EXHIBIT 99.1

Investor Contact:	Press Contact:
Stephanie Tawn	Bob Dorr
Niku Corporation	Niku Corporation
650-701-2732	650-298-4620
stawn@niku.com	bdorr@niku.com

NIKU REPORTS STRONG SECOND QUARTER RESULTS

License Revenue Up 129% from Prior Year and 13% Sequentially as Company Extends Market

Leadership

REDWOOD CITY, CA –August 17, 2004 - Niku Corporation (Nasdaq: NIKU) today reported results for its second fiscal quarter ended July 31, 2004.

Total revenue for the second quarter of the current fiscal year was $15.4 million, up 53% from $10.0 million in the second quarter of the prior fiscal year and up 7% from $14.4 million in the first quarter of the current fiscal year. License revenue for the second quarter of the current fiscal year was $7.2 million, up 129% from $3.1 million in the second quarter of the prior fiscal year and up 13% from $6.3 million in the first quarter of the current fiscal year. Services revenue for the second quarter of the current fiscal year was $8.2 million, up 19% from $6.9 million in the second quarter of the prior fiscal year and up 2% from $8.0 million in the first quarter of the current fiscal year.

Non-GAAP net income for the second quarter of the current fiscal year was $1.5 million, or $0.11 per share, up 1,706% from $0.1 million, or $0.01 per share in the second quarter of the prior fiscal year and up 14% from $1.3 million, or $0.10 per share, in the first quarter of the current fiscal year. Non-GAAP net income for the second quarter excludes $1.2 million in restructuring charges as a result of revisions to sublease estimates for previously vacated facilities offset by a reversal of $0.2 million in stock-based compensation expense. Non-GAAP net income for the second quarter of the prior fiscal year excluded $1.6 million in restructuring charges and $0.1 million in stock-based compensation expense, while non-GAAP net income for the first quarter of the current fiscal year excluded $0.6 million in restructuring charges and $0.2 million in stock-based compensation expense.

On a GAAP basis, the Company’s net income for the second quarter was $0.5 million, or $0.04 per share, up 131% from a net loss of ($1.6) million, or ($0.14) per share, in the second quarter of the prior fiscal year and up 6% from $0.5 million, or $0.04 per share, in the first quarter of the current fiscal year.

The Company ended the quarter with $25.5 million in unrestricted cash and cash equivalents, compared to $23.2 million at January 31, 2004 and $24.8 million at April 30, 2004. DSO for the quarter was 65 days, compared to 53 days at January 31, 2004 and 61 days at April 30, 2004.

Joshua Pickus, Niku’s president and chief executive officer, said, “We delivered strong results in a challenging environment for software companies. CIO’s are prioritizing spending on IT Management and Governance initiatives and they are increasingly choosing Clarity from Niku to make those initiatives successful.”

Highlights of the Quarter

In addition to strong growth in license revenue, total revenue and earnings per share, the following are highlights of the second quarter:

• Ranked market leader by Gartner and Cluster I Vendor by AMR

• Winner of “Best Vendor” award at Gartner Project Portfolio Management Summit

• Leading customers including:

• Financial Services: Ameriquest Mortgage Company, Aviva, Banca Popolare de Milano, First Horizon National Corp., Fortis ASR, Kas Bank, National City Corporation, Nationwide Building Society, QBEIT, Skandia UK Group

• Business Services: Access Group, Manpower, Standard & Poor’s

• Healthcare: AmerisourceBergen, AstraZeneca, Quest Diagnostics, Sanofi

• Consumer Goods: American Greetings, Avon, Columbia House, Mueller Milch

• Technology & Telecommunications: Cesky Mobile, CGI Group

• Transportation: CSX

• Open Workbench, the Company’s open source project scheduling tool, achieved more than 10,000 downloads during the first month of availability

• Strategic partnership with Infosys

Business Outlook

Niku Corporation also today provided a business outlook for the third quarter of fiscal 2005. Based on currently available information, the company expects total revenue in the range of $15.5 million to $16.5 million. Non-GAAP earnings per share are expected to be in the range of $0.11 to $0.13. As the Company expects no further restructuring charges during the current fiscal year, GAAP earnings per share are expected to be the same as non-GAAP earnings per share except for stock-based compensation expense. The Company is unable to estimate its future stock-based compensation expense and hence, its GAAP earnings per share, because the stock-based compensation expense varies based on the trading price of the Company’s common stock at quarter end.

Conference Call and Business Outlook

Niku’s management will review the financial results for the quarter and provide an outlook on Niku’s business in a conference call at 2:00 p.m. Pacific Time today, August 17, 2004. The conference call can be accessed via telephone and live WebCast. Parties interested in participating in the WebCast should access the site, downloading any necessary audio software, at lease fifteen minutes prior to the call.

Dial-in Number: 800.591.6944 (International callers: 617.614.4910). Passcode: 40784843

WebCast site: http://investor.niku.com

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About Niku Corporation

Niku Corporation (Nasdaq: NIKU) is the leading vendor of IT Management and Governance (IT-MG) software. More than 400,000 users at industry leaders such as 3M, BellSouth, Harrah’s Entertainment, HSBC, Nissan, Unilever and Visa depend on Niku to maximize their Return on IT. Niku’s Global 2000 Proven capabilities make it the leading solution for Product Development Planning and Management and Professional Services Automation, in addition to IT-MG. Niku Corporation is a publicly held company with a global presence. For more information, contact info@niku.com or visit www.niku.com.

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Note: Niku and the Niku logo are registered trademarks of Niku Corporation. Clarity and the Clarity logo are trademarks of Niku Corporation.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties concerning Niku’s expected financial performance as well as Niku’s strategic and operational plans. These statements are not guarantees of future performance. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. All forward-looking statements included in this release or the conference call, including our “Business Outlook,” are based on information available to Niku as of the date of the release, and the Company assumes no obligation to update any such forward-looking statements. Risks and uncertainties associated with the Company’s business include, but are not limited to, weakness in the general economy, or in IT spending in particular, lack of market acceptance of our products, the timing of customer licenses, delays or difficulties in implementing our products, difficulties in retaining and attracting qualified employees, and competition. These and additional risks and uncertainties associated with the Company’s business that may cause actual results to differ from those contained in forward-looking statements are discussed in greater detail in the Company’s Form 10-K, filed on April 14, 2004 and in its other filings with the SEC, which are on file with the SEC and available at the SEC’s website at http://www.sec.gov.

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NIKU CORPORATION

GAAP Condensed Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

	Three Months Ended July 31,						Three Months Ended April 30,		Six Months Ended July 31,
	2004			2003			2004		2004			2003
Revenue:
License	$	7,184		$	3,131		$	6,331	$	13,515		$	6,344
Maintenance and service		8,167			6,877			8,022		16,189			13,503
Total revenue		15,351			10,008			14,353		29,704			19,847
Cost of revenue		3,921			2,941			3,854		7,775			5,567
Gross profit		11,430			7,067			10,499		21,929			14,280
Operating expenses:
Sales and marketing		5,707			3,364			5,420		11,127			6,946
Research and development		1,886			1,817			1,976		3,862			3,714
General and administrative		2,251			1,531			1,800		4,051			3,068
Restructuring and other		1,163			1,648			647		1,810			1,648
Stock-based compensation		(188	)		74			176		(12	)		135
Total operating expenses		10,819			8,434			10,019		20,838			15,511
Operating income (loss)		611			(1,367	)		480		1,091			(1,231	)
Interest and other income (expense), net		50			(232	)		18		68			(248	)
Income (loss) before income taxes		661			(1,599	)		498		1,159			(1,479	)
Provision for income taxes		155			41			19		174			59
Net income (loss)	$	506		$	(1,640	)	$	479	$	985		$	(1,538	)
Net income (loss) per share:
Net income (loss) - basic	$	0.04		$	(0.14	)	$	0.04	$	0.08		$	(0.14	)
Weighted average common shares - basic		12,469			11,907			12,116		12,294			11,182
Net income (loss) - diluted	$	0.04		$	(0.14	)	$	0.04	$	0.08		$	(0.14	)
Weighted average common shares - diluted		13,079			11,907			12,895		12,976			11,182

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NIKU CORPORATION

GAAP Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	July 31, 2004		January 31, 2004
ASSETS
Current assets:
Cash and cash equivalents	$	25,472	$	23,200
Current portion of restricted cash		1,108		—
Total cash, cash equivalents and current portion of restricted cash		26,580		23,200
Accounts receivable, net		11,093		7,794
Prepaid expenses and other current assets		2,038		2,345
Total current assets		39,711		33,339
Restricted cash		—		1,108
Property and equipment, net		1,198		1,281
Deposits and other assets		298		888
Total assets	$	41,207	$	36,616
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,531	$	320
Accrued liabilities		8,061		7,075
Accrued restructuring		2,757		1,812
Bank borrowings		4,250		4,250
Short-term portion of capital lease obligations		288		121
Deferred revenue		8,585		9,305
Total current liabilities		25,472		22,883
Long-term accrued restructuring		6,414		6,430
Long-term portion of capital lease obligations		192		108
Total liabilities		32,078		29,421
Stockholders’ equity		9,129		7,195
Total liabilities and stockholders’ equity	$	41,207	$	36,616

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NIKU CORPORATION

Non-GAAP Condensed Consolidated Statements of Income (1)

(in thousands, except per share data)

(unaudited)

	Three Months Ended July 31,					Three Months Ended April 30,		Six Months Ended July 31,
	2004		2003			2004		2004		2003
Revenue:
License	$	7,184	$	3,131		$	6,331	$	13,515	$	6,344
Maintenance and service		8,167		6,877			8,022		16,189		13,503
Total revenue		15,351		10,008			14,353		29,704		19,847
Cost of revenue		3,921		2,941			3,854		7,775		5,567
Gross profit		11,430		7,067			10,499		21,929		14,280
Operating expenses:
Sales and marketing		5,707		3,364			5,420		11,127		6,946
Research and development		1,886		1,817			1,976		3,862		3,714
General and administrative		2,251		1,531			1,800		4,051		3,068
Total operating expenses		9,844		6,712			9,196		19,040		13,728
Operating income		1,586		355			1,303		2,889		552
Interest and other income (expense), net		50		(232	)		18		68		(248	)
Income before income taxes		1,636		123			1,321		2,957		304
Provision for income taxes		155		41			19		174		59
Net income	$	1,481	$	82		$	1,302	$	2,783	$	245
Net income per share:
Net income - basic	$	0.12	$	0.01		$	0.11	$	0.23	$	0.02
Weighted average common shares - basic		12,469		11,907			12,116		12,294		11,182
Net income - diluted	$	0.11	$	0.01		$	0.10	$	0.21	$	0.02
Weighted average common shares - diluted		13,079		12,277			12,895		12,976		11,475

(1) The Non-GAAP financial measure of net income is not prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This non-GAAP financial measure should be read only in conjunction with the preceding statements of income prepared in accordance with GAAP and the reconciliation of GAAP net income to non-GAAP net income on the next page.

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NIKU CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Net Income (1)

(in thousands, except per share data)

(unaudited)

	Three Months Ended July 31,						Three Months Ended April 30,		Six Months Ended July 31,
	2004			2003			2004		2004			2003
GAAP net income (loss)	$	506		$	(1,640	)	$	479	$	985		$	(1,538	)
Restructuring and other		1,163			1,648			647		1,810			1,648
Stock-based compensation		(188	)		74			176		(12	)		135
Non-GAAP net income	$	1,481		$	82		$	1,302	$	2,783		$	245
Net income per share:
Net income - basic	$	0.12		$	0.01		$	0.11	$	0.23		$	0.02
Weighted average common shares - basic		12,469			11,907			12,116		12,294			11,182
Net income - diluted	$	0.11		$	0.01		$	0.10	$	0.21		$	0.02
Weighted average common shares - diluted		13,079			12,277			12,895		12,976			11,475

(1) The Non-GAAP financial measure of net income is not prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This reconciliation should be read only in conjunction with the preceding statements of income prepared in accordance with GAAP.

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