Financial: Hyperion Software Reports Record Revenues and Earnings. Hyperion Prepares for Merger with Arbor Software, Posts 26% Operating Margin

Edge: Work-Group Computing Report, July 20, 1998

Analytic Applications Analytic applications help businesses, not-for-profit institutions and government agencies improve operating efficiency and maximize performance by providing timely, accurate information and improved process control for better decision making. Leading analytic applications today include profitability analysis, budgeting and planning, channel analysis, performance measurement and financial reporting and consolidation. Emerging market opportunities for analytic applications exist across a broad array of business functions including sales, marketing, manufacturing, risk management and human resources. OLAP technology provides a critical component for many of these applications because of its multidimensional calculation and navigation capabilities. Research firm International Data Corporation (IDC) estimates that the analytic applications marketplace will grow from over $800 million in 1997 to exceed $2.6 billion by the year 2001.

Hyperion Software Corporation (Nasdaq: HYSW) provides software solutions for better business understanding and improved financial performance. Hyperion's Internet-enabled applications support and enhance enterprise-wide processes including planning, budgeting, forecasting, consolidation and business analysis. With $295 million in revenues for the year ended June 30, 1998, the company's solutions are in use by more than 3,300 organizations worldwide. Hyperion's customer base includes more than 50 percent of the Fortune 500 and 40 percent of the Financial Times European Top 100. The company is ranked first worldwide in budgeting software revenue by International Data Corporation and first in financial OLAP applications by The OLAP Report. The company is headquartered in Stamford, Connecticut, and has more than 1,400 employees worldwide. Additional information is available online at http://www.hyperion.com, or by calling 1-800-286- 8000.

(a) Includes nonrecurring charges for asset valuation and restructuring costs related to a joint development venture, which had the effect of reducing net income by $2.8 million or $.15 per share.