WITS Witness Systems (MM)

Witness Systems (NASDAQ: WITS) announced today that, as anticipated in the Form 8-K filed by the company on August 11, 2006, it has received a NASDAQ Staff Determination Letter and has requested a hearing before the NASDAQ Listing Qualification Panel to review the staff's determination. The letter, received on August 14, 2006, indicates that the company is not in compliance with the filing requirements for continued listing as set forth in Marketplace Rule 4310(c)(14) and was issued in response to the company's delay in filing its Quarterly Report on Form 10-Q for the quarter ended June 30, 2006. As a result, the company's shares are subject to delisting from The NASDAQ Stock Market. Pending a decision by the NASDAQ Listing Qualification Panel on the company's appeal of the Staff Determination Letter, the company's common stock will remain listed on The NASDAQ Stock Market. The company submitted its hearing request on August 17, 2006. No hearing date has yet been set. While the company believes it has substantial grounds to seek continued listing, there can of course be no assurance that the NASDAQ Listing Qualification Panel will grant the company's request for continued listing. About Witness Systems Witness Systems (NASDAQ: WITS) is the worldwide leader in software and services that help businesses capture customer intelligence and optimize their workforce performance. The company's Impact 360(TM) solution unifies quality monitoring, compliance and IP recording, workforce management, performance management and e-learning. Primarily deployed in contact centers - as well as the remote, branch and back offices of global organizations - the workforce optimization solution captures, analyzes and enables users to share and act on cross-functional information across the enterprise. With Impact 360, organizations can improve interactions and the underlying back-office processes that enhance the customer experience and build customer loyalty. For more information, visit us at 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 "believes," "anticipates," "expects," "intends," "plans," "estimates," and similar expressions. These risks and uncertainties include, but are not limited to, the possibility that the Nasdaq Listing Qualification Panel may deny the company's request for continued listing or that it may grant the company's request for continued listing but the company may be unable to file all required reports within the required period and may be denied further extensions for continued listing. Other factors that could cause actual future results to differ materially from current expectations include the 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, 2005 and its Form 10-Q for the quarter ended March 31, 2006, and the risks identified in the company's Form 8-K dated August 8, 2006 (filed on August 11, 2006) and the Cautionary Note Regarding Forward-looking Statements set forth in the press release filed as an exhibit thereto, all as filed with the Securities and Exchange Commission. The forward-looking statements in this release 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. Witness, Impact 360, Improve Everything and the Witness logo are the trademarks (registered or otherwise) 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.