On\ue000 February\ue000 24,\ue000 2009,\ue000 Guidance\ue000 Software,\ue000 Inc.\ue000 issued\ue000 a\ue000 press\ue000 release\ue000 announcing\ue000 its\ue000 financial\ue000 results\ue000 for\ue000 the\ue000 three-month\ue000 period\ue000 and\ue000 year
ended\ue000 December\ue000 31,\ue000 2008.\ue000 A\ue000 copy\ue000 of\ue000 the\ue000 press\ue000 release\ue000 is\ue000 furnished\ue000 as\ue000 a\ue000 part\ue000 of\ue000 this\ue000 current\ue000 report\ue000 on\ue000 Form\ue000 8-K\ue000 as\ue000 Exhibit\ue000 99.1\ue000 and\ue000 is
incorporated\ue000 herein\ue000 in\ue000 its\ue000 entirety\ue000 by\ue000 reference.

In\ue000 the\ue000 fourth\ue000 quarter\ue000 of\ue000 fiscal\ue000 2008,\ue000 total\ue000 revenue\ue000 grew\ue000 to\ue000 a\ue000 record\ue000 $25.2\ue000 million,\ue000 rising\ue000 $2.7\ue000 million,\ue000 or\ue000 12\ue000 percent,\ue000 above\ue000 fourth\ue000 quarter\ue000 2007. Product\ue000 revenue\ue000 rose\ue000 to\ue000 a\ue000 record\ue000 $14.2\ue000 million\ue000 in\ue000 fourth\ue000 quarter\ue000 2008,\ue000 up\ue000 $1.9\ue000 million,\ue000 or\ue000 15\ue000 percent,\ue000 year-over-year.\ue000 In\ue000 the\ue000 same\ue000 period,\ue000 the company\ue000 had\ue000 services\ue000 and\ue000 maintenance\ue000 revenue\ue000 of\ue000 $11.0\ue000 million,\ue000 up\ue000 $0.8\ue000 million,\ue000 or\ue000 8\ue000 percent\ue000 over\ue000 fourth\ue000 quarter\ue000 2007.

\u201cIn\ue000 a\ue000 down\ue000 economy,\ue000 with\ue000 ever\ue000 tightening\ue000 budgets,\ue000 we\u2019re\ue000 very\ue000 pleased\ue000 that\ue000 more\ue000 customers\ue000 than\ue000 ever\ue000 are\ue000 responding\ue000 favorably\ue000 to\ue000 our\ue000 EnCase
eDiscovery\ue000 enhancements\ue000 and\ue000 choosing\ue000 Guidance\ue000 as\ue000 their\ue000 solution\ue000 for\ue000 in-house\ue000 eDiscovery\u201d\ue000 said\ue000 Victor\ue000 Limongelli,\ue000 President\ue000 and\ue000 CEO\ue000 of
Guidance\ue000 Software.\ue000 \u201cThis\ue000 increased\ue000 market\ue000 traction\ue000 is\ue000 a\ue000 testament\ue000 to\ue000 the\ue000 compelling\ue000 value\ue000 that\ue000 major\ue000 corporations\ue000 see\ue000 in\ue000 our\ue000 offering\ue000 and\ue000 the
strength\ue000 of\ue000 our\ue000 brand\ue000 in\ue000 helping\ue000 the\ue000 legal\ue000 and\ue000 IT\ue000 communities\ue000 work\ue000 together\ue000 to\ue000 achieve\ue000 cost-effective,\ue000 scalable\ue000 in-house\ue000 eDiscovery

For\ue000 the\ue000 fourth\ue000 quarter\ue000 of\ue000 fiscal\ue000 2008,\ue000 the\ue000 Company\ue000 reported\ue000 a\ue000 GAAP\ue000 net\ue000 loss\ue000 of\ue000 $1.6\ue000 million,\ue000 or\ue000 ($0.07)\ue000 per\ue000 share,\ue000 compared\ue000 to\ue000 a\ue000 net\ue000 income\ue000 of $0.3\ue000 million,\ue000 or\ue000 $0.01\ue000 per\ue000 share,\ue000 for\ue000 the\ue000 same\ue000 period\ue000 of\ue000 the\ue000 prior\ue000 year.\ue000 Share-based\ue000 compensation\ue000 for\ue000 the\ue000 fourth\ue000 quarter\ue000 of\ue000 2008\ue000 was\ue000 $2.3\ue000 million, up\ue000 $0.8\ue000 million,\ue000 over\ue000 the\ue000 fourth\ue000 quarter\ue000 2007.\ue000 Excluding\ue000 share-based\ue000 compensation,\ue000 non-GAAP\ue000 pre-tax\ue000 income\ue000 was\ue000 $1.2\ue000 million,\ue000 or\ue000 $0.05\ue000 per share\ue000 in\ue000 the\ue000 fourth\ue000 quarter\ue000 of\ue000 2008,\ue000 compared\ue000 to\ue000 non-GAAP\ue000 pre-tax\ue000 income\ue000 of\ue000 $1.8\ue000 million,\ue000 or\ue000 $0.08\ue000 per\ue000 share,\ue000 reported\ue000 in\ue000 the\ue000 fourth\ue000 quarter\ue000 of 2007.

For\ue000 the\ue000 year\ue000 ended\ue000 December\ue000 31,\ue000 2008,\ue000 the\ue000 Company\ue000 reported\ue000 a\ue000 GAAP\ue000 net\ue000 loss\ue000 of\ue000 $10.6\ue000 million,\ue000 or\ue000 ($0.46)\ue000 per\ue000 share,\ue000 compared\ue000 to\ue000 a\ue000 net\ue000 loss\ue000 of $2.9\ue000 million,\ue000 or\ue000 ($0.13)\ue000 per\ue000 share,\ue000 for\ue000 the\ue000 prior\ue000 year.\ue000 Share-based\ue000 compensation\ue000 for\ue000 the\ue000 year\ue000 ended\ue000 December\ue000 31,\ue000 2008\ue000 was\ue000 $9.0\ue000 million,\ue000 up\ue000 $4.6 million\ue000 year-over-year.\ue000 Excluding\ue000 share-based\ue000 compensation,\ue000 non-GAAP\ue000 pre-tax\ue000 income\ue000 for\ue000 the\ue000 year\ue000 ended\ue000 December\ue000 31,\ue000 2008\ue000 was\ue000 $362,000,\ue000 or $0.02\ue000 per\ue000 share,\ue000 compared\ue000 to\ue000 non-GAAP\ue000 pre-tax\ue000 income\ue000 of\ue000 $2.7\ue000 million,\ue000 or\ue000 $0.12\ue000 per\ue000 share,\ue000 in\ue000 the\ue000 prior\ue000 year.

\u201cThe\ue000 Company\ue000 finished\ue000 the\ue000 year\ue000 with\ue000 a\ue000 very\ue000 strong\ue000 balance\ue000 sheet\ue000 with\ue000 no\ue000 debt,\ue000 and\ue000 cash\ue000 and\ue000 cash\ue000 equivalents\ue000 of\ue000 $36.0\ue000 million,\u201d\ue000 said\ue000 Barry Plaga,\ue000 Chief\ue000 Financial\ue000 Officer.\ue000 \u201cIn\ue000 addition,\ue000 total\ue000 deferred\ue000 revenue\ue000 as\ue000 of\ue000 December\ue000 31,\ue000 2008\ue000 rose\ue000 to\ue000 $33.3\ue000 million,\ue000 up\ue000 $6.1\ue000 million,\ue000 or\ue000 22\ue000 percent, over\ue000 the\ue000 previous\ue000 year.\u201d