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AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2006

Record Q3 and Nine Month Results; Nine Months Revenues up 175%; Nine Months Profit From Operations (adj) up 316% to record $43.6 million

Autonomy's third quarter conference call will be available live at www.autonomy.com on October 24, 2006, at 9:30 a.m. GMT/4:30 a.m. EST/1:30 a.m. PST.

Cambridge, England – October 24, 2006 – Autonomy Corporation plc (LSE: AU. or AU.L), a global leader in infrastructure software, today reported financial results for the third quarter and nine months ended September 30, 2006.

Financial Highlights

	Three Months Ended		Nine Months Ended
	(unaudited)		(unaudited)
	Sept 30, 2006	Sept 30, 2005	Sept 30, 2006	Sept 30, 2005
Results in US$ ($'000s except per share)	$'000	$'000	$'000	$'000
Revenues	60,234	25,450	177,330	64,465
Gross profit (adjusted)*	54,532	23,661	160,589	60,938
Gross profit margin (adjusted)*	91%	93%	91%	95%
Profit before tax (adjusted)*	15,918	4,980	43,869	13,152
Net profit (adjusted)*	10,697	3,325	29,527	9,126

Gross profit (IFRS)	52,629	23,339	154,546	60,151
Gross profit margin (IFRS)	87%	92%	87%	93%
Profit before tax (IFRS)	13,202	4,298	34,528	10,869
Net profit (IFRS)	8,872	2,869	23,231	7,542

EPS
- basic (adjusted)*	$0.06	$0.02	$0.16	$0.07
- diluted (adjusted)*	$0.06	$0.02	$0.16	$0.07

- basic (IFRS)	$0.05	$0.02	$0.13	$0.06
- diluted (IFRS)	$0.05	$0.02	$0.12	$0.06

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

Nine Month 2006 Financial Highlights

Record nine month revenues, up 175% from 2005
Record profit from operations (IFRS) up 318% from 2005
Record profit before tax (adjusted), up 234% from 2005
R&D investment up 187% from 2005

Third Quarter 2006 Highlights

Record Q3 revenue, up 137% from Q3 2005
Record Q3 profit from operations (IFRS) up 259% from Q3 2005
Record Q3 profit before tax (adjusted), up 220% from Q3 2005
R&D investment up 109% from Q3 2005
Gross margins (adjusted) at 91%
Strong OEM performance with 13 new deals including SRA, EMC, Nortel and Sybase
Strong upsell into historic Verity customer base
Chosen as preferred vendor by Wipro
Average selling price for meaning-based technologies at $360,000 (Q2 2006: $344,000)
Blue chip third quarter wins include Bayer, Optus, Societe Generale, Shell, Ernst & Young, Nestle, Renault, Boeing, Toyota, Bell Canada, Martha Stewart Living, Genentech as well as significant deals with multiple government, defence and intelligence agencies around the globe including in the U.S., U.K., Singapore and NATO.
Multimillion dollar enterprise standardization contracts signed
Positive cashflow from operations of $14.6 million, up from $2.6 million in Q3 2005
Cash balance increases to $107.0 million, up $15.2 million from Q2 2006
Positioned in the "Leaders Quadrant" of Gartner's Magic Quadrant For Information Access Technology, 2006

Commenting on the results, Dr. Mike Lynch, Group CEO of Autonomy said today: "We are delighted to announce our record third quarter and nine month 2006 results, despite Q3 seasonally being our quietest quarter. These record results once again bear testament to our unmatched market leadership position, with success during the quarter underpinned by strong up-sell into historic customer bases with products such as with the now IDOL-based K2-7."

Dr. Lynch concluded, "The strength of our business during Q3 is exemplified by both the number of new multi-million dollar enterprise standardization contracts we continue to see, as well as our continued almost complete market-share ownership of the OEM market, including this quarter's large deal with EMC. With record results from our core business, 2006 to date has been an extremely exciting time for Autonomy, business remains strong, and we remain confident in our outlook."

Third quarter and Nine month Financial Highlights

Revenues for the third quarter of 2006 totalled $60.2 million, up 137% from $25.5 million for the third quarter of 2005. Revenue was positively impacted by a combination of strong organic growth and the acquisition of Verity in Q4 2005. In the third quarter of 2006, Americas revenues of $40.5 million represented 67% of total revenues, and Rest of World revenues of $19.7 million represented 33% of total revenues. Revenues for the nine months ended September 30, 2006, totalled $177.3 million, up 175% from $64.5 million for the nine months ended September 30, 2005.

Gross profits (adjusted) for the third quarter of 2006 were $54.5 million, up 130% from $23.7 million in the third quarter of 2005. Gross margins (adjusted) were 91% in the third quarter of 2006, versus 93% in the third quarter of 2005. Gross profits (IFRS) for the third quarter of 2006 were $52.6 million, up 125% from $23.3 million in the third quarter of 2005. Gross margins (IFRS) for the third quarter of 2006 were 87%, compared to 92% in the third quarter of 2005. Gross profits (adjusted) for the nine months ended September 30, 2006 were $160.6 million, up 164% from $60.9 million for the nine months ended September 30, 2005. Gross margins (adjusted) were 91% in the nine months ended September 30, 2006, versus 95% for the nine months ended September 30, 2005. Gross profits (IFRS) for the nine months ended September 30, 2006 were $154.5 million, up 157% from $60.2 million for the nine months ended September 30, 2005. Gross margins (IFRS) for the nine months ended September 30, 2006 were 87%, compared to 93% for the nine months ended September 30, 2005. Results for the third quarter of 2006 include the capitalization of approximately $0.5 million of expenses as required pursuant to IAS 38 Intangible Assets (nine months: $2.7 million).

Net profit (adjusted) for the third quarter of 2006 was $10.7 million, or $0.06 per diluted share, compared to net profit (adjusted) of $3.3 million, or $0.02 per diluted share, for the third quarter of 2005. Net profit (IFRS) for the third quarter of 2006 was $8.9 million, or $0.05 per diluted share, compared to net profit (IFRS) of $2.9 million, or $0.02 per diluted share, for the third quarter of 2005.

Net profit (adjusted) for the nine months ended September 30, 2006 was $29.5 million, or $0.16 per diluted share, compared to net profit (adjusted) of $9.1 million, or $0.07 per diluted share, for the nine months ended September 30, 2005. Net profit (IFRS) for the nine months ended September 30, 2006 was $23.2 million, or $0.12 per diluted share, compared to net profit (IFRS) of $7.5 million, or $0.06 per diluted share, for the nine months ended September 30, 2005.

Cash balances were $107.0 million at September 30, 2006, an increase of $15.2 million from $91.8 million at June 30, 2006. Movements in cash flow during the quarter reflect a combination of good cash generation from operating activities, offset by the fourth quarterly repayment of Autonomy's bank loan of $4.1 million. Autonomy has no net debt.

Trade receivables for the third quarter of 2006 were $60.3 million, compared to $28.2 million for the third quarter of 2005. Accounts receivable days sales outstanding are 91 days for the third quarter of 2006, compared to 101 days at September 30, 2005. Deferred revenues were $48.9 million at September 30, 2006, compared with $17.3 million at September 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, loss on disposal of investment 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.

Q3 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 third quarter of 2006, major new wins included: Martha Stewart Living, Genentech, Transport for London, Hubei Mobile, PetroChina and Visible. Repeat business from existing customers accounted for approximately 50% of revenue for the quarter, and included: Bayer, Optus, Societe Generale, Shell, Ernst & Young, Nestle, Renault, Boeing, Toyota and Bell Canada. Q3 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., Spain, Singapore and NATO.

Strategic Partnerships and OEMs

Autonomy's OEM Program continued to grow during Q3 2006. Agreements were signed with 13 customers during the quarter, including new and extended agreements with SRA, EMC, Nortel and Sybase.

Q3 Corporate Developments

During the third quarter of 2006 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies. In September, Autonomy's etalk division, a leading provider of contact center recording and analytics solutions, announced the availability of Qfiniti Assist to enable real-time knowledge and information for agents providing service to their customers. Autonomy's Virage division, the world leader in Rich Media Management and Intelligent Video Analytics, demonstrated its range of next generation automatic indexing and encoding software. In September Virage also launched its suite of self-learning video scene understanding products, the first proactive, conceptually self-training system.

During the third quarter Autonomy was recognized in multiple ways for its market leadership and unmatched technology. In. September, Autonomy's K2 v7 was selected as one of KMWorld Magazine's "Trend-Setting Products of 2006," which honors next-generation technology. Finally, the website of the Swedish Parliament (www.riksdagen.se), powered by Autonomy, was named the best government and organisation website in Sweden for 2006 by Internetworld.

Finally, recently independent research firm Gartner listed Autonomy in the "Leaders Quadrant" of its Magic Quadrant For Information Access Technology, 2006. According to Gartner, vendors listed in the leaders quadrant "demonstrate significant architectural flexibility. They also have a strong, innovative and broad means of determining relevancy of return results to users and providing developers with flexibility and appropriate tools to tune these relevancy settings. They are financially prepared to weather hard times, and they possess sufficient resources to invest inorganically and organically in technology and business growth. Leaders have established sufficient depth and strength to serve as platform vendors whose software might be used to solve most information access problems." The Magic Quadrant analysis places specific vendors within one of four segments: "Leaders," "Visionaries," "Challengers," or "Niche Players."

Download the full PDF version of the Q3 2006 Report (PDF)

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, Hewlett Packard, 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, Citrix, EDS, EMC, IBM Global Services, Novell, Symantec, 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, and Cardiff, a leader in content capture and business process management solutions.

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/Haya Chelhot Financial Dynamics +44 (0)20 7831 3113	Sushovan Hussain, Chief Financial Officer Autonomy Corporation plc +44 (0)1223 448 000