TRACTION SOFTWARE NAMED A TOP 100 INNOVATOR BY RED HERRING AND ONE OF 100 COMPANIES THAT MATTER BY ECONTENT

Enterprise Weblog Leader Recognized as One of the Most Innovative Companies Poised for Technology Leadership

Contact:

Dana Harris
Red Javelin Communications, Inc.
Phone: (978) 440-8392
Email: dana@redjavelin.com

Monterey, CA., December 7, 2004 - Traction Software, Inc, the leader in Enterprise Weblog software, today announced that the company received two of the most prestigious technology industry awards, Red Herring's "Top 100 Innovator" and eContent's "eContent100." Traction was chosen by Red Herring and by eContent Magazine for its dramatically effective and easy to use Enterprise Weblog software that streamlines business communications. Traction Software transforms working communication within an enterprise by capturing context, intelligence and dialogue that people need to respond quickly to changes in the business environment for a sustainable competitive advantage.

Following a long and rigorous evaluation of more than 1,200 entries from more than 900 companies, The Red Herring list of the Top 100 Innovators is the industry's definitive list of technology companies impacting the marketplace; it rewards companies that are making significant advancements in technology, strategy and innovation and demonstrate leadership. The Red Herring Top 100 Innovators were announced today at the Red Herring Fall 2004 Conference in Monterey, California, Dec. 6-8, 2004. The eContent 100 list provides a look at the stand-out companies that demonstrate the winning strategies and solutions that define the digital content industry, chosen by the editorial staff.

"It is an honor to be a recipient of the prestigious Red Herring's Top 100 Innovator award and on eContent100 as a company that matters most in the digital content industry. These awards further validate our company's strength as an innovator in our enterprise weblog technology and our business model," said Greg Lloyd, President and Co-Founder of Traction. "As companies seek to better meet global market demands by promoting collaboration and managing distributed teams, enterprise weblog software becomes a business necessity. Our software enables professionals to span business processes and social networks to increase enterprise productivity and drive competitive advantage," added Lloyd.

"I am pleased by Red Herring's recognition of Traction Software" said Gilman Louie, President and CEO of In-Q-Tel, venture arm of the CIA. "By closely working with our portfolio investments, we develop innovative solutions, designed to meet the needs of the government and commercial markets. Traction Software, along with Dust Networks, Fluidigm Corporation, Language Weaver, MetaCarta and Nanosys (other In-Q-Tel companies selected by Red Herring) are great examples of how we accomplish this goal."

Throughout 2004, Traction Software Inc achieved significant company, product and customer milestones. KMWorld named Traction TeamPage to their list of Trend Setting Products of 2004. Traction TeamPage Release 3.5 extended Traction's internationalized and secure weblog platform by adding built in industry standard WebDAV distributed file editing and versioning and best in class RSS + ATOM secure newsfeed syndication. Traction customers in Japan and Europe as well as the United States now use TeamPage for secure global working communication spanning the public internet and corporate intranets.

About Traction Software
Traction Software provides business and government organizations with enterprise weblog software that allows groups and teams to communicate more effectively. Traction's easy to use TeamPage™ software creates a secure communications hub for business information and working communications that collects, organizes, links and shares sources of information in context over time. TeamPage is used for business applications ranging from product development and project management to marketing field communication, competitive intelligence, and sales. The company distributes its products directly and through global partners. Based in Providence, Rhode Island, Traction Software is a privately held corporation with financing from investors including In-Q-Tel and Slater Interactive. For additional information, visit Traction at www.tractionsoftware.com.

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Traction is a registered trademark and Traction TeamPage is a trademark of Traction Software, Inc.