WITS Witness Systems (MM)

-- New research from The PELORUS Group reveals wider market share lead in software and services -- Industry honors recognize company's corporate vision, IP telephony and workforce management technology innovation, and focus on customer service Witness Systems (NASDAQ: WITS), a leading global provider of workforce optimization software and services, today announced recent analyst research and multiple industry awards distinguishing the company's technology innovation and growing market share in the global contact center market. According to the June 2005 "World Contact Center Recording Systems Market" report published by The PELORUS Group, an independent market research and consultancy company for the financial services and telecommunications markets, Witness Systems holds a leading 35 percent share in the broadly defined recording (both combined and selective) software and services global market. Additionally, the report shows Witness Systems having a 46 percent share in the selective recording (i.e., quality monitoring) global market, which is more than twice the share of its closest competitor. The PELORUS Group also recognizes Witness Systems as being the first vendor to offer recording products outside of the traditional contact center, as well as the only vendor with comprehensive recording solutions specifically designed and marketed for back-office processes. This underscores Witness Systems' industry vision and assertion that quality monitoring extends beyond the contact center. The industry continues to recognize Witness Systems' ability to listen to customer needs and quickly bring products and services to market. "In a largely technology-driven market, Witness Systems is one of the best at conducting market research and listening to customer needs," said Dick Bucci, associate consultant, The PELORUS Group. "The company is well ahead of the curve in recognizing that recording solutions have applications well beyond contact centers, a direct result of customer feedback." In addition to receiving confirmation from the analyst community, Witness Systems continues to build upon its market leadership with industry awards that reaffirm the company's commitment to customer service excellence. As customers evolve and mature, Witness Systems has developed the foundation-level and strategic offerings to help them progress through the workforce optimization continuum to extend business value. ContactCenterWorld Members' Choice Awards Based purely on customer votes, Witness Systems was chosen for the "Best Self Learning/Training" and "Best in Americas" awards. Launched in the summer of 2002, the Members' Choice Awards encourage users to vote for their favorite solution provider on a national, regional and global basis. As there are no judges involved, each award is based on the number of votes received from more than 3,500 global ContactCenterWorld.com members. The awards distinguish "the companies that maintain exceptional leadership and customer focus" and were chosen based on overall average voting scores. Internet Telephony's TMC Labs Innovation Award Witness Systems received Internet Telephony's TMC Labs Innovation Award in recognition of its IP recording solution. The company's IP recording and complete line of workforce optimization solutions are designed to enable customers to identify areas where improvements can be made in employee, process and system performance, regardless of where interactions are handled in the enterprise. Customer Inter@ction Solutions' CRM Excellence Award Designed to commend companies that have proven to be true CRM partners to their customers and clients, Witness Systems' Workforce Management solution was recognized as a "best of breed" technology. The award was based on its ability to help a financial services arm of a major automobile manufacturer realize cost savings of close to $1 million, raise productivity among agents by 40 percent, reduce average handle times by 33 percent, and increase overall customer service quality scores by 32 percent. "These industry accolades strengthen our position as the market leader in workforce optimization software and services for the contact center and extended enterprise, and underscore the importance of corporate vision, technology innovation and attention to customer service," said Nancy Treaster, senior vice president of global marketing, Witness Systems. "Our customers continue to tell us that our emphasis and attention to their success is the primary reason for our longstanding market leadership." About Witness Systems Witness Systems (NASDAQ: WITS) is a leading global provider of workforce optimization software and services. The company's solutions - which play a strategic role in the customer interaction centers of Global 2000 and small- and medium-sized businesses (SMBs) worldwide - also are deployed in IP Telephony and back office environments, and throughout the extended enterprise, including branch offices. Witness Systems' software is comprised of quality monitoring, compliance, high-volume and IP Telephony recording solutions, as well as workforce management, actionable learning and performance management applications. The company's solutions enable organizations to optimize their people, processes and technology throughout the enterprise. Witness Systems' customers benefit from an integrated business consulting, implementation and training methodology that supports a rapid deployment, enabling them to drive revenue, reduce operational costs, and achieve greater customer retention and loyalty. For additional information about Witness Systems, visit www.witness.com. Cautionary Note Regarding Forward-looking Statements: Information in this release that involves Witness Systems' expectations, plans, intentions or strategies regarding the future are forward-looking statements that are not facts and involve a number of risks and uncertainties. They are identified by words such as "anticipates," "expects," "intends," "plans," "believes," "estimates," and similar expressions. These statements are based upon information available to Witness Systems as of the date of this release, and the company assumes no obligation to update any such forward-looking statement. Forward-looking statements believed true when made may ultimately prove to be incorrect. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and may cause actual results to differ materially from our current expectations. Some of the factors that could cause actual future results to differ materially from current expectations include fluctuations in customer demand and the timing of orders; the company's ability to manage its growth; the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the company's markets; the risks associated with international sales as the company expands its markets, including the risks associated with foreign currency fluctuations; the ability of the company to complete and integrate successfully any acquisitions or investments it may make; and the ability of the company to compete successfully in the future, as well as other risks identified under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Form 10-K for the year ended December 31, 2004 and its Form 10-Q for the quarter ended March 31, 2005, as filed with the Securities and Exchange Commission. Witness, eQuality and the Witness logo are United States registered trademarks of Witness Systems, Inc., protected by laws of the U.S. and other countries. All other trademarks mentioned in this document are the property of their respective owners.