Second Quarter Update and Contract Wins

16 December 2009

                                           ALLOCATE SOFTWARE PLC
                                       ("Allocate" or "the Company")

                                  Second Quarter Update and Contract Wins

Allocate  Software  plc  (AIM:  ALL), the leading provider of workforce optimisation  solutions,  announces
significant achievements in its second quarter ended 30 November 2009:

-     Six new NHS contract wins for its Healthcare e-Rostering product, MAPS Healthroster, taking its total
      NHS e-Rostering customer base to 98 Trusts

-     The first two sales of its new NHS e-Expenses solution within 30 days of its launch

-     The  first  stand alone sale of BSMS Trinity, the Company's new bank management solution, taking  the
      total bank management customer base to 146 NHS Trusts

-     A major strategic partnership with NHS Professionals ("NHSP"), the largest provider of flexible staff
      managed services to the NHS

-     The acquisition of Time Care AB, a leading Swedish-based software provider, to create one of Europe's
      leading providers of workforce management software to the healthcare sector

Healthcare

The Healthcare sector has delivered continued growth and Allocate now has over 230 NHS Trusts across the UK
using MAPS Health Suite.  Significantly, two thirds of the new contracts are with Primary Care Trusts.  The
new contracts for MAPS Healthroster are with:

-     Devon PCT
-     Hampshire PCT
-     Redcar and Cleveland PCT
-     Wiltshire PCT
-     Heart of England NHS Foundation Trust
-     North Lincolnshire and Goole Hospitals NHS Trust

In addition, the first contract has been signed with NHSP under the strategic partnership agreement.

The  Heart  of England NHS Foundation Trust and Hampshire PCT have also become the first two NHS Trusts  to
purchase Allocate's new e-Expenses module.  e-Expenses significantly reduces the administration involved in
entering,  approving  and processing expense claims, and delivers substantially more  accurate  payment  of
expense claims.

Lincolnshire PCT has become the first customer to purchase BSMS Trinity, Allocate's new bank management
solution, to manage its temporary staff.

Allocate and NHSP, a Special Strategic Health Authority and the largest provider of flexible staff  managed
services  to  the  NHS,  were pleased to announce a strategic partnership to deliver  long-term  integrated
services  to NHS Trusts.  The partnership is significant because it will deliver tangible benefits  to  NHS
Trusts  by  helping them to achieve major cost savings across their substantive and flexible  clinical  and
administrative  workforce, while continuing to maintain optimum standards of clinical care.   As  mentioned
above, the first contract under this agreement has now been signed.

Defence

NATO  SHAPE  has acquired additional licences to support extended user access to the current  MAPS  system.
Until  now, MAPS has only been available to users on the NATO Secret network. The high degree of confidence
in  the  system  means that it is now planned to implement in the New Year an additional  replicating  MAPS
instance in the Supreme Headquarters Restricted local area network.

Maritime

Norwegian  Cruise Line ("NCL") has reaffirmed its commitment to the MAPS Crew Manning system by ordering  a
complete ship's licence for its latest addition to the cruise line fleet. The Epic is NCL's largest  vessel
at  153,000 tons and its most innovative freestyle cruise ship, accommodating 4,200 passengers. Its  maiden
voyage is scheduled for May 2010.

Acquisition of Time Care AB

Allocate's planned expansion into Europe has begun with the acquisition of Time Care AB, a leading Swedish-
based  provider  of  workforce  management software, with a strong focus on  the  healthcare  market.   The
acquisition  provides  Allocate with a strong geographic footprint in the Nordic  region,  particularly  in
Sweden, where Time Care has customer relationships with 57 of Sweden's 90 hospitals and 110 of Sweden's 290
municipalities.   The  acquisition  makes Allocate one of the leading  providers  of  workforce  management
software for the healthcare sector in Europe.

Ian  Bowles, Chief Executive Officer of Allocate commented: "This is another outstanding quarter with  solid
progress  in  our  three key sectors, demonstrating ongoing strong organic growth.  We  continue  to  invest
financially in the development of our software to enhance the product offering to both existing  and  future
customers.   This  year  has  seen the integration of the two previous acquisitions,  KITS  and  Baum  Hart,
successfully  completed, and I am pleased to report that both are performing in line with our  expectations.
In  addition,  the recently announced strategic partnership with NHSP, the opportunity to enter  the  Nordic
market  through  the acquisition of Time Care AB and our opportunities to develop overseas activity  through
our  partnership  with  PwC and CSC will position us as a leading global provider of workforce  optimisation
technology."

Enquiries:

Allocate Software                                                   
Ian Bowles - Chief Executive Officer                                Tel: [phone]
Simon Thorne - Chief Financial Officer
Claire Parsons - Corporate Marketing Manager

Numis Securities                                                    
Nominated adviser - Michael Meade / Brent Nabbs                     Tel: [phone]
Corporate Broking - James Black

Hansard Group                                                       Tel: [phone]
Justine James                                                       Tel: [phone]
Kirsty Corcoran                                                     

About Allocate Software
Allocate Software plc is the leading workforce optimisation software applications provider for world-wide
organisations with large, multi-skilled workforces.  With a blue chip client base spanning the public and
private sector, its key vertical markets include: Healthcare, Defence, Maritime and Government & Education.

At the core of the business is Allocate's workforce optimisation software application, which organisations
use to deploy the right people with the right skills, to the right place at the right time.

Headquartered in London, Allocate provides services and support to its increasing international customer
base through regional offices in the UK, Sweden, USA, Australia and Malaysia.

Allocate Software is quoted on the London Stock Exchange (AIM: ALL).   For further information please visit
www.allocatesoftware.com.

Allocate Software plc