--Results Exceeded Company's Revenue and Met Non-GAAP Earnings Guidance

Keynote Systems (Nasdaq: KEYN), the global leader in on-demand mobile and Internet test & measurement solutions for continuously improving the online experience, reported financial results for its fiscal fourth quarter and fiscal year ended September 30, 2008.

Umang Gupta, chairman and CEO of Keynote, said: "Fiscal year 2008 proved to be very good for Keynote. We achieved overall annual revenue growth of 13.5 percent along with improved profitability. Our Mobile Test and Measurement business was the main driver of this growth, increasing 61 percent in the fourth quarter and 63 percent in the year as a whole. We believe our strong balance sheet combined with our diverse product portfolio forms a solid foundation for us to perform well even in the current adverse financial climate."

Fourth Quarter 2008 Financial Summary

Revenue for the fourth quarter of fiscal year 2008 was $21.1 million, increasing from $20.5 million in the third quarter of fiscal year 2008 and from $17.8 million in the fourth quarter of fiscal year 2007. Net loss under generally accepted accounting principles (GAAP) for the fourth quarter of fiscal year 2008 was $631,000, or $0.05 per share, reflecting both top-line growth and better operating efficiencies. This compared to a net loss of $407,000, or $0.03 per share, for the third quarter of 2008 and $3.5 million, or $0.19 per share, which included a $2.8 million charge for deferred tax asset adjustment, for the fourth quarter of 2007. The non-GAAP net income for fourth quarter of 2008 was $1.4 million, or $0.10 per diluted share, compared to $1.3 million, or $0.09 per diluted share, for the third quarter of 2008, and $2.2 million, or $0.11 per diluted share, for the fourth quarter of 2007. The company defines non-GAAP net income as net income adjusted for provision for income tax, stock-based compensation expense, and amortization of purchased intangibles less cash taxes from on-going operations. Non-GAAP net income per share equals non-GAAP net income divided by the diluted weighted average shares outstanding for the period.

Fiscal 2008 Financial Summary

Revenue for fiscal year 2008 was $76.9 million, a 13.5 percent increase compared to revenue of $67.8 million for fiscal year 2007. Net loss for fiscal year 2008 was $3.1 million, or $0.20 per share, compared to $4.7 million, or $0.27 per share, for fiscal year 2007, which included a $2.8 million charge for deferred tax asset adjustment. The non-GAAP net income for the fiscal year 2008 was $4.3 million, or $0.27 per diluted share, compared to non-GAAP net income of $5.4 million, or $0.29 per diluted share, for the fiscal year 2007.

Cash Flow and Deferred Revenue Summary

In the fourth quarter of 2008, cash provided by operating activities was $565,000. This is compared to $1.5 million in the prior quarter and $3.0 million in the fourth quarter of 2007. Cash used for purchases of property, equipment and software totaled $1.9 million for the fourth quarter of 2008. This compared to $1.6 million in the prior quarter and $1.4 million for the fourth quarter last year. Cash used for acquired technology consisted of a one-time source license purchase of $2.6 million of mobile technology. Keynote defines free cash flow as cash flow from operations less cash used for purchases of property, equipment, and software and acquired technology. The company used $3.9 million and $80,000 of free cash flow in the fourth and third quarters of 2008, respectively, and generated $1.6 million in the fourth quarter of 2007. At September 30, 2008, Keynote had $49.3 million in total cash, cash equivalents and short-term investments.

Keynote's net deferred revenue was $19.9 million at September 30, 2008, compared to $22.0 million at September 30, 2007. Keynote's gross deferred revenue, defined as the sum of net deferred revenue and unpaid deferred revenue, was $24.7 million at September 30, 2008, compared to $26.6 million at September 30, 2007.

The total shares outstanding, net of treasury shares, at September 30, 2008 was 14.1 million, compared to 18.3 million at September 30, 2007.

Operational Metrics Summary

As of September 30, 2008, Keynote's total worldwide customer base was approximately 2,800 companies. Keynote currently provides its services to 46 percent of the comScore Media Metrix's top 50 Web sites and approximately 50 percent of the Fortune 100 companies. As of September 30, 2008, Keynote measured approximately 14,100 Internet pages, as compared to 11,600 Internet pages in the same quarter a year ago.

Expectations for the First Quarter of Fiscal Year 2009

The statements in this section of this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Keynote currently expects the following for the first fiscal quarter ending December 31, 2008:

-- Total revenue is expected to be between $19.5 million and $20.0 million.

-- GAAP earnings (loss) per share is expected to be between ($0.03) and $0.00.

-- Non-GAAP earnings per share is expected to be between $0.09 and $0.12.

The above guidance was based on the following assumptions. A 14 percent reduction in the Euro to US dollar exchange rate in the first quarter 2009 compared to the fourth quarter 2008 is expected to result in reduced international revenues and lower European operating expenses on a sequential quarterly basis. Total stock-based compensation expense and amortization of intangible assets is currently expected to be approximately $1.9 million. Depreciation is expected to be approximately $1.5 million. Interest income, net is expected to be approximately $200,000, assuming no material changes in interest rates and currently planned uses of cash. Cash paid for income taxes is expected to be approximately $195,000, assuming no changes in required tax payments. Basic weighted average shares outstanding are expected to be approximately 14.3 million shares and diluted weighted average shares outstanding are expected to be approximately 14.8 million shares, assuming no additional issuances of equity or equity-related securities and significant changes in the company's stock price.

Conference Call

Keynote will host a conference call and simultaneous webcast at 2:00 p.m. (PST) today, November 13, 2008. To access the call in the U.S., please dial (866) 271-6228; international callers please dial (706) 679-4457, approximately 10 minutes prior to the start of the conference call. The webcast of the call will be available at the investor section of the company's web site at www.keynote.com. The replay will be available after the call by telephone by dialing (800) 642-1687 in the U.S. and (706) 645-9291 internationally; the pass code is #67287586. The webcast is at the investor section of the company's web site at www.keynote.com.

Forward-Looking Statements

This press release contains forward-looking statements that are not purely historical regarding the Company or management's intentions, hopes, beliefs, expectations and strategies for the future. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the Company's current expectations.

Forward-looking statements in this release include, but are not limited to, forecasts concerning Keynote's expected revenue, GAAP and Non-GAAP earnings per share, and the related underlying assumptions in calculating those amounts, future acquisitions and other future financial results. It is important to note that actual outcomes and Keynote's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as Keynote's ability to successfully market and sell its current services to new or existing customers, Keynote's ability to develop and introduce new services in a timely manner and customer acceptance of new services, the extent to which demand for Keynote's various services fluctuates and the extent to which revenue from other service lines can increase, the extent to which existing customers renew their subscriptions and purchase additional services, particularly enterprise customers, Keynote's ability to attract and retain new customers, Keynote's ability to operate SIGOS and its other international operations and manage related costs successfully, Keynote's ability to retain key employees, pricing pressure with respect to Keynote's services, Keynote's ability to increase sales of its other services, and the risk that its prior organizational changes will not result in improved results, unforeseen expenses, competition in Keynote's markets, costs associated with the Zandan acquisition or any future acquisitions, the effect of acquisitions by competitors in Keynote's target markets, Keynote's ability to keep pace with changes in the mobile and Internet infrastructure as well as other technological changes, and the success of Keynote's international operations. Readers should also refer to the risks outlined in Keynote's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended September 30, 2007, and its quarterly reports on Form 10-Q and any current reports on Form 8-K filed during the fiscal year.

All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information available to Keynote as of the date of this press release, and Keynote assumes no obligation to update any such forward-looking statement or reasons why results might differ.

Non-GAAP Measures

This press release includes information on Non-GAAP net income, Non-GAAP net earnings per share, free cash flow and gross deferred revenues. These measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles ("GAAP") and are not necessarily comparable to similar measures presented by other companies. Non-GAAP net income is calculated by adjusting GAAP net income for provision for income taxes less cash taxes from on-going operations, stock-based compensation expense and amortization of purchased intangibles. Non-GAAP earnings per share are calculated by dividing Non-GAAP net income by the weighted average number of diluted shares outstanding for the period. Free cash flow is defined as cash flow from operations less cash used for purchases of property, equipment, and software. Gross deferred revenue is defined as the sum of net deferred revenue and unpaid deferred revenue. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because these amounts are not determined in accordance with GAAP, they should not be used exclusively in evaluating its business and operations. Because the Company has made a number of acquisitions in the past, as well as because of the effect of SFAS 123(R), the Company's financial statements have changed significantly from prior periods. Accordingly, the Company believes that this non-GAAP information is useful as an additional means for investors to evaluate the Company's operating performance, when reviewed in conjunction with the Company's GAAP financial statements. Management also reviews this information as an additional means for measuring the performance of the Company. The Company compensates for these limitations by realizing that these amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating its business and operations.

About Keynote

Keynote Systems (Nasdaq "KEYN") is the global leader in on-demand test & measurement solutions for continuously improving the online experience. For over a decade, Keynote has been providing measurement data and testing capabilities that allow companies to understand and improve their customers' online and mobile experience. Keynote has four test and measurement businesses: Web performance, mobile quality, streaming & VoIP, and customer experience/UX.

Known as The Mobile and Internet Performance Authority(TM), Keynote has a market-leading infrastructure of 2,600 measurement computers and mobile devices in over 240 locations around the world. Keynote's 2,800 customers represent top Internet and mobile companies including American Express, Dell, Disney, eBay, E*TRADE, Expedia, Microsoft, SonyEricsson, Sprint, T-Mobile, Verizon, Vodafone and YouTube.

Keynote Systems, Inc. is headquartered in San Mateo, California and can be reached at www.keynote.com or by phone in the U.S. at 1-800-KEYNOTE.

Keynote, The Internet Performance Authority, Perspective and WebEffective are registered trademarks and The Mobile and Internet Performance Authority and True Experience are trademarks of Keynote Systems, Inc. Other trademarks are the property of their respective owners. (C) 2008 Keynote Systems, Inc.

Keynote Systems, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                                                                                     Three months ended                                  Year ended
                                                                                     Sep 30          Jun 30          Sep 30              Sep 30          Sep 30
                                                                                         2008            2008            2007                2008            2007
Net revenue:
                 Subscription services                                               $   11,909      $   11,441      $   10,541          $   45,314      $   42,662
                 Ratable licenses                                                        6,787           6,426           4,368               21,820          13,220
                 Professional services                                                   2,360           2,631           2,929               9,774           11,872
                                       Total revenue, net                                21,056          20,498          17,838              76,908          67,754
Costs and expenses:
                 Costs of revenue:
                                       Direct costs of subscription services             1,753           2,235           2,046               8,324           8,389
                                       Direct costs of ratable licenses                  2,318           1,526           1,329               6,558           4,598
                                       Direct costs of professional services             1,752           1,762           1,887               7,113           8,164
                                       Operations                                        2,279           2,270           2,030               8,576           7,673
                                       Development                                       3,083           3,232           2,860               12,608          11,559
                                       Amortization of intangible assets - software      303             281             193                 1,000           754
                                       Total costs of revenue                            11,488          11,306          10,345              44,179          41,137
                 Sales and marketing                                                     6,712           6,697           5,218               25,705          20,127
                 General and administrative                                              2,320           2,834           2,609               10,142          9,856
                 Excess occupancy income, net                                            (323    )       (297    )       (184    )           (1,210  )       (265    )
                 Amortization of intangible assets - other                               501             568             524                 2,148           2,195
                                       Total costs and expenses                          20,698          21,108          18,512              80,964          73,050
                                       Income (loss) from operations                     358             (610    )       (674    )           (4,056  )       (5,296  )
Interest (expense) income and other, net                                                 (384    )       343             1,312               1,990           4,750
Income (loss) before provision for income taxes                                          (26     )       (267    )       638                 (2,066  )       (546    )
Provision for income taxes                                                               (605    )       (140    )       (4,090  )           (1,034  )       (4,145  )
                                       Net loss                                      $   (631    )   $   (407    )   $   (3,452  )       $   (3,100  )   $   (4,691  )
Net loss per share:
                                       Basic                                         $   (0.05   )   $   (0.03   )   $   (0.19   )       $   (0.20   )   $   (0.27   )
                                       Diluted                                       $   (0.05   )   $   (0.03   )   $   (0.19   )       $   (0.20   )   $   (0.27   )
Weighted average common shares outstanding:
                                       Basic                                             13,980          13,747          18,068              15,522          17,533
                                       Diluted                                           13,980          13,747          18,068              15,522          17,533

Keynote Systems, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                               September 30, 2008              September 30, 2007
Assets
Current assets:
Cash and cash equivalents                                      $       46,769                  $       42,875
Short-term investments                                                 2,562                           65,060
Total cash, cash equivalents and short-term investments                49,331                          107,935
Accounts receivable                                                    7,316                           5,988
Prepaids, deferred costs and other current assets                      2,909                           2,703
Inventories                                                            1,081                           1,059
Deferred tax assets                                                    875                             3,922
Total current assets                                                   61,512                          121,607
Deferred costs and other long-term assets                              2,788                           1,301
Property and equipment, net                                            36,405                          35,480
Goodwill                                                               64,452                          63,129
Identifiable intangible assets, net                                    8,374                           7,963
Deferred tax assets                                                    2,313                           -
Total assets                                                   $       175,844                 $       229,480
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                                               $       2,505                   $       2,285
Accrued expenses                                                       12,767                          11,656
Current portion of capital lease obligation                            14                              24
Notes payable                                                          256                             -
Deferred revenue                                                       19,029                          19,824
Total current liabilities                                              34,571                          33,789
Long-term portion of capital lease obligation                          17                              31
Deferred rent and other long term liabilities                          2,605                           292
Long-term deferred revenue                                             904                             2,136
Long-term deferred tax liability                                       236                             2,347
Total liabilities                                                      38,333                          38,595
Stockholders' equity:
Common stock                                                           14                              18
Treasury stock                                                         -                               (1,151    )
Additional paid-in capital                                             275,316                         325,525
Accumulated deficit                                                    (143,207  )                     (140,188  )
Accumulated other comprehensive income                                 5,388                           6,681
Total stockholders' equity                                             137,511                         190,885
Total liabilities and stockholders' equity                     $       175,844                 $       229,480

Keynote Systems, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                                                                                                       Three months ended                       Year ended
                                                                                                                                       Sep 30            Sep 30                 Sept 30            Sept 30
                                                                                                                                            2008              2007                   2008               2007
Cash flows from operating activities:
              Net loss                                                                                                                 $    (631    )    $    (3,452  )         $    (3,100   )    $    (4,691   )
              Adjustments to reconcile net loss to net cash provided by
              operating activities:
                                 Depreciation and amortization                                                                              2,134             1,987                  8,704              7,530
                                 Stock-based compensation                                                                                   1,171             1,027                  4,557              4,078
                                 Impairment of short-term investment                                                                        -                 -                      98                 -
                                 Charges to bad debt and billing adjustment reserves                                                        51                201                    240                397
                                 Amortization (accretion) of debt investment premium (discount)                                             (41     )         (344    )              (464     )         (1,327   )
                                 Deferred tax provision (benefit)                                                                           (26     )         (163    )              (26      )         12
                                 Changes in operating assets and liabilities, net                                                           (2,093  )         3,714                  (5,065   )         14,381
                                                                             Net cash provided by operating activities                      565               2,970                  4,944              20,380
Cash flows from investing activities:
              Purchase of property, equipment and software                                                                                  (1,878  )         (1,380  )              (5,865   )         (5,540   )
              Acquired technology                                                                                                           (2,557  )         -                      (2,557   )         -
              Purchase of businesses and assets, net                                                                                        (1,057  )         (86     )              (1,697   )         (393     )
              Earnout payment for acquisition of business                                                                                   -                 -                      -                  (10,587  )
              Sales (purchases) of short-term investments, net                                                                              1,703             (591    )              62,862             (18,688  )
                                                                             Net cash provided by (used in) investing activities            (3,789  )         (2,057  )              52,743             (35,208  )
Cash flows from financing activities:
              Payment of capital lease obligations                                                                                          (5      )         (5      )              (26      )         (32      )
              Repurchase of outstanding common stock                                                                                        -                 (1,154  )              (60,070  )         (1,154   )
              Proceeds from issuance of common stock and exercise of stock options                                                          2,593             3,696                  6,450              12,193
                                                                             Net cash provided by (used in) financing activities            2,588             2,537                  (53,646  )         11,007
Effect of exchange rate changes on cash and cash equivalents                                                                                (2,243  )         714                    (147     )         1,034
Net increase (decrease) in cash and cash equivalents                                                                                        (2,879  )         4,164                  3,894              (2,787   )
Cash and cash equivalents at beginning of the period                                                                                        49,648            38,711                 42,875             45,662
Cash and cash equivalents at end of the period (1)                                                                                     $    46,769       $    42,875            $    46,769        $    42,875
(1) Excludes $2.6 million and $65.1 million of short-term
investments at September 30, 2008 and September 30, 2007,
respectively.

Keynote Systems, Inc. and Subsidiaries
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except per share data)
(Unaudited)
                                                          Three months ended                                       Year ended
                                                          Sep 30             Jun 30             Sep 30             Sep 30             Sep 30
                                                              2008               2008               2007               2008               2007
Revenue categories:
Internet Subscriptions                                    $   9,933          $   9,529          $   9,461          $   38,432         $   38,314
Internet Engagements                                          2,360              2,631              2,929              9,774              11,872
Subtotal Internet Revenue                                     12,293             12,160             12,390             48,206             50,186
Mobile Subscriptions                                          1,976              1,912              1,080              6,882              4,348
Mobile Ratable Licenses                                       6,787              6,426              4,368              21,820             13,220
Subtotal Mobile Revenue                                       8,763              8,338              5,448              28,702             17,568
Total Revenue, Net                                        $   21,056         $   20,498         $   17,838         $   76,908         $   67,754
Non-GAAP net income and income per share:
GAAP net loss                                             $   (631    )      $   (407    )      $   (3,452  )      $   (3,100  )      $   (4,691  )
Provision for income taxes                                    605                140                4,090              1,034              4,145
Stock-based compensation a                                    1,171              1,126              1,027              4,557              4,078
Amortization of intangible assets - other                     501                568                524                2,148              2,195
Amortization of intangible assets - software                  303                281                193                1,000              754
Non-GAAP income before income tax                             1,949              1,708              2,382              5,639              6,481
Cash taxes from on-going operations                           557                404                224                1,327              1,105
Non-GAAP net income                                       $   1,392          $   1,304          $   2,158          $   4,312          $   5,376
Weighted average common shares outstanding (diluted):         14,621             14,238             19,055             16,098             18,382
Non-GAAP income per share                                 $   0.10           $   0.09           $   0.11           $   0.27           $   0.29
a Stock-based compensation by
category:
Direct costs of ratable licenses                          $   63             $   68             $   45             $   246            $   190
Direct costs of professional services                         115                108                107                462                470
Operations                                                    163                158                146                644                584
Development                                                   252                237                237                993                921
Sales and marketing                                           399                393                328                1,532              1,280
General and administrative                                    179                162                164                680                633
                                                          $   1,171          $   1,126          $   1,027          $   4,557          $   4,078

Keynote Systems, Inc. and Subsidiaries
REVENUE DETAIL
(In thousands)
(Unaudited)
                               Three months ended                                  Year ended
                               Dec 31           March 31          June 30          Sep 30           Sep 30
FY 2008
Internet Subscriptions         $    9,532       $     9,438       $    9,529       $    9,933       $    38,432
Internet Engagements                2,846             1,937            2,631            2,360            9,774
Subtotal Internet Revenue           12,378            11,375           12,160           12,293           48,206
Mobile Subscriptions                1,340             1,654            1,912            1,976            6,882
Mobile Ratable Licenses             4,002             4,605            6,426            6,787            21,820
Subtotal Mobile Revenue             5,342             6,259            8,338            8,763            28,702
Total Revenue, Net             $    17,720      $     17,634      $    20,498      $    21,056      $    76,908
FY 2007
Internet Subscriptions         $    9,510       $     9,620       $    9,722       $    9,461       $    38,313
Internet Engagements                3,102             2,778            3,064            2,929            11,873
Subtotal Internet Revenue           12,612            12,398           12,786           12,390           50,186
Mobile Subscriptions                997               1,113            1,158            1,080            4,348
Mobile Ratable Licenses             2,206             3,203            3,443            4,368            13,220
Subtotal Mobile Revenue             3,203             4,316            4,601            5,448            17,568
Total Revenue, Net             $    15,815      $     16,714      $    17,387      $    17,838      $    67,754
FY 2006
Internet Subscriptions         $    9,281       $     9,459       $    9,499       $    9,743       $    37,982
Internet Engagements                3,896             2,792            2,419            3,034            12,141
Subtotal Internet Revenue           13,177            12,251           11,918           12,777           50,123
Mobile Subscriptions                539               488              855              962              2,844
Mobile Ratable Licenses             -                 -                1,094            1,447            2,541
Subtotal Mobile Revenue             539               488              1,949            2,409            5,385
Total Revenue, Net             $    13,716      $     12,739      $    13,867      $    15,186      $    55,508
FY 2005
Internet Subscriptions         $    9,220       $     9,314       $    9,601       $    9,315       $    37,450
Internet Engagements                3,565             3,513            3,422            3,574            14,074
Subtotal Internet Revenue           12,785            12,827           13,023           12,889           51,524
Mobile Subscriptions                803               338              442              585              2,168
Total Revenue, Net             $    13,588      $     13,165      $    13,465      $    13,474      $    53,692

Keynote Systems, Inc. and Subsidiaries
DEFERRED REVENUE
(In thousands)
(Unaudited)
                                            September 30, 2008         June 30, 2008        September 30, 2007
Deferred revenue, net
             Domestic                       $          5,982           $       6,300        $          7,511
             International                             13,951                  17,869                  14,449
             Total                          $          19,933          $       24,169       $          21,960
Add back: unpaid deferred revenue
             Domestic                       $          2,425           $       2,288        $          3,085
             International                             2,331                   3,054                   1,564
             Total                          $          4,756           $       5,342        $          4,649
Deferred revenue, gross
             Domestic                       $          8,407           $       8,588        $          10,596
             International                             16,282                  20,923                  16,013
             Total                          $          24,689          $       29,511       $          26,609

SOURCE: Keynote Systems

Keynote Systems, Inc. 
Dan Berkowitz, 650-403-3305 (Public Relations) 
dberkowitz@keynote.com 
or 
Kirsten Chapman, 415-433-3777 (Investor Relations) 
kchapman@lhai.com

"Winning this award is a testament to Keynote's commitment to improving the mobile experience by offering superior mobile application testing and monitoring solutions for thousands of devices on the market," said Tim Murphy, mobile manager at Keynote. "We are pleased that Go Mobile readers agree, Keynote's mobile testing capabilities are superior."

MobileVillage's Mobile Star winners: http://www.mobilevillage.com/awards.htm

((Comments on this story may be sent to newsdesk@closeupmedia.com))

((Distributed via M2 Communications Ltd - http://www.m2.com))

http://www.10meters.com

Comments on this story may be sent to newsdesk@closeupmedia.com

Keynote Competitive Research, the industry analysis group of Keynote(R) Systems (Nasdaq:KEYN), today announced the results of its latest VoIP Service Provider Study, which evaluates how end users experience the reliability and audio clarity of leading voice service providers. The study compares the relative performance of AT&T landline service or POTS (plain old telephone service) with six broadband VoIP providers (AT&T CallVantage, EarthLink trueVoice, Lingo, Packet8, Verizon VoiceWing and Vonage) and two cable voice service providers (Time Warner Digital Phone and Comcast Digital Voice) for the month of October, 2008 by collecting data from calls made from residential locations in New York and San Francisco. Overall, reliability is improving slightly, however audio quality is significantly different from the previous study.

"We've been conducting VoIP studies for more than three years and have seen significant trends develop, such as serious disparity in reliability and audio performance between VoIP services on managed networks and those that rely on existing broadband home network connections," said Ken Harker, senior consultant at Keynote. "While conditions are dramatically improved for Comcast Digital Voice and Verizon VoiceWing customers, the best that other consumers can hope for is merely tolerable audio quality."

Results Overview:

Reliability

Provider                     Reliability Points    Rank
AT&T Landline                996                   1
Time Warner Digital Phone    925                   2
Verizon VoiceWing            872                   3

Audio Quality

Provider                 Reliability Points    Rank
Comcast Digital Voice    901                   1
Verizon VoiceWing        609                   2
AT&T Landline            506                   3

Read an abstract of Keynote's VoIP study online: http://www.keynote.com/docs/kcr/Voice_W6_CIStudy.pdf

With analysts predicting strong growth in the market, it is imperative for VoIP companies to perfect their offering now to capture new users and satisfy existing customers. Consumers and commercial customers will be looking to VoIP service as an opportunity to save money in this economy. The VoIP services with the best end user experience will be positioned to take advantage of current economic pressures.

VoIP Service Provider Study, Wave 6 Competitive Results:

The Wave 6 VoIP Service Provider study evaluated traditional landline service provider AT&T VoIP providers AT&T, CallVantage, Lingo, Packet8, EarthLink, trueVoice, Verizon, VoiceWing and Vonage; and cable voice services Comcast Digital Voice and Time Warner Digital Phone. Keynote analyzed the audio quality and reliability, key performance indicators that affect the end user experience across these VoIP providers, as well as traditional phone service for comparison.

Overall Best VoIP Service Providers

Keynote ranked VoIP Service Providers in two categories: Reliability and Audio Quality. The Service Availability, Call Completion, Average Answer Time, and Dropped Audio performance factors all contribute to the Reliability ranking. This high-level ranking identifies which voice service providers are providing the most reliable end user experience. The Audio Quality ranking is computed as an aggregate of the performance factors related to audio clarity and audio delay. This high-level ranking identifies which service providers are providing the most reliable and best sounding VoIP service. Each ranking is computed based on 1000 total points available as the best case, or winning result.

Reliability Overview

In Wave 6 of Keynote's VoIP Service Provider Study, Time Warner's Digital Phone maintains its second place ranking behind landline service, and the remaining providers have generally increased their scores as compared to the Wave 5 study.

Audio Quality Overview

In Wave 4 and again in Wave 5, Keynote reported that the landline service outperformed the competition when it comes to delivering great sounding call audio with minimal delay. In Wave 6, we see digital return to the top with Comcast and Verizon providing better audio quality than landline.

General Observations

-- The best providers always deliver dial tone and connect the call to the number dialed in a timely fashion.

-- Only one of the providers in the study failed to provide dial tone 99.9% of the time or better.

-- All providers had very small percentages of calls with dropped audio, but only two providers had zero calls with dropped audio.

-- One VoIP provider required two seconds more than any other voice provider to connect calls after dialing.

-- Most providers had slightly more audio delay and slightly lower MOS in Wave 6 as compared to Wave 5.

-- Eight of the nine providers in the study had a better call completion rate in Wave 6 than was evidenced in the Wave 5 results.

Methodology

To perform the study, Keynote uses its commercially available Voice Perspective(R) product to conduct calls, and perform wave-form analysis of the results. Each call includes the transmission of a reference audio file specifically created with characteristics appropriate to voice audio quality measurement.

Study Availability

An overview report, which reveals general industry trends and highlights the performance of the best voice service providers, is available for VoIP providers and enterprises choosing a VoIP service. The report identifies general areas of challenges and opportunities that have the maximum impact on customer experience.

Details of the report analyzing each of the nine service providers and each of the ten performance factors in greater depth, with analysis of the data across service providers, last-mile network connections and geography, can also be obtained by contacting Keynote. Armed with this intelligence, IT Managers can tune specific aspects of their VoIP service to provide better performance to customers than their competition.

In addition, Keynote can provide custom analysis to help align operations teams with customer experience enhancement goals. To learn more about Voice Perspective for Service Providers view: www.keynote.com/products/voip_and_streaming/voip_quality/voice_ perspective_sp.html. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

About Keynote Voice Perspective

Voice service providers can leverage the competitive insight provided through Keynote's Voice Perspective(R) for Service Providers for on-going real time monitoring of voice quality from representative locations to improve their call performance in target markets. Combining Keynote's voice monitoring services and competitive insights with internal network monitoring tools will allow providers to adopt an outbound focus and assure a quality experience for the end user. Keynote can design an ongoing voice quality measurement and monitoring implementation for multiple markets including multiple competitors. Service providers can leverage Keynote's independent assessment to align their resources and infrastructure investments with customer acquisition and retention goals.

About Keynote

Keynote Systems (Nasdaq "KEYN") is the global leader in on-demand test & measurement solutions for continuously improving the online experience. For over a decade, Keynote has been providing measurement data and testing capabilities that allow companies to understand and improve their customers' online and mobile experience. Keynote has four test and measurement businesses: Web performance, mobile quality, streaming & VoIP, and customer experience/UX.

Known as The Mobile and Internet Performance Authority(TM), Keynote has a market-leading infrastructure of 2,600 measurement computers and mobile devices in over 240 locations around the world. Keynote's 2,800 customers represent top Internet and mobile companies including American Express, Dell, Disney, eBay, E*TRADE, Expedia, Microsoft, SonyEricsson, Sprint, T-Mobile, Verizon, Vodafone and YouTube.

Keynote Systems, Inc. is headquartered in San Mateo, California and can be reached at www.keynote.com or by phone in the U.S. at 1-800-KEYNOTE.

Keynote, The Internet Performance Authority and Perspective are registered trademarks and The Mobile and Internet Performance Authority are trademarks of Keynote Systems, Inc. (C) 2008 Keynote Systems, Inc.

SOURCE: Keynote Systems, Inc.

Citigate Cunningham 
Leslie Johnson, 415-618-8740 
ljohnson@citigatecunningham.com 
or 
Keynote Systems, Inc. 
Dan Berkowitz, 650-403-3305 
dberkowitz@keynote.com

Keynote's Mobile Quality Test & Measurement Products & Services provide independent testing and monitoring of mobile content, applications and services on both real and emulated devices across multiple mobile operator networks around the world to understand the end user experience. In September, Keynote introduced its Mobile Interactive Testing Environment (MITE), the industry's first desktop testing tool that allows mobile developers to interactively test and validate mobile content over the Internet or live carrier networks across more than 1,600 mobile device profiles. Keynote's products are driven by Keynote's extensive infrastructure, which enables carriers, device manufacturers, content portals and developers to test, measure and improve the subscriber experience.

Link to MobileVillage's Mobile Star winners: http://www.mobilevillage.com/awards.htm
For more information about Keynote's Mobile Quality Test &
Measurement Products:
http://www.keynote.com/products/mobile_quality/index.html
To download a 15-day free trial or purchase MITE: http://mite.keynote.com.
Social Media and Related Links:
-- BLOG: Keynote Mobility Blog: http://blogs.keynote.com/mobility/

About Keynote

Keynote Systems (Nasdaq "KEYN") is the global leader in on-demand test & measurement solutions for continuously improving the online experience. For over a decade, Keynote has been providing measurement data and testing capabilities that allow companies to understand and improve their customers' online and mobile experience. Keynote has four test and measurement businesses: Web performance, mobile quality, streaming & VoIP, and customer experience/UX.

Known as The Mobile and Internet Performance Authority(TM), Keynote has a market-leading infrastructure of 2,500 measurement computers and mobile devices in over 240 locations around the world. Keynote's 2,800 customers represent top Internet and mobile companies including American Express, Dell, Disney, eBay, E*TRADE, Expedia, Microsoft, SonyEricsson, Sprint, T-Mobile, Verizon, Vodafone and YouTube.

Keynote Systems, Inc. is headquartered in San Mateo, California and can be reached at www.keynote.com or by phone in the U.S. at 1-800-KEYNOTE.

About MobileVillage(R)

Founded in 1993, MobileVillage is a market and solution development company dedicated to advancing mobile and wireless productivity in a wide range of industries. MobileVillage accomplishes this by fostering education and alliances through its Mobile "Best of Breed" solution identification, event partnerships, an online industry directory, industry job postings, daily online news, its widely respected Go Mobile(R) newsletter, a Mobile Mentors(TM) program, and popular annual Mobile Star Awards(TM) program. Visit MobileVillage online at www.mobilevillage.com.

Keynote, The Internet Performance Authority, Perspective and WebEffective are registered trademarks and The Mobile and Internet Performance Authority and True Experience are trademarks of Keynote Systems, Inc. MobileVillage(R), Go Mobile(R), Mobile Star Awards(TM) and Mobile Mentors(TM) are trademarks or registered trademarks of MobileVillage / PDA Inc. Other trademarks are the property of their respective owners. (C) 2008 Keynote Systems, Inc.

SOURCE: Keynote Systems

Citigate Cunningham 
Leslie Johnson, 415-618-8740 
ljohnson@citigatecunningham.com 
or 
Keynote Systems, Inc. 
Dan Berkowitz, 650-403-3305 
dberkowitz@keynote.com