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Autonomy Wins Multi-Million Dollar Infrastructure Deployment Deal from Telecom Italia

Autonomy Announces Significant Agreement with One of World's Largest Telecommunications Groups

San Francisco, CA. - DECEMBER 2 2002 - Autonomy Corporation plc, (Nasdaq: AUTN; LSE: AU.; Nasdaq Europe: AUTN), a leading provider of infrastructure software for the enterprise, today announced that Telecom Italia has purchased Autonomy as the infrastructure that will power its integrated e-learning network.

Telecom Italia is one of the world's foremost telecommunications groups, operating in the fixed-line, mobile, satellite telecommunications, Internet, Media and Information Technology markets. Autonomy will form an integral part of its commitment to continual learning and professional development. For example, Telecom Italia's Learning Services Division will implement Autonomy's technology to aggregate, categorize, summarize, personalize and deliver content through an interactive portal application. This investment in e-learning will enable employees to receive pre-packaged and highly relevant training that is precisely tailored to their needs.

Autonomy's technology was chosen for its ability to generate significant cost savings through automation and the removal of time-consuming manual processes, as well as for its multimedia handling capabilities.

The service will enable employees to create personalized training paths, and will include content in text, voice and video formats, all of which are essential to an integrated learning network. For example, Autonomy will enable employees to watch the exact section of a recorded lesson that is relevant to their business function, avoiding time wasted sitting through irrelevant modules of expensive training courses. Hypertext links to related content will be generated automatically, ensuring that employees are proactively alerted to all the relevant training materials in the enterprise, and removing the need to search for pertinent data.

Additionally, Autonomy's Classification Server will provide Telecom Italia with a high-level overview of all the training material available within the organization. This strategic tool will enable management to assess where knowledge gaps necessitate investment in additional resources, or where an abundance of data exists, for example.

Autonomy, Founder and CEO, Mike Lynch today commented, "We are delighted to announce this agreement with Telecom Italia. As a world leading organization, Telecom Italia is a global authority in designing and deploying effective learning programmes that enable employees to further their own development in pursuit of business objectives. Autonomy is the ideal solution that will accelerate and strengthen Telecom Italia's determination to deliver its e-learning vision".

Autonomy's unique Intelligent Data Operating Layer (IDOL) integrates unstructured, semi-structured and structured information from multiple repositories through an understanding of their content. Autonomy grants enterprises the flexibility to use advanced information retrieval or legacy-based approaches. At the heart of Autonomy's software is its ability to process text, voice and video and identify and rank the main concepts within them. It then automatically categorizes, links, summarizes, personalizes and delivers that information. Autonomy's technology also drives collaboration across the enterprise and enables organizations to effectively leverage expertise. Autonomy's infrastructure technology is used to automate operations within enterprise information portals, customer relationship management, knowledge management, business intelligence and e-business applications, among others.

About Autonomy

Autonomy Corporation plc (Nasdaq: AUTN; Nasdaq Europe: AUTN; LSE: AU.) is a global leader in infrastructure software for the enterprise. Autonomy's technology powers applications dependent upon unstructured information including e-commerce, customer relationship management, knowledge management, enterprise information portals, enterprise resource planning and online publishing. Autonomy's customer base includes more than 575 global companies, including AstraZeneca, BAE Systems, Ford, Ericsson, General Motors, Lucent, Royal Sun Alliance, Sun Microsystems and public sector agencies including the UK Government's Department of Trade and Industry, the United States Department of Defense, NASA and the United States Department of Energy. Strategic reseller and OEM partners include leading companies such as BEA, Business Objects, Computer Associates, Hewlett Packard, IBM Global Services, Oracle, Vignette and Sybase. The company has offices in North America, Europe, Asia and Australia and is on the Web at www.autonomy.com.

About Telecom Italia

The Telecom Italia Group serves over 50 million individuals and 3 million businesses and is Italy's #1 fixed-line operator and #1 wireless provider. Drawing upon over a century of business experience, the Group supplies the work and lifestyle tools of the future.

Telecom Italia companies have created broadband, wireline and wireless networks to carry innovative services, complex ICT solutions, multimedia messaging, mobile business solutions, e-government products and on line banking. Telecom Italia Labs have developed Internet voice navigation services and revolutionary audio and video data compression systems.

Brands such as Telecom Italia*, Tim, Finsiel, Seat Pagine Gialle, Telespazio and Telecom Italia Lab are best-known stars in the Telecom Italia Group constellation.

Caution Concerning Forward Looking Statements

With the exception of historical information, the matters set forth in this news release are forward-looking statements that involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include, among others, technology risks, including dependence on core technology; fluctuations in quarterly results; dependence on new product development; rapid technological and market change; reliance on sales by others; management of growth; dependence on key personnel; rapid expansion; growth of the Internet; financial risk management; and future growth subject to risks. These factors and other factors which could cause actual results to differ materially are also discussed in the company's filings with the United States Securities and Exchange Commission, including Autonomy's Annual Report on Form 20-F and Registration Statements on Form F-1.

For more information, please contact:
Ian Black
Autonomy Corporation plc
+44 (0) 1223 448000
ianb@autonomy.com
Edward Bridges
Financial Dynamics
+44 207 831 3113
edward.bridges@fd.com
alastair.hetherington@fd.com
Kris Marubio
Autonomy Corporation plc
+1 415/243-9955
krism@us.autonomy.com
Kathleen Gratehouse
Schwartz Communications
+1 415/512-0770
autonomy@schwartz-pr.com

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