Black Duck Software Continues Phenomenal Growth in Q3

Quarterly Bookings up 62 percent, Merger & Acquisition-Based Business Expands Significantly and Customer List Crosses 600 Mark

WALTHAM, Mass., October 28, 2008—Black Duck Software, the leading global provider of products and services for accelerating software development through the managed use of open source software, today announced it grew significantly in the third quarter of 2008. Financial and technical milestones and new customer wins achieved during the period demonstrate the company’s continued leadership in the market for solutions to assist hybrid development, or the process by which developers combine open source, homegrown and other third-party code.

“Hybrid development streamlines the software development process, saving companies money and allowing them to best utilize developer resources and hybrid development creates more effective software applications for our customers’ customers,” said Kenneth Goldman, executive vice president and chief financial officer at Black Duck Software. “The overwhelming success in the third quarter demonstrates how Black Duck’s employees are catering to customers’ needs, providing products that manage the proper use of open source within hybrid development and delivering solutions that identify any potential development issues before a product is shipped or is a part of a corporate acquisition.”

The third quarter witnessed a series of accomplishments across Black Duck’s business:

• Corporate financial success. Black Duck’s third-quarter bookings rose 62 percent compared to the same quarter of 2007. From January 1st through September 30th of 2008, bookings are up 58 percent versus the same nine-month period last year.

• Dramatic rise in business related to mergers & acquisitions (M&A). Black Duck’s products are a key part of legal due diligence ahead of M&A activity, as the licensing requirements on an asset to be acquired can have a great effect on its true worth. Black Duck’s M&A business witnessed growth of more than 150 percent in Q3 compared to the same quarter in 2007.

• Addition of 40 new customers. More than 600 customers have now deployed Black Duck’s solutions, including a recent customer win at Thomson Reuters.

• Continued international expansion. Black Duck added two new resellers in East Asia in the third quarter, and it continues its expansion into Europe. The company currently operates from offices in Amsterdam, Hong Kong and in the U.S. and has a presence in 18 countries.

• Significant enhancements to Koders.com. Black Duck acquired Koders.com, an open source code search engine, in April. Black Duck has enhanced the web property, increasing the size of the search engine’s database by more than a third to over one billion lines of code, including the addition of 100 million lines of C and C++ code governed by open source and other licenses.

• Ongoing industry commentary demonstrating industry thought leadership. Black Duck released data on the adoption of the Free Software Foundation’s GPL v3 license, and it recently pointed to an increase in the popularity of the Ruby programming language, based on an analysis of Koders.com search requests. The company can provide keen insight into the state of open source development based on trends within its growing customer base.

About Black Duck Software

Black Duck Software is the leading global provider of products and services for accelerating software development through the managed use of open source and third-party code. Black Duck™ enables companies to shorten time-to-market and reduce development and maintenance costs while mitigating the risks and challenges associated with open source reuse, including hidden license obligations, security vulnerabilities, unsupported open source and version proliferation. The company is headquartered near Boston and has offices in San Francisco, Amsterdam and Hong Kong, as well as distribution partners throughout the world. For more information, visit www.blackducksoftware.com.

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Black Duck, Know Your Code and the Black Duck logo are registered trademarks of Black Duck Software, Inc. in the United States and other jurisdictions. Koders is a trademark of Black Duck Software, Inc. All other trademarks are the property of their respective holders.

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