CMS Enters Multi-year Enterprise Licensing Arrangement

McLean, Va., (August 18, 2005) –

MicroStrategy® Incorporated (NASDAQ: MSTR), a leading worldwide provider of business intelligence software, today announced that the Centers for Medicare and Medicaid Services (CMS) is expanding its existing agreement with MicroStrategy. CMS is the federal agency within the U.S. Department of Health and Human Services (HHS) responsible for the Medicare, Medicaid, and the State Children’s Health Insurance Program (SCHIP) programs.

CMS entered into a multi-year enterprise-wide licensing arrangement with MicroStrategy in 2005 in support of current data warehousing and business intelligence projects and to assist with its growing reporting and data analysis requirements, including support for the Medicare Modernization Act of 2003 (MMA). MicroStrategy will help to provide visibility into data and operations in implementing the MMA, including Medicare management reporting and the new Medicare prescription drug program. MicroStrategy was selected by CMS because of its core reporting and analytic functionality and the product’s scalability to handle volumes of data and large user populations.

“We are delighted that CMS is expanding its deployment of MicroStrategy to support its growing business intelligence initiatives,” said Gary Monroe, MicroStrategy’s Director of Federal Operations. “With more than 40 million beneficiaries, CMS is an essential service to U.S. citizens. We are eager to continue building our relationship with CMS and pleased that they are realizing significant benefits from our technology.”

About MicroStrategy
Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis, and monitoring software that helps leading organizations worldwide make better business decisions every day. Companies choose MicroStrategy for its advanced technical capabilities, sophisticated analytics, and superior data and user scalability. More information about MicroStrategy (NASDAQ: MSTR) is available at www.microstrategy.com.

This press release may include statements that may constitute “forward-looking statements,” including its estimates of future business prospects or financial results and statements containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. Forward-looking statements inherently involve risks that could cause MicroStrategy’s actual results to differ materially from the forward-looking statements. Factors that could contribute to such differences include: the ability of MicroStrategy to implement and achieve widespread customer acceptance of its software on a timely basis; delays in MicroStrategy’s ability to develop or ship new products; market acceptance of new products; competitive factors; currency fluctuations; and other risks detailed in MicroStrategy’s periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

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Wende Cover
MicroStrategy, Incorporated
1-703-770-1646
wcover@microstrategy.com

Source: MicroStrategy