Business Objects Reports First Quarter 2000 Results; Revenues Up 47% Over Prior Year; Net Income Grows 117%.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--April 27, 2000

Business Objects (Nasdaq:BOBJ)(PARIS BOURSE: code SICOVAM 12074) today announced its results for the first quarter ended March 31, 2000.

First quarter revenues were $72.6 million, an increase of 47 percent compared to revenues of $49.5 million for the quarter ended March 31, 1999. Net income for the first quarter was $7.0 million, compared to $3.2 million for the same period last year. Diluted net income per share and per ADS for the quarter ended March 31, 2000 were $0.16, compared to $0.08 in the first quarter of last year. Diluted net income per share and per ADS has been adjusted to reflect the two-for-one split of ordinary shares and ADS in January of 2000.

"We are pleased to announce a strong start to this year, with first quarter results which reflect the growing deployment of business-to-business extranets by customers worldwide," said Bernard Liautaud, president and chief executive officer of Business Objects. "In the first quarter, extranet revenues grew 365% over the same period last year, as customers continued to choose our e-BI solutions for their extranet platforms. We also had an outstanding contribution from our indirect channels, which contributed 51% of total revenues."

"We recently announced the acquisition of OLAP@Work, which develops and markets high-end online analytical processing (OLAP) reporting tools," Liautaud continued. "This acquisition provides us with excellent technology and the expertise to deliver enhanced access to multidimensional data sources, in particular Microsoft SQL Server OLAP Services."

During the first quarter, we introduced WebIntelligence(R) Wireless Edition, which takes advantage of emerging wireless technologies, and leverages our proven solution for the Internet," Liautaud added. "WebIntelligence Wireless Edition, which we expect to be available in the second quarter, will enable users to access critical business information, anytime, anywhere, from a variety of devices, including wireless application protocol (WAP)-enabled phones. As a member of the WAP forum, we are also teaming with leading suppliers of wireless technologies to deliver support for current and future wireless devices."

Business Objects expanded its customer base in the first quarter, adding over 226,000 new licenses for a total of 1,910,000 worldwide. Key customers in the first quarter included CNET, Department of Defense/Military Health System, First National of Nebraska, Homebase, PepsiCo, Pfizer, Inc., and ST Microelectronics.

"The growth of business-to-business extranets continues to be one of the most exciting new opportunities for Business Objects, as companies turn their focus on sharing information with each other," Liautaud said. "During the first quarter, we added several important extranet customers, including Blue Cross, eBay, Ernst & Young, MasterCard, Schroders, Sony, and Southwestern Bell."

Business Objects also signed an important agreement with Siebel Systems, which will integrate Business Objects technology into Siebel eBusiness Applications and offer BusinessObjects(TM) as a component of Siebel Marketing, its comprehensive marketing automation solution.

The company's balance sheet continued to be strong with $188.5 million in cash and cash equivalents at March 31, 2000. Total assets at March 31, 2000 were $285.5 million, compared to $272.5 million at December 31, 1999.

This press release may contain forward looking statements with respect to demand for the company's e-business intelligence solutions. Such forward looking statements are subject to risks and uncertainties including, without limitation, historical variability in the performance of the company, changes in the company's market, and the ability of the company to gain acceptance of its products, and increased competition, which could cause actual results to differ materially from those anticipated. For a more complete discussion of risk factors that could affect the company's current and future operating results, see the discussions in the company's reports filed with the SEC from time to time, including but not limited to the company's Form 10-K for the fiscal year ended December 31, 1999.

About Business Objects

Business Objects is the world's leading provider of e-business intelligence (e-BI) solutions. The company coined the term e-business intelligence in 1998 to describe the intersection of business intelligence and the Internet. Using e-business intelligence, organizations can access, analyze, and share information in intranet, extranet, and e-business environments. In intranets, the company's products provide employees with information to make better business decisions, and are used in environments ranging from workgroups of 20 users to enterprise deployments exceeding 20,000. In the extranet environment, the company is pioneering the use of e-BI in applications that allow organizations to build stronger relationships by linking customers, partners, and suppliers via the Internet. In addition, the company's products can improve the performance of an e-business by providing reporting and analysis against the ever-expanding amount of transaction and profile data that is collected each day throughout the world wide web.

Founded in 1990, Business Objects pioneered the modern business intelligence industry by inventing and patenting a "semantic layer" that insulates users from the technical complexity of database systems. Today, the company has sold more than 1,910,000 licenses to over 10,200 organizations in more than 80 countries. The company's stock is publicly traded under the ticker symbols NASDAQ: BOBJ and PARIS BOURSE: code SICOVAM 12074, and included in the SBF 120 and IT CAC 50 French stock market indexes. Business Objects can be reached at 408/953-6000 and www.businessobjects.com.

Note to Editors: BusinessObjects is a trademark and WebIntelligence is a registered trademark of Business Objects SA. Other company and product names may be trademarks of the respective companies with which they are associated. A full-text copy of this announcement may be obtained by calling the Company's fax retrieval line at 800-414-2114 and selecting option "two." The announcement may also be downloaded from the Web; access "http://www.businesswire.com/cnn" and search on "Business Objects." Business Objects product inquiries should contact 800/527-0580.

                         BUSINESS OBJECTS S.A.
                   CONSOLIDATED STATEMENTS OF INCOME
    (In thousands of US dollars, except per ADS and per share data)

                                               Three Months Ended
                                                   March 31,
                                                2000        1999
                                            (unaudited)  (unaudited)

Revenues:
     License fees                             $ 45,046    $ 31,534
     Services                                   27,536      17,974
                                              --------    --------
          Total revenues                        72,582      49,508
Cost of revenues:
     License fees                                  449         815
     Services                                   11,798       8,276
                                              --------    --------
          Total cost of revenues                12,247       9,091
                                              --------    --------
Gross margin                                    60,335      40,417
Operating expenses:
     Sales and marketing                        37,384      25,348
     Research and development                    8,179       5,996
     General and administrative                  4,602       3,715
     Goodwill                                      989         483
                                              --------    --------
          Total operating expenses              51,154      35,542
                                              --------    --------
Income from operations                           9,181       4,875
Interest and other income, net                   2,461         571
                                              --------    --------
Income before provision for income taxes        11,642       5,446
Provision for income taxes                      (4,657)     (2,233)
                                              --------    --------
Net income                                    $  6,985    $  3,213
                                              ========    ========
Net income per ADS and share - basic          $   0.18    $   0.09
                                              ========    ========

ADS and shares used in computing net
 income per ADS and per share basic             39,280      34,854
                                              --------    --------
Net income per ADS and share - diluted        $   0.16    $   0.08
                                              ========    ========

ADS and shares and common share
 equivalents used in computing net income
 per ADS and per share - diluted                43,900      38,140


                         BUSINESS OBJECTS S.A.
                      CONSOLIDATED BALANCE SHEETS
                     (In thousands of US dollars)

                                                March 31,   Dec. 31,
                                                   2000       1999
                                               (unaudited)
ASSETS
Current assets:
     Cash and cash equivalents                   $188,482   $176,233
     Accounts receivable, net                      52,372     53,993
     Other current assets                          16,184     13,947
                                                 --------   --------
          Total current assets                    257,038    244,173

Property and equipment, net                        14,367     13,831
Goodwill, net                                      11,128     12,556
Other assets                                        3,007      1,986
                                                 --------   --------
          Total assets                           $285,540   $272,546
                                                 ========   ========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Accounts payable                            $ 15,759   $ 11,780
     Accrued payroll and related expenses          19,426     23,994
     Deferred revenue                              34,171     31,849
     Other current liabilities                     42,742     37,946
                                                 --------   --------
          Total current liabilities               112,098    105,569

Notes payable - long term                           2,924      2,924

Shareholders' equity                              170,518    164,053
                                                 --------   --------

          Total liabilities and shareholders'
           equity                                $285,540   $272,546
                                                 ========   ========