eXcelon Corporation Announces First Quarter Results; Revenue for Company's Line of Dynamic Business-to-Business and Web Development Products Grows Nearly 80% Over Prior Quarter

Business Wire, April 13, 2000

Business/Technology Editors

BURLINGTON, Mass.--(BUSINESS WIRE)--April 13, 2000

eXcelon Corporation (NASDAQ: EXLN), a leading provider of dynamic business-to-business (B2B) solutions, today reported total revenues of $17.0 million for the three months ended March 31, 2000 compared to $13.1 million for the same period last year. Net loss for the three months ended March 31, 2000 was $0.7 million or $0.02 loss per diluted share, as compared to net loss of $2.0 million or $0.07 loss per diluted share for the same period last year.

The company had $3.5 million in license and services revenues for its dynamic B2B products, including the newly released B2B Integration Server, for the three months ended March 31, 2000. Of that amount, $2.5 million was software license revenues, representing a nearly 80 percent increase from the fourth quarter of 1999 and nearly 25 percent of the company's software revenues for the first quarter of 2000.

"We are very pleased with our first quarter results, and in particular we are extremely happy to see such a solid growth in sales of our B2B product line. During the quarter, we also saw the ambitious launch of our B2B integration server and the rebranding of the company. It is extremely gratifying to see that our two-year investment in developing standards-based B2B solutions is now paying off," said Robert Goldman, President and CEO of eXcelon Corporation. "We believe we are seeing early signs of significant demand for B2B integration products and we believe our offering is well-positioned and technically superior in comparison to competing products."

During the first quarter, eXcelon Corp. completed its company renaming from Object Design, Inc., to highlight the company's leading solutions in the exploding B2B marketplace. The company also changed its NASDAQ ticker symbol to EXLN. eXcelon has now aligned its product families, partnerships and business practices to position itself as the vendor of choice for companies looking to implement dynamic B2B solutions. eXcelon's B2B product suite enables companies to engage in dynamic B2B commerce across the Internet with their partners, suppliers and customers.

During the quarter, eXcelon Corp. expanded its customer base by securing a number of strategic sales wins, including: Swiss Re Insurance (one of the world's largest re-insurance companies), Kasumi Corporation (Japan's leading retail store chain), Westfield Companies (a leading insurance company), Donnelley Marketing (providers of consumer and business information), Philips and Hyperchannel (a U.K.-based Internet solutions company). Also during the quarter, eXcelon experienced growth in its consulting business that now includes more than 60 professionals trained to help customers quickly implement eXcelon's B2B solutions.

About eXcelon Corporation

eXcelon Corporation (www.exceloncorp.com) is a leading provider of products and services that enable companies to engage in dynamic business-to-business (B2B) commerce across the Internet. eXcelon Corporation's dynamic B2B solutions are 100 percent standards-based, thus eliminating technical barriers-to-entry for doing business across the Internet. Companies use eXcelon's dynamic B2B solutions to establish high-value electronic partnerships that are built for change. Based in Burlington, Mass., eXcelon Corporation was founded in 1988 and completed its initial public offering as ODIS in July 1996. The company's stock is traded on the NASDAQ National Market under the symbol EXLN. eXcelon Corporation sells and supports its products through branch offices across the U.S. and international subsidiaries in the United Kingdom, Germany, The Netherlands, Japan and Australia, as well as a worldwide network of distributors, value-added resellers, systems integrators and other indirect sales partners.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding eXcelon Corporation's business, including future market opportunities and prospects, which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

NOTE: ObjectStore is a registered trademark of eXcelon Corporation; eXcelon, eXcelon Dynamic Application Platform, eXcelon B2B Integration Server, eXcelon eSolutions, Stylus, Cache-Forward and Javlin are trademarks of eXcelon Corporation. All other trademarks are the property of their respective owners.

eXcelon Corporation
Consolidated Statements of Operations
(Unaudited and in thousands, except per share data)

                                                 Three Months Ended
                                                       March 31,
                                                  2000          1999
Revenues:
   Software                                    $ 10,074      $  8,204
   Services                                       6,930         4,904
      Total revenues                             17,004        13,108
Cost of revenues:
   Cost of software                                 633           418
   Cost of services                               3,760         2,985
      Total cost of revenues                      4,393         3,403

Gross profit                                     12,611         9,705
Operating expenses:
   Selling and marketing                          9,105         7,981
   Research and development                       3,020         2,470
   General and administrative                     1,537         1,528
      Total operating expenses                   13,662        11,979

Operating loss                                   (1,051)       (2,274)
Other income, net                                   341           265
Income (loss) before provision
   for income taxes                                (710)       (2,009)
Provision for income taxes                           --            --
Net income (loss)                              $   (710)     $ (2,009)

Earnings (loss) per share:
Basic                                          $  (0.02)     $  (0.07)
Diluted                                        $  (0.02)     $  (0.07)

Weighted average shares outstanding:
Basic                                            29,085        28,088
Diluted                                          29,085        28,088



eXcelon Corporation
Condensed Consolidated Balance Sheets
(In thousands)


                                               March 31,  December 31,
                                                 2000        1999
                                              (Unaudited)
ASSETS
Current assets:
  Cash and investments                          $20,339       $19,174
  Accounts receivable, net                       13,708        13,902
  Prepaid expenses and other current assets       1,283           946
    Total current assets                         35,330        34,022

Property and equipment, net                       5,063         5,169
Marketable securities                             3,982         4,589

Other assets                                      3,689         3,625
    Total assets                                $48,064       $47,405

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued expenses         $10,098       $10,195
  Deferred revenue                                7,946         7,697
    Total current liabilities                    18,044        17,892

Stockholders' equity                             30,020        29,513
    Total liabilities and stockholders' equity  $48,064       $47,405