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AUTONOMY CORPORATION PLC ANNOUNCES RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2007

Strong Organic Growth Delivers Record Q2 Results with Highest Q2 and Half Year Revenues and Profits in Autonomy's History; Operating Margins (adj.) at Record 35%

Autonomy's second quarter conference call will be available live at www.autonomy.com on July 23, 2007, at 9:30 a.m. BST/4:30 a.m. EST/1:30 a.m. PST.

Cambridge, England - July 23, 2007 - 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, 2007.

Financial Highlights

* Adjusted results exclude the share of loss of associates and non-cash changes, 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 page 5.

Six Month 2007 Highlights

Second Quarter 2007 Highlights

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 2007 results. As previously stated, these results are significantly ahead of consensus estimates and ahead of the top end of analysts' forecasts. Our trading performance during this period has been driven by strong organic growth across all areas of our business, with the operational gearing inherent in our business model continuing to deliver increases in operating margins - to a record 35% - and bottom line profitability."

Dr. Lynch concluded: "With our strong organic growth, significant continued investment in research and development and the recently-announced acquisition of ZANTAZ, Autonomy has firmly established itself as the unrivalled leader in the enterprise retrieval and discovery markets. With business and regulatory changes continuing to drive the ever-increasing creation of, and demands on, unstructured information, Autonomy remains uniquely well positioned to capitalize on this growth throughout the remainder of 2007 and into 2008."

Second Quarter and Six Month Financial Highlights

Revenues for the second quarter of 2007 totalled $73.3 million, up 20% from $61.0 million for the second quarter of 2006 due to strong organic growth. In the second quarter of 2007, Americas revenues of $49.6 million represented 68% of total revenues, and Rest of World revenues of $23.7 million represented 32% of total revenues. Revenues for the six months ended June 30, 2007, totalled $138.7 million, up 18% from $117.1 million for the six months ended June 30, 2006.

Gross profits (adjusted) for the second quarter of 2007 were $67.0 million, up 21% from $55.5 million in the second quarter of 2006. Gross margins (adjusted) were 91% in the second quarter of 2007, versus 91% in the second quarter of 2006. Gross profits (IFRS) for the second quarter of 2007 were $65.2 million, up 22% from $53.4 million in the second quarter of 2006. Gross margins (IFRS) for the second quarter of 2007 were 89%, compared to 88% in the second quarter of 2006. Gross profits (adjusted) for the six months ended June 30, 2007 were $127.0 million, up 20% from $106.1 million for the six months ended June 30, 2006. Gross margins (adjusted) were 92% in the six months ended June 30, 2007, versus 91% for the six months ended June 30, 2006. Gross profits (IFRS) for the six months ended June 30, 2007 were $123.3 million, up 21% from $101.9 million for the six months ended June 30, 2006. Gross margins (IFRS) for the six months ended June 30, 2007 were 89%, compared to 87% for the six months ended June 30, 2006.

Net profit (adjusted) for the second quarter of 2007 was $18.8 million, or $0.10 per diluted share, compared to net profit (adjusted) of $11.8 million, or $0.06 per diluted share, for the second quarter of 2006. Net profit (IFRS) for the second quarter of 2007 was $16.5 million, or $0.08 per diluted share, compared to net profit (IFRS) of $9.5 million, or $0.05 per diluted share, for the second quarter of 2006.

Net profit (adjusted) for the six months ended June 30, 2007 was $32.1 million, or $0.17 per diluted share, compared to net profit (adjusted) of $18.8 million, or $0.10 per diluted share, for the six months ended June 30, 2006. Net profit (IFRS) for the six months ended June 30, 2007 was $27.5 million, or $0.14 per diluted share, compared to net profit (IFRS) of $14.4 million, or $0.08 per diluted share, for the six months ended June 30, 2006.

Cash balances were $262.1 million at June 30, 2007, an increase of $141.0 million from $121.1 million at December 31, 2006. Movements in cash flow during the half year reflect a combination of good cash generation from operating activities and proceeds from the share placing and exercise of share options, offset by the quarterly repayments of Autonomy's bank loan. Autonomy has no net debt.

Receivables for the second quarter of 2007 were $82.9 million, compared to $77.3 million at December 31, 2006. Accounts receivable days sales outstanding were 98 days for the second quarter of 2007, compared to 92 days at December 31, 2006. Deferred revenues were $50.7 million at June 30, 2007, compared with $48.2 million at March 31, 2007 and $52.5m at December 31, 2006.

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 share of loss of associates and non-cash charges for the amortization of purchased intangibles, share-based compensation, foreign exchange gains and losses 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 2007, major customer wins included: Telecom Italia, Phillips, GM, Deutsche Bank, Wolters Kluwer, Reed, Shell, The Telegraph, Genentech, Toyota, Safeway, Morgan Stanley, HSBC, Coca Cola, AOL, Lockheed Martin, Fidelity, Allen & Overy, Gardiner & Theobald, France 24, Hitachi Chemical, Dutch Central Bank, China Offshore Oil, Automative.com, Franklin Templeton, Vanguard, Deloitte, General Mills, Grant Thornton and HealthSouth. Q2 2007 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., Singapore, Belgium, the Netherlands and Greece, as well as NATO. Repeat business from existing customers accounted for approximately 40% of revenue for the quarter.

Strategic Partnerships and OEMs

Autonomy's OEM Program continued to grow during Q2 2007. Agreements were signed with 13 customers during the quarter, including new and extended agreements with Siemens, Iron Mountain, Nuance, IBM, Dassault Systèmes, MatrixOne and Epiq.

Q2 Corporate Developments

During the second quarter of 2007 Autonomy continued to extend its market leadership with the introduction of key new and upgraded technologies, including: Virage Automatic Copyright Infringement Detection (ACID), enabling copyright owners such as broadcasters, production houses and publishers to maintain control of their Intellectual Property by automating the detection of illegal distributed copyrighted material on the Internet; IDOL ECHO, a ground-breaking new module that allows global organizations to forensically account, track and trace the lifecycle of every single piece of data within an organization including telephone calls, voicemails, emails, instant messages, documents and videos; Cardiff LiquidOffice Version 5.0, extending Cardiff's vision for Intelligent Documents with major enhancements such as the ability to create dynamic documents and processes that can automatically adapt to changing business conditions; and delivery of Autonomy's IDOL to SharePoint Server 2007 customers.

During the second quarter Autonomy announced that it has hired key Convera employees who hold federal clearances to service and sell to the U.S. government community, including the Vice President of Sales and Operations, Vice President of Product Engineering and the Security Program Manager.

Also during the second quarter Autonomy was chosen as the preferred supplier of Meaning-Based technologies in the investigative and intelligence sector in the United Kingdom by Unisys, a worldwide technology services and solutions company, and as a preferred partner for enterprise search and Meaning-Based Computing technologies by WM-data, a division of international IT services company LogicaCMG.

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 17,000 global companies and organizations including: ABN AMRO, AOL, BAE Systems, BBC, Boeing, Citigroup, Coca Cola, Daimler Chrysler, Deutsche Bank, Ericsson, Ford, GlaxoSmithKline, Hutchison 3G, Kraft Foods, Lloyd TSB, NASA, Nestle, the New York Stock Exchange, Nomura, Reuters, Shell, T-Mobile, the U.S. Department of Energy, the U.S. Department of Homeland Security and the U.S. Securities and Exchange Commission. Autonomy also 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, Stellent, Sybase, Symantec, TIBCO and Vignette. 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, 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.

Download the full PDF version of the Q2 2007 Report (PDF)