California Software Announces Restructuring Plan for a Profitable 2001

Business Wire, Jan 5, 2001

Business Editors and High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--Jan. 5, 2001

California Software Corp. (OTCBB:CAWC), a leader in IBM Midrange migration products and developer of the award-winning BABY, Unibol and MLPS product lines, Friday announced that its board of directors has unanimously approved a financial plan for 2001 emphasizing profitability.

Larry Jagiello, CFO of California Software, was quoted as saying: "We have created and implemented a new financial plan for the company which reduces costs at all levels. These cost saving measures include a reduction in force, which has been implemented as of today as well as the deferral of some executive compensation.

"The financial team of California Software is committed to the company goal of operating in the black this year."

"While 2000 was an investment year culminating in new products and a growth-through-acquisition strategy, 2001 will find us much more focused on the bottom line as we continue to build on our efforts in 2000," stated Bruce Acacio, CEO, California Software.

"While we continue to look at companies which would complement our business, our strategy for acquisitive growth will focus on profitability," continued Acacio.

About California Software Corp.

With headquarters in Irvine and offices in Atlanta, Richmond, Va., Belfast, Ireland and Brussels, Belgium, California Software is the worldwide leader in IBM Midrange migration software solutions and a leader in Financial Services Software.

The company's products, marketed under the brand name BABY, Unibol and MLPS, support the migration of IBM AS/400 screens and applications to Windows and the Web and loan processing applications for financial institutions. California Software enjoys more than 100,000 installations in 56 countries and is in use by such customers as Caterpillar, Volvo, DHL Worldwide, BMW Motors, Conseco and Bancomer.

This news release contains forward-looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can usually, but not always, be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts", "potential", "intends" or the negative of such terms or comparable terms. These statements are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including those identified in the company's filings with the SEC. Investors are cautioned that all forward-looking statements involve risks and uncertainties of the industry in which the company operates and/or proposes to operate, including without limitation, uncertainties of product sales and product development, market acceptance of the company's products, the impact of competitive products and technological innovation, product returns and defects, product obsolescence, availability of qualified personnel, dependence on third party suppliers, success or failure of strategic business alliances, acquisitions or other business combinations, new or amended laws and regulations applicable to the company, general market conditions, and other risks. These forward-looking statements are made in reliance on the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended.