San Diego – August, 2007 – Visual Sciences, Inc. (formerly known as WebSideStory, Inc.) (NASDAQ: VSCN), a leading provider of real-time analytics applications, today announced results of operations for the second quarter ended June 30, 2007. The Company had previously released preliminary financial results for the quarter ended June 30, 2007 on July 12, 2007. Financial and operating highlights for the quarter include:

Revenue: Total revenue for the second quarter was $19.7 million, an increase of 17% year-over-year on a non-GAAP basis and 29% on a GAAP basis.

Non-GAAP Earnings per Share: Non-GAAP net income increased 22% to $2.4 million for the second quarter, compared to $2.0 million for the same period last year. Non-GAAP earnings per diluted share was $0.12 for the second quarter of 2007 compared to $0.10 for the same period in 2006. Reconciliations of GAAP to non-GAAP net income (loss) and earnings per share are provided below.

GAAP Earnings per Share: On a GAAP basis, the company incurred a loss of $0.2 million for the second quarter, compared to a loss of $2.4 million for the same period last year. Net loss per diluted share was $(0.01) for the second quarter compared to $(0.13) for the same period in 2006.

New Clients: The Company added 69 new clients in the second quarter including CitiMortgage, My Travel, British Airways, CBS News and, and signed 301 new sales bookings with new and existing clients.

Positive Cash Generation: The Company had its 15th consecutive quarter of positive cash generation, adding $2.1 million of cash and short-term investments to the balance sheet, after paying down $1.0 million in short-term debt during the quarter.

Software Advancements: The Company continued to make advancements in its software applications that resulted in significant improvements for its clients and efficiencies for itself.

“The second quarter was very active for us. We rebranded our company, completed the integration of our sales, services and marketing organizations, released major new versions of HBX Analytics (version 4.0) and the Visual Sciences Technology Platform (version 5.0) and made significant progress on our latest version of Bid (version 2.0), which now supports Yahoo’s Panama APIs, and is being released today,” said Jim MacIntyre, CEO of Visual Sciences. “We earned the business of some great new clients during the quarter. Our revenue and earnings did not meet our expectations for the quarter, due to some license deals that pushed out of the quarter and longer than expected ramp times for some of our existing sales force. We did, however, end the quarter with a healthy pipeline and made significant progress in adding capable enterprise sales representatives to our team. Looking ahead, we continue to see a substantial market opportunity for our highly-differentiated real-time analytics applications.”

Financial Guidance for the Third Quarter and Full Year 2007
Visual Sciences is providing the following outlook for the third quarter of 2007 and full year 2007. Please read more on:

Note on the Use of Non-GAAP Financial Measures
Some of the financial measures in this press release, including some of our financial guidance, are non-GAAP financial measures within the meaning of SEC Regulation G. We believe that this presentation is useful to investors because it more accurately describes the operating performance of the company on a period-to-period basis, excluding specific costs and expenses that we believe are not indicative of our core operating results. Company management uses these non-GAAP measures as important indicators of the company’s past performance and to plan and forecast performance in future periods. In addition, bonus payments to our officers and employees under our corporate bonus plan are based on the achievement of specified non-GAAP revenue and non-GAAP earnings per share targets. Investors should not consider non-GAAP financial measures in isolation from, or as a substitute for, financial information presented in compliance with GAAP.

Conference Call Details
As previously announced, Visual Sciences will host a conference call today at 2:00 pm PDT to discuss the company’s second quarter financial results. To access this call, dial 866-203-3436 (domestic) or 617-213-8849 (international) using passcode 29114974. A live audio-only webcast of this conference call will be available on the company’s Web site ( ) and a replay will be archived on the Web site as well.

About Visual Sciences
Founded in 1996, Visual Sciences, Inc. (formerly known as WebSideStory, Inc.) (NASDAQ: VSCN) is a leading provider of real-time analytics applications. The company’s analytics applications, based on its patent pending on-demand service and software platform, enable fast and detailed analytics on large volumes of streaming and stored data. More than 1,590 enterprises worldwide rely on the answers delivered by these applications to provide them with actionable intelligence to optimize their business operations. The company provides real-time analytics applications for web sites, contact centers, retail points-of-sale, messaging systems and the intelligence community. Visual Sciences flexible technology platform, Visual Sciences Technology Platform 5™, allows the company to rapidly introduce tailored solutions to meet its clients’ needs. Visual Sciences is headquartered in San Diego, California, and has East Coast offices in Herndon, Virginia and a European headquarters in Amsterdam, The Netherlands. For more information, contact Visual Sciences. Voice: 858.546.0040. Fax: 858.546.0480. Address: 10182 Telesis Court, 6th Floor, San Diego, CA 92121. Web site: . Visual Sciences is a registered trademark of Visual Sciences, Inc.

Forward-Looking Statements
Statements in this press release that are not a description of historical facts are forward-looking statements. You should not regard any forward-looking statement as a representation by Visual Sciences that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in Visual Sciences’ business, including, without limitation: Visual Sciences’ reliance on its web analytics services for the majority of its revenue; potential impacts on our business, results of operations and common stock price resulting from the process we are undertaking with an investment banking firm to evaluate potential strategic transactions with interested parties; blocking or erasing of cookies or limitations on the company’s ability to use cookies; Visual Sciences’ limited experience with customer intelligence applications beyond web analytics; the risks associated with integrating the operations and products of acquired companies with those of Visual Sciences; privacy concerns and laws or other domestic or foreign regulations that may subject Visual Sciences to litigation or limit the company’s ability to collect and use Internet user information; Visual Sciences’ ability to defend itself against claims of patent infringement alleged by NetRatings, Inc.; Visual Sciences’ ongoing ability to protect its own intellectual property rights and to avoid violating the intellectual property rights of third parties; the highly competitive markets in which the company operates that could make it difficult for Visual Sciences to acquire and retain customers; the risk that Visual Sciences’ customers fail to renew their agreements; the risks associated with the company’s indebtedness, including the risk of non-compliance with the covenants in the company’s credit facility; the risk that Visual Sciences’ services may become obsolete in a market with rapidly changing technology and industry standards; the risks associated with renaming the company and undertaking related branding activities; and other risks described in Visual Sciences’ Securities and Exchange Commission filings, including the company’s annual report on Form 10-K for the year ended December 31, 2006 and quarterly reports on Form 10-Q. Do not place undue reliance on these forward-looking statements which speak only as of the date of this news release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Visual Sciences undertakes no obligation to revise or update this news release to reflect events or circumstances after the date of this news release.


Karen Haus-Moran, Carolyn Bass
Market Street Partners for Visual Sciences, Inc.

Published on: 12:00AM on 14th August 2007