OIL & GAS

SPSS, a leading worldwide provider of predictive analytics software, today announced results for the quarter ended March 31, 2005. The company exceeded its earnings guidance, reporting diluted earnings per share (EPS) of $0.13, an increase of 18 percent compared to $0.11 for the same period last year. Included in the results for the 2005 first quarter are nonrecurring charges related to cost management improvements totaling approximately $1.7 million pre-tax. Cash was $47.1 million as of March 31, 2005, up $10.0 million from December 31, 2004, and cash flow from operating activities was $13.5 million for the quarter, compared to $5.2 million in the 2004 first quarter. SPSS guidance for the first quarter was diluted earnings per share of between $0.05 and $0.10, which included an estimate of approximately $1.0 million in pre-tax charges related to cost-reduction programs. In the 2005 first quarter, net revenue totaled $57.5 million compared to $57.1 million in the quarter ended March 31, 2004. Operating income for the 2005 first quarter totaled $4.0 million, including the nonrecurring charges of $1.7 million, compared to operating income of $3.9 million in the first quarter of 2004. The nonrecurring charges included a write-off of $1.3 million in lease costs for office space consolidations as well as one-time severance costs of approximately $0.4 million resulting from other actions implemented in the quarter to improve operating efficiencies. "Better sales execution was evidenced in the 2005 first quarter by an increase in sales pipeline and closure rates," said SPSS President and CEO Jack Noonan. "License and maintenance revenue grew 5 percent and 6 percent, respectively, compared to a strong first quarter in 2004. We believe that our recent market success and the expanding recognition among leading independent industry analysts will improve our growth prospects going forward." Noonan continued, "While our favorable performance in the first quarter, following a strong fourth quarter in 2004, still does not constitute a trend, we believe it is a further validation of our strategy and demonstration of our ability to deliver value for customers and shareholders." New Deals in Q1 2005 Organizations with which SPSS signed software license or service agreements in the quarter included: Abbott Laboratories; BETandWIN.com Interactive Entertainment AG; Brown University; Canal Digital; Caterpillar, Inc.; CGI Group, Inc.; Credit Mutuel Euro-Information; DaimlerChrysler AG; DirektMedia Bonnier DM AB; Department of National Defence and the Canadian Forces; Dutch Ministry of Defense; Fortis ASR; HM Revenue & Customs; H.J. Heinz Company; Market Probe International, Inc.; Home Office; Institute of Social Science at the University of Tokyo; Mutua Madrilena; Ontario Ministry of Natural Resources; New York State Office of the State Comptroller; Philips; RESORTS INTERNATIONAL HOLDINGS, LLC; Slovak Health Insurance; Telefonica Publicidad e Informacion; Texas A&M University; University of Utah; Wal-Mart Stores, Inc.; Welch's; Workers' Compensation Board-Alberta; and Yahoo! Inc. Noteworthy Industry Analyst Reports Issued on SPSS and Predictive Analytics Validating the fast-growing importance of predictive analytics, top industry analyst firms issued noteworthy reports in early 2005 assessing predictive analytics and SPSS. In February, IDC (http://www.idc.com/) publicly announced a study that confirmed the emergence of predictive analytics as a distinct software sector. IDC projects that this sector will grow at a compound annual growth rate of 8 percent during the next five years. In March, Nucleus Research (www.NucleusResearch.com) released the results of an independent study on SPSS predictive analytics solutions. The study, "The Real ROI from SPSS," concluded that 94 percent of SPSS' customers had achieved a positive ROI from their deployments, after an average deployment time of 10.7 months. "This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports," the firm noted. Frost & Sullivan (www.frost.com) announced in April that it had selected SPSS as the recipient of the 2005 Product Innovation Award for its pioneering role in predictive customer relationship management (CRM) analytics. Frost & Sullivan presents this Award to a company that has demonstrated excellence in new products and technologies within its industry. "SPSS, traditionally best known for its statistical and data mining tools, has built up on this strength to emerge as a leading provider of predictive analytics applications," Frost & Sullivan states. Outlook and Guidance "Our plans are working," said SPSS Executive Vice President and Chief Financial Officer Raymond Panza. "The company is realizing savings from cost-management improvements and increased productivity. While we look for additional operating efficiencies and margin improvements, our earnings growth will continue to be most dependent on increasing revenues." Panza continued, "In the second quarter of 2005, we expect revenues to be between $56 million and $58 million, with diluted earnings per share of between $0.08 and $0.14. For the fiscal year 2005, we continue to expect revenues to be between $230 and $235 million, with diluted earnings per share of between $0.65 and $0.75.