Insightful Acquires Data Analysis Consulting Business

Insightful Corporation, a leading provider of scalable enterprise software solutions for data analysis, announced the expansion of its East Coast and pharmaceutical consulting practice through acquisition of certain assets from Waratah Corporation, a value-added reseller of Insightful's analytic software products based in Durham, North Carolina. Waratah provides software and consulting primarily to the pharmaceutical industry, delivering solutions for drug discovery and development and clinical and post-marketing research. This acquisition provides Insightful with expanded resources and expertise in the pharmaceutical and healthcare markets while establishing an East Coast consulting office.

"This acquisition is aligned with Insightful's strategy to expand our global sales channels and enhance our infrastructure to deliver scalable enterprise data analysis solutions," said Shawn Javid, president and CEO of Insightful Corporation. "A key driver of Insightful's market expansion is our professional services organization, which delivers customized solutions for data analysis. The Waratah team has been very successful in delivering applications that incorporate statistical data mining and graphical reporting into the biopharm market. Together we bring superior analytical solutions to our clients."

"The Insightful product line includes the best analytics engine, graphical reports and open integration platform in the distributed analytics arena," said Michael O'Connell, Ph.D., president of Waratah Corporation. "There are many new data-driven opportunities in the pharmaceutical, genomics, diagnostics and health services areas to apply Insightful's technology."

Insightful's continued expansion into the pharmaceutical and healthcare markets represents a growth opportunity. The company's statistics, data mining and predictive analysis software and services can save millions of dollars by helping companies identify, develop and market new drugs and diagnostics in less time and create new opportunities for expanded use of approved therapeutics.

Insightful customers include Glaxo SmithKline, Pfizer, Merck, Astra Zeneca, Aventis, Pharmacia, Novartis, Bristol-Myers Squibb, Hoffman La-Roche, Johnson & Johnson, Bayer AG and other industry leaders. Applications include drug discovery, bioinformatics, dosing and stability studies, clinical trials and post-marketing analyses.

Under the agreement, Insightful acquires a consulting business focused on the pharmaceutical and healthcare markets and a seasoned, enterprise-level software development team. In addition, Insightful obtains access to Waratah's customers, pipeline, team expertise, management consulting as well as associated software. This transaction will be accounted for as an asset purchase in the third quarter. For fiscal 2001, the net impact on operating income will be neutral. For fiscal 2002 and beyond, Insightful expects this transaction to be accretive.

About Waratah

Waratah Corporation is a privately held software solutions company focused on the healthcare analytics marketplace. Waratah specializes in enterprise-level data mining, statistical reporting and distributed analytic solutions. Waratah customers include major pharmaceutical, genomics, health services, clinical research, medical devices, diagnostics, environmental, agrosciences and chemicals organizations.

About Insightful

Insightful Corporation provides enterprises with scalable data analysis solutions that drive better decisions faster by revealing patterns, trends and relationships. The company is a leading supplier of software and services for statistics, data mining and predictive analysis, which expedite accurate decision-making and improve business performance.

Insightful's products, including S-PLUS, StatServer and S-PLUS Analytic Server, play a key role in data warehousing and business intelligence initiatives as they supply analytics that convert data into insight. Insightful also provides analytic consulting services, application development outsourcing, data integration and training ranging from the fundamentals of predictive modeling to deployment of Web-based analytics. The company has thousands of customers in the financial services, biotechnology/pharmaceutical, telecommunications and manufacturing industries, plus many research institutions.

Headquartered in Seattle, Insightful has offices in New York City, Durham, North Carolina and the U.K., with distributors around the world. For more information, visit www.insightful.com.

Contact Insightful Corporation, Sar Ramadan, 206-283-8802, sramadan@insightful.com.