4Front Software International, Inc. announces results for the fourth quarter and year ended January 31, 1997.

LONDON--(BUSINESS WIRE)--April 23, 1997--4Front Software International, Inc. ("4Front") (Nasdaq National Market: FFST) today announced results for the fourth quarter and year ended January 31, 1997. -0-

                           Highlights(a)

Fourth Quarter ended January 31,

                                 1997           1996           %Increase

Revenues                     $18,498,000     $ 9,646,000           92%

Net income (1)(2)            $   618,000 (1) $   215,000 (2)      187%

Fully diluted net
  income per share(b)(1)(2)         0.09 (1)        0.08 (2)       13%

Fully diluted shares           8,901,751       2,811,397
  outstanding(b)
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Year ended January 31,
                                 1997           1996          % Increase

Revenues                     $53,015,000     $32,249,000           64%

Net income (1)(2)            $ 1,588,000 (1) $   685,000 (2)      132%

Fully diluted net income
  per share(b)(1)(2)         $      0.29 (1) $      0.25 (2)       16%

Fully diluted shares           7,557,258       2,742,614
  outstanding(b)


 (1)  Excludes the charges for write-down of goodwill $(552,000),
write-down of ActionTrac Investment $(1,094,000) and reorganization
costs $(2,286,000).  Actual net loss for the fourth quarter ended
January 31, 1997 was $(3,314,000), and for the year ended January 31,
1997 was $(2,344,000).

 (2)  Excludes the write-downs of investment in and advances to equity
investee $(582,000) and write-down of software development costs
$(755,000) in the year ended January 31, 1996.  Actual net loss for
the fourth quarter ended January 31, 1996 was $(1,121,000), and for
the year ended January 31, 1996 was $(652,000).

 (a)  A substantial part of the company's growth in the past three
years has been achieved through acquisition.  Accordingly, the
results of operations from period to period are not necessarily
comparable.

 (b)  Fully diluted earnings per share for 1997 assume conversion
under the Treasury Stock Method of 2,387,004 Stock Options and
Warrants for both 1997 periods.
-0-

    For the fourth quarter ended January 31, 1997, revenues
increased 92% to $18,498,000, versus $9,646,000 reported for the
comparable year-ago period.  Net income for the most recent
quarter, excluding write-downs, was  $618,000, or $0.09 per share
(based on 8,901,751 fully diluted shares outstanding), versus
$215,000, or $0.08 per share (based on 2,811,397 fully diluted
shares outstanding), for the comparable year-ago period.  Net
income for the most recent quarter, including write-downs, was
$(3,313,958), or $(0.51) per share, (based on 6,514,747 weighted
average shares outstanding).  The significant increase in the
average shares outstanding reflects the impact of the company's
secondary offering of Common Stock completed during the second
quarter of 1996 and, for 1997 fully diluted shares, the assumed
conversion using the Treasury Stock Method of 2,387,004 stock
options and warrants for the fourth quarter ended January 31,
1997.
    For the year-ended January 31, 1997, revenues increased 64%
to $53,015,000, versus $32,249,000 reported for the comparable
year-ago period.  Net income for the most recent year, excluding
write-downs, was $1,588,000, or $0.29 per share (based on
7,557,258 fully diluted shares outstanding), versus $685,000 for
the prior year, or $0.25 per share (based on 2,742,614 fully
diluted shares outstanding), for the prior year.  Net income for
the most recent year, including write-downs, was $(2,343,787), or
$(0.45) per share (based on 5,170,254 weighted average shares
outstanding).  The significant increase in the average shares
outstanding reflects the impact of the company's secondary
offering of Common Stock completed during the second quarter of
1996 and, for 1997 fully diluted shares, the assumed conversion
using the Treasury Stock Method of 2,387,004 stock options and
warrants for the year ended January 31, 1997.
    As previously discussed, in the fourth quarter 4Front
undertook a major restructuring of its operating activities and
reorganized several operating subsidiaries in a new divisional
corporate structure headed by 4Front Products Ltd. and 4Front
Services Ltd.  The two acquisitions completed in the latter part
of 1996, Hammer and Datapro, have now been assimilated within
this structure.  Immediately following these acquisitions, 4Front
had a total of 15 operating locations and 412 staff.  Following
the reorganization, 4Front has 9 operating locations and 367
staff.  This reorganization has involved the write-down of
property and other fixed asset values and property and personnel
redundancy costs.  4Front has recognized the reorganization costs
following the acquisitions as a fourth quarter restructuring
charge.  In combination with the previously announced write-down
in connection with its Action Trac joint venture, and with a
charge for accelerated write-down of goodwill, total charges for
the quarter were $(3,932,000).  The reorganization should have a
positive impact on the operation of the business, principally
arising from the reduction in property and staff costs.
Following the results and charges, net assets per share are $2.53
and cash per share is just over $1.
    Anil Doshi, Chairman and Chief Executive Officer of 4Front,
said, "For the year, overall operating profits, before charges
and write-downs, were ahead of our targets.  At the time of our
offering, we stated certain growth and business development
targets.  Among the principal targets established were the growth
of revenues to $100 million run-rate by January 1998 and the
significant enlargement of our service activities.  I am happy to
report that during the past year we made significant progress
toward meeting these goals.
    "It has been almost a year since we completed our 1996
secondary offering and our annualized revenue rate has
approximately doubled in the year to January 1997, approaching an
annualized rate of $80 million.  With almost a year to go in
which to achieve our $100 million goal, we are producing
acceptable internal growth and have access to capital to make
additional acquisitions.  Additionally, our higher margin
services operation, 4Front Services Ltd., grew rapidly so that
our products/services ratio is now 60/40 versus the year-ago
ratio of 75/25.  To put our progress in perspective, our services
business alone is now almost equal in revenue to our entire
business last year.  With considerable progress made in revenue
growth and in the sales mix shift, it is now our primary aim to
improve operating margins.  The increasing contribution from our
higher margin services business coupled with our increased
economies of scale should enable us to make good progress in this
area.
    "While the company has worked toward achieving its stated
goals, the economic and general trading environment in the U.K.
has remained very strong.  The computer services industry is
still growing rapidly and the acquisition environment remains
fertile, as the U.K. computer services market is still highly
fragmented.  Our two major acquisitions made during the year,
Hammer, a storage specialist, and Datapro, a networking and
support services business, have been fully assimilated and are
making positive contributions after considerable reorganization
and rationalization.  It is costs associated with this
reorganization work that accounted for the reorganization charge
taken in the fourth quarter.  We are happy to say that this
action has already produced savings in terms of property and
personnel.  As previously announced, the company also bore a non-
recurring write-down in connection with its ActionTrac help-desk
investment.  It is important to note that ActionTrac U.S.A.'s
bankruptcy has not had an adverse material effect on our own help-
desk business.  Indeed, as our recently announced approximate $2
million in new help-desk contracts show, 4Front's help-desk
activities are growing strongly in a U.K. help-desk marketplace
that is still in its infancy."
    Mark Ellis, President of 4Front, said, "4Front's help-desk
activities are now managed in conjunction with the company's
hardware maintenance and support operations under the divisional
umbrella of 4Front Services Ltd.  According to recent industry
statistics, 4Front Services, from having not even been listed a
year ago, is now among the largest independent hardware
maintenance and support companies in the U.K. and is also among
the fastest growing.  All of 4Front's hardware and software
support activities are coordinated from our new centralized
facility in West London named the 4Front National Call Center.
This facility is currently handling an average of 1,000 support
calls a day and is capable of accommodating considerable further
expansion.
    "During the year, 4Front's Products Division consolidated
its leading position in the storage industry.  It now handles
three of the four leading storage suppliers in the high-end
market -- Seagate, IBM and Micropolis -- and in the case of
Seagate and Micropolis, is the leading U.K. distributor.  Its
largest storage contract in the year was a $2 million contract
for the supply of geographical mapping systems to the U.K.
Ministry of Defense.  This contract has gone very well and
potential additional business for these systems with the M.O.D.,
other defense organizations and major oil companies is now being
discussed.  Among new storage franchises that were particularly
successful during the year was the IBM franchise, where sales
were well ahead of expectations.  The principal new networking
product launched during the year by the Products Division was the
HDS Network Computer, for which it has an exclusive U.K. license
from the U.S. supplier.  A number of promising contracts have
been placed for this product and the company is looking to make
significant progress in this area.
    "Lastly, during the year, 4Front's industry profile in the
U.K. rose considerably and the company is now recognized as a
significant player in its chosen areas of the U.K. computer
services industry.  There has also been increasing, albeit
relatively small, exposure to European markets and we will be
seeking to increase our exposure there during the current year."
    4Front Software International, Inc., a UK-based specialized
computer services company provides a wide range of specialized
high-end information technology solutions and services
principally to Financial Times UK Top 500 companies and
government authorities.  The company provides key elements of
distributed computing, including systems development and
integration, storage and client-server solutions and products, as
well as extensive hardware and software support services.  The
company's customers include Mobil Oil, Royal Dutch/Shell Group
PLC, GEC/Marconi PLC, JP Morgan, Fujitsu, Dupont, Reuters and the
U.K. Ministry of Defense.
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      4FRONT SOFTWARE INTERNATIONAL, INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS

                             For the 3 months ended Jan. 31,
                                1997                1996

REVENUES                    $18,498,323          $9,645,934
Cost of revenues             12,684,844           6,301,336
Write-down of software
  development costs              -                  755,184
GROSS PROFIT                  5,813,479           2,589,414
OPERATING EXPENSES:
  Selling, general and
    administrative
      expenses                4,585,436           2,926,181
  Depreciation                  237,027              87,341
  Amortization                  223,397              71,005
  Write-down of goodwill        551,696                -
  Reorganization and
    restructuring costs       2,286,432                -

    Total operating expenses  7,883,988          3,084,527

INCOME/(LOSS) BEFORE
   INTEREST EXPENSE, INCOME
   TAXES AND SHARE OF
   RESULTS IN EQUITY
   INVESTEE (INCLUDES WRITE
   DOWN OF INVESTMENT IN
   AND ADVANCES TO EQUITY
   INVESTEE COMPANIES)       (2,070,509)          (495,113)
Interest income                  55,182              4,730
Interest expense               (112,108)           (10,871)
Write-down of investments      (500,000)               -

INCOME/(LOSS) BEFORE
   INCOME TAXES AND SHARE
   OF RESULTS IN EQUITY
   INVESTEE                  (2,627,435)          (501,254)
SHARE OF RESULTS IN EQUITY
   INVESTEE:                   (593,565)          (604,209)
(LOSS) BEFORE INCOME TAXES   (3,221,000)        (1,105,463)
INCOME TAXES                     92,958             15,997

NET (LOSS)                 $ (3,313,958)       $(1,121,460)
NET (LOSS) PER
   COMMON SHARE            $      (0.51)       $     (0.40)

Weighted average number of
   Common shares
     outstanding              6,514,747          2,811,897
-0-

                              For the years ended Jan. 31,
                                 1997               1996

REVENUES                    $53,014,923        $32,248,697
Cost of revenues             36,018,074         20,807,858
Write-down of software
  development costs                -               755,184
GROSS PROFIT                 16,996,849         10,685,655
OPERATING EXPENSES
  Selling, general and
    administrative expenses  13,791,615          9,566,257
  Depreciation                  518,222            356,379
  Amortization                  458,016            203,938
  Write-down of goodwill        551,696                -
  Reorganization and
    restructuring costs       2,286,432                -

  Total operating expenses   17,605,981         10,126,574

INCOME/(LOSS) BEFORE
   INTEREST EXPENSE, INCOME
   TAXES AND SHARE OF
   RESULTS IN EQUITY
   INVESTEE (INCLUDES WRITE
   DOWN OF INVESTMENT IN
   AND ADVANCES TO EQUITY
   INVESTEE COMPANIES)         (609,132)           559,081
Interest income                 277,141             14,189
Interest expense               (296,638)          (258,421)
Write-down of investments      (500,000)               -

INCOME/(LOSS) BEFORE
   INCOME TAXES AND SHARE
   OF RESULTS IN EQUITY
   INVESTEE                  (1,128,629)           314,849
SHARE OF RESULTS IN EQUITY
   INVESTEE:                   (798,810)          (761,016)
(LOSS) BEFORE INCOME TAXES   (1,927,439)          (446,167)
INCOME TAXES                    416,348            205,784

NET (LOSS)                 $ (2,343,787)      $   (651,951)
NET (LOSS) PER
   COMMON SHARE            $      (0.45)      $      (0.24)

Weighted average number
  of Common shares
    outstanding               5,170,254          2,742,614

                4FRONT SELECT BALANCE SHEET INFORMATION

                          January 31, 1997       January 31, 1996
                            (unaudited)           (unaudited)

Current assets                $ 30,349,000         $   13,464,000
Current liabilities             24,917,000             14,750,000
Total assets                    41,912,000             17,943,000
Long-term debt                     489,000                 93,000
Shareholders' equity          $ 16,506,000          $   3,101,000

CONTACT: Lippert/Heilshorn & Associates Inc., New York

Investor Relations:

Jason Thompson, ext. 124

212/838-3777

or

4Front Software International, Inc.

Mark Ellis or Ken Newell

011-44-1923-816266