O2 ACHIEVES GREATER BUSINESS AGILITY AND REDUCES COSTS WITH ARTIX

Leading provider of mobile services selects IONA's Artix Extensible ESB to integrate new mission critical service management and support systems with existing network infrastructure

Dublin, Ireland & WALTHAM, Mass - July 19, 2005 - IONA® Technologies
(NASDAQ: IONA), a world leader in high-performance integration solutions for mission-critical IT environments, today announced that O2, a leading provider of mobile services across the UK, Germany and Ireland has selected Artix(tm), IONA's extensible Enterprise Service Bus (ESB), to facilitate Web services-based integration within the company's operational support systems
(OSS) infrastructure in the UK and Ireland. O2 selected Artix for its capacity to deliver interoperability between multiple technologies within the company's high performance OSS environment, thus facilitating more rapid deployment of new systems and reducing the company's reliance on proprietary software.

"In the telecommunications industry, the ability to respond to market trends and customer demands is crucial to ongoing success. We need flexible OSS systems in order to preserve the true business agility that helps us stay ahead of a rapidly evolving market," explains Carolyn Smithson, Head of OSS Strategy, O2 Technology. "Artix is a powerful and extensible ESB solution that gives us the flexibility we require, without compromising the mission-critical nature of our OSS systems and without saddling us with an expensive proprietary solution."

O2's OSS environment is typical of any large telecommunications company. It comprises a diverse set of applications, and contains multiple generations of proprietary, standards-based and customized technologies that must work together to achieve the company's business goals. Further, introducing new systems within this environment can be a complex and often costly exercise.
As an extensible ESB, Artix is designed to provide the high-performance, mission-critical integration and interoperability required by O2 to support strategic business initiatives and the seamless introduction of new technologies and services.

O2 UK has deployed Artix for two mission critical applications. The first will connect the company's existing network management system to a newly deployed help desk system. The second will enable a new SMS based support service for O2 UK's field engineers.

With a planned company-wide move to new help desk systems, O2 chose to re-evaluate their current technology for connecting these systems with their Cisco Information Centre network management solution and also for integrating web based applications to the O2 SMS systems. When deployed, Artix will replace legacy solutions that were proving costly to maintain and provide O2 with a highly flexible and reusable solution that can be deployed and easily adapted.

"Intense competition within the telecommunications industry has placed significant pressure on telecommunications carriers and service providers to introduce new services quickly and continually enhance customer service levels," said Peter Zotto, CEO, IONA Technologies. "O2 is a long-time IONA Orbix® customer and as such knows that IONA understands these pressures. We have a solid reputation for solving the critical integration requirements and extreme performance demands of telecommunications companies while helping them achieve significant cost reductions and make their IT environments more agile. We look forward to a continued successful relationship with O2 as they use Artix to service-enable and adapt their systems to rapidly changing market needs."

With Artix, O2 has used extensible ESB technology to successfully reduce its reliance on proprietary technology and has already generated returns through reduced software licensing costs, greater system flexibility and the ability to introduce new services quickly and cost effectively.

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