Atria Software, Inc. Reports 68% Growth in Revenue for the First Quarter of 1996.

LEXINGTON, Mass.--(BUSINESS WIRE)--April 17, 1996--Atria (R) Software, Inc. (NASDAQ: ATSW), today reported revenue of $13.5 million for the three months ended March 31, 1996, an increase of 68% over revenue of $8.0 million for the same period of 1995.

Net income increased 65% to $2.1 million or $.14 per share for the three months ended March 31, 1996, compared with $1.3 million or $.08 per share for the same period of 1995.

"We are very pleased with our first quarter results," said Paul Levine, President and CEO. "This quarter marks our fifteenth consecutive quarter of revenue and income growth, excluding a one-time charge for in-process research and development in the third quarter of 1995. During the quarter, we saw continued deployment of ClearCase (R) in existing accounts such as GTE, NEC, Strassle and Sun Microsystems. We also welcomed a record number of new customers during the quarter including Bristol Technology, Healthscape and Rogue Wave in the United States, as well as Ionica in the United Kingdom, National Australian Bank in Australia and Sony in Belgium. We now have over 34,500 licenses installed at over 760 customer worldwide."

"We reached some important product milestones during the first quarter," Levine continued. "We began shipping our new ClearTrack (TM) change request management product, as well as new releases of our Windows ClearCase products. Together, ClearTrack and ClearCase provide a comprehensive system for managing the relationship between change requests, and the software that is changing as a result. For the releases of our Windows ClearCase products we have included important new functionality, such as an integration with the Windows File Manager, and integrations with the Visual Basic and Visual C++ development environments through Microsoft's Common Source Code Control Interface. These products are now available for all Windows platforms, making it easier for development teams to extend the power of software configuration management across multi-platform environments."

"We recently announced the ASTRAL (TM) Program, an ISV cooperative technical and marketing strategic alliance program," Levine added. "We believe this program will further our goal of providing software development teams with integrated solutions for managing the lifecycle of their software. We also introduced a new service offering during the quarter, the Premium Maintenance Plan, which extends the availability of our technical support services for customers to 365 days per year."

All share and per share data in this press release have been restated to reflect a previously announced two-for-one stock split effected on September 18, 1995.

Founded in 1990, Atria Software, Inc. develops, markets and supports software that facilitates the management of complex software development, enhancement and maintenance. Professional software engineering teams use Atria's products to control the software development process, simplify maintenance, improve software quality and shorten time-to-market. Atria products are available for a wide range of Windows and UNIX systems. Internet users can contact Atria via e-mail at [e-mail], or visit Atria's World Wide Web site at http://www.atria.com/.

The condensed consolidated statements of operations and condensed consolidated balance sheets for the first quarter of 1996 and 1995 are attached. -0-

                        Atria Software, Inc.
           Condensed Consolidated Statements of Operations
            (In thousands, except for per share amounts)

                                                Three Months Ended
                                                     March 31,
                                                1996          1995
                                                -------------------
                                                    (Unaudited)
Revenue:
 License fees                                 $ 9,640       $ 6,011
 Services                                       3,862         2,009
                                              --------      --------
                                               13,502         8,020
                                              --------      --------
Cost of revenue:
 License fees                                 $   153       $   115
 Services                                       1,369           681
                                              --------      --------
                                                1,522           796
                                              --------      --------
Gross profit                                   11,980         7,224
                                              --------      --------
Operating expenses:
 Research and development                       2,554         1,572
 Sales and marketing                            5,719         3,563
 General and administrative                       968           600
                                              --------      --------
                                                9,241         5,735
                                              --------      --------
Income from operations                          2,739         1,489
                                              --------      --------
Dividend and interest income                      454           305
                                              --------      --------
Income before income taxes                      3,193         1,794

Provision for income taxes                      1,117           538
                                              --------      --------
Net income                                    $ 2,076       $ 1,256
                                              ========      ========
Net income per share                          $  0.14       $  0.08
                                              ========      ========
Weighted average number of common and dilu-
 tive common equivalent shares outstanding     15,210        14,932
                                              ========      ========

Note:  All share and per share data has been restated to reflect the
2-for-1 common stock split effected September 18, 1995.

                        Atria Software, Inc.
                Condensed Consolidated Balance Sheets
                          (In thousands)
                                            March 31,   December 31,
                                              1996         1995
                                           -----------  ------------
ASSETS

Current assets:
 Cash and cash equivalents                   $21,638      $18,459
 Available-for-sale securities                23,157       22,640
 Accounts receivable, net                      5,236        4,700
 Other current assets                          2,586        2,361
                                             --------     --------
Total current assets                          52,617       48,160

Property and equipment, net                    3,445        3,026
Other assets, net                                830          786
                                             --------     --------
Total assets                                 $56,892      $51,972
                                             ========     ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                            $   679      $   850
 Accrued expenses                              8,711        8,399
 Deferred revenue                              6,264        5,012
 Income tax payable                            1,836        1,225
                                             --------     --------
Total current liabilities                     17,490       15,486

Deferred revenue                                 432          342

Deferred rent                                    121          123

Stockholders' equity:
 Common stock                                    143          142
 Additional paid-in capital                   30,390       29,643
 Retained earnings                             8,308        6,232
 Unrealized gain on available-for-
  sale securities                                  7            2
 Cumulative foreign currency
  translation adjustment                           1            2
                                             --------     --------
Total stockholders' equity                    38,849       36,021
                                             --------     --------
Total liabilities and stockholders' equity   $56,892      $51,972
                                             ========     ========-0-

Note to Editors: Atria, Atria Software and ClearCase are registered trademarks of the Company. The Atria logo, ClearCase MultiSite, ClearCase Attache, ClearTrack and ASTRAL are trademarks of the Company. All other products mentioned are trademarks or registered trademarks of their respective companies.

CONTACT: Atria Software, Inc.

Elliott Katzman, 617/676-2430 (CFO)

Kirsten Armstrong, 617/676-2551 (Public Relations)