Informatica Reports Record Quarterly Revenues Of $60.0 Million

Closes record five deals greater than one million dollars

REDWOOD CITY, Calif., January 25, 2005—Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced financial results for the fourth quarter and year ended December 31, 2004.

Revenues for the fourth quarter of 2004 were $60.0 million, compared to $55.9 million recorded in the fourth quarter of 2003.  Net loss for the fourth quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $105.8 million or $1.22 per diluted share, as compared with net income of $3.2 million or $0.04 per diluted share in the fourth quarter of 2003.  Pro forma net income for the fourth quarter of 2004 was $5.2 million or $0.06 per diluted share, compared to $4.6 million or $0.05 per diluted share in the fourth quarter of 2003.

For the year ended December 31, 2004, revenues were $219.7 million, an increase from the $205.5 million recorded in 2003.  GAAP net loss in 2004 was $111.5 million or $1.30 per diluted share, as compared to net income of $7.3 million or $0.09 per share in 2003.  Pro forma net income for 2004 was $13.7 million or $0.16 per diluted share, and compared to $13.8 million or $0.16 per diluted share in 2003.

Pro forma operating results discussed in this press release exclude charges related to an adjustment to the 2001 facilities restructuring charge, the 2004 restructuring charge, purchased in-process research and development, and the amortization of acquired technology, intangible assets and stock-based compensation.  A reconciliation of pro forma operating results and GAAP results are included in the financial statements attached below.

"The fourth quarter set a record for Informatica.  We had the highest revenues, the most number of transactions and the largest number of million-dollar deals in a quarter," said Sohaib Abbasi, president and CEO of Informatica.  "The results are a validation of our focused growth strategy to establish Informatica as the leader in the enterprise data integration market.  Our record results attest to the differentiated, distinctive value we offer to our customers."

Significant milestones achieved in the fourth quarter of 2004 include:

• Signed repeat business with 226 customers.  Successful customers continue to invest in additional Informatica technologies. Repeat customers included ABN AMRO, Affiliated Computer Services, American Honda Motor, Applied Materials, Capgemini, Cendant, Cisco, Charles Schwab, Commerz Bank, Deutsche Telekom, eBay, FedEx, General Electric, Kemper Auto & Home Insurance, MetLife, Pfizer, PNC Bank and the U.S. Air Force.
• Signed 65 new customers.  Informatica increased its customer base this quarter to 2,172 companies.  New customers included Alabama Gas, B&H Photo, First Canadian Title, Hyundai Motor America, Intergamma, Linsco Private Ledger, New York Board of Trade, Northrop Grumman, Standard & Poor's and Tokio Marine Nichido. 
• Expanded relationship with Siebel.  Significantly expanding its partnership with Informatica, Siebel selected Informatica's data integration platform as core technology powering its newly expanded suite of enterprise analytic applications.  All Siebel Business Analytics applications are now underpinned by Informatica technology to provide customers with comprehensive enterprise data integration.
• Expanded relationship with IBM.  Informatica achieved Premier-level partner status within the IBM PartnerWorld program, an elite standing obtainable by invitation only that encompasses joint planning, development, marketing, sales and technical-support activities.  In addition, Informatica joined IBM's ISV Advantage for SMB program, which provides independent software vendors with targeted technical and marketing support to help meet the specific information technology needs of small and medium business companies.
•  Received SAP "Powered by NetWeaver" certification.  SAP® awarded its "Powered by SAP NetWeaver™" certification to Informatica for delivering tight integration between the PowerCenter data integration platform and the SAP NetWeaver platform. Informatica's new SAP certification will help customers leverage PowerCenter for data migration, consolidation and synchronization projects that further reduce the costs and time required to deploy, upgrade or consolidate SAP solution-based systems.
• Broadened partnership with Sybase.  Informatica and Sybase launched a joint sales and marketing initiative to help companies better leverage their mainframe data assets. Pairing Informatica and Sybase technologies, the Dynamic Operational Data Store (Dynamic ODS) mainframe offloading program is targeted at enterprises looking to increase the speed and reduce the cost of accessing business-critical information from enterprise mainframes. 
• Demonstrated PowerCenter's triple-digit performance gains.  Informatica demonstrated over 200 percent performance gains of PowerCenter, the industry's first 64-bit data integration platform, in a two-month benchmark study on HP Integrity Superdome Servers. The results demonstrated PowerCenter's continued ability to support large-scale data integration implementations, helping customers address rapidly rising data volumes and user demand.
• Continued international expansion.  Informatica appointed Byung-Jae Kang as vice president of Asia-Pacific. Informatica also announced the signing of a distributor agreement with Digital China Holdings Ltd., the largest information technology distribution and solutions company in China, and announced plans to open an office in Beijing and localize its products for the Chinese market.  
• Named leading enterprise data integration vendor by Forrester Research.  Informatica PowerCenter attained the first-place position in Forrester Research's enterprise extract, transform and load (ETL) "Forrester Wave™" report, which evaluated ETL solutions offered by 14 leading vendors.
• Voted "Readers' Choice" for data integration by DM Review magazine.  The DM Review 2004 Readership Award awarded Informatica the number-one position in data integration, ranking it highest for product performance, customer service and satisfaction, and level of usage within their organizations.

To supplement the company's condensed consolidated financial statements presented on a GAAP basis, Informatica uses pro forma measures of net income and net income per share. These measures are adjusted to exclude certain charges and expenses discussed above and in the attached supplemental consolidated statements of operations, which the company believes are appropriate to enhance an overall understanding of its historical financial performance.  These adjustments to the company's GAAP results are made with the intent of providing both management and investors a more complete understanding of the company's underlying operational results, trends and marketplace performance.  Informatica believes that the inclusion of these pro forma financial measures provides consistency and comparability with its historical reports of financial results, as well as comparability to similar companies in the company's industry, many of which present similar pro forma financial measures to investors.  In addition, these pro forma results are among the primary indicators management uses as a basis for its planning and forecasting of future periods.  The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with generally accepted accounting principles in the United States.

Informatica will be discussing its fourth quarter 2004 results on a conference call today beginning at 2:00 p.m. PST / 5:00 p.m. EST.  A live Webcast of the conference call will be available at http://www.informatica.com/investor.  A replay of the call will also be available by dialing 617-801-6888, reservation number 51771442.

About Informatica
Informatica Corporation (NASDAQ: INFA) is a leading provider of data integration software. Using Informatica products, companies can access, integrate, visualize, and audit their enterprise information assets to help improve business performance, increase customer profitability, streamline supply chain operations and proactively manage regulatory compliance. More than 2,100 companies worldwide rely on Informatica for their end-to-end enterprise data integration needs. For more information, call 650-385-5000 (1-800-970-1179 in the U.S.), or visit www.informatica.com/.

• Condensed Consolidated Statement of Operations (Q4 2004)
• Condensed Consolidated Statement of Operations (Full Year 2004)
• Condensed Consolidated Balance Sheets
• Condensed Consolidated Statements of Cash Flows