BindView Development Corporation Announces Second Quarter Financial Results.

HOUSTON--(BUSINESS WIRE)--Aug. 13, 1998--BindView Development Corporation (NASDAQ:BVEW) today announced revenues for the second quarter ended June 30, 1998 of $8.0 million, an increase of 104 percent compared to the second quarter of 1997.

Net income increased during the same period by 94 percent, to $805,000 or $0.04 per share.

"These results reflect an excellent second quarter for BindView," said Eric Pulaski, President and Chief Executive Officer of BindView Development Corporation. "Strong revenue growth and profitability are key to the BindView management mission. Based on our current results, I am pleased to say that we are delivering strong financial performance to our shareholders."

"Our plan to maintain BindView's rapid revenue growth and still deliver superior profitability is working well," said Scott Plantowsky, Vice President and Chief Financial Officer of BindView Development Corporation. "We are pleased with our 104 percent growth in revenues and 94 percent growth in net income from the same period last year. This is a great signal that our business is gaining momentum."

Outlook

"While we are very happy with our past accomplishments, we are more excited about the future of BindView Development Corporation and the BindView Enterprise Management System product line," said Eric Pulaski. "We continue to focus on the market penetration of our current product line, and invest in research and development in order to increase our competitive position in the markets that we serve."

About BindView Development Corporation

BindView Development Corporation develops, markets and supports a suite of systems management software products, which manage the security and integrity of complex, distributed client/serveware and software.

Headquartered in Houston, Texas, BindView's shares of common stock trade on the Nasdaq National Market System under the symbol BVEW. For more infstrictly historical, including statements as to 1995. Although BindView believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations reflected in such forward-looking statements will prove to be correct. Factors that could cause actual results to differ materially from BindView's expectations include, among others, competition within the network management software industry; rapid technological change; BindView's development of and the market's acceptance of new products; as well as the risks, uncertainties and other factors described from time to time in BindView's periodic filings with the Securities and Exchange Commission. -0-

                   BindView Development Corporation
                   Consolidated Statement of Income
                             (Unaudited)

                                    Quarter Ended    Six Months Ended
                                       June 30,          June 30,
                                    1998     1997     1998     1997
                                        (in thousands, except
                                          per share amounts)

Revenues:
 Licenses                          $ 6,219  $ 3,308  $10,603  $ 6,258
 Services                            1,774      604    3,230    1,077
  Total revenues                     7,993    3,912   13,833    7,335
Cost of revenues:
 Cost of licenses                      254      138      462      229
 Cost of services                      226      142      441      247
  Total cost of revenues               480      280      903      476
Gross profit                         7,513    3,632   12,930    6,859
Costs and expenses:
 Sales and Marketing                 3,733    1,827    6,441    3,196
 Research and Development            2,050      700    3,693    1,322
 General and Administrative            735      483    1,411      994
Operating income                       995      622    1,385    1,347
Other income, net                      142       15      271       29
Income before income tax provision   1,137      637    1,656    1,376
Provision for income tax               332        -      454        -
Net income                             805      637    1,202    1,376
Pro forma charge in lieu of
 income taxes                            -      223        -      482
Pro forma net income                 $ 805    $ 414  $ 1,202    $ 894
Earnings per common share:
 Basic                              $ 0.10   $ 0.05   $ 0.14   $ 0.11
 Diluted                            $ 0.04   $ 0.03   $ 0.07   $ 0.06
Shares used in computing
 earnings per common share:
  Basic                              8,391    8,228    8,333    8,228
  Diluted                           17,902   14,439   17,581   14,555

                   BindView Development Corporation
                      Consolidated Balance Sheet
                             (Unaudited)
                                               June 30,  December 31,
                                                 1998       1997
                                                  (in thousands)
                                ASSETS
Current assets:
 Cash and cash equivalents                      $12,749    $ 7,203
 Accounts receivable, net                         3,212      4,729
 Other current assets                               244          -
 Deferred tax asset                               3,000      3,150
   Total current assets                          19,205     15,082
 Property and equipment, less
  accumulated depreciation                        1,991      1,370
 Other assets                                        59         57
   Total assets                                $ 21,255   $ 16,509

                 LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                 $ 815      $ 785
 Accrued liabilities                                783        831
 Accrued compensation                               634        614
 Deferred revenue                                 3,637      2,029
   Total current liabilities                      5,869      4,259
Shareholders' equity:
 Convertible preferred stock                         25         25
 Common stock                                         1          1
 Additional paid-in capital                      34,212     31,728
 Common stock warrant                                 -        550
 Retained earnings (accumulated deficit)         (4,835)    (6,037)
 Treasury stock                                 (14,017)   (14,017)
   Total shareholders' equity                    15,386     12,250
     Total liabilities and
      shareholders' equity                     $ 21,255   $ 16,509

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Note to Editors: BindView, BindView Development Corporation, BindView Enterprise Management System, and BindView EMS are trademarks or registered trademarks of BindView Development Corporation. Other trademarks are the property of their respective owners.

CONTACT: BindView Development Corporation

Scott Plantowsky, 713/843-1799 (Investor Relations)

[e-mail]

Bob Corbin, 800/501-0522 (Press/Analyst Relations)

[e-mail]