FASB Call to Action Solicits Input That May Lead to New General Standard Addressing Revenue and Liability Recognition Issues in Future Financial Statements

Business Wire, Feb 13, 2002

Business/Technology Editors

CANTON, Mass.--(BUSINESS WIRE)--Feb. 13, 2002

Softrax CEO Bob O'Connor Available to Speak on

Details of Present General Standard and its Effects on

Current Revenue Management Practices

Recent studies, performed by the Financial Accounting Standards Board (FASB), indicate that revenue is often the largest item in financial statements, and that revenue recognition is the biggest reason for financial restatements. Clearly, revenue recognition is among the most important--and the most difficult--issue that standard setters and accountants face. To help solve revenue recognition problems, FASB identified a gap between the broad "conceptual" guidance and the "detailed" guidance in authoritative literature, which mostly provides guidance to only specific transactions or industries.

In late March, FASB will consolidate the comments and recommendations it has received in relation to proposing a new general standard that would potentially close the gap between broad conceptual and detailed guidances. This standard will address revenue recognition as it applies to all business entities, to resolve current revenue recognition issues and provide consistent guidance for future issues.

Bob O'Connor, founder and CEO of Softrax Corporation (www.softrax.com), a leading provider of revenue management solutions for technology companies, is available to discuss FASB's new proposal and how it will affect current business practices.

O'Connor is available to answer questions such as:

--How did the SEC's introduction of SAB 101 in December 1999 try to solve the issues of revenue recognition? Did it succeed?

--What does SOP 97-2 address and why was it needed? What were the criticisms of the rule?

--What is the difference between SEC and GAAP rules and regulations?

--How is the introduction of a new general standard expected to be received by the financial community and how will it help investors understand revenue reporting in financial statements?

If you would like to arrange a media interview with O'Connor, please contact Trish Gannon or Meghan Fitzgerald of Schwartz Communications at 781-684-0770 or e-mail softrax@schwartz-pr.com.

About Softrax Corporation

Softrax Corporation is a leading enterprise software company providing revenue management solutions that fundamentally change the way technology companies manage, analyze and predict their revenue streams. Expressly designed for the dynamic software, content and Internet sectors, Softrax systems are the best products to meet the complex revenue management business requirements of these industries. Softrax delivers business-critical solutions to hundreds of customers, including Vastera (NASDAQ:VAST), Blue Cross Blue Shield's Companion Technologies, Computer Associates (NYSE: CA), Interwoven (NASDAQ:IWOV), Motive (NASDAQ: MOTV), Visual Networks (NASDAQ:VNWK), and GEAC (TSE:GAC). Headquartered in Canton, Mass., Softrax Corporation is privately held. Further information is available at www.softrax.com or 1.888. 4 SOFTRAX.