23 February 2006

Industry-wide Component Shortages Affect Production & Shipping

Endace Limited (the "Company" or "Endace") (AIM : EDA), a world leader in the acceleration of network security and analysis applications, today advised that the component shortages currently being experienced in certain high-growth sectors of the electronics industry will disrupt the Company's year-end production and shipping. It is difficult to ascertain the extent of the impact on sales, particularly given the historical importance of fourth quarter sales on annual revenues.

Endace CEO Selwyn Pellett commented on the industry component shortages saying, "The global demand for computer related products has stretched the manufacturing capacities of some of our key semiconductor vendors, resulting in significantly increased lead times, which is likely to continue into the next financial year. Although the duration and therefore impact of these component delays is presently unclear, we are exploring all avenues to fill current and expected product orders."