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AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2005

Record Results All Around; Six Month Revenues up 23% and Second Quarter Revenues up 34% Year-on-Year; Six Month Net Profit (adjusted) up 76% Year-on-Year

Autonomy's second quarter conference call will be available live at www.autonomy.com on Thursday, July 28, 2005 at 9:30 a.m. BST/4:30 a.m. EDT/1:30 a.m. PDT. For a further analysis of results, including discussion of core Autonomy performance, excluding the effect of the etalk acquisition, please refer to Autonomy's website at www.autonomy.com.

Cambridge, England - July 28, 2005 - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the second quarter and six months ended June 30, 2005.

Financial Highlights

	Three Months Ended		Six Months Ended
	(unaudited)		(unaudited)
Results in US$	June 30, 2005	June 30, 2004	June 30, 2005	June 30, 2004
Results in US$ ($'000s except per share)*	$'000s	$'000s	$'000s	$'000s
Revenues	20,486	15,289	39,015	31,653
Gross profit (adjusted)**	19,544	14,504	37,278	30,098
Gross profit margin (adjusted)**	95%	95%	96%	95%
Profit before tax (adjusted)**	3,769	1,685	8,173	4,377
Net profit (adjusted)**	3,059	1,274	6,263	3,551

Gross profit (IFRS)***	19,290	14,250	36,812	29,629
Gross profit margin (IFRS)	94%	93%	94%	94%
Profit before tax (IFRS)	2,754	1,307	6,572	3,098
Net profit (IFRS)	1,981	894	4,674	2,445

EPS
- basic (adjusted)**	$ 0.03	$ 0.01	$ 0.06	$ 0.03
- diluted (adjusted)**	$ 0.03	$ 0.01	$ 0.06	$ 0.03

- basic (IFRS)	$ 0.02	$ 0.01	$ 0.04	$ 0.02
- diluted (IFRS)	$ 0.02	$ 0.01	$ 0.04	$ 0.02

* Results include contribution from etalk only for the period from June 3, 2005 (date of completion) through June 30, 2005.

** Adjusted results exclude charges not reflective of Autonomy's core ongoing operational business, namely the amortization of purchased intangibles, share-based compensation, exceptional post-acquisition restructuring costs and non-cash translational foreign exchange gains and losses and associated tax effects. See pages 3 and 5 for further details.

*** See page 8 for discussion regarding required shift from U.S. GAAP to International Financial Reporting Standards ("IFRS") and reconciliation between IFRS and U.S. GAAP.

Six Month 2005 Highlights

Record six month revenues, up 23% from 2004
Record six month profits
Net profit (adjusted) up 76% from 2004
Gross margins (adjusted) remain high at 96%
Profit before tax up 87% (excluding non-cash amortization of purchased intangibles of $466,000, options expense of $311,000, translational foreign exchange losses of $40,000 and exceptional post-acquisition restructuring costs of $784,000)
Continued adoption of IDOL 5.0 leading to extremely high competitive win rate
Signed and completed acquisition of etalk Corporation

Second Quarter 2005 Highlights

Revenues in upper half of company's growth estimates
Record Q2 revenues, up 34% year-on-year
Twenty-second consecutive quarter of profitability
Blue chip second quarter wins include Telus Mobility, BAE Systems, Halliburton, Logitech, Danske Bank and Yellow Pages-Malaysia, as well as various U.S. Federal government agencies, such as the Army, Navy and Department of Labor
Four new OEM agreements, including a major extension with BEA
Average selling price remains stable at $356,000
Positive cashflow from operations, with cash balance at $74 million after approximately $30 million for purchase of etalk and share repurchase of $1 million during the quarter

Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "We are pleased to announce our record second quarter and six month 2005 results. These results are driven by strong organic growth from our core business, together with approximately three weeks of revenues from etalk. The acquisition of etalk has had a de minimus impact on earnings in the period, as expected under the transition to the etalk revised business model."

Dr. Lynch continued, "Our strong performance was again underpinned by continued adoption of IDOL 5.0, the latest version of our core product, resulting in a superb win rate over competitors as the limitations of legacy keyword search technologies continue to be exposed. Once again, the high operational gearing inherent in our business model has ensured that operating margins have surged as revenues have grown with the consequential beneficial effect on our bottom line performance. Consistent with recent quarters, Autonomy saw continued success across all vertical markets, with new and repeat customers in sectors such as finance, telecommunications, technology, manufacturing, entertainment, traditional and electronic commerce, regulatory, government, intelligence and homeland security."

Dr. Lynch concluded, "It has been a very significant first half for Autonomy, both in terms of financial performance and the strategic development of our business. We have delivered record results from our core business whilst signing and completing a significant acquisition. At the same time we completed and are extremely excited about our R&D project for consumer technologies and our Chinese web joint venture. Although we expect the traditional summer seasonality in the third quarter, in light of recent trends we remain confident in the continuing strengthening in our markets. Finally, these strong results were achieved despite the usual challenges arising from the restructuring and reduction-in-force at etalk post-acquisition, which has now been completed."

Second Quarter and Six Month 2005 Financial Highlights

Revenues for the second quarter totalled $20.5 million, up 34% from $15.3 million for the second quarter of 2004. Of total revenues, U.S./Asia Pac revenues of $12.6 million were 62% and U.K./European revenues of $7.9 million were 38% in the second quarter of 2005. Revenues for the six months ended June 30, 2005, totalled $39.0 million, up 23% from $31.7 million for the six months ended June 30, 2004.

Gross profits (adjusted) for the quarter were $19.5 million, up 35% from $14.5 million in the second quarter of 2004. Gross margins (adjusted) were 95% in each of the second quarter of 2005 and 2004. Gross profits (IFRS) for the quarter were $19.3 million, up 35% from $14.3 million in the second quarter of 2004. Second quarter gross margins (IFRS) were 94%, compared to 93% in the second quarter of 2004.

Gross profits (adjusted) for the six months ended June 30, 2005 were $37.3 million, up 24% from $30.1 million for the six months ended June 30, 2004. Gross margins (adjusted) were 96% in the six months ended June 30, 2005, compared to 95% for the six months ended June 30, 2004. Gross profits (IFRS) for the six months ended June 30, 2005, were $36.8 million, up 24% from $29.6 million for the six months ended June 30, 2004. Gross margins (IFRS) were 94% in each of the six months ended June 30, 2005 and 2004.

Compared to Q2 2004, the stronger U.S. dollar had a 1% negative effect on revenues. Net profit (adjusted) for the second quarter of 2005 was $3.1 million, or $0.03 per diluted share, compared to net profit (adjusted) of $1.3 million, or $0.01 per diluted share, for the second quarter of 2004. Net profit (IFRS) for the second quarter of 2005 was $2.0 million, or $0.02 per diluted share, compared to net profit (IFRS) of $0.9 million, or $0.01 per diluted share, for the second quarter of 2004. Net profit (adjusted) for the six months ended June 30, 2005, was $6.3 million, or $0.06 per diluted share, compared to net profit (adjusted) of $3.6 million, or $0.03 per diluted share, for the six months ended June 30, 2004. Net profit (IFRS) for the six months ended June 30, 2005, was $4.7 million, or $0.04 per diluted share, compared to net profit (IFRS) of $2.4 million, or $0.02 per diluted share, for the six months ended June 30, 2004.

Cash balances were $73.9 million at June 30, 2005, a decrease of $30.7 million from the prior quarter primarily as a result of the use of approximately $30 million for the purchase of etalk Corporation in the second quarter of 2005. During the quarter Autonomy also continued its share repurchase program, purchasing for cancellation 267,583 shares at an average price of £2.04 per share. In total, Autonomy has purchased for cancellation 20,997,824 shares at an average price of £1.65 per share. Accounts receivable days sales outstanding (DSOs) increased slightly to 115 days for the second quarter of 2005, compared to 111 days for the second quarter of 2004. Receivables for the second quarter of 2005 were $26.3 million, compared to $18.9 million for the second quarter of 2004. Deferred revenues were at $18.5 million net at June 30, 2005, compared with $6.0 million net at June 30, 2004.

Although IFRS disclosure provides investors and management with an overall view of Autonomy's financial performance, Autonomy believes that it is important for investors to also understand the performance of Autonomy's core business, such as the sale of its software products and services and operating profits without giving effect to certain specific charges. Consequently, the non-IFRS (adjusted) results exclude charges not reflective of Autonomy's core ongoing operational business, namely the amortization of purchased intangibles, share-based compensation, exceptional post-acquisition restructuring costs and non-cash translational foreign exchange gains and losses together with associated tax effects. Management uses the adjusted results to assess the financial performance of Autonomy's core business.

Product Sales

Autonomy's infrastructure technology has been adopted by enterprises to process information across all internal and external data sources. During the quarter, major new wins included: SNT, Media Monitor, Cushman Wakefield, China Mobile, Yellow Pages - Malaysia, Logitech and Telus. Repeat business from existing customers accounted for approximately 39% of revenue for the quarter, and included customers such as CNN, Fiat, Nestle, Danske Bank, Halliburton, Entergy, Safeway and BAE Systems, various U.S. Federal government agencies, such as the Army, Navy and Department of Labor, and various governmental and intelligence agencies across the globe including in France, Spain, Italy, China, Romania, The Netherlands and Sweden.

Strategic Partnerships and OEMs

Autonomy's OEM Program was on target during the second quarter with OEM-derived revenues of $3.6 million accounting for approximately 17% of revenues, compared to $2.1 million for the second quarter of 2004, and new OEM agreements with major software companies including BEA.

Corporate Developments

During the second quarter of 2005 Autonomy announced and completed the acquisition of etalk Corporation, a leading provider of enterprise-class contact center products. On completion of the acquisition, Dr. Lynch, said, "We are very pleased to announce completion of the acquisition of etalk, which will extend Autonomy's IDOL 5.0 platform further into the contact center market. We look forward to bringing Autonomy's unique ability to understand the content of a call and the benefits of automation to the breadth of the contact center market including etalk's customer base of over 1,500 contact centers and 35 of the Fortune 100 companies."

Also during the second quarter of 2005 Autonomy's award-winning Aungate division, specializing in compliance, litigation and risk technology, announced the addition of the 'Ijen Module' to power fraud analysis and money laundering detection, as well as a new partnership with Complinet, the market-leading publisher of regulatory information and provider of compliance services to the international financial services industry, to provide a solution that will revolutionize the process of automating compliance information within the financial services industry.

Autonomy also recently announced two important strategic developments. First, Autonomy announced the extension of the IDOL platform for adoption by consumer-based technologies which will allow large content providers and Internet Service Providers to embed Autonomy within their own retrieval products enhancing their services to include next generation retrieval and content capabilities for processing multimedia content. Technologies such as implicit queries and active folders will now be available for companies to utilize in their consumer services.

Most recently, Autonomy announced that this technology was being deployed in an exciting joint venture between Autonomy and China Netcom Broadband Corporation Limited ("CNCBB") to bring next generation technology to the rapidly expanding consumer internet market. CNCBB is the largest provider of broadband and fixed line connectivity in Northern China with over 110 million customers or 95% of the market in an area which includes China's capital, Beijing. CNCBB is currently part of the China Netcom Group, one of China's largest telecoms providers, and has entered into an agreement to receive significant investment from PCCW Limited. The new service will bring together Autonomy's enterprise retrieval expertise and newly developed consumer technologies and CNCBB's unmatched reach in the market.

About Autonomy Corporation plc

Autonomy Corporation plc (LSE: AU. or AU.L) is a global leader in infrastructure software for the enterprise. Autonomy's technology powers applications dependent upon unstructured information including call center, customer relationship management, knowledge management, enterprise portals, enterprise resource planning, online publishing and security applications.

Autonomy's customer base comprises more than 1,000 global companies and organizations including, among others, BAE Systems, Ford, Ericsson, Shell, Nestle, AOL, BBC, Reuters, Hutchison 3G, Royal Sun Alliance, Sun Microsystems, Philips, Boeing, Schneider Electric, Coca Cola, GlaxoSmithKline, Citigroup, ABN AMRO, Deutsche Bank, Nomura, the New York Stock Exchange, Daimler Chrysler, Kraft Foods, Lloyds TSB, the U.S. Department of Homeland Security, the U.S. Securities and Exchange Commission, NASA and the U.S. Department of Energy. Strategic reseller and OEM partners include leading companies such as BEA, Business Objects, Citrix, EDS, IBM Global Services, Novell, Veritas, Vignette, Supportsoft and Sybase. The company has offices worldwide.

The Autonomy Group includes: Aungate, a leader in technology for Real-Time Enterprise Governance; Virage, a leading provider of rich media communication and content management software; and etalk, a leading provider of enterprise-class contact center products.

Autonomy and the Autonomy logo are registered trademarks or trademarks of Autonomy Corporation plc. All other trademarks are the property of their respective owners.

Financial Media Contacts:	Analyst and Investor Contacts:
Edward Bridges Financial Dynamics +44 (0)20 7831 3113	Sushovan Hussain Chief Financial Officer Autonomy Corporation plc +44 (0)1223 448 000

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