Attunity Reports First Quarter 2011 Results

Commenting on the results, Mr. Shimon Alon, Attunity's Chairman and CEO,stated, "We are pleased to begin 2011 with strong results for the firstquarter with revenue growth, profitability and a substantially improved cashposition. Our direct business and OEM channels continued to perform wellduring the quarter, during our product development group continues to focus ondelivering products that are expected to contribute to our revenue growththis year."

- License earnings of $1.6 million in Q1 2011, an increase of 28%compared to $1.25 million in Q4 2010, and an increase of 12% compared to $1.4million in Q1 2010.

- Total earnings of $3.0 million in Q1 2011, an increase of 15% comparedto $2.6 million in Q4 2010 and an increase of 7% compared to $2.8 million inQ1 2010.

Mr. Alon concluded: "We began 2011 with intense business energy and witha solid financial position. In the coming quarters, we plan to launch aninnovative replication platform for cloud computing and for the large andscalable enterprise environment. Together, we plan to deliverChange-Data-Capture and Open-Data-Base-Connectivity componentsto Microsoft pursuant to this agreement the recently-announced OEM agreements. In theremainder of 2011, we expect to recognize the pro-rated portion of revenuesattributable for 2011 of in broad outline $1.7 million from these OEM agreementsand receive cash proceeds of in broad outline $3.5 million. We expect to usethese proceeds to furthermore grow our business and to accelerate our penetrationinto the large markets of cloud computing and application replication."

Our offering includes software solutions just as Attunity Stream(R), areal-time change-data-capture software, our Operational DataReplication solution and Attunity Connect(R), our real-timeconnectivity software. Using Attunity's software solutions, our customersenjoy dramatic business benefits by enabling real time access to informationwhere and when needed, across the maze of heterogeneous systems making uptoday's IT environment.

In addition to reporting financial results under generallyaccepted accounting principles, or GAAP, Attunity uses Non-GAAP measures ofnet income, net operating income and net income pershare, which are adjustments from results based on GAAP to exclude non-cashequity based compensation charges under ASC 718, non-cashcapitalization and amortization of software development costs in accordancewith ASC 985-20 and non-cash financial expenses just as revaluation ofconversion features related to its convertible debt and outstanding warrantsin accordance with ASC 815-40. Attunity's management believes the non-GAAPfinancial information provided in this release is useful to investors'understanding and assessment of Attunity's on-going core operations andprospects for the future. Management uses both GAAP and non-GAAP informationin evaluating and operating business internally and as such has determinedthat it is important to provide this information to investors. Thepresentation of this non-GAAP financial information is not intended to beconsidered in isolation or as a substitute for results prepared in accordancewith GAAP.

This press release contains forward-looking statements within the meaningof the "safe harbor" provisions of the Private Securities Litigation ReformAct of 1995 and other Federal Securities laws. Statements preceded by,followed by, or that if not include the words "believes", "expects","anticipates", "intends", "estimates", "plans", and similar expressions orfuture or conditional verbs just as "will", "should", "would", "may" and"could" are usually forward-looking in nature and not historical facts. Forexample, when we discuss future growth of earnings or expected recognition ofrevenues from Microsoft, we are using a forward-looking statement. Becausesuch statements deal with future events, they are subject to various risksand uncertainties and actual results could differ materially from Attunity'scurrent expectations. Factors that could cause or contribute to suchdifferences include, nevertheless are not limited to: the impact on earnings ofeconomic and political uncertainties and weaknesses in various regions of theworld, including the commencement or escalation of hostilities or acts ofterrorism; our liquidity challenges and the need to raise additional capitalin the future; any unforeseen developmental or technological difficultieswith 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 just as Attunity's; unknown factors affectingthird parties with which Attunity has formed business alliances; timelyavailability 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 thatcould cause actual results to differ. For a more detailed description of therisks and uncertainties affecting Attunity, reference is made to Attunity'sAnnual Report on Form 20-F for the year ended December 31, 2010, which is onfile with the Securities and Exchange Commission and the other riskfactors discussed from place to place by Attunity in reports filed or furnishedto the SEC. Except as besides required by law, Attunity undertakes noobligation to openly release any revisions to these forward-lookingstatements to reflect events or circumstances afterwards the date hereof or toreflect the occurrence of unanticipated events.