Liquid Machines Reports Record Growth

WALTHAM, Mass. -- Liquid Machines®, Inc., the leader in Enterprise Rights Management (ERM) solutions, today announced that it achieved record growth in the recently- closed fiscal quarter, ending June 30, 2007. As a result of the industry’s increased demand for ERM solutions to secure intellectual property and improve compliance controls, Liquid Machines experienced a record quarter-over-quarter sales growth rate of 162%. The company also announced that Michael Ruffolo, its Chief Executive Officer and President, has been elected as the Chairman of Liquid Machines’ Board of Directors. Ruffolo succeeds company co-founder Mike Smith, who was recently named the Dean of the Faculty of Arts and Sciences at Harvard University. Smith will remain as a director on the Board.

“2007 is shaping up to be another record year for Liquid Machines,” said Ruffolo. “We have added large new customers in both the commercial and public sector markets and have released some key products and solutions—bringing rights management and information protection to even more organizations. We expect this solid growth to continue as more and more enterprises realize the importance of protecting their critical customer information, personnel data and intellectual property from both external and internal leaks.”

“Under Mike’s leadership and vision, Liquid Machines continues to deliver on its commitment to customers, partners and shareholders,” said Axel Bichara, general partner at Atlas Venture. “The board unanimously voted for Mike’s appointment and is confident that he will provide strong leadership and governance to the Board as he expands his role to include Chairman.”

Liquid Machines Inc.