Borland Prevails In Lotus Copyright Suit; Five-Year Old Lawsuit Comes to an End.

SCOTTS VALLEY, Calif.--(BUSINESS WIRE)--Jan. 16, 1996--Borland International Inc. today announced it has won its five-year copyright infringement suit with Lotus Development Corporation. The U.S. Supreme Court, which had agreed to hear the case last year, affirmed a decision by the First Circuit Court of Appeals which had ruled in Borland's favor.

"We are extremely pleased to close the final chapter of this case," said Gary Wetsel, president and CEO of Borland International. "This victory is a win for software developers and computer users worldwide. This has been a long, hard fought case and we appreciate the support we have received from user groups worldwide, various software industry organizations, and other experts in the field of software development and copyright protection."

Lotus v. Borland Background

Lotus initially filed its suit in 1991. In August 1992, the U.S. District Court in Boston ruled that an optional feature in Borland's spreadsheet products, called the Command Hierarchy, infringed the copyright of Lotus 1-2-3. Borland voluntarily removed this feature from shipping versions of the product following the decision. The court reaffirmed its decision in July 1993.

In August, 1993, the Federal District Court ruled that another compatibility feature in Quattro Pro and Quattro Pro for Windows infringed the copyright of Lotus 1-2-3. The court subsequently entered an injunction against Borland against further sales or distribution of then current versions of Borland's spreadsheet products. In response, Borland shipped new versions of Quattro Pro that did not include the features found to be infringing, and announced it would seek an immediate appeal.

In March of 1995, The United States Court of Appeals for the First Circuit reversed the District Court ruling that Quattro and Quattro Pro infringe the copyright of Lotus 1-2-3. In written opinions, three appellate judges held in favor of Borland. In its opinion, the court concluded: "Because we hold that the Lotus menu command hierarchy is uncopyrightable subject matter, we further hold that Borland did not infringe the copyright by copying it."

Borland sold its Quattro Pro spreadsheet to Novell Inc. in March 1994. The case attracted widespread attention from copyright experts, government agencies and computer users who submitted "friend of the court" briefs.

Borland: Making Development Easier

Borland International Inc. (NASDAQ:BORL) is a leading provider of products and services targeted to software developers. Borland is distinguished for its high quality software development tools, which include Delphi, Delphi Client/Server, Borland C++, Visual dBASE, Paradox and InterBase. Borland's award-winning products are supported through comprehensive programs for small- and large-sized software developers, corporate developers, value added resellers and systems integrators. Founded in 1983, Borland is headquartered in Scotts Valley California. -0- Note to Editors: Copies of previous Borland press releases and additional corporate and product information are available on Borland's Internet World Wide Web (WWW) site, at http://www.borland.com.

CONTACT: Borland International Inc.

Steve Grady, 408/431-1621

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