Niku Corporation Announces Compliance With Section 404 of the Sarbanes

    Business Editors/High-Tech Writers

    REDWOOD CITY, Calif.--(BUSINESS WIRE)--April 21, 2005--Niku Corporation (Nasdaq:NIKU), the global leader in IT Management and Governance (IT-MG) solutions, today announced that it has successfully complied with Section 404 of the Sarbanes-Oxley Act as of January 31, 2005. In so doing, Niku has put in place disciplined and controlled business and financial processes throughout its worldwide organization. Sound management of these critical operational and financial areas positions Niku well as it expands its global operations.
    Enacted in the wake of major corporate scandals, the Sarbanes-Oxley Act is designed to protect investors in publicly-held companies by mandating the requirements for building financially responsible enterprises. Section 404 of the Sarbanes-Oxley Act requires that companies create and document a framework of internal controls and demonstrate to auditors the effectiveness of those internal controls.
    "Sarbanes-Oxley compliance is critical not only to investors, but also to customers, who want to know that a vendor has well-controlled processes," said Michael Shahbazian, CFO of Niku. "Niku has wholeheartedly embraced SOX in its daily business activities to achieve this milestone, and I am proud of this global team effort. Moving forward, we will focus on efficiency gains and on streamlining and better controlling compliance processes, which is only possible with a system such as our Clarity product."

    About Niku

    Niku Corporation (Nasdaq:NIKU) is the leader in IT Management and Governance (IT-MG) solutions and two time winner of the Gartner PPM Summit "Best Vendor" award. More than 400,000 users at industry leaders such as Avon, BT, Cesky Mobile, Columbia House, Harrah's Entertainment, HSBC, Kas Bank, Manpower, Mueller Milch, Nissan, Philips, Royal Caribbean Cruise Lines, SingTel Optus, Skandia UK Group, and Unilever depend on Niku software to maximize their 'Return on IT.' With headquarters in Silicon Valley, Niku serves global customers from more than 20 offices worldwide.
    For more information, contact info@niku.com or visit http://www.niku.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act which involve risks and uncertainties concerning Niku's expected financial performance as well as Niku's strategic and operational plans. These statements are not guarantees of future performance. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Risks and uncertainties associated with Niku's business that could cause actual results to differ include, but are not limited to, weakness in the general economy or in IT spending in particular, lack of market acceptance of our products and services, changes in the effectiveness of internal controls, competitiveness of our products or services, the timing of customer licenses, delays or difficulties in implementing our products, difficulties in retaining and attracting qualified employees and risks related to international operations and competition. These risks and others are discussed in greater detail in Niku's Form 10-K, filed on April 15, 2005, and in its other filings with the SEC, which are on file and available at the SEC's website at http://www.sec.gov. All forward-looking statements included in this release are based on information available to Niku as of the date of the release and Niku assumes no obligation to update any such forward-looking statements.

    Niku and the Niku logo are registered trademarks and Clarity, Open Workbench and Project Workbench are trademarks of Niku Corporation in the United States and certain other countries. All other trademarks, trade names, and/or product names are used solely for the purpose of identification and are the property of their respective owners.

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CONTACT: Niku Corporation Jaia Zimmerman, 650-298-5914 jzimmerman@niku.com or Kickstart Consulting for Niku Jill Hara, 310-559-7746 jhara@kickstartconsulting.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE SOFTWARE NETWORKING SOURCE: Niku Corporation

Copyright Business Wire 2005