dramatic growth."

In 2007, new partnerships were initiated and existing ones strengthened:

• Sypherlink expanded its customer base by leveraging its partnerships with ASG and Battelle, leading to new-customer relationships with several Global 500 organizations in health care, insurance and financial services, as well as with government agencies on the federal and state levels;
• A strategic marketing, sales and product development partnership was struck with Polytechnic University, giving Sypherlink proximity and access to government and global businesses based in New York City; and
• A strategic partnership was established with Knowledge Computing Corp.’s COPLINK to provide law enforcement agencies with a turnkey data-exchange implementation solution that encompasses the critical discovery, mapping and data-loading tasks required.

Continuing its technology innovation, the company launched the Sypherlink National Information Exchange (NIE) Gateway solution to accelerate government information sharing and standards conformance, which "has been welcomed by Florida law enforcement and other state and municipal officials," Paat said.

He noted that Sypherlink’s NIE Gateway solution provides patented discovery and mapping technology, NIEM-conformant methodology and pre-built interfaces to several leading law enforcement records management systems, as well as to data provided by D&B and Acxiom Risk Mitigation.

On the commercial markets side, the company continued to develop tighter integration with such leading application vendors as IBM and Informatica. Sypherlink also led the industry trend toward virtual prototyping with its Exploratory Warehouse solution and launched the new Integrity data quality application to help organizations better enforce the integrity of their information flows in support of data trust and compliance issues.

In his recent report, "Trust and Compliance Issues Spur Data Quality Investments" (Sept. 7, 2007), Gartner Analyst Ted Friedman wrote: "Interest in the discipline of data quality is growing among enterprises worldwide, as IT and business leaders realize that data quality plays a significant role in whether they achieve their strategic business initiatives."

The analyst firm surveyed more than 300 organizations and found that more than half (52%) of survey respondents "are investing in data quality tools to help remedy the lack of trust that they currently have in their data," and almost half (49%) "are opting for data quality tools to support their business intelligence and data warehouse initiatives."

As data concerns rose last year in both government and enterprise IT markets, Sypherlink attracted interest, new capital and a new investor – Washington, D.C.-area Stuart Mill Venture Partners, whose chairman is the former CEO of Sallie Mae. Stuart Mill led a Series B round in which Battelle Ventures, the Series A lead, participated along with other existing investors.

While Matt Mayer, a former official with the Department of Homeland Security, had joined Sypherlink earlier in the year to start and head up a National Security Practice to promote federal and state government agency relationships, the new funding supported the addition of two other key executive hires.

Enterprise-data-integration expert and former Sterling Commerce vice president Clark Woodford joined to manage the company’s direct and channel sales organizations and expand Sypherlink’s customer and partner base in the enterprise market.

Additionally, George Shemas, a 25-year IT industry veteran, came aboard to lead Sypherlink’s commercial software development. His experience includes the last seven-plus years involved in developing information-management solutions for public-safety and law-enforcement organizations.

In store for Sypherlink, said Paat, are new opportunities based on groundwork accomplished in 2007. "When we look ahead in 2008 what we see is customer and revenue growth accelerating from several core strengths," he said. "For example, we have moved ahead with the Florida Department of Law Enforcement to enhance the value of our successful NIE Gateway solution services and are advancing our position as a NIEM-conformance accelerator throughout the country.

"On the technology front," he added, "we are extending our patented mapping and virtualization technology and are broadening that patent. We will leverage our capabilities to build, as we have in the law enforcement area, vertical solutions for financial services, insurance and other industries that are increasingly challenged by the need for quality data exchange among disparate systems."

About Sypherlink, Inc.
Sypherlink is an information-management-software company that intelligently links critical information across disparate data sources. Its two distinct patented technologies automate much of the data sharing and integration processes, providing government and corporate-sector organizations with faster, more cost-efficient ways to locate, manage and use information. Its core technology is a heuristics matching technology that automates the discovery and mapping of data. Its virtualization technology for rapid prototyping provides the capability to access multiple physical, disparate data sources from a single, virtual query. The company’s client/partner base includes Acxiom Risk Mitigation, ASG, Battelle, COPLINK, D&B, the FBI, the Florida Department of Law Enforcement, IBM, Raytheon and Unisys Corporation. For more information about Sypherlink, visit: www.sypherlink.com.

Note: Sypherlink is a trademark of Sypherlink, Inc. The names of actual companies, organizations and/or products and services mentioned herein may be the trademarks of their respective owners.

For more information, please contact:

Rick Sacks
(973) 467-8728
rick@smartpr.net