Broderbund Software reports 133% increase in net income for second quarter.

NOVATO, Calif.--(BUSINESS WIRE)--March 22, 1995--Broderbund Software, Inc. (NASDAQ:BROD) announced today its operating results for the second quarter of fiscal year 1995. Revenues in the quarter ended February 28, 1995, were $45.2 million, up 78% from the $25.4 million reported during the same quarter last year. Net income for the quarter totaled $10.4 million or $.50 per share, up 133% from the $4.5 million or $.22 per share earned in the second quarter of fiscal 1994.

For the six months ended February 28, 1995, revenues were $98.3 million, up 69% from the $58.1 million reported during the same period in the prior year. Net income for the six-month period totaled $22.0 million or $1.06 per share, an increase of 105% from the $10.7 million or $.53 per share reported during the same period last year.

The operating results for the second quarter reflect strong demand for Broderbund's CD-ROM titles, particularly "Myst" and "The Print Shop Deluxe CD Ensemble." These titles were initially released more than twelve months ago; yet they remain at the top of many of the best-seller charts in their categories. CD-ROM titles continue to show growth in the consumer market, representing over 80% of the Company's revenues in the second fiscal quarter, as compared to only 30% in the second quarter last year.

Broderbund products, known for quality and imagination, recently captured four Software Publishers Association (SPA) Excellence in Software Awards (Codies): Best Personal Creativity Program - "The Print Shop Deluxe CD Ensemble," Best Early Education Program - "Where in the World is Carmen Sandiego? Junior Detective Edition," Best Secondary Education Program - "Where in the World is Carmen Sandiego?" (CD-ROM), and Best School Productivity/Creativity Program - "Kid Pix Studio." Broderbund has won more SPA awards than any other software publisher.

"Our transition to CD-ROM is nearly complete and we believe our product line is well-positioned going forward," said Doug Carlston, chairman and chief executive officer. "We are very pleased with our strong showing during the first half of fiscal 1995. As we move into the seasonally softer spring and summer months, we expect the expansion of our business to moderate. Due to the timing of new product releases, last year's results in the second half of the fiscal year were better than historical patterns, which could also affect year-over-year growth rates." -0-

Note to Editors: Broderbund Software, Inc. develops, publishes and markets a diversified line of personal computer software 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 personal computer technologies.

Broderbund, "The Print Shop Deluxe," "Where in the World is Carmen Sandiego?," "Kid Pix" and "Myst" are registered trademarks and "The Print Shop Deluxe CD Ensemble" is a trademark 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      Six months ended
                             February 28,           February 28,
                           1995       1994        1995       1994

Net revenues               $45,208    $25,350    $98,297    $58,145
Cost of revenues            14,506      8,239     38,034     19,754
                           -------    -------    -------    -------
Gross margin                30,702     17,111     60,263     38,391
                           -------    -------    -------    -------

Operating expenses:
 Sales and marketing         7,116      4,701     13,765     10,226
 Research and development    5,384      3,810     10,014      7,739
 General and administrative  2,674      1,739      5,463      3,627
                           -------    -------    -------    -------
 Total operating expenses   15,174     10,250     29,242     21,592
                           -------    -------    -------    -------

Income from operations      15,528      6,861     31,021     16,799
Interest and dividend
 income, net                 1,131        427      1,887        709
Gain on sale of investment      --         --      1,602         --
Equity in earnings of joint
 venture                     1,123         --      2,820         --
                           -------    -------    -------    -------
Income before income
 taxes                      17,782      7,288     37,330     17,508
Provision for income taxes   7,415      2,830     15,370      6,807
                           -------     ------    -------    -------
Net income                 $10,367     $4,458    $21,960    $10,701
                           =======     ======    =======    =======
Net income per share         $0.50      $0.22      $1.06      $0.53
                           =======     ======    =======    =======
Shares used in computing
 net income per share       20,783     20,070     20,629     20,133
                           =======    =======    =======    =======

                      BRODERBUND SOFTWARE, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                           (In Thousands)
                            (Unaudited)

                                    Feb. 28,    Aug. 31,    Feb. 28,
                                      1995        1994        1994
ASSETS

Current assets:
 Cash and cash equivalents          $124,804    $ 75,000    $ 76,094
 Accounts receivable, net              2,406       2,298       2,574
 Income tax prepayments                  --        1,156        --
 Inventories                             845       2,361       2,283
 Deferred income taxes                14,893       8,759       9,266
 Prepaid expenses and other
  current assets                         780         757         504
                                     -------     -------     -------
Total current assets                 143,728      90,331      90,721

Equipment and improvements, net        4,536       4,335       5,378
Deferred income taxes                    655         655         --
Other assets                           3,321       2,330       2,778
                                    --------     -------     -------
                                    $152,240    $ 97,651    $ 98,877
                                    ========    ========    ========
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                   $  5,709    $  5,656    $  2,901
 Other current liabilities            39,193      11,670      19,031
                                    --------    --------    --------
Total current liabilities             44,902      17,326      21,932

Other liabilities                         84         146         817
                                    --------    --------    --------

Total liabilities                     44,986      17,472      22,749
                                     -------     -------     -------
Stockholders' equity                 107,254      80,179      76,128
                                     -------     -------     -------
                                    $152,240    $ 97,651    $ 98,877

CONTACT: Broderbund Software, Inc., Novato

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

Eric Winkler, 415/382-4568 (Public Relations)