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AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2006

Record Results With Highest Revenues and Profits in Autonomy's History; Six Months Revenues up 200%; Six Months Profit From Operations (adj) up 351% to Record $27.9 million

Autonomy's second quarter conference call will be available live at www.autonomy.com on July 26, 2006, at 9:30 a.m. GMT/4:30 a.m. EST/1:30 a.m. PST.

Cambridge, England - July 26, 2006 - 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, 2006.

Financial Highlights

	Three Months Ended		Six Months Ended
	(unaudited)		(unaudited)
	June 30, 2006	June 30, 2005	June 30, 2006	June 30, 2005
Results in US$ ($'000s except per share)	$'000	$'000	$'000	$'000
Revenues	60,955	20,486	117,096	39,015
Gross profit (adjusted)*	55,469	19,544	106,057	37,278
Gross profit margin (adjusted)*	91%	95%	91%	96%
Profit before tax (adjusted)*	17,643	3,769	27,951	8,173
Net profit (adjusted)*	11,819	2,711	18,830	5,813

Gross profit (IFRS)	53,352	19,290	101,917	36,812
Gross profit margin (IFRS)	88%	94%	87%	94%
Profit before tax (IFRS)	14,234	2,754	21,326	6,572
Net profit (IFRS)	9,536	1,981	14,359	4,674

EPS
- basic (adjusted)*	$ 0.06	$ 0.02	$ 0.10	$ 0.05
- diluted (adjusted)*	$ 0.06	$ 0.02	$ 0.10	$ 0.05

- basic (IFRS)	$ 0.05	$ 0.02	$ 0.08	$ 0.04
- diluted (IFRS)	$ 0.05	$ 0.02	$ 0.08	$ 0.04

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

Six Month 2006 Financial Highlights

Record six months revenues, up 200% from 2005 and greater than any previous full year
Record profit from operations (IFRS) up 364% from 2005
Record profit before tax (adjusted), up 242% from 2005
R&D investment up 254% from 2005
Gross margins (adjusted) at 91%
Acknowledged as "the clear leader in enterprise search" by IDC
Chosen as leader in Forrester enterprise search wave

Second Quarter 2006 Highlights

Record quarterly revenue, up 198% from Q2 2005
Record profit from operations (IFRS) up 661% from Q2 2005
Record profit before tax (adjusted), up 368% from Q2 2005
R&D investment up 197% from Q2 2005
13th consecutive quarter of year-on-year revenue growth
26th consecutive quarter of profitability
Gross margins (adjusted) at 91%
Competitive environment remains benign
Availability of IDOL-based K2-7, demonstrating continued commitment to protecting customers' investments in the IDOL-based K2 product line while extending with performance and scalability improvements and access to over 500 advanced features
Average selling price for meaning-based technologies at $344,000
Blue chip second quarter wins include John Deere, Sprint, Whirlpool, LexisNexus China, RioTinto, FedEx, Banco de España, GM, Coke and Verizon, as well as significant deals with multiple government, defence and intelligence agencies around the globe including in the U.S., U.K., the Netherlands, France, Italy and Singapore.
Strong OEM performance with 12 new deals including Oracle, Cisco and Interwoven
Multimillion dollar enterprise standardization contracts
Positive cashflow from operations of $8.1 million, up from $5.9 million in Q2 2005
Aungate delivers major compliance, investigation and litigation solutions to KPMG, Fidelity and GSK

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 2006 results. These record results bear testament to several key characteristics of our business and its markets. Our market leadership position is firmly established, as acknowledged by industry analysts. We have successfully completed strategic acquisitions, converting the businesses to high gross margin models whilst seeing strong up-sell into historic customer bases with products such as with the now IDOL-based K2-7. Also, during the past year unstructured information issues have gone 'prime time', which has fuelled good organic growth. Finally, the strength of our market is evidenced by the number of new multi-million dollar enterprise standardization contracts Autonomy is seeing."

Dr. Lynch concluded, "Without doubt it has been a very significant first half for Autonomy. The high operational gearing inherent in our business model has ensured that bottom line performance is surging together with top line growth. Although we expect the traditional summer seasonality in the third quarter, we have laid a strong foundation for our continued growth both in the current year and in the longer term."

Second Quarter and Six Month Financial Highlights

Revenues for the second quarter of 2006 totalled $61.0 million, up 198% from $20.5 million for the second quarter of 2005. Revenue was positively impacted by a combination of strong organic growth and the recent acquisitions of Verity and etalk. In the second quarter of 2006, Americas revenues of $41.4 million represented 68% of total revenues, and Rest of World revenues of $19.6 million represented 32% of total revenues. Revenues for the six months ended June 30, 2006, totalled $117.1 million, up 200% from $39.0 million for the six months ended June 30, 2005.

Gross profits (adjusted) for the second quarter of 2006 were $55.5 million, up 184% from $19.5 million in the second quarter of 2005. Gross margins (adjusted) were 91% in the second quarter of 2006, versus 95% in the second quarter of 2005. Gross profits (IFRS) for the second quarter of 2006 were $53.4 million, up 177% from $19.3 million in the second quarter of 2005. Gross margins (IFRS) for the second quarter of 2006 were 88%, compared to 94% in the second quarter of 2005. Gross profits (adjusted) for the six months ended June 30, 2006 were $106.1 million, up 185% from $37.3 million for the six months ended June 30, 2005. Gross margins (adjusted) were 91% in the six months ended June 30, 2006, versus 96% for the six months ended June 30, 2005. Gross profits (IFRS) for the six months ended June 30, 2006 were $101.9 million, up 177% from $36.8 million for the six months ended June 30, 2005. Gross margins (IFRS) for the six months ended June 30, 2006 were 87%, compared to 94% for the six months ended June 30, 2005. Results for the second quarter of 2006 include the capitalization of approximately $2.2 million of expenses as required pursuant to IAS 38 Intangible Assets.

Net profit (adjusted) for the second quarter of 2006 was $11.8 million, or $0.06 per diluted share, compared to net profit (adjusted) of $2.7 million, or $0.02 per diluted share, for the second quarter of 2005. Net profit (IFRS) for the second quarter of 2006 was $9.5 million, or $0.05 per diluted share, compared to net profit (IFRS) of $2.0 million, or $0.02 per diluted share, for the second quarter of 2005.

Net profit (adjusted) for the six months ended June 30, 2006 was $18.8 million, or $0.10 per diluted share, compared to net profit (adjusted) of $5.8 million, or $0.05 per diluted share, for the six months ended June 30, 2005. Net profit (IFRS) for the six months ended June 30, 2006 was $14.4 million, or $0.08 per diluted share, compared to net profit (IFRS) of $4.7 million, or $0.04 per diluted share, for the six months ended June 30, 2005.

Cash balances were $91.8 million at June 30, 2006, an increase of $17.9 million from $73.9 million at June 30, 2005. Movements in cash flow during the quarter reflect a combination of good cash generation from operating activities and proceeds from exercise of share options, offset by the second quarterly repayment of Autonomy's bank loan of $4.1 million, and payments associated with the Verity acquisition such as redundancy costs. Autonomy has no net debt.

Receivables for the second quarter of 2006 were $59.7 million, compared to $26.3 million for the second quarter of 2005. Accounts receivable days sales outstanding decreased to 89 days for the second quarter of 2006, compared to 115 days at June 30, 2005. Deferred revenues were $50.7 million at June 30, 2006, compared with $18.5 million at June 30, 2005.

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 fundamental business without giving effect to certain specific non-cash charges. Consequently, the non-IFRS (adjusted) results exclude non-cash charges for the amortization of purchased intangibles, share-based compensation, foreign exchange gains and losses and post acquisition restructuring costs and associated tax effects. Management uses the adjusted results to assess the financial performance of Autonomy's operational business activities.

Q2 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 second quarter of 2006, major new wins included: John Deere, Sprint, Whirlpool, Saab Ericsson, LexisNexis China, BUT and RioTinto. Repeat business from existing customers accounted for approximately 36% of revenue for the quarter, and included: FedEx, PWC, Banco de España, GM, Coke, EDF, GSK, Verizon, Dow Chemical and Qualcom. Q2 2006 business also included new and repeat licenses with multiple government, defence and intelligence agencies around the globe including in the U.S., the U.K., the Netherlands, France, Italy and Singapore.

Strategic Partnerships and OEMs

Autonomy's OEM Program continued to grow during Q2 2006. Agreements were signed with 12 customers during the quarter, including new and extended agreements with Oracle, Cisco and Interwoven.

Q2 Corporate Developments

During the second quarter of 2006 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies. Most importantly, in May 2006 Autonomy announced availability of Autonomy's IDOL K2 version 7 (K2-7), demonstrating Autonomy's continued commitment to protecting customers' investments in the now IDOL-based K2 product line while offering a seamless path to next-generation technology. IDOL K2-7 extends the product line by delivering K2's robust enterprise search capabilities on the IDOL kernel, providing performance and scalability improvements and access to over 500 advanced features.

Autonomy also announced the launch of its Virage Security and Surveillance platform, capable of meeting the requirements of any size of security and surveillance project, as well product upgrades to the Virage IPTV technology. Autonomy's etalk division, a leading provider of contact center software, unveiled the integration of Qfiniti Survey, a powerful automated customer survey application. Autonomy's Cardiff division, the market leader in intelligent document processing solutions, announced the launch of TeleForm Version 10, with new features including the automatic classification, extraction and validation of data from any paper document or form type.

During the second quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology. Independent research firm Forrester cited Autonomy as 'tough to beat' in enterprise search platforms, ranking Autonomy as a leader in the Forrester Wave™ Report, Enterprise Search Platforms giving top scores for market presence, security and strategy. Awards received during the quarter included a "Circle of Humanitarians Award" from the Santa Clara County Chapter of the American Red Cross for contributions by Verity and its employees during the Hurricane Katrina disaster. Autonomy's etalk division received multiple awards, including the 2006 Speech Technology Excellence Award from Customer Inter@ction Solutions magazine; the Best Industry Solution award as part of the 2006 Annual Members' Choice Awards sponsored by Contact Center World; and the CRM Excellence Award for its Qfiniti Explore advanced speech analytics application.

About Autonomy Corporation plc

Autonomy Corporation plc (LSE: AU. or AU.L) is a global leader in infrastructure software for the enterprise and is spearheading the meaning-based computing movement. Autonomy's technology forms a conceptual and contextual understanding of any piece of electronic data including unstructured information, be it text, email, voice or video. Autonomy's software powers the full spectrum of mission-critical enterprise applications including information access technology, BI, CRM, KM, call center solutions, rich media management, compliance and litigation solutions and security applications, and is recognized by industry analysts as the clear leader in enterprise search.

Autonomy's customer base comprises more than 16,000 global companies and organizations including BAE Systems, Boeing, Ford, Daimler Chrysler, Shell, AOL, BBC, Reuters, Hutchison 3G, Ericsson, T-Mobile, Philips, Coca Cola, Kraft Foods, Nestle, Lloyds TSB, GlaxoSmithKline, KPMG, Citigroup, ABN AMRO, Deutsche Bank, Nomura, the U.S. Securities and Exchange Commission, the New York Stock Exchange, the U.S. Department of Homeland Security, NASA and the U.S. Department of Energy. Autonomy has over 300 OEM partners and more than 350 VARs and Integrators, numbering among them leading companies such as BEA, Business Objects, Citrix, EDS, IBM Global Services, Novell, Veritas, Vignette, Tibco, Stellent and Sybase. The company has offices worldwide.

The Autonomy Group includes: Aungate, specialist in Real-Time Enterprise Governance; Virage, a visionary in Rich Media Management and Security and Surveillance technology; etalk, award-winning 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 engines.

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 Q2 2006 Report (PDF)