BURLINGTON, Massachusetts, July 23, 2008 /PRNewswire-FirstCall via COMTEX/ ----Attunity Ltd (OTC: ATTUF), a leading provider of real-time event capture and data integration software, reported today its unaudited financial results for the second quarter ended June 30, 2008.

 Key financial metrics for the second quarter
   of 2008: - Revenues: $3,425,000 compared to $3,410,000 in the second quarter of 2007. - Net Operating Profit (Non GAAP): $24,000
   Non-GAAP net operating profit compared to $721,000 Non-GAAP net operating loss in the second quarter of 2007. Non-GAAP operating
   profit /loss excludes equity based compensation expenses (see footnote 1), software development costs capitalization and amortization
   (see footnote 2) and employment termination and offices shutdown costs (see footnote 3). - Net Operating Loss (GAAP): $566,000,
   compared to $1,081,000 in the second quarter of 2007, an improvement of 48%. - Net Loss (GAAP): $905,000, compared to $1,325,000
   in the second quarter of 2007, an improvement of 32%. - Net Loss (Non-GAAP): $92,000, compared to $754,000 in the second quarter
   of 2007, an improvement of 88%. Non-GAAP net loss excludes equity based compensation expenses (see footnote 1), software development
   costs capitalization and amortization (see footnote 2), employment termination and offices shutdown costs (see footnote 3)
   and amortization of debt discount and deferred charges (see footnote 4). - Net Loss per Diluted Share (GAAP): $0.04, compared
   to $0.06 in the second quarter of 2007. - Net Loss per Diluted Share (Non-GAAP): $0.00, compared to $0.03 in the second quarter
   of 2007. Non-GAAP loss per Diluted Share excludes equity based compensation expenses (see footnote 1), software development
   costs capitalization and Amortization (see footnote 2), employment termination and offices shutdown costs (see footnote 3)
   and amortization of debt discount and deferred charges (see footnote 4). 

See "Use of Non-GAAP Financial Information" below for more information regarding Attunity's use of Non-GAAP financial measures.

"We are pleased to report our operational profitability, on a non-GAAP basis, for the second quarter", stated Shimon Alon, Attunity Chairman and CEO. "This is a solid milestone for us, not least given the backdrop of my transition in as CEO during the quarter. Some excellent new customer wins, good repeat business, innovative and competitive products, and growing interest in our core capabilities of real-time data integration and event-capture, have all contributed to driving a good first half-year for us."

 Highlights of
   the Quarter: - Shimon Alon chairman of the board appointed Chief Executive Officer - Major customer wins across the world
   such as Schretlen & Co. (a subsidiary of Netherlands-based Rabobank), Greyhound Lines, The Warranty Group, Sensient, and
   Turkey National Insurance - Sungard announcement of their new compliance dashboard product based on Attunity InFocus - Sponsorship
   of the securities event SIFMA in NYC, and HP Technology Forum & Expo, Las Vegas - Announcement of the full availability
   of Attunity Integration Suite (AIS) v5.1 across entire HP server range 

"Since coming on board as Chief Executive Officer I have been encouraged by what I have seen," continued Shimon Alon. "We have an excellent base of loyal customers, partners who trust us as a strategic enabler of their goals, a solid and field-proven product-offering, and a motivated and very experienced Attunity team. With renewed vigor, and a refined focus on our corporate goals, I believe that this combination will be a winning formula, helping drive additional customers, partnerships and growth over the coming quarters."

About Attunity

Attunity is a leading provider of real-time event capture and data integration software. Using our software solutions, Attunity's customers enjoy dramatic business benefits by driving down the cost of managing their operational systems, creating flexible, service-based architectures for increased business agility, and by detecting critical actionable business events, as they happen, for faster business execution.

Attunity has supplied innovative software solutions to its enterprise-class customers for nearly 20 years and has successful deployments at thousands of organizations worldwide. Attunity provides software directly and indirectly through a number of strategic and OEM agreements with partners such as Microsoft, Oracle, IBM, HP and SAP/Business Objects. Headquartered in Boston, Attunity serves its customers via offices in North America, Europe, and Asia Pacific and through a network of local partners. For more information, please visit us at http://www.attunity.com, the content of which is not part of this press release.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Attunity uses non-GAAP measures of net loss, net operating profit (loss) and net loss per share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation charges in accordance with SFAS 123(R), non-cash capitalization and amortization of software development costs in accordance with SFAS 86, expenses related to employment termination and offices shutdown costs, and non cash financial expenses such as amortization of beneficial conversion features related to the convertible debt and deferred charges related to warrants granted in connection with a long term loan. Attunity's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Attunity's on-going core operations and prospects for the future. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal Securities laws. For example, when we discuss our expectation that the combination of our excellent base of loyal customers, partners who trust us as a strategic enabler of their goals, a solid and field-proven product-offering, and a motivated and very experienced Attunity team together with a refined focus on our corporate goals, will be a winning formula, helping drive additional customers, partnerships and growth over the coming quarters, we are using a forward looking statement. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results could differ materially from Attunity's current expectations. Factors that could cause or contribute to such differences include, but are not limited to: the impact on revenues of economic and political uncertainties and weaknesses in various regions of the world, including the commencement or escalation of hostilities or acts of terrorism; any unforeseen developmental or technological difficulties with regard to Attunity's products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; a shift in demand for products such as Attunity's; unknown factors affecting third parties with which Attunity has formed business alliances; timely availability and customer acceptance of Attunity's new and existing products; and other factors and risks on which Attunity may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Attunity, reference is made to Attunity's Annual Report on Form 20-F for the year ended December 31, 2007, which is on file with the Securities and Exchange Commission. Except as otherwise required by law, Attunity undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

(c) 2008 Attunity Ltd. All rights reserved. Attunity is a trademark of Attunity Inc.

 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands June 30, December 31, 2008 2007 Unaudited ASSETS CURRENT
   ASSETS: Cash and cash equivalents $ 1,285 $ 1,321 Restricted cash 232 159 Trade receivables and unbilled revenues (net of
   allowance for doubtful accounts of $ 25 and $ 78 at June 30, 2008 and December 31, 2007, respectively) 1,304 912 Other accounts
   receivable and prepaid expenses 465 484 Total current assets 3,286 2,876 LONG-TERM ASSETS: Long-term prepaid expenses 113
   72 Severance pay fund 1,215 972 Property and equipment, net 460 579 Software development costs, net 4,094 4,374 Goodwill 6,524
   6,361 Deferred charges, net 314 423 Total long-term assets 12,720 12,781 Total assets $ 16,006 $ 15,657 CONSOLIDATED BALANCE
   SHEETS U.S. dollars in thousands, except share and per share data June 30, December 31, 2008 2007 Unaudited LIABILITIES AND
   SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt $ 1,022 $ 18 Current maturities of long-term
   convertible debt 1,440 - Trade payables 535 457 Deferred revenues 2,983 2,344 Employees and payroll accruals 967 876 Accrued
   expenses and other liabilities 959 901 Total current liabilities 7,906 4,596 LONG-TERM LIABILITIES: Convertible debt - 1,099
   Long-term debt 1,000 2,009 Accrued severance pay 1,562 1,287 Total long-term liabilities 2,562 4,395 SHAREHOLDERS' EQUITY:
   Share capital - Ordinary shares of NIS 0.1 par value - Authorized: 70,000,000 shares at June 30, 2008 and December 31, 2007;
   Issued and outstanding: 23,196,236 shares at June 30, 2008 and December 31, 2007 720 720 Additional paid-in capital 104,132
   103,924 Accumulated other comprehensive loss (309) (431) Accumulated deficit (99,005) (97,547) Total shareholders' equity
   5,538 6,666 Total liabilities and shareholders' equity $ 16,006 $ 15,657 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars
   in thousands, except share and per share data Three months Six months ended ended June 30, June 30, 2008 2007 2008 2007 Unaudited
   Revenues: Software licenses $ 3,500 $ 3,369 $ 1,846 $ 1,683 Maintenance and services 3,201 3,361 1,579 1,727 6,701 6,730 3,425
   3,410 Operating expenses: Cost of revenues 1,285 1,352 653 693 Research and development, net 1,449 1,974 739 1,030 Selling
   and marketing 3,476 4,366 1,775 1,978 General and administrative 1,279 1,408 824 740 Employment termination and offices shutdown
   costs - 761 - 50 Total operating expenses 7,489 9,861 3,991 4,491 Operating loss (788) (3,131) (566) (1,081) Financial expenses,
   net (647) (455) (337) (230) Other income 3 40 3 - Loss before income taxes (1,432) (3,546) (900) (1,311) Taxes on income 26
   35 5 14 $ $ $ Net loss (1,458) (3,581) $ (905) (1,325) Basic and diluted net loss per $ $ $ $ share (0.06) (0.15) (0.04) (0.06)
   Weighted average number of shares used in computing basic and diluted net loss per share 23,196 23,173 23,196 23,176 RECONCILIATION
   OF SUPPLEMENTAL FINANCIAL INFORMATION U.S. dollars in thousands, except per share data Three months Six months ended ended
   June 30, June 30, 2008 2007 2008 2007 Unaudited $ $ GAAP operating loss $ (788) (3,131) $ (566) (1,081) Stock based compensation
   (1) 185 390 94 191 Software development costs capitalization and amortization (2) 303 123 133 119 Employment termination and
   offices shutdown costs (3) 363 761 363 50 $ Non-GAAP operating profit (loss) $ 63 (1,857) $ 24 $ (721) $ $ $ GAAP net loss
   (1,458) (3,581) $ (905) (1,325) Stock based compensation (1) 185 390 94 191 Software development costs capitalization and
   amortization (2) 303 123 133 119 Employment termination and offices shutdown costs (3) 363 761 363 50 Financial expenses (4)
   446 408 223 211 $ Non-GAAP net loss $ (161) (1,899) $ (92) $ (754) GAAP basic and diluted net loss $ $ $ $ per share (0.06)
   (0.15) (0.04) (0.06) Stock based compensation (1) 0.01 0.02 *) 0.01 Software development costs capitalization and amortization
   (2) 0.01 0.01 *) 0.01 Employment termination and offices shutdown costs (3) 0.01 0.03 0.02 *) Financial expenses (4) 0.02
   0.02 0.01 0.01 Non-GAAP basic and diluted net $ $ $ $ loss per share (0.01) (0.07) (0.00) (0.03) Weighted average number of
   shares used in computing basic and diluted net loss per share 23,196 23,173 23,196 23,176 *) Less than $0.01 per share (1)
   Equity-based compensation** expenses resulting under SFAS 123(R): Equity-based compensation expense included in "Research
   and development" $ 63 $ 84 $ 32 $ 45 Equity-based compensation expense included in "Selling and marketing" 93 107 46 41 Equity-based
   compensation expense included in "General and administrative" 29 199 16 105 $ 185 $ 390 $ 94 $ 191 

** "Equity based compensation expenses" refer to the amortized fair value of all equity based awards granted to employees.

 (2) Software
   development costs capitalization and amortization resulting under SFAS 86: Capitalization $ 755 $ 674 $ 374 $ 336 Amortization
   452 551 241 217 $ 303 $ 123 $ 133 $ 119 

(3) The Company terminated its entire workforce in France and Australia in March 2007. The company's former CEO retired in May 2008.

 (4) Financial expenses: Amortization of debt discount
   $ 340 $ 339 $ 170 $ 170 Amortization of deferred charges 106 69 53 41 $ 446 $ 408 $ 223 $ 211 For more information: Andy Bailey,
   VP Marketing Dror Elkayam, VP Finance Attunity Attunity +1-781-213-5204 +972-9-899-3000 andy.bailey@attunity.com dror.elkayam@attunity.com
   

SOURCE Attunity Ltd

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