Agile provides business and disclosure update

Agile Software Corporation provided an update on the review by Agile's Audit Committee of transactions entered into by its Taiwan sales office. It also disclosed a voluntary review of equity award practices, updated the status of it SEC filings and NASDAQ listing, announced updated preliminary results for the quarter ended July 31, 2006, and provided preliminary guidance for the quarter ending October 31, 2006.

Review of Taiwan Sales Transactions
The Company today provided an update regarding the review commenced on June 23, 2006, at the direction of the audit committee through independent counsel, of transactions entered into by its Taiwan sales office. Agile management initiated this review proactively after routine process checks indicated irregularities in a Taiwan-based distributor relationship. Independent counsel has concluded its review and the Company has substantially completed its review of the accounting for the transactions and is working through its assessment of its internal control over financial reporting. As a result of the conclusions reached in this review, the Company expects to make an adjustment to revenue in the amount of approximately $632,000, to delay recognition of this revenue from the fourth quarter of fiscal 2006 to the first quarter of fiscal 2007. This delay in the recognition of revenue will also result in a decrease of the Company's earnings per share by $.01 for the fourth quarter of fiscal 2006 and a decrease in the Company's net loss per share by $.01 for the first quarter of fiscal 2007. The Company also expects to report material weaknesses in the Company's internal control over financial reporting as of April 30, 2006 and July 31, 2006.

Preliminary Results for Quarter Ended July 31, 2006
Agile today updated its preliminary results for the first quarter of fiscal 2007, which ended July 31, 2006. These results do not take into account the potential impact of the review of its stock option grant practices and related accounting matters, which could impact the Generally Accepted Accounting Principles (GAAP) per share results. Total revenues for the quarter are estimated to be approximately $31.0 million, compared to $34.4 million for the first quarter of fiscal 2006. License revenues for the first quarter of fiscal 2007 are estimated to be approximately $10.1 million, compared to $13.4 million achieved in the first quarter of fiscal 2006.

Net loss for the first quarter of fiscal 2007, on a GAAP basis, is estimated to be ($.07) per share, compared to a ($.06) net loss per share, for the first quarter of fiscal 2006.

Non-GAAP net loss for the first quarter of fiscal 2007 (which excludes stock compensation, amortization of intangible assets, and acquired in-process research and development) is estimated to be ($.01) per share. Non-GAAP net loss for the first quarter of fiscal 2006 (which excludes stock compensation and amortization of intangibles) was ($.02) per share.

Outlook for Second Quarter, Ending October 31, 2006
Agile estimates that its total revenues for the second quarter of fiscal 2007 will increase from its total revenues for the first quarter to between $32.5 million and $33.5 million. Also, the Company estimates that its non- GAAP net loss (which excludes stock compensation and amortization of intangibles) will be between a net loss of $(.02) per share and break-even.

"While it's unfortunate that we have had to focus on these internal reviews, our business fundamentals remain sound and we see the potential for continued improvement throughout the year," continued Jay Fulcher. "Going forward, we believe we are well positioned to address opportunities for revenue growth and profitability."