Alchemy Software Development finishes 2005 with record revenues

Financial growth highlights increasing demand for visual localization solutions

DUBLIN – January 11, 2006 – Alchemy Software Development Limited, the market leader in visual localization solutions, today announced record revenues for the year ending 31st December 2005 and significant new customer wins. During 2005 Alchemy Software Development sold more than 2,000 licenses, released several new product innovations, announced partnerships with major industry players and continued to post strong financial results.

Record Q4 2005
In the fourth quarter ending 31st December 2005, Alchemy Software Development recorded their highest ever revenues in the company's history finishing the year with a strong cash position and profitability. Revenues for fiscal 2005 were up 32% on the previous year fueled by significantly larger deployments of their award winning visual localization solution, Alchemy CATALYST™ in key enterprise clients worldwide.

Large Enterprise Deployments
Experiencing strong demand worldwide for their Alchemy CATALYST™ flagship product, Alchemy Software Development signed on customers from a diverse range of business sectors, including financial services, medical, automotive and technology. In the North American market, industry leaders such as Business Objects, Draeger Medical Systems and Symantecftware deployed Alchemy CATALYST™ as their visual localization technology, while in Europe, CITRIX Systems, Canon Research and Philips Medical Systems expanded their enterprise wide deployments. In Asia NEC, Fujitsu and Computer Associates deployed Alchemy CATALYST™ as their localization technology during 2005.

Strong Demand for Localization Solutions
“We're experiencing strong growth in demand for our technology worldwide”, commented Tony O'Dowd, CEO and President of Alchemy Software Development, “driven by improved economic conditions and the growing importance of globalization. Many of our clients see it as strategically important to their business development plans to introduce localized software and services in international markets quickly and cost effectively without jeopardizing quality. Alchemy CATALYST™ makes this important corporate goal achievable.”

New Product Innovations
During 2005, Alchemy Software Development released new product innovations that addressed the most challenging problems of localizing software applications. In Q1 2005, Alchemy Software Development entered into an agreement with TRADOS Corporation, the market leader in global information management solutions, whereby they jointly developed and released the Alchemy TRADOS Component. In Q2, 2005 Alchemy CATALYST™ 6.0 was launched and raised the standard for visual localization technologies within the localization industry sector. In Q3 2005, Alchemy Layout Manager was released. This is the worlds first utility for automatically generating localized layouts for software applications. This revolutionary product subsequently went on to win the BT Inspire Technology Innovation Award 2005. In Q4 2005 Alchemy Software entered into an agreement with Microsoft Corporation to make Alchemy CATALYST™ 6.0 available through the Visual Studio 2005 Partner DVD programme. “We're partnering with the top players in the industry”, said Enda McDonnell, Chief Architect at Alchemy Software Development, “to create best-of-breed solutions that assist enterprise clients in increasing localization velocity, reducing translation costs and improving time-to-market.”

Alchemy Software Development Ltd. Has its headquarters in Dublin, Ireland at Harcourt Business Center, Harcourt Street, Dublin 2.

About Alchemy Software Development
Alchemy CATALYST™ is the world's most recognized visual localization technology. 80% of the world's largest software companies use Alchemy CATALYST™ to accelerate entry to international markets, improving revenue growth opportunities and reducing their costs.

With over 12,000 licenses worldwide, Alchemy CATALYST™ is the dominant visual localization technology among professional development companies, localization service providers and global technology leaders such as Siemens, Corel, Philips, Canon, JD Edwards, VistaTec, Bowne Global Solutions and SDL.

Alchemy's technology is designed to boost the efficiency and quality of globalizing software products and is used by software development and globalization companies worldwide. With over 12,000 licenses installed worldwide, Alchemy CATALYST™ is used by translators, software engineers, quality assurance specialists and project managers and is referred to as the Gold Standard in Localization.

Alchemy Software Development has its headquarters in Dublin, Ireland at Harcourt Business Center, Harcourt Street, Dublin 2, and has offices and facilities in Europe, Asia-Pacific and the United States.

For more information on the company and its products, please refer to http://www.alchemysoftware.ie/