MADCAP SOFTWARE CONTINUES TO INCREASE PROFITABILITY AND GAIN MARKET SHARE

Rapid Growth Includes a 101 Percent Increase in Financial Revenue and 59 Percent Increase in International Revenue

San Diego, CA, USA – June 14, 2007

— MadCap Software, the leader in multi-channel content authoring and a Microsoft (NASDAQ: MSFT) Visual Studio 2005 showcase company, today announced that, for the five months ended May 2007, the company continued to experience substantial increases in both revenue and market share in the technical documentation industry. Financial revenues since January 2007 represent a 101 percent increase over the same period last year and build on the profitability that MadCap Software has recognized from product inception. In addition, customer adoption count has grown by over 60 percent within the last five months.

“We are seeing significant growth, not only from a tremendous increase in adoption by new customers, but also from a large number of early adopters who have recognized the benefits of Flare, and are now standardizing on it across their departments and organizations,” said Anthony Olivier, MadCap CEO.

“A significant driver in our business is the international community’s growing awareness that MadCap’s software applications provide localization solutions that are simply not available from competing products,” Olivier explained. “Translating Help systems into multiple languages has long been one of the biggest hurdles facing authors and localization experts, often turning into an absolute nightmare when people attempt to use outdated Help authoring tools and other legacy software. The good news is that every MadCap product fully supports Unicode for all left-to-right languages, and we use an open-file architecture that allows easy access to any file for translation. We’re now seeing more translation experts replace their outdated tools, after they experience the simplicity and power of Flare.”

MadCap Flare is now also fully localized into German, French and Japanese, offering an industry first of four available language interfaces, including English, all from within the same application and interface.

The 2007 release of MadCap MadPak, the “dream suite” that bundles MadCap’s core products, has also been one of the factors stimulating growth for the company in recent months. MadPak allows customers to benefit from MadCap Software’s integrated, native XML documentation solutions, combining Flare (for Help authoring), Mimic (for movies and video tutorials), Capture (for screen captures and graphics editing), and Echo (for Web 2.0 audio capabilities).

Building on its current multi-language support strengths, MadCap Software later this year will roll out a translation application, MadCap Lingo, a robust authoring tool designed specifically for translators. Providing a user interface much like MadCap Flare, MadCap Lingo adds new features that are essential for localization experts (such as translation memory and split window panes to compare files in different languages) while stripping out the features unimportant to translators. MadCap Lingo will substantially lessen the overall time dedicated to translating documentation, which in turn will greatly reduce short-term and long-term expenditures for companies.

Other new MadCap products on the horizon include MadCap Blaze and MadCap Feedback Server. Blaze is a modern XML alternative to Adobe FrameMaker for producing long documents, especially for print. Feedback Server is a revolutionary new solution that will allow customers to see how individuals are using their online Help and make necessary adjustments to improve documentation on the fly. MadCap Feedback Server is due for release this summer; MadCap Blaze and MadCap Lingo will be released later this year.

“We fully expect all of these great new products to push revenues for MadCap Software even higher,” said Olivier. “We continue to be solidly profitable at a rate that is extremely unusual for a new company. But it isn’t just revenue growth that makes this an exciting time for MadCap Software. It’s the steady manner in which MadCap is grabbing more market share away from older companies in the industry—attracting both new customers and many former RoboHelp users seeking a modern, XML-based, best-in-class solution for Help authoring.”

About MadCap Software

MadCap Software, headquartered in San Diego, is just a new name for a group of familiar faces that have been leading the technical writing and documentation community for over a decade. With its flagship product, MadCap Flare, MadCap Software is leading the documentation industry into the future. Through its strategic partner Microsoft Corp. (NASDAQ: MSFT), MadCap is delivering solutions optimized for Microsoft Vista, Visual Studio, and the .NET environment. 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®. Learn more about MadCap Software and its Help authoring suite at www.madcapsoftware.com.