Endace announces sale of Monitoring Systems for Fastest Internet Links

Auckland, New Zealand - 1 August, 2007

Endace Limited ("Endace" or "the company")(AIM: EDA), a world leader in industrial strength IT network security and analysis products, announces that it has secured the first order for its OC-768 network monitoring solution. OC-768, running at 40 gigabits per second (40 Gbps), is the highest network speed now achievable with commercially available equipment.

This technology is now being introduced to the busiest portions of the core of the Internet to increase the capacity of existing fibre links. This sale, to one of the world's largest telecommunications companies, demonstrates Endace's first mover advantage with evolving high-speed network monitoring systems, and the company's ongoing commitment to technological excellence.

At over US$1.1m, the order is a significant milestone for Endace. In particular, in building experience with sophisticated customers in pioneering products, the Company will then be well positioned to deliver advanced solutions to the volume market.

Endace CEO, Selwyn Pellett said: "This substantial order for our new, very high speed OC-768 product demonstrates that we retain our leadership in providing increasingly complex, but cost-effective network monitoring and security systems.

"We aim to replicate the successful commercial roll-out achieved with previous major new products. Starting with the important key customer contract announced today, we plan to build on our strong relationships with sophisticated customers to deliver volume sales as the 40 Gbps speed becomes the industry standard."