BOREALIS ANNOUNCES SECOND QUARTER RESULTS.

INCLINE VILLAGE, Nev.--(BUSINESS WIRE)-- August 15, 1996--Borealis(TM) Technology Corporation (NASDAQ:BRLS) announced that results for the second quarter and six months ended June 30, 1996 reported today were in line with the Company's expectations.

Revenues for the second quarter of 1996 decreased by 52% to $59,839, compared with $123,610 in the second quarter of 1995. Net loss for the second quarter of 1996 was $1,424,494, or $(1.90) per share on 751,294 weighted average shares outstanding, compared to a net loss of $155,480, or $(0.23) per share on 690,944 weighted average shares outstanding for the same period a year ago. Revenues for the six months ended June 30, 1996 decreased by 56% to $150,425, compared with $341,764 for the same period a year ago. Net loss for the six months period in 1996 was $2,070,710, or $(2.95) on 701,475 weighted average shares outstanding, compared to a net loss of $238,307, or $(0.34) on 690,944 weighted shares outstanding for the same period a year ago.

The decrease in revenues and net income for the second quarter and six months ended June 30, 1996 versus 1995, was primarily due to the Company's ceasing sales of prior products, and focusing its product development and sales and marketing efforts on its new sales force automation product, Arsenal.

In order to facilitate Borealis' development of Arsenal and expansion of the Company's sales and marketing effort, the Company, on June 27, 1996, completed the public offering of 2,000,000 shares of its Common Stock and received net proceeds of $8,352,400 from such offering after deducting underwriter s discounts and offering expenses.

The preceding statements may contain forward looking statements which involve risks and uncertainties; actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors including, but not limited to, the successful and timely development of Arsenal, the market acceptance of Arsenal and the Company's ability to achieve profitability.

Headquartered in Incline Village, Nevada, Borealis Technology Corporation is a leading developer of rapidly customizable SFA solutions. Borealis was founded in 1988 as Sierra Software Innovations, a company specializing in consulting and custom development of business-critical applications, with a special focus on sales automation.

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                       BOREALIS TECHNOLOGY CORPORATION
                      CONDENSED STATEMENTS OF OPERATIONS
                                    (Unaudited)

                         Three Months Ended       Six Months Ended
                              June 30,                 June 30,
                         1996         1995         1996       1995

Total revenues         $59,839      $123,610     $150,425   $341,764

Cost of revenues        12,098        26,958       45,622     88,602

Gross profit            47,741        96,652      104,803    253,162

Operating expenses:
  Sales and marketing  687,531        50,267      866,024     94,836
  Research and
   development         402,403       145,922      736,051    259,054
  General and
   administrative      344,143        52,105      517,974    131,656
Total operating
  expenses            1,434,077      248,294     2,120,049   485,546

Loss from operations (1,386,336)     (151,642)  (2,015,246) (232,384)

Interest expense         38,158         3,838      55,464     5,923

Net Loss            $(1,424,494)    $(155,480)  $(2,070,710) $(238,307)

Weighted average number of shares
  of common stock and common
  stock equivalents
  outstanding         751,294         690,944     701,475     690,944

Net loss per share    $(1.90)         $(0.23)     $(2.95)     $(0.34)

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                      BOREALIS TECHNOLOGY CORPORATION
                         CONDENSED BALANCE  SHEETS

                                   June 30,           December 31,
                                    1996                  1995
                                 (Unaudited)
Assets
Cash and cash equivalents     $   8,095,297        $   158,840
Accounts receivable                  25,698             36,188
Prepaid expenses and deposits       124,453              7,080
   Total current assets           8,245,448            202,108

Property and equipment, at cost:    631,047            224,172
   Less accumulated depreciation
      and amortization             (147,350)           (95,183)
                                    483,697            128,989
   Total Assets               $   8,729,145        $   331,097

Liabilities and stockholders' deficit
Current liabilities:
  Accounts payable            $     192,808        $    82,310
  Accrued employee compensation     157,818             75,218
  Notes payable to stockholders     971,312            221,311
  Other current liabilities         601,858            198,178
Total current liabilities         1,923,796            577,017

Long-term obligations                95,561            353,628

Stockholders' equity
  Preferred stock, $.001 par value
     Authorized shares - 5,000,000
     Issued and outstanding - none

  Common stock, $.001 par value:
     Authorized shares - 10,000,000
     Issued and outstanding share -
     2,893,457 and 651,658 at
     June 30, 1996 and
     December 31, 1995,
     respectively                     2,893                652
   Additional paid-in capital     9,540,276            162,471
   Accumulated deficit           (2,833,381)          (762,671)
Total stockholders' equity
 (deficit)                        6,709,788           (599,548)

Total liabilities and
 stockholders' equity            $8,729,145           $331,097

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CONTACT: Timothy T. Arnold, V.P. Finance

BOREALIS TECHNOLOGY CORPORATION

[phone]

or

Stephen D. Axelrod, CFA 

Joel  Herskovits

Susan T. Bolen (Media)

WOLFE AXELROD ASSOCIATES

212-370-4500, 212-370-4500 fax

e-mail: [e-mail]