CHEYENNE SOFTWARE, INC. REPORTS FOURTH QUARTER AND YEAR END RESULTS.

ROSLYN HEIGHTS, N.Y.--(BUSINESS WIRE)--August 22, 1995--

o SALES FOR THE FOURTH QUARTER ENDED JUNE 30, 1995 INCREASED 63%

VERSUS LAST YEAR TO A RECORD HIGH OF $41.0 MILLION.

o NET INCOME FOR THE FOURTH QUARTER WAS 23 CENTS PER SHARE VERSUS

16 CENTS PER SHARE IN LAST YEAR S COMPARABLE QUARTER.

o SALES FOR THE YEAR INCREASED 31% VERSUS LAST YEAR TO $127.9

MILLION.

o NET INCOME FOR THE YEAR WAS 97 CENTS PER SHARE INCLUDING A ONE

TIME NET GAIN OF 26 CENTS PER SHARE VERSUS 82 CENTS PER SHARE

LAST YEAR

Cheyenne Software, Inc. (AMEX;CYE) reported that, for the fourth quarter ended June 30, 1995 (FQ495), revenues increased to $41,028,000 versus the lower than expected $25,134,000 in last year's comparable quarter. Net income for FQ495 was $8,978,000 or 23 cents per share versus $6,517,000 or 16 cents per share last year. Sales in FQ495 increased 15% sequentially over FQ395.

For the year ended June 30, 1995 (FY95), revenues increased to $127,927,000 versus $97,737,000 in FY94, a 31% increase. Net income increased to $38,504,000 or 97 cents per share in FY95 including a one time net gain, net of income taxes, of 26 cents per share, as a result of the exchange of Gates/FA shares for Arrow Electronics, Inc. shares plus the write-off of purchased R&D related to two small acquisitions, versus $32,538,000 or 82 cents per share in FY94.

ReiJane Huai, President and Chairman said, "FY95 was a year of significant accomplishments. Despite a slow start, we finished the year with a 31% sales increase and good profit margins. More importantly, we continued to build management infrastructure and product depth. We are well positioned to take advantage of the significant long-term opportunities available to us. We expanded our ARCserve data storage management software product line by successfully introducing Unix, Windows NT and OS/2 versions and enhanced our market share leading NetWare product with hierarchical storage management (HSM) capability. In addition, we expanded and enhanced our anti-virus (InocuLAN) and fax (FAXserve and BitWare) software product lines. We made two small strategic acquisitions in order to expand our HSM product line to include several key UNIX platforms, plus we secured technology to bolster our backup product line with fault tolerance and higher speed backup/recovery capabilities. We accomplished significant growth in Japan and Latin America and began to build a presence in the rapidly expanding Asia-Pacific market. We also made significant investments in additional facilities as well as computer information systems to improve productivity. There is more to accomplish, but we are confident we are up to the challenge."

Elliot Levine, Executive Vice President/CFO commented, "Our expansion to nearby Lake Success, New York is on schedule and we expect to move about 100 employees in FQ196 plus another 200 or so employees in FQ296. In FY95, the Board authorized management to repurchase up to 4 million shares, depending on market conditions and other factors. During FQ495, we purchased 1,285,000 of our shares at prices ranging from $13.50 to $14.875. To date, we have purchased 2,035,000 shares. As a result of the share buyback and a large tax payment mainly due to our one time investment gain (partially offset by cash generated from operations), our cash, cash equivalent and investment position at the end of FQ495 decreased $27,867,000 to $71,435,000 compared to the end of FQ395." -0-

                      CHEYENNE SOFTWARE, INC.
                Consolidated Statements of Earnings
         Three and Twelve Months Ended June 30, 1995 and 1994(b)

                        Three Months Ended      Twelve Months Ended
                            June 30                  June 30
                         1995       1994          1995      1994
                           (unaudited)
                           (In thousands, except per share data)

Revenues               $41,028     $25,134      $127,927   $97,737

Cost of Sales
 (including technical
 support)(c)             6,779       3,639        21,690    11,641

Gross Profit            34,249      21,495       106,237    86,096

Operating Expenses:
  Research and
   development(c)        4,990       2,701        15,174     8,981
  Selling and
   marketing            12,998       8,545        41,222    23,747
  General and
   administrative        3,829       2,218        10,784     8,066
  Charge for purchased
   research and
   development               0           0         1,251         0

    Total operating
     expenses           21,817      13,464        68,431    40,794

Operating income        12,432       8,031        37,806    45,302

Non-Operating Income:
  Interest Income          908         578         3,437     1,668
  Other gains, net         263         649        21,431       738

Total Non-Operating
 Income                  1,171       1,227        24,868     2,406

Income before income
 taxes and equity
 in earnings            13,603       9,258        62,674    47,708

Provision for
 income taxes            4,625       3,122        24,255    16,742

Equity in earnings
 of Gates/FA                 0         381            85     1,572

Net income              $8,978      $6,517       $38,504   $32,538

Per share data(a)

  Net income             $0.23       $0.16         $0.97     $0.82

Weighted average
 number of common
 shares and equivalents
 outstanding            38,896      39,706        39,617    39,877

(a) All per share data have been restated for all periods presented
to reflect the payment on March 29, 1994 of a three-for-two stock
split

(b) Due to the Bit Software, Inc.  acquisition on May 19, 1994
accounted for as a pooling of interests, all periods presented
include Bit's results.

(c) In fiscal 1995 technical support expenses were reflected in Cost
of Sales rather than in R&D as in the past.  All past periods have
been restated to make them comparable with 1995.

CONTACT: Cheyenne Software, Inc.

ReiJane Huai, President/CEO

Elliot Levine, EVP/CFO

[phone]