TERAGRAM SELECTED BY AP TO DELIVER ENTITY EXTRACTION AND CATEGORIZATION TECHNOLOGY

CAMBRIDGE MA, October 17, 2006 - Teragram, a technology company delivering multilingual natural language processing software, has been selected by The Associated Press to provide faster and more accurate categorization and entity and events extraction for AP news content worldwide.

Teragram's software associates categories and entity meta-data with AP news content for improved contextual relationship and search performance. That classification solution provides AP news consumers around the world with much more context surrounding a topic or news event.

"The growing use of electronic documents across organizations has created an electronic data maintenance crisis that challenges fast, real-time retrieval and searching," said Yves Schabes, president and co-founder of Teragram. "Teragram's entities and events extraction software automatically detects and extracts concepts, such as celebrities, locations, events and companies, so that organizations like the AP can quickly process news feeds and deliver them in as accurate and as timely a manner as possible."

"Their software allows us to be much more flexible in defining and delivering news products," said Todd B. Martin, AP's vice president of technology development.

About Teragram
Teragram Corporation is the market leader in multilingual natural language processing technologies that use the meaning of text to distill relevant information from vast amounts of data. Founded in 1997 by innovators in the field of computational linguistics, Teragram alone offers the speed, accuracy and global language support that customers and partners demand to retrieve and organize growing volumes of digital information. Teragram helps customers perform more efficient searches and better organize information in more than 30 languages, enabling them to reach new markets and make better decisions. Teragram serves customers across the publishing, pharmaceutical, telecommunications and financial industries, including AOL, Ariba, Ask Jeeves, Associated Press, CNN, Factiva, FAST Search & Transfer, Forbes.com, InfoSpace, Kofax, Naval Post Graduate School, NYTimes Digital, OneSource, Reed Business Information, Ricoh, Sony, Verity, WashingtonPost.com, the World Bank, and Yahoo. For more information please contact 1-617-576-6800 or visit http://www.teragram.com/info.