Altris Software, Inc. Announces Fourth Quarter Results with Software Sales Increasing Over 100%.

SAN DIEGO--(BUSINESS WIRE)--Feb. 25, 1997--Altris Software, Inc. (NASDAQ:ALTS) today announced financial results for the fourth quarter and year ended December 31, 1996.

Revenue in the fourth quarter was $6,538,000 versus $3,102,000 in the same period last year. During the 1996 fourth quarter, the Company recorded a pretax charge of $410,000, or $0.04 per share, related to the closure of an office in Camarillo, Calif. Including this one-time charge, net income in the fourth quarter increased to $306,000, or $0.03 per share, compared to a net loss of $12,711,000, or $1.75 per share, in the comparable quarter last year. Without the one-time charge, net income for the quarter would have been $716,000, or $0.07 per share.

The 1995 fourth quarter results reflect an acquired research and development charge of $10,595,000 relating to the acquisition of Trimco Group plc which was finalized on December 27, 1995, as well as a charge of $1,664,000 related to the write down of certain assets to their net realizable value. Without these one-time charges, net income in the fourth quarter of 1995 would have been a loss of $452,000, or $0.06 per share. Average weighted shares outstanding were 9,666,000 in the 1996 fourth quarter and 7,248,000 in the 1995 fourth quarter.

For the year ended December 31, 1996, revenue increased to $24,511,000 from $12,731,000 in the 1995 fiscal year. Net income for 1996 was $2,350,000, or $0.25 per share, compared to a net loss of $11,830,000, or $1.68 per share in 1995.

"We are pleased with our revenue growth in the fourth quarter, which represented our strongest revenue quarter in 1996," commented Jay Tanna, President and Chief Executive Officer. "Software sales increased over 100% from last year and 35% from the immediately preceding third quarter. During the quarter, we took steps to continue to increase our focus on this rapidly growing portion of our business, including closing a facility in Camarillo, Calif., which had served as a warehouse for hardware inventory and a remote engineering office. The engineers who were in the office are now telecommuting.

"In January, we also hired Glenn Cox to head up a new initiative at Altris -- our Customer Care program. Altris has always maintained close relationships with our customer base, and this program is designed to ensure that heading into 1997, we continue to include this valuable resource in our planning and development efforts. Glenn, who was Manager of Information Services for Northeast Utilities, a customer of Altris, brings a customer perspective in how Altris can better serve its customers."

John W. Low, Chief Financial Officer, noted: "1996 was most notable for our successful integration of Trimco plc and the expansion of our customer base to more than 1,700 customer installations worldwide. The company was cash-flow positive in the fourth quarter and closed the year with a current ratio of more than two to one. The growing software portion of our business has improved our overall gross profit margin from 55% in 1995 to 60% in 1996. We feel we are well positioned in our markets to execute our strategic plans for 1997 and will continue to concentrate on improving margins."

Altris Software, Inc. is a leader in delivering enterprise-wide integrated information management systems to tens of thousands of users around the world. These systems are installed in manufacturing, utilities, petrochemical, government, banking, transportation and other industries. Documents of all sizes, from letter-size pages to large-scale engineering drawings, are handled rapidly over global networks in a very cost-effective manner. Altris Software, Inc. products and customers have won numerous industry awards over the few past years. -0-

                        ALTRIS SOFTWARE, INC.
                CONSOLIDATED STATEMENT OF OPERATIONS
                (in thousands except per share data)

                         For the Three Months     For the Year
                            Ended Dec. 31,        Ended Dec. 31,
                           1996        1995      1996       1995
                             (Unaudited)

Revenue                   $6,538       $3,102   $24,511   $12,731

Cost of revenue            2,663        1,401     9,704     5,791

Gross profit               3,875        1,701    14,807     6,940

Research and development     816          516     3,363     1,402
Charge for purchased
 research and development
 - Trimco                     --       10,595        --    10,595
Marketing and sales        1,577        1,157     5,581     3,570
General and
 administrative              754          503     3,077     1,581
Write-down of assets to
 net realizable value         --        1,664        --     1,664
Loss on office closure       410           --       410        --
  Total operating
   expenses                3,557       14,435    12,431    18,812
Income (loss) from
 operations                  318      (12,734)    2,376   (11,872)
Interest and other income     24           23        88       137
Interest and other expense   (36)          --      (114)      (95)

Income (loss) before taxes   306      (12,711)    2,350   (11,830)

Provision for taxes           --           --        --        --

Net income (loss)          $ 306     $(12,711)  $ 2,350  $(11,830)

Net income (loss) per
 share                     $0.03       $(1.75)    $0.25    $(1.68)

Weighted average shares
 outstanding               9,666        7,248     9,507     7,026


                         ALTRIS SOFTWARE, INC.
                      CONSOLIDATED BALANCE SHEET
                           (in thousands)

                                        Dec. 31,      Dec. 31,
                                         1996           1995
ASSETS

Current assets
 Cash and cash equivalents             $ 2,200        $ 4,656
 Short term investments                     90            270
 Receivables, net                        9,752          4,207
 Inventory, net                            443            469
 Other current assets                      641            803

   Total current assets                 13,126         10,405

Long-term assets                         9,765          8,597

   Total assets                        $22,891        $19,002


LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities                    $ 6,155        $ 9,466

Long term liabilities                    1,966          1,420

Shareholders' equity                    14,770          8,116

  Total liabilities and
   shareholders' equity                $22,891        $19,002

CONTACT: Altris Software, Inc.

John Low, 619/625-3000

or

Morgen-Walke Associates

Chris Danne/Todd Friedman/Doug Sherk, 415/296-7383

Emily Dupree/Donna Ziegler, 212/850-5600 or 212/850-5698