California Software Reports Fourth Quarter Revenue Exceeds Expectations.

Business/Technology Editors

SANTA ANA, Calif.--(BUSINESS WIRE)--Feb. 9, 2000

California Software Corp. (OTC BB:CAWC), a leader in IBM migration products and developer of the award-winning BABY product line, today announced fourth quarter revenue of $2.3 million. These record sales, which exceeded expectations for a traditionally slow quarter, resulted from broad market acceptance of the new BABY/GUI product and the Company's largest single order yet of 4,000 licenses. These sales represent a year-to-year increase of more than 200% from the fourth quarter of 1998.

With this dramatic growth, California Software will move to new headquarters early in the second quarter of this year to accommodate increased staffing. &uot;The current staff of 34 will grow to 68 during the calendar year. These additional sales and support staff will build infrastructure for the planned achievement of $20,000,000 in top line sales for Y2K&uot;, said Bruce Acacio, President and Chief Executive Officer of California Software.

&uot;With three product releases planned this year including the already announced BABY/AS2001, we are confident that these goals are achievable and consistent with the level of growth which we have proven we can achieve,&uot; stated Carol Conway, Vice President of California Software.

In order to fund the continued growth of the Company's core business and planned strategic acquisitions, California Software will soon be issuing a minimum of 5 million dollars worth of stock in a private placement. This private placement, in addition to the Company's strong balance sheet and the retirement of its 2.5 million dollar debt to the shareholders of its predecessor company, will meet the qualifications to affect its transition to listing on a NASD stock exchange.

California Software Corp. is the international leading provider of IBM Midrange migration software solutions marketed under the brand name BABY. These products support the migration IBM AS/400 screens and applications into PC-LAN business environment and enjoy over 100,000 installations in 56 countries.

Forward-looking statements in this release are made pursuant to the &uot;safe harbor&uot; provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.