Imprivata Announces Record Revenues for Fourth Quarter 2015

Lexington, Mass. — (BUSINESS WIRE) — January 11, 2016 — Imprivata® (NYSE: IMPR), the healthcare IT security company, today announced that it expects fourth quarter 2015 revenue to exceed the upper end of its previously announced guidance range of $32-34 million.

“In the fourth quarter, strength in our healthcare business both in the US and internationally drove results above our guidance,” said Omar Hussain, President and CEO of Imprivata. “We were able to build backlog, and our new products had a strong quarter. While as we expected we saw continued softness in the small hospital and non-healthcare segments, we are pleased to report that Imprivata added a record number of healthcare customers in 2015, and now supports over 1,500 healthcare customers globally.”

The company will release its full fourth quarter 2015 results after the market close on February 16, 2016 and management will provide a complete discussion of the fourth quarter results as well as an update on our 2016 outlook on the Company’s quarterly earnings call on February 16, 2015.

The Company provided updated guidance in advance of the J.P. Morgan Healthcare Conference, where President and Chief Executive Officer Omar Hussain and Chief Financial Officer Jeff Kalowski will present at 4:00 p.m. PST on Wednesday, January 13, 2016. A live webcast of the presentation will be available online from the investor relations page of the Company's investor relations website at http://investor.imprivata.com.

As the Company has not completed its year-end close and the review of its fourth quarter 2015 financial statements is not complete, the revenue expectations presented in this press release are preliminary, and, therefore, subject to final year-end closing adjustments and may change. The preliminary financial results presented in this release are based solely upon information available as of the date of this release, are not a comprehensive statement of our financial results or positions as of or for the fourth quarter of 2015, and have not been audited, reviewed, or compiled by our independent registered accounting firm. There will not be a conference call in conjunction with this press release.

About Imprivata

Imprivata® (NYSE: IMPR), the healthcare IT security company, provides healthcare organizations globally with a security and identity platform that delivers authentication management, fast access to patient information, secure communications, and positive patient identification. Imprivata enables care providers to securely and efficiently access, communicate, and transact patient health information to address critical compliance and security challenges while improving productivity and the patient experience. For more information, please visit www.imprivata.com.

Investor relations:

Jeff Bray, CFA Director of Investor Relations 781-761-1417 [email protected]

Media contact:

John Hallock Vice President, Corporate Communications 781-761-1921 [email protected]

All Imprivata products are trademarks of Imprivata, Inc. in the USA and other countries. All other product or company names mentioned are the property of their respective owners.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our preliminary estimates of Q4 2015 revenues. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include factors or circumstances that are beyond Imprivata’s control. Imprivata’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, our ability to successfully develop and introduce new solutions and products for existing solutions; our ability to successfully integrate any acquisitions we make and successfully sell products we acquire, including those acquired from HT Systems, LLC; our ability to attract new customers and retain and increase sales to existing customers; developments in the healthcare industry or regulatory environment; seasonal variations in the purchasing patterns of our customers; the lengthy and unpredictable sales cycles for new customers; our ability to maintain successful relationships with our channel partners and technology alliance partners; our dependency on sole source suppliers and a contract manufacturer for hardware components of our Imprivata OneSign solution; our ability to manage our growth effectively; our ability to respond to competitive pressures; potential liability related to privacy and security of protected health information; our ability to protect our intellectual property rights, and the other risks set forth in Imprivata’s filings with the U.S. Securities and Exchange Commission (“SEC”). Furthermore, we are in the process of finalizing our financial results for 2015, and therefore our finalized and audited results are not yet available. The preliminary expectations regarding 2015 revenue are subject to audit by our independent registered public accounting firm and no assurance is given by our independent registered public accounting firm on such preliminary expectations. You should not draw any conclusions as to any other financial results as of and for the year ended December 31, 2015 based on the foregoing estimates. These forward-looking statements speak only as of the date hereof. Imprivata disclaims any obligation to update these forward-looking statements.