1996 First Quarter Trading Update.

LONDON--(BUSINESS WIRE)--June 6 1996--Micro Focus announces today an unaudited summary of first quarter trading. For the quarter ended ended April 30 1996 Micro Focus' revenues were USD 24.2m (GBP 15.9m) compared with USD 28.7m (GBP 17.9m) in the first quarter of last year. This resulted in a pre-tax loss of approximately USD 13.1m (GBP 8.6m) for the quarter including pre-tax restructuring charges of USD 8.0m (GBP 5.3m), compared with a loss of USD 10.0m (GBP 6.3m) in 1995 which included a pre-tax charge of USD 5.0m (GBP 3.1m).

The restructuring charges consist of the costs associated with a reduction in the Company's workforce of approximately 65 people, with facility closures and consolidations, and with asset writedowns.

Marcelo Gumucio, who was appointed Chief Executive Officer with effect from April 1 1996, commented: "Micro Focus is embarked on the path of organizing itself to take advantage of the opportunities that exist in the marketplace. It is our intention to build a high-quality organization capable of competing successfully in the software industry. Our immediate focus is to return to profitability and revenue growth. We have taken this action to reduce our cost base in order to establish a sound platform from which to begin our efforts to capture our market opportunities."

J. Michael Gullard, who became Chairman on March 24 1996, stated, "I know that the past year has been a difficult one for Micro Focus shareholders. However, with the recent management changes and renewed focus it is my expectation that Micro Focus can return to and sustain a long-term profitable and growing business." -0-

Note: The following statement is made in accordance with the U.S.
      Private Securities Litigation Reform Act 1995: This First
      Quarter Trading Update contains forward-looking statements that
      involve a number of risks and uncertainties.  There are certain
      important factors that could cause results to differ materially
      from those anticipated by the statements made herein.  Factors
      that could cause actual results to differ materially are the
      following:  the ability of the Company to develop and release
      to the market products and services that meet the needs of the
      Company's customers in the highly dynamic market for
      application development tools, the potential for a decrease in
      revenues which may be delayed due to the timing of the delivery
      of products or services, the effect of competitors' efforts to
      enter the Company's markets, the ability of the Company to
      effectively manage its costs against uncertain revenue
      expectations and the various items under the heading "Factors
      that may influence future operating results" contained within
      the Micro Focus Annual Report for the period ended January 31
      1996, a copy of which may be obtained from the Company.

Micro Focus main offices:

UK:   Speen Court, 7 Oxford Road, Newbury, Berkshire, RG14 1PB

US:   2465 East Bayshore Road, Palo Alto, California 94303-3297

CONTACT: UK: Ron Forbes, Chief Financial Officer

Tel: (+44) 1635 32646

or

US: Bob Connors, Chief Operating Officer 

Tel: (+1) 415 856 4161