Actuate's officers and directors take very seriously our obligation to deliver superior results for stockholders while adhering to the highest standards of integrity and ethical behavior.

These are some of the initiatives Actuate and its Board of Directors have recently undertaken to further strengthen our internal controls and disclosure practices as well as comply with the Sarbanes-Oxley Act of 2002 and other corporate governance rules and regulations:

• Certification of the accuracy of our financial "selectstate"ments by our CEO and CFO;
  
  
• The immediate posting of all Form 10-K and Form 10-Q filings in the investor relations section of the Actuate website;
  
  
• The electronic filing of SEC reports regarding stock ownership by Section 16 insiders, followed by their immediate posting in the investor relations section of the Actuate website;
  
  
• Ratifying an updated Audit Committee Charter, revised to reflect that committee's role as newly defined by the Sarbanes-Oxley legislation;
  
  
• Ensuring that our Audit Committee meets all current standards for director independence and financial expertise;
  
  
• Ensuring that our Corporate Governance and Compensation Committees are composed solely of independent directors;
  
  
• Adopting a Code of Ethics and Business Conduct for all Actuate employees;
  
  
• Requiring that all sales personnel sign a written acknowledgment on a yearly basis disclaiming any side letters or agreements;
  
  
• Establishing a prohibition on the granting of personal loans to officers or directors and a ban on the creation of any off-balance sheet transactions (note that Actuate has never participated in such activity in the past);
  
  
• Establishing an anonymous email account and phone number through which any employee may report suspected accounting improprieties or illegalities directly to the Chairman of the Audit Committee;
  
  
• The development of this corporate governance section as a permanent fixture of the Actuate website. This section will feature detailed descriptions of, and timely updates to, our corporate governance policies and procedures.
  
  

We believe that Actuate's Board of Directors and our senior management team are comprised of some of the most experienced, talented and ethical individuals in the technology industry today. We appreciate the opportunity to reiterate to our investors, employees and customers that we continue to operate in an environment of transparency and accountability and that discipline and integrity continue to be the hallmarks of the way we operate our business.

Sincerely,

Pete Cittadini President and Chief Executive Officer