14 November 2006

Interim Results for the six month period ended 30 September 2006

Endace Limited ("Endace" or the "Group") (AIM: EDA), a world leader in high speed, high capacity IT network security and analysis products, is pleased to announce its unaudited interim results for the six months ended 30 September 2006 prepared under New Zealand equivalents to International Reporting Standards (NZ IFRS) for the first time.

Financial highlights

• Revenue up 44% on prior year to $6.2m (H1, 2005: $4.3m).
• Profit before tax and foreign exchange movements of $591,000 (H1, 2005: loss of $30,000).
• Pre-tax profit of $882,000 (H1, 2005: $193,000).
• Functional currency changed to US dollars from NZ dollars with effect from 1 April 2006.
• Cash position slightly higher over the six months at $6.74m (March 2006: $6.68m).

Operational highlights

• Secured a significant initial sale of Endace's OC768 network monitoring solution to one of the world's
• largest telecommunications companies, enabling the highest network speed now achievable with
• commercially available equipment.
• Signed a technology licensing agreement with Sprint Nextel Corp., a world leader in communications
• services, for two of their network traffic products.
• Commenced strategic alignment of company resources along two main product lines, network monitoring
• cards and Ninja platforms, to improve focus on new, higher yielding markets.

Commenting on the results, Endace's Chief Executive Officer, Selwyn Pellet said:
"I am pleased to report a successful first half year trading result with strong revenue and profit growth over the same period last year. Our current backlog of orders gives us confidence for continued growth during our second half year."