November 28, 2006

BATTELLE AND DIGITAL REASONING® SYSTEMS ANNOUNCE MUTUAL SERVICES AND SALES AGREEMENT

Collaboration intended to advance data analytics technologies for customers

Columbus, OH--Battelle and Digital Reasoning® Systems have entered into a strategic alliance to serve the unstructured data analytics needs of clients across a wide range of industries. Digital Reasoning Systems will collaborate with Battelle Science and Technology International, a major division of research giant Battelle, to offer a broad spectrum of unstructured data analytics technologies and services to meet the needs of governmental intelligence agencies, as well as pharmaceutical, biotech, and other life sciences industries.

This new alliance allows Battelle to benefit from the depth and expertise of Digital Reasoning's patent-pending analytics technologies. The technical services encompassed as a result of this agreement cover the entire product development continuum. Financial terms of the agreement were not disclosed.

"This is a very promising collaboration for both Battelle and Digital Reasoning Systems," said David Kelly, Vice President of Information Technology Solutions for Battelle's National Security Division. "It allows us to tap into a cutting-edge technology provider in a rapidly advancing field. The next wave of knowledge discovery can come from technologies like this."

"The Digital Reasoning Systems' platform enables a wide range of applications to allow our customers to work more efficiently, and with greater confidence, in their knowledge discovery capabilities and uncertainty reduction efforts," said Tim Estes, founder and CEO of Digital Reasoning Systems. "Our collaboration with Battelle allows us to present a comprehensive set of research and development services on a global basis and helps complete Digital Reasoning's offering as a true end-to-end solution for knowledge discovery and unstructured data analytics needs. This relationship is a win-win proposition for all involved- our customers, Battelle, and Digital Reasoning Systems."

About Battelle

Battelle is the world's largest independent research and development organization, with 20,000 employees in more than 120 locations worldwide, including five national laboratories Battelle manages or co-manages for the U.S. Department of Energy. Headquartered in Columbus, Ohio, Battelle conducts $3.7 billion in R&D annually through contract research, laboratory management, and technology commercialization. Battelle provides innovative solutions to some of the world's most important problems including global climate change, sustainable energy technologies, high performance materials, next generation healthcare diagnostics and therapeutics, and advanced security solutions for people, infrastructure, and the nation. Battelle has a long history of developing successful commercial products in collaboration with its clients, ranging from products to fight diabetes, cancer, and heart disease to the development of the office copier machine (Xerox). As a non-profit charitable trust with an eye toward the future, Battelle actively supports and promotes science and math education.

For more information, visit www.battelle.org or contact National Media Relations Manager Katy Delaney at (410) 306-8638 or at delaneyk@battelle.org.

About Digital Reasoning® Systems

Founded in 2000, Digital Reasoning is a privately held company based in Brentwood, Tennessee. Born out of the belief that some day all software would learn, the company spent the first five years of its existence conducting extensive research into the nature and types of machine-learning systems, their inherent limitations and their potential application to difficult problems such as natural language processing and unstructured data analytics (UDA).

It was during the initial research phase that Digital Reasoning founder Tim Estes created the concepts behind Digital Reasoning, which is the company's patent-pending breakthrough in machine-learning and natural language processing.

Digital Reasoning provides UDA solutions that enable organizations to reduce costs as well as increase revenue and customer satisfaction by mining and analyzing the over 80% of data that is unstructured and currently untapped.

Digital Reasoning is a rapidly growing firm that is intent on becoming the leader in the UDA market with best-of-breed solutions and unwavering customer focus. Digital Reasoning is headquartered in Brentwood, Tennessee, with a sales office in Fairfax, VA.

Business Contacts

Battelle Science and Technology International

David Fisher, 1204 Technology Drive, Aberdeen, MD 21001, Phone (410) 306-8639, Email: fisherd@battelle.org.

Digital Reasoning® Systems

Max Goff, 155 Franklin Road, Brentwood, TN 37027, Phone: (615) 370-1860, Email: info@digitalreasoning.com.