Keynote Systems (KEYN) 8-K Results of Operations and Financial Condition

Exhibit 99.01

Keynote Reports Fiscal Second Quarter 2008 Results

• Total Revenue of $17.6 Million Increased 6% Compared to Fiscal Second Quarter 2007
• GAAP Loss Per Share Was $0.08 Compared to GAAP Earnings Per Diluted Share of $0.00 in Fiscal Second Quarter 2007
• Non-GAAP Earnings Per Share Were $0.03 Compared to Non-GAAP Earnings Per Share of $0.08 in the Fiscal Second Quarter 2007
• Net Deferred Revenue Was $25.2 Million, Up 29% Compared to March 31, 2007
• 5.0 Million Shares of Common Stock Repurchased Since Program Established in November 2007, Representing 28% of Outstanding Shares at September 30, 2007
• Second Quarter Results Met Company’s Previous Revenue and GAAP Earnings Guidance and Exceeded Non-GAAP Earnings Guidance

SAN MATEO, Calif.--(BUSINESS WIRE)--Keynote Systems (Nasdaq:KEYN), the global leader in on-demand mobile and Internet test & measurement solutions for continuously improving the online experience, announced financial results for its fiscal second quarter ended March 31, 2008.

Umang Gupta, chairman and CEO of Keynote, said: “During the quarter, our mobile business grew as expected, and we posted $6.3 million in revenue, up 45 percent compared to second quarter 2007. The mobile business did even better than the revenue would indicate by contributing strongly to the growth in net deferred revenues, which reached $25.2 million.”

“While the economic climate has impacted our consulting engagements, our Internet test and measurement (ITM) subscriptions performed better than anticipated. As expected, our single-page, single-device revenue has decreased to 16 percent of our total ITM subscriptions, and we remain on track to reach our estimate of single-page, single-device revenue contributing only 10 percent of ITM subscriptions by September 2008. We are encouraged by our ITM performance, as we were able to generate additional revenue with new customers and competitive wins especially with our multi-page transaction and broadband offerings,” continued Gupta.

Second Quarter 2008 Financial Summary

Revenue for the second quarter of fiscal year 2008 was $17.6 million, down from $17.7 million in the first quarter of fiscal year 2008 and up from $16.7 million in the second quarter of fiscal year 2007. Net loss for the second quarter of fiscal year 2008 was $1.3 million or $0.08 per share, reflecting the company’s continued investment in sales and marketing. The net loss included a $45,000 charge for estimated income tax expense, $1.2 million in stock-based compensation expenses, and a $753,000 charge for amortization of intangible assets required under generally accepted accounting principles (GAAP). This compared to net loss of $744,000 or $0.04 per share, for the preceding quarter, which included a $244,000 charge for estimated income tax expense, $1.1 million in stock-based compensation expenses, and a $742,000 charge for amortization of intangible assets. Net income for the second quarter of fiscal year 2007 was $30,000, or $0.00 per diluted share, which included a $193,000 income tax benefit, $1.0 million in stock-based compensation expenses, and a $760,000 charge for amortization of intangible assets.

The non-GAAP net income for the quarter was $496,000, or $0.03 per diluted share, compared to non-GAAP net income of $1.1 million, or $0.06 per diluted share, for the preceding quarter, and non-GAAP net income of $1.4 million, or $0.08 per diluted share, for the second quarter a year ago. 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 tax expense. Non-GAAP net income per share equals non-GAAP net income divided by the weighted diluted share count as of the period end.

Cash Flow and Deferred Revenue Summary

In the second quarter of fiscal year 2008, cash provided by operating activities was $2.5 million compared to $330,000 in the prior quarter and $6.8 million in the second quarter of 2007. Cash used for purchases of property, equipment and software totaled $1.0 million for the second quarter of 2008, compared to $1.4 million in the prior quarter and $1.4 million for the same period last year. Keynote generated free cash flow, defined as cash flow from operations less cash used for purchases of property, equipment, and software, of $1.5 million for the quarter, compared to ($1.0) million in the prior quarter and $5.5 million for the same period last year.

Keynote’s net deferred revenue was $25.2 million at March 31, 2008, up 29 percent from $19.5 million at March 31, 2007. Keynote’s gross deferred revenue, defined as the sum of net deferred revenue and unpaid deferred revenue, was $31.5 million at March 31, 2008, up 10 percent compared to $28.8 million at December 31, 2007 and up 21 percent from $26.1 million at March 31, 2007.

The company had $55.1 million in total cash, cash equivalents and short-term investments as of March 31, 2008. During the quarter, the company repurchased approximately 4.3 million shares for approximately $50.2 million. The total shares outstanding, net of treasury shares, as of the end of March 31, 2008 was 13.8 million as compared to 17.4 million as of March 31, 2007.

“We have recently purchased 5 million shares representing 28 percent of our outstanding shares at September 30, 2007. Now we have reduced our total number of outstanding shares to about half of the level of shares outstanding five years ago. We have maintained a strong balance sheet, and we believe our asset mix is well positioned to fund continuing operations and potential acquisitions,” concluded Gupta.

Operational Metrics Summary

As of March 31, 2008, Keynote’s total worldwide customer base was approximately 2,700 companies. Keynote currently provides its services to 54 percent of the comScore Media Metrix’s top 50 Web sites and approximately 47 percent of the Fortune 100 companies. As of March 31, 2008, Keynote measured approximately 13,000 Internet pages, as compared to 10,500 Internet pages in the same quarter a year ago.

Expectations for the Third Quarter of Fiscal Year 2008

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 third fiscal quarter ending June 30, 2008:

• Total revenue is expected to be between $18.5 million and $19.0 million.
• Net loss per share is expected to be between ($0.08) and ($0.03).
• Non-GAAP earnings per share are expected to be between $0.00 and $0.05.

The above guidance was based on the following assumptions. 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 $1.4 million. Interest income, net is expected to be approximately $500,000, assuming no material changes in interest rates and currently planned use of cash. Cash paid for income taxes is expected to be approximately $800,000, assuming no changes in required tax payments. Basic weighted average shares outstanding are expected to be approximately 13.8 million shares and diluted weighted average shares outstanding are expected to be approximately 14.1 million shares, assuming no additional issuances of equity or equity-related securities. This guidance does not reflect the impact of the recently-announced Zandan acquisition and its associated costs, which we plan on calling out separately over the next two quarters until the new subsidiary is well integrated, and we begin the next fiscal year.

Conference Call

Keynote will host a conference call and simultaneous webcast at 2:00 pm (PDT) today, April 29, 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 # 42596169. 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 total revenue, GAAP and Non-GAAP earnings or loss 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 customers of SIGOS, 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 tax expense, stock-based compensation expense and amortization of purchased intangibles. Non-GAAP earnings per share is 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. The Company will add this disclosure in future press releases.

About Keynote

Keynote Systems (Nasdaq “KEYN”) is the global leader in on-demand test & measurement solutions for continuously improving the online experience. As an independent and trusted third-party, Keynote provides IT and marketing executives with an unbiased view into their Internet services from around the world. For over a decade, Keynote has been providing measurement data and testing capabilities that allow companies to understand and improve their customer’s online and mobile experience. Keynote has four test and measurement businesses: Web performance, mobile quality, streaming & VoIP, and customer experience/UX. In addition, Keynote’s industry analysis group called Keynote Competitive Research publishes proprietary studies measuring customer experience and service levels across a wide range of industries.

Known as The Mobile and Internet Performance Authority™, Keynote has a market-leading infrastructure of 2,400 measurement computers and mobile devices in over 240 locations around the world. Keynote also maintains one of the most representative panels of online users consisting of 160,000 consumers. Keynote’s on-demand, hassle-free infrastructure allows businesses to access services they need, when they need them to pinpoint and fix mobile quality and Internet problems before they impact customers.

Keynote helps over 2,700 corporate customers become “the best of the best” by helping them improve online business performance and mobile communications quality. Keynote’s customers represent top Internet and mobile companies including American Express, BP, Caterpillar, Dell, Disney, eBay, E*TRADE, Expedia, FedEx, Microsoft, SonyEricsson, Sprint, T-Mobile, Verizon and Vodafone.

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 (650) 403-2400.

Keynote, The Internet Performance Authority and Perspective 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. © 2007 Keynote Systems, Inc.

Keynote Systems, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
				Three months ended									Six months ended
				Mar 31			Dec 31			Mar 31			Mar 31			Mar 31
				2008			2007			2007			2008			2007
Net revenue:
	Subscription services			$	11,092		$	10,872		$	10,733		$	21,964		$	21,240
	Ratable licenses				4,605			4,002			3,203			8,607			5,409
	Professional services				1,937			2,846			2,778			4,783			5,880
		Total revenue, net			17,634			17,720			16,714			35,354			32,529
Costs and expenses:
	Costs of revenue:
		Direct costs of subscription services			2,225			2,111			2,110			4,336			4,168
		Direct costs of ratable licenses			1,111			1,603			730			2,714			1,813
		Direct costs of professional services			1,794			1,805			2,207			3,599			4,330
		Operations			2,024			2,003			1,948			4,027			3,790
		Development			3,160			3,133			2,877			6,293			5,749
		Amortization of intangible assets - software			211			205			187			416			370
			Total costs of revenue		10,525			10,860			10,059			21,385			20,220
	Sales and marketing				6,529			5,767			5,037			12,296			9,666
	General and administrative				2,501			2,487			2,378			4,988			4,757
	Excess occupancy income, net				(309	)		(281	)		(21	)		(590	)		(48	)
	Amortization of intangible assets - other				542			537			573			1,079			1,149
		Total costs and expenses			19,788			19,370			18,026			39,158			35,744
		Loss from operations			(2,154	)		(1,650	)		(1,312	)		(3,804	)		(3,215	)
Interest income and other, net					881			1,150			1,149			2,031			2,270
Loss before (provision) benefit for income taxes					(1,273	)		(500	)		(163	)		(1,773	)		(945	)
(Provision) benefit for income taxes					(45	)		(244	)		193			(289	)		1,239
		Net (loss) income		$	(1,318	)	$	(744	)	$	30		$	(2,062	)	$	294
Net (loss) income per share:
		Basic		$	(0.08	)	$	(0.04	)	$	0.00		$	(0.12	)	$	0.02
		Diluted		$	(0.08	)	$	(0.04	)	$	0.00		$	(0.12	)	$	0.02
Weighted average common shares outstanding:
		Basic			16,130			18,237			17,284			17,180			17,199
		Diluted			16,130			18,237			17,986			17,180			17,827

Keynote Systems, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
			March 31, 2008			September 30, 2007
Assets
Current assets:
	Cash and cash equivalents		$	37,576		$	42,875
	Short-term investments			17,528			65,060
		Total cash, cash equivalents and short-term investments		55,104			107,935
	Accounts receivable			7,552			5,988
	Prepaids, deferred costs and other current assets			3,516			2,703
	Inventories			1,463			1,059
	Deferred tax assets			4,068			3,922
		Total current assets		71,703			121,607
Deferred costs				1,907			1,301
Property and equipment, net				35,778			35,480
Goodwill				67,357			63,129
Identifiable intangible assets, net				6,817			7,963
	Total assets		$	183,562		$	229,480
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable		$	1,590		$	2,285
	Accrued expenses			12,423			11,656
	Current portion of capital lease obligation			19			24
	Deferred revenue			24,058			19,824
	Total current liabilities			38,090			33,789
	Long-term portion of capital lease obligation			27			31
	Deferred rent and other long term liabilities			2,027			292
	Long-term deferred revenue			1,169			2,136
	Long-term deferred tax liability			1,507			2,347
	Total liabilities			42,820			38,595
Stockholders' equity:
	Common stock			17			18
	Treasury stock			(38,217	)		(1,151	)
	Additional paid-in capital			308,959			325,525
	Accumulated deficit			(142,170	)		(140,188	)
	Accumulated other comprehensive income			12,153			6,681
	Total stockholders' equity			140,742			190,885
	Total liabilities and stockholders' equity		$	183,562		$	229,480

Keynote Systems, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
				Three months ended						Six Months ended
				Mar 31			Mar 31			Mar 31			Mar 31
				2008			2007			2008			2007
Cash flows from operating activities:
	Net (loss) income			$	(1,318	)	$	30		$	(2,062	)	$	294
	Adjustments to reconcile net income (loss) to net cash
	provided by operating activities:
		Depreciation and amortization			1,321			1,086			2,608			2,179
		Stock-based compensation			1,160			1,004			2,260			1,924
		Charges to bad debt and billing adjustment reserves			47			65			98			148
		Amortization (accretion) of debt investment premium (discount)			289			(50	)		(262	)		(295	)
		Amortization of identifiable intangible assets			753			760			1,495			1,519
		Deferred tax benefit			-			(1,412	)		-			(887	)
		Changes in operating assets and liabilities, net			272			5,364			(1,283	)		6,645
			Net cash provided by operating activities		2,524			6,847			2,854			11,527
Cash flows from investing activities:
	Purchase of property, equipment and software				(1,033	)		(1,383	)		(2,384	)		(2,087	)
	Purchase of businesses and assets, net				-			-			-			(307	)
	Earnout payment for acquisition of business				-			(10,587	)		-			(10,587	)
	Sales (purchases) of short-term investments, net				40,450			(4,967	)		47,978			(3,934	)
			Net cash provided by (used in) investing activities		39,417			(16,937	)		45,594			(16,915	)
Cash flows from financing activities:
	Payment of capital lease obligations				(7	)		(8	)		(14	)		(23	)
	Repurchase of outstanding common stock				(49,156	)		-			(58,971	)		-
	Proceeds from issuance of common stock and exercise of stock options				1,477			2,545			3,072			3,290
			Net cash provided by (used in) financing activities		(47,686	)		2,537			(55,913	)		3,267
Effect of exchange rate changes on cash and cash equivalents					1,758			117			2,166			200
Net decrease in cash and cash equivalents					(3,987	)		(7,436	)		(5,299	)		(1,921	)
Cash and cash equivalents at beginning of the period					41,563			51,177			42,875			45,662
Cash and cash equivalents at end of the period (1)				$	37,576			43,741		$	37,576		$	43,741
(1) Excludes $17.5 million and $49.5 million of short-term investments at March 31, 2008 and March 31, 2007, respectively.

Keynote Systems, Inc. and Subsidiaries
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except per share data)
(Unaudited)
		Three months ended									Six months ended
		Mar 31			Dec 31			Mar 31			Mar 31			Mar 31
		2008			2007			2007			2008			2007
Revenue categories:
	Internet Subscriptions	$	8,881		$	8,877		$	9,040		$	17,758		$	17,924
	Internet Engagements		1,019			1,596			1,333			2,615			2,830
Subtotal Internet Revenue			9,900			10,473			10,373			20,373			20,754
	Mobile Subscriptions		1,654			1,340			1,113			2,994			2,110
	Mobile Ratable Licenses		4,605			4,002			3,203			8,607			5,409
Subtotal Mobile Revenue			6,259			5,342			4,316			11,601			7,519
	CEM Subscriptions		557			655			580			1,212			1,207
	CEM Engagements		918			1,250			1,445			2,168			3,049
Subtotal CEM Revenue			1,475			1,905			2,025			3,380			4,256
Total Revenue, net		$	17,634		$	17,720		$	16,714		$	35,354		$	32,529
Non-GAAP net income (loss) and income (loss) per share:
GAAP net (loss) income		$	(1,318	)	$	(744	)	$	30		$	(2,062	)	$	294
	Provision (benefit) for income taxes		45			244			(193	)		289			(1,239	)
	Stock-based compensation (a)		1,160			1,100			1,004			2,260			1,924
	Amortization of intangible assets - other		542			537			573			1,079			1,149
	Amortization of intangible assets - software		211			205			187			416			370
Non GAAP income before income tax			640			1,342			1,601			1,982			2,498
	Cash tax expense		144			222			240			366			586
Non GAAP net income		$	496		$	1,120		$	1,361		$	1,616		$	1,912
Weighted average common shares outstanding (diluted):			16,459			19,091			17,986			17,765			17,827
Non GAAP income per share		$	0.03		$	0.06		$	0.08		$	0.09		$	0.11
(a) Stock-based compensation by category:
Direct costs of ratable licenses		$	66		$	49		$	40		$	115		$	81
Direct costs of professional services			124			115			128			239			264
Operations			178			145			144			323			290
Development			274			230			209			504			419
Sales and marketing			413			327			316			740			596
General and administrative			105			234			167			339			274
		$	1,160		$	1,100		$	1,004		$	2,260		$	1,924

Keynote Systems, Inc. and Subsidiaries
REVENUE DETAIL
(In thousands)
(Unaudited)
		Three months ended								Year ended
		Dec 31		March 31		June 30		Sept 30		Sept 30
FY 2008
	Internet Subscriptions	$	8,877	$	8,881	$	-	$	-	$	17,758
	Internet Engagements		1,596		1,019		-		-		2,615
Subtotal Internet Revenue			10,473		9,900		-		-		20,373
	Mobile Subscriptions		1,340		1,654		-		-		2,994
	Mobile Ratable Licenses		4,002		4,605		-		-		8,607
Subtotal Mobile Revenue			5,342		6,259		-		-		11,601
	CEM Subscriptions		655		557		-		-		1,212
	CEM Engagements		1,250		918		-		-		2,168
Subtotal CEM Revenue			1,905		1,475		-		-		3,380
Total Revenue, Net		$	17,720	$	17,634	$	-	$	-	$	35,354
FY 2007
	Internet Subscriptions	$	8,884	$	9,040	$	9,129	$	8,858	$	35,911
	Internet Engagements		1,497		1,333		1,720		1,426		5,976
Subtotal Internet Revenue			10,381		10,373		10,849		10,284		41,887
	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
	CEM Subscriptions		626		580		593		603		2,402
	CEM Engagements		1,605		1,445		1,344		1,503		5,897
Subtotal CEM Revenue			2,231		2,025		1,937		2,106		8,299
Total Revenue, Net		$	15,815	$	16,714	$	17,387	$	17,838	$	67,754
FY 2006
	Internet Subscriptions	$	8,782	$	8,876	$	8,909	$	9,096	$	35,663
	Internet Engagements		1,127		905		714		1,103		3,849
Subtotal Internet Revenue			9,909		9,781		9,623		10,199		39,512
	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
	CEM Subscriptions		499		583		590		647		2,319
	CEM Engagements		2,769		1,887		1,705		1,931		8,292
Subtotal CEM Revenue			3,268		2,470		2,295		2,578		10,611
Total Revenue, Net		$	13,716	$	12,739	$	13,867	$	15,186	$	55,508
FY 2005
	Internet Subscriptions	$	8,625	$	8,783	$	9,160	$	8,883	$	35,451
	Internet Engagements		822		1,082		881		1,026		3,811
Subtotal Internet Revenue			9,447		9,865		10,041		9,909		39,262
Mobile Subscriptions			803		338		442		585		2,168
	CEM Subscriptions		595		531		441		432		1,999
	CEM Engagements		2,743		2,431		2,541		2,548		10,263
Subtotal CEM Revenue			3,338		2,962		2,982		2,980		12,262
Total Revenue, Net		$	13,588	$	13,165	$	13,465	$	13,474	$	53,692

Keynote Systems, Inc. and Subsidiaries
DEFERRED REVENUE
(In thousands)
(Unaudited)
		March 31, 2008		December 31, 2007		March 31, 2007
Deferred revenue, net
	Domestic	$	6,818	$	7,198	$	6,639
	International		18,409		15,054		12,903
	Total	$	25,227	$	22,252	$	19,542
Add back: unpaid deferred revenue
	Domestic	$	2,276	$	1,406	$	4,608
	International		4,043		5,145		1,993
	Total	$	6,319	$	6,551	$	6,601
Deferred revenue, gross
	Domestic	$	9,094	$	8,604	$	11,247
	International		22,452		20,199		14,896
	Total	$	31,546	$	28,803	$	26,143

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