Autonomy Corporation plc and Virage, Inc. announced they have signed a definitive agreement under which Autonomy will acquire Virage for a purchase price of $1.10 per share in cash. The transaction reflects a fully-diluted cash purchase price of approximately $24.8 million, and a net cash purchase price of approximately $13.3 million adjusted for Virage’s expected cash balance as of September 30, 2003. The Boards of Directors of Autonomy and Virage have approved the transaction, and stockholders representing approximately 40% of Virage’s outstanding shares have signed agreements to vote their shares in favor of the transaction at a special stockholders meeting to vote on the transaction. The transaction is expected to be completed late in the third quarter of 2003. Autonomy expects the transaction to be accretive to earnings per share within six months of closing, and expects to have a cash balance of approximately $110 million following completion of the transaction. Combined Autonomy and Virage products are expected to be generally available during the first quarter following completion of the transaction. www.autonomy.com, www.virage.com

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