MadCap Software Increases Q1 2011 Revenues By 41 Percent Year-Over-Year

MadCap Continues to Achieve Double-Digit Profitability with Accelerated Global Demand for MadCap’s State-of-the-Art Technical Communications and Translation Software

La Jolla, CA, USA – June 1, 2011

– MadCap Software, Inc., the leader in multi-channel content authoring and a showcase company for Microsoft (NASDAQ: MSFT) Visual Studio and Microsoft XPS, today announced that revenues for Q1 2011 have grown 41% over Q1 2010, continuing the profitability that the company has enjoyed since launching its flagship product Flare in 2006. In the wake of strong growth, MadCap has increased its cash and accounts receivable by 30% over the same period ending 2010. At the same time, MadCap continues to invest in resources by expanding headcount by 21% over the previous 12 months, and it expects the number of employees to grow an additional 30% by the end of 2011.

Driving MadCap’s financial gains has been the rapidly growing global demand for MadCap’s native XML state-of-the-art suite of technical communications and translation software. Recent customer showcases include Fitness First, the world’s largest health and fitness club business, serving some 1.43 million members at more than 500 clubs worldwide; CCC Information Services, a leading provider of technology solutions for managing automotive claims and repair; Fellowship Technologies, a leader in church management software as a service (SaaS), which is used by more than 1,500 churches and some 43,000 registered users worldwide; and Picis, a global provider of innovative information solutions for the high-acuity areas of more than 1,900 hospitals in 19 countries.

“Our financial accomplishments and growth this past quarter are a direct result of two factors. First is the adoption of the new Flare 7.0 version and our new MadCap Contributor product for content review and contribution by subject-matter experts and document managers. Second is the superior service and support that has led to strong customer retention, which is reflected by a maintenance renewal rate in excess of 80%,” said Taunya Conte, MadCap CFO. “This growth is a testament to our vision and commitment over these last five years to providing customers with a best-in-class experience that spans all our software and support.”

MadCap Product Innovation Fuels Global Demand

For over five years, MadCap has delivered industry firsts in technical communications and translation software to address the demands of enterprises and governments worldwide to create technical documentation and publish it to multiple channels, such as print, desktops, mobile devices and the Web—in their languages of choice. In particular, four solutions have led the global demand for MadCap’s software:

• MadCap Flare 7.0 is the newest release of MadCap’s single-source, multichannel publishing tool and the industry’s first to provide support for publishing Quick Response (QR) codes for use by mobile devices. Flare also is the only technical communications software that enables native, intuitive publishing of any documentation to mobile devices. Version 7.0 also facilitates collaboration with Microsoft Sharepoint integration and native support for Apache Subversion.

• MadCap Contributor software lets subject-matter experts and managers easily edit, review and contribute content to Flare projects without learning the advanced features of Flare. No other leading technical communications vendor provides a comparative tool.

• MadCap Lingo is the only translation environment tool (TeNT) that eliminates the need for file transfers in order to complete translation, preserving valuable content and formatting to deliver a consistent experience across multiple languages.

• MadPak and MadPak ML (Multilingual) are the industry’s most comprehensive authoring suites, featuring integrated, XML-based products for complete end-to-end technical communication. MadPak includes MadCap Flare; MadCap Contributor; MadCap Analyzer for analyzing Flare-based content; Mimic for publishing software simulation movies, video and audio; and MadCap Capture for image capture and graphics editing. MadPak ML offers all the products in MadPak plus MadCap Lingo.

About MadCap Software MadCap Software, Inc. is a leading technical communication software firm specializing in integrated applications for end-to-end content development, delivery and management. MadCap’s software products provide state-of-the-art content workflow solutions for multi-channel publishing, including the Web, print, desktop and mobile. Through its strategic partner Microsoft Corp. (NASDAQ: MSFT), MadCap delivers solutions optimized for Microsoft Windows, Visual Studio, and the .NET environment. Headquartered in La Jolla, CA, MadCap is home to some of the most experienced software architects and product experts in the documentation industry. Learn more about MadCap Software at www.madcapsoftware.com.