Informatica Reports 31 Percent License-Revenue Growth and Record Total Revenues of $81 Million

Note: This press release and attached tables have been corrected to reflect adjustments announced on July 24, 2006.

REDWOOD CITY, Calif., July 20, 2006—Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced financial results for the second quarter ended June 30, 2006.

Revenues for the second quarter of 2006 were $80.8 million, up 26 percent from the $64.2 million recorded in the second quarter of 2005.  License revenues for the second quarter were $36.9 million, up 31 percent from the $28.1 million recorded in the second quarter of 2005.  Net income for the second quarter, calculated in accordance with U.S. generally accepted accounting principles (GAAP), was $7.6 million or $0.08 per diluted share, versus net income of $7.6 million or $0.09 per diluted share in the second quarter of 2005.  Results for the second quarter of 2006 reflect the impact of equity-based compensation as required by Financial Accounting Standards (FAS) 123R, whereas 2005 results exclude these expenses.  Non-GAAP net income for the second quarter of 2006 was $12.9 million or $0.14 per diluted share, up over 55 percent from $8.2 million or $0.09 per diluted share in the second quarter of 2005.   Non-GAAP net income excludes charges related to purchased in-process research and development, equity-based compensation, facilities restructurings, and the amortization of acquired technology and intangible assets.  A reconciliation of GAAP operating results and non-GAAP results is included below.

For the six-month period ending June 30, 2006, revenues were $153.9 million, an increase of 26 percent from the $122.6 million recorded for the first six months of 2005. License revenues for the first six months of 2006 were $69.7 million, up 31 percent from $53.1 million in the first six months of 2005. GAAP net income for the first six months of 2006 was $12.9 million or $0.14 per diluted share, versus $12.0 million or $0.13 per diluted share in the first six months of 2005. Results for the first half of 2006 reflect the impact of equity-based compensation as required by Financial Accounting Standards (FAS) 123R, whereas 2005 results exclude these expenses.  Non-GAAP net income for the first six months of 2006 was $24.2 million or $0.26 per diluted share, up over 60 percent versus $14.6 million or $0.16 per diluted share in the first six months of 2005.

 “We are very pleased to report the fifth consecutive quarter of year-over-year total revenue and license revenue growth of over 20 percent,” said Sohaib Abbasi, chairman and CEO of Informatica.  “With the combination of growing customer demand, strongest-ever product set and expanding industry partnerships, we believe Informatica is well positioned to maintain the momentum and increase profitability over the coming quarters.”

Significant milestones achieved since April include:

• Signed repeat business with 165 customers. Customers continue to derive considerable value from their investments in Informatica solutions.  Repeat customers included Blue Care Network of Michigan, Cadbury Schweppes Americas Beverages, Duke Energy, Devon Canada, Fox Entertainment Group, Motorola, Singapore Health Services, and Waste Management.
• Signed 62 new customers. Informatica increased its customer base this quarter to 2,612 companies.  New customers include Canal +, Daewoo International, Dawn Food Products, First Command Financial Planning, Life Insurance Corporation of India, SPAR, Spirit Aerosystems, and US Airways.
• Signed global OEM agreement with Hyperion Solutions. The leading business process management (BPM) vendor will embed Informatica's market-leading enterprise data integration platform. Hyperion’s use of Informatica technology will enable customers to leverage a proven, best-of-breed data integration platform to integrate Hyperion BPM solutions with a wide range of diverse enterprise data sources, including data warehouses and ERP, CRM and legacy transaction systems.
• Signed licensing agreement with salesforce.com. The leading on-demand CRM vendor selected Informatica data integration solutions to help migrate its enterprise customers to salesforce.com.  Informatica also announced a new PowerCenter Connect for salesforce.com designed to help customers integrate their on-demand salesforce.com implementations with on-premise software applications.
• Announced general availability of PowerCenter 8.1. The result of extensive input from Informatica customers and partners, PowerCenter 8.1 sets the standard for enterprise data integration with enhancements in four key areas: advanced data quality, enterprise data access, enterprise-wide deployment and developer productivity.
• Unveiled roadmap for on-demand data integration. Informatica outlined its strategic roadmap for Informatica On-Demand, a Software-as-a-Service offering to enable cross-enterprise data integration.  Informatica will deliver on its roadmap in three phases, culminating in a hosted data integration platform to help organizations integrate their outsourced applications with on-premise enterprise applications.
• Achieved record-breaking attendance at Informatica World 2006. Informatica held its eighth-annual worldwide customer and partner conference in May in San Francisco, securing the largest number of attendees to date with more than 1,250 participants from over 30 countries.
• Continued Asia-Pacific expansion. Informatica launched its sales and marketing presence in India with the opening of three regional offices in Delhi, Mumbai and Bangalore in the second quarter.
• Demonstrated customer success with top industry awards. Informatica and Nationwide won TDWI’s Best Practice Award in the Master Data Management category for Nationwide’s FOCUS finance data-management initiative powered by Informatica PowerCenter Advanced Edition.  In addition, Informatica and customers BNSF, Fairfax County Public Schools and the U.S. Coast Guard won four out of the five 2006 Performance Management Leadership Awards presented by Ventana Research.

Conference Call and Webcast
Informatica will be discussing its second quarter 2006 results on a conference call today beginning at 2:00 p.m. PDT.  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 86546901.

• Condensed Consolidated Statements of Operations
• Condensed Consolidated Balance Sheets
• Condensed Consolidated Statements of Cash Flows
• Supplemental Metrics

About Informatica
Informatica Corporation (NASDAQ: INFA) is a leading provider of enterprise data integration software and services. Using Informatica products, companies gain greater business value by integrating all their information assets.  More than 2,600 companies worldwide rely on Informatica to reduce the cost and expedite the time to address data integration needs of any complexity and scale.  For more information, call 650-385-5000 (1-800-970-1179 in the U.S.), or visit http://www.informatica.com/.

Non-GAAP Financial Information
To supplement the company’s condensed consolidated financial statements presented on a GAAP basis, Informatica uses non-GAAP financial measures of net income and net income per share. These measures are adjusted to exclude the charges and expenses discussed above.  The company believes the disclosure of such non-GAAP financial measures is 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 non-GAAP financial measures provides consistency and comparability with its historical financial results, as well as comparability to similar companies in the company’s industry, many of which present similar non-GAAP financial measures to investors.  In addition, these non-GAAP financial measures 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 U.S.

Safe Harbor
This press release contains forward-looking statements relating to future momentum and opportunities for increased profitability over the coming quarters, efforts being conducted with strategic partners such as Hyperion Solutions and salesforce.com, and assumptions regarding Informatica’s strategic roadmap for Informatica On-Demand.  Such statements involve risks and uncertainties, and actual results may differ materially from the results described in this press release.  The potential risks and uncertainties that could cause actual results to differ include, among others, risks related to (1) competition with larger companies that have longer operating histories and greater financial, technical, marketing, and other resources; (2) uncertainty in the state of IT spending and the continued growth in the market for data integration solutions in general; (3) lack of control regarding our strategic partners’ devotion of adequate resources to promote, sell, implement, and support our products; and (4) any revision to, delay regarding or cancellation of product release or service availability due to market or other conditions, as well as those risks and uncertainties included under the caption “Risk Factors” in Informatica’s report on Form 10-Q for the quarter ended March 31, 2006, which is on file with the SEC and is available on the company’s investor relations website at http://www.informatica.com/.  All information provided in this release is as of July 20, 2006, and Informatica undertakes no duty to update this information.

Note: Informatica, and PowerCenter are registered trademarks of Informatica Corporation in the United States and in jurisdictions throughout the world. All other company and product names may be trade names or trademarks of their respective owners.  The development, release and timing of any Informatica product described in this release remain at the sole discretion of Informatica.  This release should not be relied upon in making a purchasing decision.