Motive Fires Its Auditor

Motive said that the independent investigation by its Board of Directors' Audit Committee has been concluded

July 31, 2007

2 Min Read

AUSTIN, Texas -- Motive, Inc. (OTC: MOTV - News), a leading provider of management software for broadband and mobile data services, said today that the independent investigation by its Board of Directors' Audit Committee into the company's past accounting practices and related matters has been concluded.In a detailed Current Report on Form 8-K filed today, it was also disclosed the Board's Audit Committee voted unanimously on Friday, July 27, to dismiss Ernst & Young as the company's independent auditor, and to proceed as rapidly as possible to engage a new independent certified public accountant. The Form 8-K provides detailed information and a chronology leading up to the dismissal of Ernst & Young.

Ernst & Young's dismissal was effective July 27. Motive has authorized Ernst & Young to respond fully to inquiries from the Company's successor independent accountant concerning the subject matter of each of the disagreements, reportable events and other matters described in the Current Report on Form 8-K.

In November 2005, Motive's Audit Committee, consisting of three independent directors, initiated the independent review and retained the law firm of Graves, Dougherty, Hearon & Moody, P.C. as independent counsel, which engaged PricewaterhouseCoopers to provide accounting and forensic investigation assistance. Subsequently, the Company announced it would restate previously issued financial statements dating back to fiscal 2001. Prior to and during the period under review Ernst & Young was the company's independent auditor.

The Audit Committee's independent investigative team reviewed thousands of pages of hard copy and electronic documents, captured and analyzed over 1.8 million unique e-media files and 1.3 million unique e-mail messages, and conducted 80 formal interviews with Motive's current and former employees, officers and directors, and various third parties. Motive's management cooperated fully with the Audit Committee's review.

"We are pleased to have reached conclusions to these difficult issues," said Alfred Mockett, Motive's chairman and chief executive officer. "All of us at Motive wish to publicly thank the Audit Committee and its chairman, Tom Meredith, for this dedicated work."

Motive

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