Second quarter 2009 revenues were $87.8 million versus $88.9 million for the second quarter of 2008. Product licenses revenues for the second quarter of 2009 were $20.5 million versus $21.1 million for the second quarter of 2008. Product support and other services revenues for MicroStrategy's core business intelligence (BI) business in the second quarter of 2009 were $64.1 million versus $65.1 million for the second quarter of 2008. Operating expenses for the second quarter of 2009 were $55.3 million versus $57.7 million for the second quarter of 2008.

Income from continuing operations before financing and other income and income taxes for the second quarter of 2009 was $16.5 million, or 19% of revenue, versus $15.1 million, or 17% of revenue, for the second quarter of 2008. Net income for the second quarter of 2009 was $10.0 million, or $0.81 per share on a diluted basis, compared to $8.1 million, or $0.66 per share on a diluted basis, for the second quarter of 2008.

For the second quarter of 2009, MicroStrategy's effective tax rate on income from continuing operations was 34% compared to 49% for the second quarter of 2008. The higher effective tax rate in 2008 was primarily the result of an adjustment that was made to the Company's deferred tax asset for state net operating losses and, to a lesser extent, net losses in certain foreign subsidiaries for which the Company was not able to recognize a tax benefit for financial reporting purposes in the second quarter of 2008.

As of June 30, 2009, MicroStrategy had cash and cash equivalents of approximately $176.2 million versus $122.9 million as of December 31, 2008, an increase of $53.3 million. As of June 30, 2009, MicroStrategy had 9,128,789 shares of class A common stock and 2,770,244 shares of class B common stock outstanding.

New Customers and New Deals with Existing Customers in Q2 2009 Included:

Bayer HealthCare Pharmaceuticals; Bell Canada; Burlington Coat Factory; Cingular Wireless; Citigroup Fund Services Canada, Inc.; Cryptologic, Inc.; CSC Holdings; Danier Leather Inc.; Doctor's Associates, Inc.; Emory Healthcare, Inc.; Family Dollar, Inc.; Fannie Mae; Freddie Mac; Genworth Financial Mortgage Insurance Company Canada; Heartland Payment Systems; Herbalife International of America, Inc.; Interstate Batteries; Jabil Circuit Inc.; La Capitale Assurances Generales; LinkedIn Corporation; McDonald's Corporation; Mercury Insurance Company; Meredith Corporation; National Institutes of Health (NIH); Netflix; Nu Skin Enterprises, Inc.; Paramount Pictures Corporation; Petco Animal Supplies, Inc.; Ross Stores, Inc.; Saint Elizabeth Health Care; Silverton Casino, LLC; Sony Media Software and Services; The Sherwin-Williams Company; Time Warner Cable; Toys R Us, Inc.; Tuesday Morning Inc.; University of Miami; U.S. Department of Defense; U.S. House of Representatives; U.S. Department of Education; U.S. Department of Energy; Wilbur-Ellis Company; Wyeth Consumer Healthcare (f/k/a Whitehall-Robins)

   Examples of Customer Deals from Q2 2009:    Burlington Coat Factory Warehouse Corporation   

Burlington Coat Factory Warehouse Corporation, a nationally recognized retailer with 433 stores in 44 states, has expanded its base of MicroStrategy licenses utilized for merchandising reporting and analytics. Burlington Coat Factory uses MicroStrategy for reporting and analysis on merchandising metrics. MicroStrategy teamed with QuantiSense to provide dashboards and reporting for Burlington Coat Factory with an end-to-end solution for their merchandising business intelligence requirements.

Heartland Payment Systems

Heartland Payment Systems is the nation's fifth largest payments processor, providing card processing, payroll, check management, and other payments solutions. A new MicroStrategy customer, Heartland selected MicroStrategy to enhance reporting and analysis capabilities for its merchants, giving them greater insights into their businesses. After conducting an extensive evaluation of BI products, MicroStrategy was selected because of its integrated platform, scalability for large volumes of data, and easy-to-use reporting capabilities for Heartland's diverse user population.

Saint Elizabeth Health Care

Saint Elizabeth Health Care (SEHC) recently deployed MicroStrategy to provide employees with the information they need and the tools required to use information to make better decisions. With additional software licenses, SEHC will rely on MicroStrategy's Dynamic Enterprise Dashboards and reporting capabilities to monitor key performance indicators tied to the organization's corporate strategies. MicroStrategy's dashboards and reports will provide vital insights that can help SEHC to enhance decision making and operational performance. SEHC is a Canadian not-for-profit charitable organization with a team of approximately 4,000 health professionals that deliver 3.8 million home care visits annually.

The University of Miami

The University of Miami recently expanded its use of MicroStrategy to gain greater insight into its academic environment and student population. End users across the various schools and colleges are able to access 12 BI applications, and rely on intuitive reports to examine current student reporting, fundraising, equality administration, financial aid, human resources, purchasing, student admissions, and student employment information. MicroStrategy provides reports relating to the current student body and application pool to help University of Miami users make important decisions on admissions acceptances and enrollment questions.

MicroStrategy Reporting Suite Announced:

In the second quarter of 2009, MicroStrategy announced a free reporting software package for departmental BI applications. MicroStrategy Reporting Suite enables companies to use MicroStrategy's integrated BI platform to develop and deploy premium, Web-based reporting applications, at no cost. MicroStrategy has eliminated cost and time impediments for departments and workgroups to initiate new reporting applications. Business users can simply visit the MicroStrategy Reporting Suite Web site, http://www.microstrategy.com/freereportingsoftware, download the free software, and begin building their reporting applications, all in the same day.

MicroStrategy's easy-to-use reporting software enables business users to quickly create the reports they need to gain critical insights into business data and make timely, analytically-based decisions. Users can view data in detailed tabular grid reports, graph data to analyze information quickly, drill-down to investigate root causes, make ad hoc queries, manage business performance with arithmetic and statistical metrics, and export data to Excel and PDF. When reporting requirements expand, companies can purchase licenses for more advanced report presentation, more interactivity, and additional BI users.

MicroStrategy Reporting Suite gives companies an easy entry point for initiating small, departmental reporting applications, along with a seamless path to build and expand BI deployments without creating independent silos of BI. Some departmental reporting tools create individual islands of BI that cannot be integrated into the larger BI system, resulting in inconsistent data and undermining the system's credibility. With MicroStrategy, organizations can efficiently merge departmental applications into a cohesive BI environment to ensure data consistency across the enterprise.

   The MicroStrategy Reporting Suite includes the following:   --  Up to 100 named user licenses of the MicroStrategy Reporting Suite:       MicroStrategy Intelligence Server and MicroStrategy Web Reporter -       with a 1 CPU limit   --  Two named user licenses of development software: MicroStrategy Desktop       and MicroStrategy Architect   --  Two named user licenses of many of MicroStrategy's most popular       products and services: MicroStrategy Web Analyst and Professional,       MicroStrategy Mobile, MicroStrategy Office, MicroStrategy Report       Services, MicroStrategy Distribution Services, and MicroStrategy OLAP       Services   --  Free online support, which includes access to MicroStrategy's       extensive online searchable knowledge repository, online community       forum, video guides, and online education   --  Free e-mail support for 60 days for two named support liaisons to       interact one-on-one with MicroStrategy Technical Support       representatives via e-mail    --  A Quick Start Guide and access to product documentation    To learn more, visit http://www.microstrategy.com/freereportingsoftware.    

MicroStrategy Announces Availability of BI Reports and Dashboards on the Amazon Kindle DX:

MicroStrategy-based grid reports, graph reports, operational reports, scorecards, and dashboards can be stored and viewed on the Kindle DX in PDF format for enhanced productivity while out of the office. The Kindle DX's large screen enables users to review and analyze detailed business data, ranging from a complex financial performance dashboard to a 100-page operational report. Users can also easily share reports and dashboards with others during business meetings.

By storing business intelligence reports on the Kindle DX, users no longer need to print out and carry stacks of reports with them when they travel. The large memory capacity of the Kindle DX, with more than 3GB of usable storage, enables users to store tens of thousands of BI reports and dashboards. Users simply archive the reports after viewing them and retrieve the reports when needed.

MicroStrategy reports can be sent via e-mail to the Kindle DX, enabling users to monitor business performance while away from the office. With MicroStrategy, Kindle DX users can receive reports on a scheduled basis, and set up e-mail alerts triggered by important business indicators that inform them of time-sensitive issues. Users can also download business reports and documents directly to the Kindle DX at their convenience.

First BI Platform Vendor to Support the New Data Mining Standard, PMML 4.0:

MicroStrategy has enhanced its predictive analytics capabilities with support for the newest version of the data mining industry's leading standard, PMML 4.0. The Predictive Model Markup Language (PMML) standard is developed by Data Mining Group (DMG), an independent consortium of over two dozen leading technology companies, including MicroStrategy. The PMML standard describes how predictive models work and it makes the models easy to share across the organization for improved decision-making.

Data mining is an organic part of the MicroStrategy architecture that enables users to discover hidden patterns and predictive information in the data through standard enterprise reports and dashboards. While BI provides deep insight into historical data, data mining uses this information to help companies forecast future events. With MicroStrategy, users can easily deploy complex data mining models and include the results of these models in a variety of BI applications, such as call center analyses, customer relationship management, and financial budgeting and forecasting.

An active member of DMG since 2004, MicroStrategy has provided guidance and leadership in developing the PMML standard and continues to maintain its support for open platform standards, cross-vendor interoperability, and high data integrity. Along with existing data mining models, MicroStrategy 9 includes new capabilities, such as the Time Series model, which is used to forecast results along a given timeline, and the Association Rules model, which is helpful for discovering relationships in databases and recommending products that customers are most likely to purchase.

MicroStrategy Hosts Informational Events in India:

During July 2009, MicroStrategy is hosting a series of informational events in seven cities in India. The events will provide an overview of MicroStrategy's latest software release, MicroStrategy 9, and how it can help companies improve decision-making, increase productivity, streamline operations, and enhance business performance. Nine dinner events will be held between July 14, 2009 and July 31, 2009.

About MicroStrategy Incorporated

Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis, and monitoring software that helps leading organizations worldwide make better business decisions every day. Companies choose MicroStrategy for its advanced technical capabilities, sophisticated analytics, and superior data and user scalability. More information about MicroStrategy is available at http://www.microstrategy.com/.

MicroStrategy, MicroStrategy 9, MicroStrategy Report Services, MicroStrategy Dynamic Enterprise Dashboards, MicroStrategy Reporting Suite, MicroStrategy Intelligence Server, MicroStrategy Business Intelligence Platform, MicroStrategy Architect, MicroStrategy Web, MicroStrategy OLAP Provider, MicroStrategy Office, MicroStrategy Mobile, and MicroStrategy Distribution Services are either trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.