IDC Research Investments Produce Strong Growth in 2005 and Continued Expansion in 2006

FRAMINGHAM, MA – February 6, 2006 – IDC today reported that its strategic research investments in 2005 produced strong results for the year and are expected to drive continued growth in 2006. The investments focused on expanding IDC's geographic and vertical industry coverage, adding new products and analysts, and developing new primary research efforts. The results included solid growth for all of IDC's major product lines and double-digit revenue gains.

"IDC is continuously developing new products and services designed to meet our clients' market intelligence and advisory needs," said Kirk Campbell, President and CEO of IDC. "We are pleased to report that our focused efforts and investments were well received by the marketplace in 2005, making IDC the fastest growing large technology market intelligence company. IDC will accelerate its client-driven research innovation and offerings in 2006."

At the center of IDC's strategic plan is a $35 million investment to expand its industry-specific research and advisory business through the creation of new Insights companies and enhancements to its Vertical Views research. IDC's Insights businesses are designed to provide focused industry coverage, deep exploration of industry-specific business issues, and analysis of how IT is used within these industries. Financial Insights was once again in 2005 the fastest growing technology research advisory business serving financial services industry executives. IDC launched three new Insights businesses in 2005 – Manufacturing Insights, Energy Insights, and Health Industry Insights – which are providing industry executives with specific advisory services targeted to their needs. IDC will launch Government Insights, based in Washington, D.C., in the first half of 2006. At the same time, IDC's Vertical Views research is expanding to provide a more detailed understanding of technology spending and buyer behavior across 17 vertical industries.

To deliver its enhanced products and services, IDC hired more than 75 new research employees in 2005, bringing the total size of its global research staff to more than 850. IDC plans to increase its investments in its unparalleled analytical and advisory resources by adding 100 new research employees in 2006. With more than half of its research analysts located outside the United States, IDC is hiring all around the world. For example, in the strategic developing markets of Brazil, Russia, India and China, IDC now has more than 150 research employees. The company is also establishing new offices in key emerging markets, including Bangladesh, Kenya, Israel, Morocco, Nigeria, Portugal, Romania, Sri Lanka, and Ukraine.

Another area of investment for IDC is in the expansion of its Conference business. IDC's conferences are high quality, content-driven events that bring together senior IT and business executives and offer strategic guidance and advice on technology-enabled business solutions. In 2005, IDC held 295 conferences in 52 countries worldwide, influencing an audience of more than 40,000 technology customers. In June of 2006, IDC will launch an important new industry event – the first annual IDC IT Forum & Expo in the United States.

Combined, IDC's investments helped drive healthy growth in all of IDC's major product lines – subscription research, consulting, and conferences – as well as in every geographic region. For calendar year 2005, IDC's worldwide revenues were $266 million, representing a 14% increase over the previous year.

"IDC is pleased that we were able to serve so many diverse companies this past year with our unique market intelligence and advisory services. I would like to thank all of our highly valued employees who represent IDC's greatest asset and provide the best possible service to our customers," added Campbell. "As a privately held company, IDC in 2006 will continue to be 100% focused on our clients' needs and will aggressively increase our investments to help our customers succeed."

More information about IDC's research offerings and advisory services can be found at http://www.idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at http://www.idc.com.

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