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PLATINUM technology, inc. (Nasdaq: PLAT) today announced
that revenues for the second quarter ended June 30, 1997
increased 27 percent to $136.4 million from $107.2 million
for the same period last year. The net profit for the
quarter, excluding restructuring and other one-time charges
and acquired in-process technology, was $3.7 million, or
$.06 per share, compared with a net loss of $5.6 million, or
$.10 per share, in the second quarter of 1996. The net loss
for the quarter was $78.9 million, or $1.28 per share,
including after-tax charges of $82.6 million, or $1.34 per
share, for restructuring and other one-time charges, and
acquired in-process technology.

Revenues for the six months ended June 30, 1997 increased 28
percent to $252.1 million, over revenue of $196.3 million
for the 1996 period. Results for the first half reflected a
40 percent increase in software license revenues to $128.9
million from $92.1 million for the same period in 1996.
Excluding restructuring and other one-time charges, merger
costs and acquired in-process technology, the net loss for
the year-to-date period was $7.4 million, or $.12 per share
compared with a net loss of $ 17.0 million, or $.32 per
share, for the first half of 1996. Including these charges,
the net loss for the six-month period ended June 30, 1997
was $104.2 million, or $1.70 per share, versus a net loss of
$29.8 million, or $.53 per share for the same period last

For the fourth consecutive quarter, earnings results met or
exceeded analyst consensus expectations. Results for the
quarter reflected strong growth in international sales, a
continued increase in the number of software and service
transactions exceeding $1 million and the accelerated
profitability of PLATINUM's professional services business.
PLATINUM also benefited from the strong measures put into
place to control operating expenses.

"We closed 15 software and 8 services contracts in excess of
$1 million," said Andrew J. Filipowski, president and chief
executive officer. "The increase in these major deals
continues to validate our strategy of building long-term
relationships with our customers and being the vendor of
choice for complete solutions." Filipowski also noted that
PLATINUM's growth was strong across the company, especially
in the international marketplace and Year 2000 business."
Going forward, we also anticipate strong growth in our Data
Warehouse and Application Lifecycle business units as a
direct result of our recently announced partnership with

"Another bright note for the quarter was the services
business led by John Shackleton," added Filipowski. "As
predicted, the efforts of his team resulted in a 16 percent
growth over last quarter and margins exceeding 10 percent.
We recently completed the consolidation of the acquisitions
in this area, and we expect the business to continue to show
accelerating growth and profit margins in the future."

PLATINUM's management expects continued growth in the
Professional Services business unit, evidenced by its
significant backlog of signed contracts for which revenues
have not yet been recognized. For the Year 2000 business
alone, the professional services backlog for this quarter is
$15 million, up from $2 million last quarter.

Michael Cullinane, executive vice president and chief
financial officer, noted that the company produced a profit
from recurring operations. "Our operating expenses stayed
flat compared to last quarter, except for an increase in
commissions attributed to increased sales. In addition, our
one-time charge to earnings for restructuring and
optimization was higher than originally anticipated, as we
were able to realise a more significant consolidation,
particularly in the facilities area. These factors teamed
with cash reserves of $126 million and DSO (days sales
outstanding) in the low 90's put us in a strong position
going forward."

Second Quarter Highlights: - PLATINUM and Microsoft
announced a collaboration for development and design of
repository technology, subsequent to the close of the
quarter. PLATINUM, a leader in repository, expects this
collaboration to fuel expansion of the repository market.

- Elements of the agreement include PLATINUM rights to:
Exclusively port and deliver the Microsoft® Repository
engine on MVS, AS/400 and major UNIX platforms. License the
Microsoft Repository engine for use with all popular
databases on the Microsoft Windows® and Windows NT®
operating systems.

- PLATINUM sees significant benefits in this deal,
including: Microsoft's selection of PLATINUM validates
PLATINUM's repository leadership position. It is
co-developing the industry's first open information model
for repositories which will create expanded opportunities
for its application lifecycle tools. Significant vendor
support for this collaboration ensures wider market
acceptance of the resulting products and technologies.

- PLATINUM will continue to develop and market its existing
repository and tools, incorporating the Microsoft

- PLATINUM continues its aggressive assault on the Year 2000
market. Two significant areas to highlight this quarter
include: PLATINUM's multi-million dollar licensing
agreement with Electronic Data Systems Corp. EDS selected
PLATINUM to provide Year 2000 products and services to new
and existing customers. EDS licenses the entire suite of
PLATINUM TransCentury products and Process Continuum to
provide impact analysis, conversion, testing, and project
management for the internal Year 2000 program. PLATINUM
acquired and introduced Enterprise Tester (formerly known as
Proterm), a robust MVS application testing tool that
streamlines the testing process and improves the quality of
all MVS applications before they are rolled out to an
organization.* - PLATINUM continues its historical
leadership and support in database management: The Company
announced support for Oracle8™, "The Next-Generation
Database for Network Computing,"™ and DB2 Version 5. On the
day that these new databases were shipped, PLATINUM released
products to support the new versions. Products that support
these new databases include powerful database management,
data warehouse and application lifecycle solutions to enable
larger numbers of users to process more transactions faster
and at a lower cost of ownership.

PLATINUM's Database Management business unit's revenue was
on track. It achieved a growth rate of 22 percent over the
same quarter last year.

*The Gartner Group estimates the entire Year 2000 market is
between $300 and $600 billion, with application testing
accounting for roughly half of the dollars spent on Year
2000 compliance projects.

Safe Harbor Provision: The statements contained in this
release regarding PLATINUM's future operating results and
performance and business prospects are "forward-looking
statements" subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. Where
possible, the words "expect," "believe," "anticipate" and
similar expressions, as they relate to PLATINUM or its
management, have been used to identify such forward-looking

These statements reflect PLATINUM's current beliefs and
specific assumptions with respect to future business
decisions and are based on information currently available
to PLATINUM. Accordingly, the statements are subject to
significant risks, uncertainties and contingencies which
could cause PLATINUM's actual operating results, performance
or business prospects to differ from those expressed in, or
implied by, these statements.

These risks, uncertainties and contingencies include the
maturation and success of PLATINUM's software infrastructure
strategy, risks inherent in conducting international
business, risks associated with conducting a professional
services business, changes in PLATINUM's product and service
mix and product and service pricing, the effectiveness of
PLATINUM's efforts to control operating expenses, general
economic and business conditions in the United States and
other countries in which PLATINUM sells its products and
services, charges and costs related to acquisitions, and
PLATINUM's ability to: develop and market existing and
acquired products for the software infrastructure market;
successfully integrate its acquired products, services and
businesses and continue its acquisition strategy; adjust to
changes in technology, customer preferences, enhanced
competition and new competitors in the software
infrastructure and professional services markets; protect
its proprietary software rights from infringement or
misappropriation; maintain or enhance its relationships with
relational database vendors; and attract and retain key
employees. PLATINUM is not obligated to update the
information contained in this press release.

Editors Note: PLATINUM technology, inc. provides a unique
set of software and services for IT organizations to improve
performance and reduce the risk associated with IT
infrastructures. PLATINUM's 10,000 worldwide customers rely
on the company's products and services to provide
around-the-clock, behind-the-scenes management of data,
systems and applications. Areas of IT management expertise
include database management, system management, application
lifecycle, data warehouse, decision support and Year 2000
conversions. PLATINUM, which posted 1996 revenues of more
than $468 million, distributes its products worldwide
through a network of domestic and international sales

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