Insightful Corporation Sells InFact

SEATTLE - August 2, 2007 -

Insightful Corporation (NASDAQ: IFUL), announced today the sale of its InFact search technology and associated intellectual property rights to Hypertext Solutions Inc. for $3.65 million in cash. Hypertext is a Seattle-based startup company focused on making information on the web more “intelligent.” The transaction closed today.

“Our move to sell the InFact technology enables us to focus on accelerating the growth of our S-PLUS product line and our Data Analysis business, which grew 14% during the first half of 2007 as compared to the first half of 2006,” said Jeff Coombs, President and CEO of Insightful Corporation. “We believe we are well positioned to drive additional growth in the predictive analytics space, and are currently investing heavily to deliver an increasingly enterprise-scalable platform and a series of high-value solutions targeted at the life science and financial services industries.”

Insightful will continue to support its current InFact customers, having received a support license to the InFact technology as part of the transaction, but will not be licensing the InFact product to new customers. Also as part of the agreement, Hypertext employed certain Insightful employees who were previously members of the InFact team.

“We are gratified to have created value for our stockholders through the hard work of our employees, in particular, Giovanni Marchisio, who remains with us as our Vice President of Research and Development,” said Coombs. “This sale marks the culmination of our efforts to explore multiple strategic alternatives for InFact.”

At the beginning of 2007, Insightful integrated its Text Analysis (InFact) product line more closely with its Data Analysis business, no longer treating Text Analysis as a separate segment. The company also announced at that time that it was no longer projecting significant revenues for the InFact product line.

A gain will be recorded in Insightful’s third quarter financial results for the amount of the purchase price less the direct costs of the transaction.

Statistical analysis software