MADCAP SOFTWARE FINANCIAL PERFORMANCE EXCEEDS EXPECTATIONS

Initial Sales Momentum of MadCap Flare Drives Significant Profitability

San Diego, CA, USA – May 22, 2006

— MadCap Software, Inc. today announced that the Companys financial results for the first four months of 2006 have greatly exceeded expectations. These results were driven by the introduction of its flagship product, MadCap Flare. Flare is a new XML-based authoring tool which enables technical writers, Help authors, and other documentation professionals to keep pace with the industry evolution to XML by composing content in XML format, without requiring any knowledge of the XML language or XML programming.

Strong initial demand for MadCap Flare and its related products and services have led the Company to turn solidly profitable. Presently we are building cash, and earning in excess of 30% pre-tax, said Anthony Olivier, CEO. It is a challenge to grow the team fast enough to handle the increased demand for our products, he added.

The strong initial adoption of Flare across the Help authoring community is a true testament to our significant progress in leading the technical communications industry, said Mr. Olivier. The Companys increasing pace of profitability reinforces our customers confidence in our revolutionary products and our long-term commitment to changing the industry.

We have an extremely talented and aggressive development team dedicated to creating future-proof XML based products, said Bjorn Backlund, CTO of MadCap Software. The release of Version 2, scheduled this September, will make Flare the first true, single-sourcing, XML-based tool by adding Adobe Framemaker import/export to the existing Microsoft Word import/export currently in the tool.

Upcoming product releases from MadCap Software will include MadCap Blaze, an XML-based alternative to Adobe Framemaker that is specifically designed for easily producing lengthy documents for print such as books, manuals and illustrated guides using the latest technological advances available. Like Flare, Blaze will be 100% XML and Unicode-based. Users will be able to import and export Microsoft Word ((NasdaqNM: MSFT) and Framemaker documents and export to PDF and XPS (XML Paper Specification), Microsofts new portable document format that will compete with Adobes PDF format.

MadCap also recently announced the upcoming release of MadCap Mimic, a cutting-edge software simulation tool that lets users quickly and easily create movies of software. This product is ideal for use in sales and marketing, technical support, eLearning or Help systems. Mimic is designed to work seamlessly with Flare.

With the continued development of MadCap Flare, and the introduction of MadCap Blaze and MadCap Mimic, MadCap Software believes they will have created the dream suite for the technical writing and Help authoring community.

About MadCap Software

MadCap Software is just a new name for a group of familiar faces that have been leading the technical writing community for over a decade. MadCap is home to some of the most experienced software architects and product experts in the industry, including many former core members of eHelp Corporation, creators of RoboHelp. With its flagship product, MadCap Flare, MadCap Software is leading the technical communications industry into the future. Learn more about MadCap Software and Flare at www.madcapsoftware.com.