Endeca Reports 100 Percent Annual Growth

CAMBRIDGE, Mass., February 9, 2005 -- Endeca, the leading provider of Guided Navigation®, Search and Analysis solutions, today announced that Jim Baum, Endeca’s president and chief operating officer since 2001, has been promoted to the position of president and CEO. The move comes on the heels of Endeca’s most successful year to date — including a 100 percent year-over-year growth in new software and services business. Steve Papa, company founder and CEO from 1999 through 2004, remains as chairman and will now spearhead Endeca’s corporate and business development efforts.

Endeca completed more than 100 customer transactions in 2004, including key wins in retail, media & publishing, manufacturing & distribution, government, and financial services. Among the major new Global 2000 and government agency customers were leaders like Circuit City, The Home Depot, IBM, John Deere, Lehman Brothers, NASA, Sigma Aldrich, and Walmart.com. The year began with an oversubscribed $15 million mezzanine financing round and closed with the company’s first $10 million quarter. Worldwide staff doubled as Endeca hired over 100 new employees across all departments, strengthened European operations and expanded into new geographies, opening the company’s first Asia Pacific office in Singapore.

Other 2004 highlights include:


  • Endeca in the Enterprise: The award-winning Endeca ProFindTM enterprise search, Guided Navigation and Content Spotlighting platform was bolstered by the addition of robust new auto-classification and taxonomy management capabilities, unparalleled business-user control over search applications and the end-user experience, and Web services support; dozens of Global 2000 businesses and government agencies, including the FBI, IBM, John Deere, Lehman Brothers, and NASA purchase the Endeca ProFind platform to power next-generation enterprise search applications for their web sites, intranets, and enterprise portals.
  • Retail Dominance: The Endeca InFront® commerce search, navigation and merchandising solution extends its market lead and is now driving sales for more leading retailers than all competing solutions combined; over forty major North American and European retailers purchased the solution in 2004 alone, including US retail giants like Circuit City, Hallmark, the Home Depot, PETCO, Walgreens, and Walmart.com.
  • Focus On Customer Care: Endeca creates new Customer Solutions team, names Diane Gordon, VP of Customer Solutions; team will focus on all facets of the post-sale customer relationship, including professional services, customer support, education services and customer success.
  • Proven ROI Leads to Expanded Partnerships: Having found tremendous success with initial deployments, many Endeca customers, including Harvard University, IBM, and IHS, purchase additional software licenses and deploy new enterprise applications.
  • Awards & Accolades: Endeca named one of the top 100 private companies by KPMG and the AlwaysOn Network; the Endeca Navigation Engine named Trend-Setting Product of 2004 by KM World; Endeca ProFind cited as notable innovation in the IndustryWeek Technology of the Year Awards.

"Search and text analytics vendors have traditionally focused on the world of unstructured content, while database and BI vendors have focused on structured data. Endeca was one of the first vendors to recognize that combining structured and unstructured information can create compelling new applications," said Sue Feldman, IDC's VP for Content Technologies Research. "IDC has followed the growth of applications that combine content and database technologies for the past two years. The judicious use of both types of technologies creates hybrid applications that fill the need for managing, creating access to, or analyzing all types of information from all kinds of sources with a single set of tools."

As president and COO, Jim Baum played an instrumental role in Endeca’s rapid growth from innovative start-up to one of the most successful privately held software companies in North America. Prior to Endeca, Jim was the former executive vice president and general manager of PTC's (NASDAQ: PMTC) Windchill Business Unit, where he was responsible for all aspects of the business including product strategy, product development, marketing, operations and services. He also served as executive vice president of engineering, research and development at PTC. Jim sits on the Board of Directors of Open Ratings and Proficiency Software and is a member of the Adams Harkness Technology Ventures Advisory Board.

"Steve Papa and I have enjoyed a highly effective and complementary partnership at Endeca — one that has leveraged distinct strengths and experiences to help the company continue to grow and successfully evolve at such a rapid pace," said Jim Baum, president and CEO of Endeca. "Steve has the exceptional entrepreneurial skills required to establish and grow new revenue streams for Endeca as the new leader of corporate and business development."

"I am delighted that Jim and I will continue to work shoulder-to-shoulder to help Endeca reach ever greater heights," said Steve Papa, founder and chairman of Endeca. "We saw a doubling of sales and personnel in 2004, and I am confident that we have the exceptional team in place to take us through the next stages of our rapid growth."

About Endeca
Endeca’s award-winning Guided Navigation, enterprise search and analysis solutions help organizations to integrate, discover, and navigate enterprise data to solve business problems associated with information overload. Endeca’s customers include a wide range of enterprises including retailers (Barnes & Noble, Circuit City, CompUSA, PETCO, Wal-Mart); finance (Bank of America, MFS Investment Management, Putnam Investments); business-to-business companies (IBM, Arrow Electronics and CDW); media & publishing (World Book and IHS) and government (the FBI, the Library of Congress and NASA). Endeca is a private company headquartered in Cambridge, MA. More info: www.endeca.com or info@endeca.com.


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