CANDLE COMMITS $.5 BILLION TO RESEARCH & DEVELOPMENT EFFORTS; Software Leader Is Halfway Through a Seven-year Development Program In Which It Will Develop 19 Systems Management Solutions.

SANTA MONICA, Calif.--(BUSINESS WIRE)--July 17, 1995--Candle Corporation, the leading supplier of solutions for systems, network, and console management across the enterprise, today announced that it is midway through a $500 million, seven-year research & development (R&D) program that targets development for new distributed and mainframe solutions, as well as support of current mainframe products.

Makes Commitment to True Integrated Systems Management

Candle will invest nearly half of its research and development expenditures in systems management solutions based on its object-oriented Candle Technologies(tm) (CT) infrastructure. From 1992 through 1995, the company will have infused $86 million in CT infrastructure and CT-based applications, and will allocate at least another $141 million from 1996 through 1998. The $273 million balance of the R&D budget will be earmarked to support classic, non-object-oriented solutions, currency of new releases of IBM software, as well as enhancements to Candle's original mainframe systems management solutions.

These investments in development efforts will account for approximately 30 percent of Candle's total revenues over the seven-year period.

"Customers are getting frustrated with the promises of integration that the software industry has talked a great deal about, as well as the shallow screen-oriented levels of integration that have actually been delivered," said Aubrey Chernick, chairman and CEO, Candle Corporation. "The industry is in dire need of systems management solutions that are truly interconnected. Candle is making a financial and technical commitment to tying products together. Our new generation of CT solutions -- backed up by a $227 million investment -- brings an unprecedented level of integration to Candle's large customers."

Candle's CT-based integration goes beyond the screen level and provides true object integration at the screen, data and application levels. Further, the integration is not only on UNIX systems, but spans UNIX, desktop, network and mainframe systems.

Invests in Both Distributed and Mainframe Solutions

"We know that Candle customers want to see a balance of investments in current mainframe solutions, new mainframe computing platforms, and of course, in the distributed and desktop arena," noted Chernick. "They have made a significant investment in our products and will be pleased to know that we will continue to support our existing products as well as pioneering new solutions."

Candle has an extensive mainframe customer base that relies on its monitoring solutions (OMEGAMON)(tm), database tools (!DBTOOLS)(tm) and automation products (AF)(tm). These solutions are used in more than 5,000 data centers worldwide.

Candle's solutions are key to helping customers manage enterprise multi-vendor systems. These systems constitute a foundation on which business operations are dependent. Candle's leading-edge technical products, in conjunction with its highly technical skill base, create a powerful combination to solve customers' systems management problems.

Will Introduce 19 Candle Technologies-Based Solutions

From 1994 through 1996, Candle will have introduced 19 CT-based solutions, of which 13 will be distributed and six will be mainframe. Candle first began delivery of its CT-based products in the distributed arena with the Automation Center/400(tm) solutions it developed for IBM Rochester. These products, Automation Center/400, OMEGAMON/400(tm) and OMEGAVIEW/400(tm), provide alert management and automation, and utilize visual programming to create alerts and automation rules. They became generally available in 1994 and are marketed and sold by IBM.

Candle is also deploying CT and CT-based applications on UNIX, Windows NT and MVS through the Candle Command Center(tm) solutions. The CT infrastructure, which encompasses object-oriented technolgoy, POSIX and DCE, includes engineering breakthroughs in systems management, such as visual programming of alerts and automation rules. On MVS for example, Candle wanted to achieve a POSIX level of portability and implemented its own POSIX threading facility. In addition, in order to use object-oriented software, Candle implemented a C++ compilation facility in MVS.

Over the next 12 months, Candle will introduce the following CT-based solutions:

Distributed

-- Candle Command Center for AIX 

-- Candle Command Center for HP-UX 

-- Candle Command Center for SunOS

-- Candle Command Center for Oracle

-- Candle Command Center for Sybase

-- Candle Command Center for Windows NT

-- Candle Command Center for Netware

-- Candle Command Center for Netview

-- Candle Command Center for CA-Unicenter

-- Candle Command Center for Distributed Console Management

Mainframe

-- Candle Command Center for Sysplex

-- Candle Command Center for CICSplex

-- Candle Command Center for MQSeries

-- Candle Command Center for IMSplex

-- Candle Command Center for DB2plex

-- Candle Command Center for Mainframe Console Management

The Candle Command Center solutions for UNIX (AIX, HP-UX and SunOS), Sysplex and CICSplex are currently in the first customer ship testing phase at 40 customer sites worldwide and are expected to become generally available in August.

Company Background

Candle Corporation is the world's leading independent developer and supplier of software solutions that manage the availability and performance of critical systems, network and console resources, as well as business applications, spanning the enterprise. Since its founding in 1977 by Chairman and CEO Aubrey Chernick, Candle has developed a complete line of solutions for enterprise availability management, including automation, status management, application integration, and database management. The company is in the process of delivering its Candle Command Center products. These solutions are essential in helping customers make the transition to large multi-vendor enterprise production environments composed of both mainframe and client/server applications that are key to supporting business operations.

CONTACT: Candle Corporation

Philip Little, 310/582-4725

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Miller Communications

Wendy Allen/Chris Gunning, 310/822-4669

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