EMERYVILLE, Calif. - (Business Wire) Lyris, Inc., (OTCBB:LYRI), today announced that it has entered into an amended and restated credit agreement with Comerica Bank. In addition, Lyris has entered into a transaction with its largest stockholder that reduces the company’s debt and raises additional equity capital.

The credit agreement has been modified to ease the financial covenants that require the Company to maintain certain levels of liquidity, cash flow, senior debt to cash flow and debt service coverage. Simultaneously with and as a condition to the execution of the amended and restated credit agreement, the company also entered into a transaction to sell approximately 6.5 million shares of common stock to LDN Stuyvie, at a purchase price of $1.05 per share. The closing price for Lyris’ stock on the date of the transaction was $0.88. As consideration for the stock, LDN Stuyvie has cancelled the company’s obligations of approximately $5.8 million under a previously issued note related to an acquisition, and has invested an additional $1 million in cash in Lyris. The transaction increases LDN Stuyvie’s beneficial ownership of the company to approximately 37 percent. LDN Stuyvie is a partnership controlled by the company’s chairman of the board.

“These transactions strengthen our balance sheet and provide us additional resources and flexibility to pursue an accelerated growth strategy for the company through investments in support of our new integrated platform, Lyris HQ,” noted Luis Rivera, president and chief executive officer. “Initial customer response to this offering has been very positive and we believe we are well positioned to meet the growing demand among marketers for an integrated solution,” Rivera added. “We believe the decision by our largest shareholder to invest in Lyris at a significant premium to our current stock price demonstrates its belief in the company’s growth opportunities presented by Lyris HQ,” according to Rivera.

Lyris HQ is the company’s recently introduced on-demand marketing platform that brings together the company’s full suite of marketing technologies into a single sign-on dashboard interface. Lyris HQ incorporates Lyris’s digital marketing solutions, EmailLabs, ClickTracks, Hot Banana, Bid Hero and EmailAdvisor, and is the only solution to provide marketers a centralized platform from which to manage all of their core online marketing technologies—with one vendor, one bill and one source for customer support.

About Lyris, Inc.

Lyris, Inc. (OTCBB:LYRI), is a leading marketing technology company that provides hosted and installed software solutions for marketers at mid-size businesses. The company offers marketers an integrated technology platform through its Lyris HQ product and point solutions including ListManager, EmailLabs, ClickTracks, BidHero, Sparklist, Hot Banana and EmailAdvisor. These sophisticated, yet easy-to-use, tools provide marketers a suite of best-of-breed applications for managing email marketing campaigns, publishing and managing Web site content, creating landing pages, optimizing Web sites and managing pay-per-click campaigns. Clients include Nokia, Adobe, PalmSource, Johns Hopkins University and Jupitermedia. For more information, please visit www.lyrisinc.com, www.lyris.com, www.emaillabs.com, www.clicktracks.com, www.hotbanana.com and www.sparklist.com. The company is based in Emeryville, California.

Precautionary Statements Regarding Forward-Looking Information

The statements in this press release relating to matters that are not historical facts are forward-looking statements based on management’s beliefs and assumptions using currently available information and expectations as of the date hereof, and are not guarantees of future performance and involve certain risks and uncertainties, including risks and uncertainties detailed from time to time in Lyris, Inc.’s filings with the Securities and Exchange Commission available at www.sec.gov. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct. Lyris assumes no duty to publicly update or revise any such statements, whether as a result of new information, future events or otherwise.