CHICAGO (November 6, 2008) – Initiate Systems, Inc., a leader in master data management (MDM) solutions, announced today that the company has achieved profitability, positive cash flow and year–over-year revenue growth in excess of 50 percent in the third quarter of 2008.

Ten new customer contracts greatly contributed to Initiate’s successful quarter, bringing the total number of customers to 177 as of September 30, 2008. New customers during the quarter include one of the largest multinational technology and personal computer providers, one of the largest hotel groups in the world and several large hospital systems in the United States and Europe.

During the quarter, Initiate also completed a $31-million round of financing with an additional $5 million in equity financing contributed from new strategic investors BlueCross BlueShield Venture Partners and Sandbox Industries.

As a prelude to the strong quarter, Initiate was named one of the “Visionaries” in the 2008 Magic Quadrant for Master Data Management for Customer Data report by Gartner, Inc. (NYSE: IT) in June. In the August 2008, Forrester Wave: Customer Hubs, Q3 2008, Initiate was cited as a leader among customer hub vendors. The company earned top scores in two of the three attributes evaluated for a Forrester Wave: “Strategy” and “Market presence.” According to the report: “Heavy R&D investment in data stewardship and data models along with a strong go-to-market strategy helped Initiate Systems win in new industries and take the lead in number of live customers.”

”Initiate Systems’ financial position is very strong,” said Dan Kossmann, Initiate Systems CFO. “Growing, profitable, cash flow positive and well capitalized, we are in a great position to take advantage of the expanding markets we serve.”

At Initiate Exchange, the company’s annual user conference that began on September 30, Initiate announced the availability of its Initiate Master Data Service® platform v8.5. This
latest version gives data stewards greater command over ensuring improvement in the quality of data to meet data governance initiatives and greater capabilities for resolving data issues quickly and efficiently across teams.

“I am very proud of our third quarter accomplishments,” said Bill Conroy, Initiate Systems CEO. “We have once again demonstrated our position as a market leader and significantly improved our financial strength.”

About Initiate Systems
Initiate Systems, Inc. enables organizations to strategically leverage and share critical data assets. Its master data management (MDM) software and experience as an information exchange leader provide organizations with complete, accurate and real-time views of data spread across multiple systems or databases, even outside the firewall. This allows companies to unlock the value of their data assets for competitive advantages or operational improvements. Initiate Systems operates globally through its subsidiaries, with corporate headquarters in Chicago and offices across the U.S., and Toronto, London and Sydney. For more information, visit www.InitiateSystems.com.