Broderbund Reports Results for Third Quarter.

NOVATO, Calif.--(BUSINESS WIRE)--June 19, 1997--Broderbund Software, Inc. (NASDAQ:BROD) announced today its operating results for the third quarter of fiscal year 1997. Revenues in the quarter ended May 31, 1997, were $39.3 million, up 12.3% from the $35.0 million reported during the same quarter last year. Net income for the third fiscal quarter totaled $11,000 or $.00 per share. During the same quarter last year, the Company reported net income of $6.2 million or $.29 per share.

For the nine months ended May 31, 1997, net revenues were $145.1 million as compared with $154.0 million reported during the same period in the prior year. During the second quarter of fiscal 1997, Broderbund recorded a one-time pretax charge of $9.5 million resulting from the acquisition of Living Books. Exclusive of the one-time charge, net income for the nine-month period totaled $12.1 million or $.57 per share. During the second quarter of fiscal 1996, Broderbund recorded a pretax gain of $15.5 million arising from a break-up fee received in a terminated merger. Exclusive of the one-time gain, net income for the nine months ended May 31, 1996 was $31.7 million or $1.47 per share.

"We continue to face a challenging operating environment. Revenues in the third quarter increased slightly over last year as a result of modest price increases and improved product flow, although price reductions taken during last year's holiday season have lowered revenues for the fiscal year," said Joe Durrett, chief executive officer. "We are investing in our future performance, particularly with the addition of our Red Orb Entertainment(TM) division, which has negatively impacted our profitability as we near completion of a major product cycle."

During the third quarter of fiscal 1997, Broderbund announced the signing of a letter of intent to acquire Parsons Technology from Intuit Inc. Parsons Technology is best known for its direct-to-consumer services which Broderbund intends to employ to market its broad product portfolio directly to the customer. The acquisition is expected to be completed in the fourth fiscal quarter.

As part of its ongoing stock repurchase program, the Company repurchased 100,000 shares of its common stock in the open market during the quarter ended May 31, 1997. These share repurchases are intended to offset dilution from shares issued under the Company's stock option and stock purchase plans.

Broderbund released a total of eight new titles, nine upgrades to existing products, and two international conversions in two different languages during the third fiscal quarter. The Last Express(TM), which takes place on the world's most famous luxury train crossing Europe on the eve of World War I, 3D Home Interiors(TM), a powerful new interior design and visualization tool, and ClickArt(R) 125,000 Deluxe Pak(TM) were among the new titles introduced this quarter.

This press release contains forward looking statements. There are certain important factors that could cause results to differ materially from those anticipated by the statements made above. Among, but not limited to, these are the anticipation of growth of certain market segments, the positioning of Broderbund's products in those segments, the competitive environment in the consumer software industry, the competition and continuing uncertainties in the consumer software distribution channels, the importance of successful and timely new Broderbund product releases and the successful aquisition and integration of new products and businesses, including without limitation, Parsons Technology. Additional information on these and other factors which could affect the Company's financial results are included in the Company's 1996 Annual Report to Stockholders and Form 10-K and Forms 10-Q for the first two quarters of fiscal 1997 on file with the Securities and Exchange Commission.

Broderbund Software, Inc. develops, publishes and markets a broad line of interactive content for use in homes, schools and small businesses. Since its founding in 1980, Broderbund has pioneered innovative award-winning products that take advantage of the latest technologies. Broderbund has a successful track record of identifying and capitalizing on emerging trends through its studio development approach. Broderbund's web site is located at http://www.broderbund.com . -0-

NOTE TO EDITORS: Broderbund, Red Orb Entertainment, The Last Express, 3D Home Interiors and ClickArt 125,000 Deluxe Pak are trademarks or registered trademarks of Broderbund Software, Inc. All other marks are trademarks or registered trademarks of their respective companies. -0-

                       BRODERBUND SOFTWARE, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                 (In thousands, except per share data)
                             (Unaudited)

                           Three months ended      Nine months ended
                                May 31,                 May 31,
                             --------------         --------------
                            1997        1996        1997       1996
                            ----        ----        ----       ----

Net revenues               $39,294    $34,993    $145,101    $153,998
Cost of revenues            12,868     10,287      50,303      50,243
                            ------     ------      ------      ------
Gross margin                26,426     24,706      94,798     103,755
                            ------     ------      ------      ------
Operating expenses:
 Sales and marketing        12,615      6,760      37,988      26,840
 Research and development   10,578      6,758      27,818      21,771
 General and administrative  3,224      2,961       9,740       8,721
 Charge for acquired in-
  process technology and
  amortization               1,427        -        12,991         -
                            ------     ------      ------      ------
  Total operating expenses  27,844     16,479      88,537      57,332
                            ------     ------      ------      ------

Income from operations      (1,418)     8,227       6,261      46,423

Interest and dividend
 income, net                 1,435      1,907       4,507       4,915
Equity in earnings
 of joint venture              -            -        (603)      1,291
Terminated merger fee, net     -            -           -      15,464
                             -----     ------         ---      ------
Income before income taxes      17     10,134      10,165      68,093

Provision for income taxes       6      3,953       4,721      27,137
                               ---     ------       -----      ------
Net income                 $    11    $ 6,181     $ 5,444     $40,956
                             =====     ======       =====      ======
Net income per share       $  0.00    $  0.29     $  0.26     $  1.90
                              ====       ====        ====        ====
Shares used in computing
 per share data             21,048     21,435      21,083      21,583
                            ======     ======      ======      ======


                       BRODERBUND SOFTWARE, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                              (Unaudited)

                                  May 31, 1997        Aug. 31, 1996
                                 ---------------     ---------------
ASSETS

Current assets:
 Cash and short term
  investments                        $127,120            $150,893
 Accounts receivable, net              15,553               5,956
 Inventories                            4,443               3,140
 Deferred income taxes                 19,554              15,057
 Prepaid expenses and other current
  assets                                1,100                 869
                                     --------            --------
    Total current assets              167,770             175,915

Equipment and improvements, net         7,598               7,014
Purchased technology and
 advances, net                         17,166              13,090
Investments in affiliates               6,133               4,053
Other assets                            1,219                 360
                                     --------             -------
                                     $199,886            $200,432
                                     ========            ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                    $  6,523            $  4,442
 Accrued income taxes                   9,404               8,966
 Other current liabilities             16,258              20,014
                                     --------            --------
   Total current liabilities           32,185              33,422

Deferred income taxes                   1,889               1,462
                                     --------            --------
   Total liabilities                   34,074              34,884
                                     --------            --------
Stockholders' equity                  165,812             165,548
                                     --------            --------
 Total stockholders' equity          $199,886            $200,432
                                     ========            ========

CONTACT: Broderbund Software, Inc.

Robin Linstrom, 415/382-4449 (Investor Relations)

[e-mail]

Eric Winkler, 415/382-4568 (Marketing Communications)

at E3: 404/261-7733

[e-mail]