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AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND TWELVE MONTHS ENDED DECEMBER 31, 2005

Record Results With Highest Revenues and Profits in Autonomy's History; Full Year Revenues up 48%; Full Year Profit Before Tax (adjusted)** up 135% to record $22 million.

Autonomy's fourth quarter conference call will be available live at www.autonomy.com on February 6, 2006, at 9:30 a.m. GMT/4:30 a.m. EST/1:30 a.m. PST.

Cambridge, England - February 6, 2006 - Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the fourth quarter and year ended December 31, 2005.

Financial Highlights

	Three Months Ended		Year Ended
	(unaudited)		(unaudited)
	Dec. 31, 2005	Dec. 31, 2004	Dec. 31, 2005	Dec. 31, 2004
Results in US$ ($'000s except per share)*	$'000s	$'000s	$'000s	$'000s
Revenues	31,566	18,629	96,032	64,765
Gross profit (adjusted)**	29,180	17,935	90,118	61,848
Gross profit margin (adjusted)**	92%	96%	94%	95%
Profit before tax (adjusted)**	8,792	3,702	21,943	9,324
Net profit (adjusted)**	6,049	2,922	15,098	7,189

Gross profit (IFRS)	28,376	17,724	88,527	60,941
Gross profit margin (IFRS)	90%	95%	92%	94%
Profit before tax (IFRS)	1,759	3,277	12,628	7,683
Net profit (IFRS)	1,407	2,641	8,950	6,106

EPS
- basic (adjusted)**	0.04	0.02	0.12	0.06
- diluted (adjusted)**	0.04	0.02	0.12	0.06

- basic (IFRS)	0.01	0.02	0.07	0.05
- diluted (IFRS)	0.01	0.02	0.07	0.05

* Results include the contribution from etalk for the period from June 3, 2005 (date of completion) through December 31, 2005, and Verity for the period from December 29, 2005 (date of completion) through December 31, 2005.

** Adjusted results exclude post-acquisition restructuring costs, loss on disposal of investments and non-cash charges, namely, the amortization of purchased intangibles, share-based compensation and non-cash translational foreign exchange gains and losses and associated tax effects. See reconciliations on pages 5 and 6.

Full Year 2005 Highlights

Record revenues, up 48% from 2004, with strong organic growth
Fully-diluted EPS (adjusted) 100% from 2004
Record operating profit (adjusted) at $18 million, up 218% from 2004
Record profit before tax (adjusted) at $22 million, up 135% from 2004
Profit from operations (IFRS) up 117% from 2004
Operational gearing sees operating margins (adjusted) up 111%
Net profit (adjusted) up 110% from 2004
R&D investment up 54% year-on-year
Gross margins (IFRS) remain high at 92%
Acknowledged by top analysts as most visionary player and the "gorilla" of the space
During 2005 completed acquisitions of Verity and etalk, cementing Autonomy's position as the industry leader and further extending the adoption of Autonomy's IDOL infrastructure
Asian operations continued to expand with launch of blinkx China and continued growth in Beijing and Shanghai; German operations also significantly expanded to over 25 employees at year end
During 2005 Autonomy launched its IDOL IPTV Suite of technology, extended its award winning IDOL technology for use in consumer applications and announced the commencement of a conceptual index
OEM revenue up 21%
Strong positive cash flow throughout 2005, generating $17.2 million of operating cash flow in 2005 (2004: $5.4 million)
No net debt and cash balance of $68.6 million at year end

Fourth Quarter 2005 Highlights

Record quarterly revenue, up 69% from Q4 2004
Record operating margins (adjusted) at 24% up from 15% in Q4 2004
Record operating profits (adjusted) up nearly 184% from Q4 2004
Record quarterly profit before tax (adjusted), up 137% Q4 2004
R&D investment up 91% year-on-year
Twenty-fourth consecutive quarter of profitability
Gross margins (IFRS) at 90%
Continued adoption of IDOL 5.0 leading to extremely high competitive win rate despite competitors disruptive programs
Blue chip fourth quarter wins include Banco Santander, Finmecanica, Shell, T-Mobile, Ericsson, Standard and Poors, Goodyear and Bell Canada as well as multiple government, defence and intelligence agencies around the globe including in the U.S., Spain, France, the U.K., Greece, Sweden and Switzerland.
Average selling price remains stable at $331,000
Four OEM deals signed including major core OEM deal with Symantec
Positive cashflow from operations of $9.8 million, up from $2.1 million in Q4 2004.

Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "We are delighted to announce another set of record quarterly and full year results. Top line revenues, operating profits, bottom line profit before tax and EPS are all up significantly with strong organic growth; all achieved during a year in which Autonomy completed major corporate transactions. Because of our performance during 2005 Autonomy solidified its position as the acknowledged industry leader. Our customers have welcomed the benefits that our acquisitions have brought and during Q4 our competitive win rates remained high at 90%."

Dr. Lynch concluded: "2005 once again illustrated the high operational gearing inherent in our business model, with operating margins continuing to surge with increasing revenues. Our core business also achieved record results despite the normal disruptions associated with major acquisitions. At the same time I am pleased to report that the integration of Verity is largely completed. 2005 was an extraordinary, transformational year for Autonomy and we are looking forward to 2006 with great excitement and confidence in our long-term outlook."

Fourth Quarter and Full Year 2005 Financial Highlights

Revenues for the fourth quarter of 2005 totalled $31.6 million, up 69% from $18.6 million for the fourth quarter of 2004 as a result of core Autonomy growth and the contribution of etalk. Of total revenues, U.S./Asia Pac revenues of $21.0 million were 67% and U.K./European revenues of $10.6 million were 33% in the fourth quarter of 2005. etalk's sales are primarily in the U.S., accounting for the geographical shift from 2004 to 2005. Revenues for the year ended December 31, 2005, totalled $96.0 million up 48% from $64.8 million for the year ended December 31, 2004.

Gross profits (adjusted) for the fourth quarter of 2005 were $29.2 million, up 63% from $17.9 million in the fourth quarter of 2004. Gross margins (adjusted) were 92% in the fourth quarter of 2005, versus 96% in the fourth quarter 2004. Gross profits (IFRS) for the fourth quarter of 2005 were $28.4 million, up 60% from $17.7 million in the fourth quarter of 2004. Gross margins (IFRS) for the fourth quarter of 2005 were 90%, compared to 95% in the fourth quarter of 2004. The decrease in gross margins in each of the three and twelve months ended December 31, 2005, is primarily due to the amortization of purchased intangibles in connection with the etalk acquisition.

Gross profits (adjusted) for the year ended December 31, 2005, were $90.1 million, up 46% from $61.8 million for the year ended December 31, 2004. Gross margins (adjusted) were 94% in the year ended December 31, 2005, compared to 95% for the year ended December 31, 2004. Gross profits (IFRS) for the year ended December 31, 2005, were $88.5 million, up 45% from $60.9 million for the year ended December 31, 2004. Gross margins (IFRS) were 92% for the year ended December 31, 2005, compared to 94% for the year ended December 31, 2004.

Net profit (adjusted) for the fourth quarter of 2005 was $6.0 million, or $0.04 per diluted share, compared to net profit (adjusted) of $2.9 million, or $0.02 per diluted share, for the fourth quarter of 2004. Net profit (IFRS) for the fourth quarter of 2005 was $1.4 million, or $0.01 per diluted share, compared to net profit (IFRS) of $2.6 million, or $0.02 per diluted share, for the fourth quarter of 2004. Net profit (IFRS) for the fourth quarter of 2005 includes a one-time restructuring charge of $5.0 million in connection with the acquisition of Verity.

Net profit (adjusted) for the year ended December 31, 2005, was $15.1 million, or $0.12 per diluted share, compared to net profit (adjusted) of $7.2 million, or $0.06 per diluted share, for the year ended December 31, 2004. Net profit (IFRS) for the year ended December 31, 2005, was $9.0 million, or $0.07 per diluted share, compared to net profit (IFRS) of $6.1 million, or $0.05 per diluted share, for the year ended December 31, 2004. Net profit (IFRS) for the year ended December 31, 2005 includes one-time restructuring charges totalling $5.8 million in connection with the acquisitions of Verity and etalk.

Cash balances were $68.6 million at December 31, 2005, a decrease of $9.6 million from the prior quarter, with cash used for the acquisition of Verity, Inc., and a decrease of $38.2 million for the full year as a result of the etalk and Verity acquisitions. During Q4 2005 Autonomy acquired Verity, Inc. for approximately $500 million in cash, funded through a rights issue, a bank loan and existing cash resources. As of December 31, 2005, Autonomy had no net debt.

During the quarter Autonomy did not purchase any shares for cancellation. In total, Autonomy has purchased for cancellation 20,997,824 million shares at an average price of £1.65 per share.

Receivables for the fourth quarter of 2005 were $55.4 million, compared to $26.4 million for the fourth quarter of 2004. Deferred revenues were $51.9 million at December 31, 2005, compared with $11.6 million at December 31, 2004. The acquisition of Verity has contributed significantly to the increase in receivables and deferred revenue.

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, often non-recurring and non-cash charges. Consequently, the non-IFRS (adjusted) results exclude post-acquisition restructuring costs, loss on disposal and fair value adjustments of investments and non-cash charges for the amortization of purchased intangibles, share-based compensation and translational foreign exchange gains and losses and associated tax effects. Management uses the adjusted results to assess the financial performance of Autonomy's core business.

Q4 Product Sales

Autonomy's infrastructure technology has been adopted by enterprises to process information across all internal and external data formats and sources. During the fourth quarter of 2005, major new wins included: Symantec, Bell Canada, Cablevision, Euromoney, Goodyear, John Deere, Pioneer National Resources, Rockwell Collins, Standard & Poors and the Shanghai News Agency. Repeat business from existing customers accounted for approximately 34% of revenue for the quarter, and included Banco de Espana, Bearing Point, Credit Suisse, Ericsson, Felix Telecom, HBO, SAIC, Seicos, Shell and T-Mobile. Q4 2005 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe including in the U.S., Spain, France, the U.K., Greece, Sweden and Switzerland.

Strategic Partnerships and OEMs

Autonomy's OEM Program continued to grow during the year with revenues up 21%, with OEM-derived revenues of $13.8 million accounting for approximately 14% of revenues and 15 new OEM agreements with major software companies including Symantec, BEA and Vignette.

Q4 Corporate Developments

During the fourth quarter of 2005 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies. During the quarter Autonomy announced and completed the acquisition of Verity, Inc., cementing Autonomy's position as the industry leader and further extending the adoption of Autonomy's IDOL infrastructure.

Also during the quarter Autonomy's consumer division announced the creation of a conceptual index of the World Wide Web, available so consumer facing companies can offer their customers next generation search technologies across the Web. Also, for the first time enterprise users will be able to fully integrate retrieval, from the desktop to enterprise content to Internet content, based on the understanding of the meaning of the information, all on a private basis. In November 2005 Autonomy's Virage division launched the Virage Security and Surveillance product range to add new precision and unrivalled intelligence capabilities to security and surveillance operations.

During the fourth quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology. Autonomy was once again positioned by independent research firm Gartner, Inc. in the leader quadrant of Gartner's 2005 Information Access Technology Magic Quadrant report. According to Gartner, vendors listed in the leader's quadrant are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market. Autonomy was also acknowledged for the third year in a row as one of the EContent 100, a list of companies that matter most in the digital content industry.

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 16,000 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, 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 supplier and visionary in Rich Media Management technology; etalk, a leading provider of enterprise-class contact center products, Cardiff, a leader in content capture and business process management solutions, and Ultraseek, a leading provider of business search engine.

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

Download the full PDF version of the Q4 2005 Report