Digital Asset Management (DAM) Leader Offers Affordable Hosted Digital Media Solution WESTBOROUGH, Mass., May 1 /PRNewswire-FirstCall/ -- ClearStory Systems, Inc. (OTC:CSYS) (BULLETIN BOARD: CSYS) , an established provider of high performance DAM solutions for the digital media supply chain, today announced its new ActiveMedia Essentials Business Group, a team that will offer a highly secure, entry-level hosted DAM service to the market. Aimed at departmental workgroups or small organizations, the ActiveMedia Essentials service offers an affordable, pay-as-you-go solution for digital media -- photos, graphics, marketing materials, presentations, video -- the fastest growing content across a wide range of industries. With nothing more than a web-browser, companies can quickly organize and manage digital media with secure anywhere, anytime availability for sales teams, distributors, partners, agencies, or other external users. ClearStory builds on its leading digital media hosted solutions offering with ActiveMedia Essentials. Now smaller organizations or departments can take advantage of ClearStory's enterprise DAM technology in a low cost package with a simple configuration that can be up-and-running fast. ActiveMedia Essentials can make any organizations' marketing operations more competitive, at a fraction of the cost, helping to centralize brand content with on-demand delivery where it is needed for accelerated time to market and lower distribution cost. "With the widespread growth of digital media, we have seen a growing need for affordable entry level DAM systems," commented Mukul Krishna, Industry Manager for Digital Media at Frost and Sullivan, "But it is important for organizations to easily expand these systems as their needs grow, while providing access to digital media or brand assets for the entire enterprise." "Managing the vast amount of digital media assets is a huge and costly undertaking for many smaller businesses, which is why a simple, hosted DAM is such an attractive, timely and highly cost-effective alternative." Krishna added, "And for larger organizations with marketing departments that are aggressively seeking to improve efficiencies, the marketing communications supply-chain becomes ripe for strategies such as hosted DAM." Early last year, the Company launched its Enterprise Media Server (EMS), an enterprise-class platform for the development of digital media applications, which offers high-performance and a powerful security model. In November, the company announced ActiveMedia 7, its enterprise DAM application, which it offers as both an installed application and hosted solution. ClearStory has proven experience deploying enterprise DAM on a hosted basis. Today, ClearStory is hosting DAM for a range of solutions such as brand management, video management, stock footage libraries, and marketing content management for leading companies like Sony Pictures Entertainment, Bristol-Myers Squibb, National Geographic Channels, Smuckers, Harcourt Publishers and others. Recognizing an opportunity for smaller-scale solutions, ClearStory is leveraging its investment in the EMS for ActiveMedia Essentials. Noted Henry F. Nelson, ClearStory president and chief executive officer, "Today's workgroup DAM solutions are not designed for anywhere-anytime access. A big value of enterprise DAM is on the delivery end of the content supply chain, where sales teams, partners, distributors, and agencies have fast access to digital media content in the right format for their use. ActiveMedia Essentials is powered by our web-based enterprise DAM engine, so it empowers marketing teams and agencies of any size to compete at the same pace as the big guys." Backed by a comprehensive managed service plan, ActiveMedia Essentials deploys lightening fast and provides for secure, smooth ongoing operations without the need for additional staff or resources. By transforming digital media and delivering it into formats for general business use, ActiveMedia Essentials helps companies get more from their investment in their high-value creative content. About ClearStory Systems ClearStory Systems is the leader in high-performance, content management solutions for digital media communications. ClearStory software manages the enterprise digital media supply chain -- from creation and collaboration, to lifecycle management and delivery -- to give companies a competitive advantage, marketing agility, cost avoidance, and maximum efficiency. Backed by premier customer support and service, ClearStory award-winning products are easy to use and readily align with our customers' business objectives for both a rapid return-on-investment and low total cost of ownership. Visit us at http://www.clearstorysystems.com/. There are statements in this news release that contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including for example the expected benefits of ClearStory's in-house hosting model, the anticipated customer demand for ClearStory's products and services and the expected benefits to be derived from ClearStory's products and services. These forward-looking statements include all statements that are not statements of historical fact and relate to the intent, belief, plans or expectations of ClearStory Systems, their management, and their customers. Words like "plans," "intends," "believes," "signifies," "estimates," "anticipate," "will," "expect," and words of similar meaning are intended to identify forward-looking statements. Actual results may vary significantly from the forward-looking statements. For a detailed discussion of cautionary statements that may affect ClearStory's future results of operations and financial results, please refer to ClearStory's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB for the year-ended March 31, 2005, and its Quarterly Reports on Form 10-QSB. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. CONTACTS: ClearStory Systems Ripple Effect Communications Susan Worthy Valerie Harding (Media) (508) 870-4225 (617) 536-8887 DATASOURCE: ClearStory Systems CONTACT: Susan Worthy of ClearStory Systems, +1-508-870-4225, ; or Media, Valerie Harding of Ripple Effect Communications, +1-617-536-8887, , for ClearStory Systems Web site: http://www.clearstorysystems.com/

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