Borland Responds To WebGain Press Release.

Business Editors

SCOTTS VALLEY, Calif.--(BUSINESS WIRE)--Aug. 2, 2001

Questions Basis for WebGain's Conclusion That Borland's Patent

Infringement Claims Are Without Merit

Reiterates Willingness to Negotiate a Patent License Agreement

Borland Software Corporation (Nasdaq NM: BORL), a leading provider of e-business implementation platform solutions, today refuted recent assertions made by WebGain regarding Borland's patent infringement suit against the company and reiterated Borland's willingness to negotiate a patent license agreement with WebGain.

Dale L. Fuller, president and chief executive officer of Borland, said, "After reading WebGain's somewhat bewildering press release, we feel compelled to set the record straight. WebGain alleges that third-party industry "experts" it engaged conducted a "thorough" analysis of the Borland patents at issue and concluded that WebGain's products do not infringe our patents. It is apparently on that basis that WebGain has concluded that Borland's patent infringement claims are without merit.

"We find it interesting that WebGain's "experts" were able to thoroughly review all of the identified patents, obtain and review the patents' prosecution histories as on file with the U.S. Patent & Trademark Office and compare such patents against the relevant WebGain products to apparently reach this sweeping conclusion in less than a week - the amount of time that elapsed between our initial letter to WebGain identifying the patents at issue and their filing for a declaratory judgment against us. What's more, WebGain's attempt to portray Borland as the litigious party is disingenuous. As they are well aware, federal court rules required us to file patent infringement counterclaims to respond to their request for a declaratory judgment action, or be precluded from bringing our claims at all," Mr. Fuller continued.

Prior to filing its compulsory patent infringement counterclaims against WebGain, Borland repeatedly requested that WebGain provide Borland with evidence of non-infringement or negotiate the terms of a patent license agreement. WebGain refused all such requests. In addition, Borland repeatedly offered to make a number of Borland's senior executives available to meet with WebGain to negotiate the terms of a patent license agreement. Again, WebGain refused Borland's requests for such a meeting.

Mr. Fuller concluded, "We are disappointed that WebGain has chosen this litigious path, despite our continued good faith efforts to pursue an equitable resolution through a licensing agreement with them. Borland has been a leader in the creation of state of the art development tools since the company was founded 18 years ago. Our ability to develop superior technology and superior products, such as JBuilder(TM), is a key component of our competitive strategy. We would prefer not to focus our resources on legal action, but we have made a considerable investment in our patent portfolio, and we must and will protect our intellectual property."

About Borland

Borland is a leading provider of high performance e-business platform solutions, including JBuilder(TM) 5, Borland's award-winning rapid application development environment for creating business, database and distributed applications based on the Java 2 Platform, designed to increase developer productivity and reduce time to market for software projects for the enterprise. E-business platform solutions consist of software products that allow businesses to develop, deploy and manage e-business applications. Borland is the vendor of choice for professional e-business solution providers who demand a vendor-independent platform that supports rapid time to market, high productivity, performance and availability. Founded in 1983, Borland is headquartered in Scotts Valley, California, with operations worldwide. Borland currently has nearly 100 patents in its intellectual property portfolio. To learn more, visit Borland at http://www.Borland.com/, the community site at http://community.Borland.com or call Borland at [phone].

All Borland brand and product names are trademarks or registered trademarks of Borland Software Corporation, formerly known as Inprise Corporation, in the United States and other countries. Other names mentioned herein may be trademarks of the party using such names. This release contains "forward-looking statements" as defined under the Federal Securities Laws, including the Private Securities Litigation Reform Act of 1995. All statements that are not historical are forward-looking. Forward-looking statements may relate to, but are not limited to, the outcome of any legal action, the costs and expenses incurred in defending or asserting any legal action and any future licensing revenue to be derived from any patent infringement action brought by Borland.

Such forward-looking statements are based on current expectations that involve a number of uncertainties and risks that may cause actual events or results to differ materially. Factors that could cause actual events or results to differ materially are detailed from time to time in Borland's periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its latest Annual Report on Form 10-K and its latest Quarterly Report on Form 10-Q, copies of which may be obtained from www.sec.gov. Borland is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.