Citrix Introduces Advanced Model for Analyzing IT Costs.

NEW YORK--(BUSINESS WIRE)--June 22, 1999--

Cost Analysis Model for the New Millennium Focuses on Applications

and Their Ability to Help Organizations Move at the Speed

of e-Business

Citrix Systems, Inc. (Nasdaq:CTXS) today at PC Expo (Booth No. 3954) previewed a cost analysis model for the new millennium that provides an application-specific view for estimating the total cost of IT ownership, called Total Cost of Application Ownership (TCA). Developed in collaboration with The Tolly Group, an independent testing and strategic consulting organization located in Manasquan, NJ, the TCA model focuses on the opportunity costs of providing applications to users in today's complex, Internet-driven computing environment. For businesses, applications are crucial to achieving and sustaining a competitive advantage -- applications enable organizations to generate revenue, offer new and better services, increase levels of user knowledge and enhance overall productivity.

Today, the Internet, Web-based computing, e-commerce and the emerging role of Application Service Providers (ASPs) require cost analysis models to take a broader reaching look at all components of the IT mix, beyond hardware costs. Earlier cost analysis models, including the TCO model, have focused on the costs of owning and maintaining a personal computer or other specific form of desktop computing hardware. The initial and recurring costs of providing applications can exceed $10,000 per user. Hardware costs comprise less than 15 percent of this total; the remaining 85 percent include costs of network and communications infrastructure; the cost of personnel required to develop or acquire, maintain and update applications; and on-going technical support.

The TCA model shifts the focus of the analysis to address the issues at the heart of today's e-business environments - including the need to extend business-critical applications to a growing population of mobile and geographically dispersed employees, customers, partners, and vendors. TCA compares the total cost of application ownership as it relates to various application deployment models including traditional desktop, client/server and network computing, and server-based computing. TCA accounts for how applications are deployed, the location of users, the variety of connectivity options and the varied type of client devices.

"In today's rapidly changing business environment, competition is intensifying by the hour," said Atul Kapoor, managing director at The Tolly Group. "Of all the IT resources available to the business community, applications are the most critical. Through extensive research, we have concluded that a server-based computing model offers both direct and indirect cost advantages. These advantages enable an organization to extend the reach of applications to users throughout the world while increasing manageability and reducing application ownership costs by as much as 50 percent."

"Organizations that can extend the reach of business-critical applications to users wherever, whenever and however they are needed, are developing a strategic advantage in the networked economy," said David Weiss, Citrix vice president of product marketing. "Citrix is singularly focused on delivering server-based software products and services that give customers the independence, speed and flexibility needed to extend any application to anyone, anywhere. As a result, thousands of organizations across the globe have accelerated the time-to-impact of their IT investments for greater business opportunities, service, productivity and knowledge, while reducing the costs and complexities of computing."

The TCA model is based on extensive research and review of 40 industry TCO models and reports, and on-site interviews with customers. As a result, The Tolly Group has created and modeled profiles based on the analysis of more than 60 applications across multiple industry segments and computing environments. The Tolly Group's analysis has identified four critical factors that determine the total cost of application ownership, including: -0-

--   Physical location of the application: The choice of where an
     application is stored -- on the server or the client -- is a
     determining factor in the cost and complexity of deploying and
     managing an application over time. IT personnel costs; time
     required to distribute, install and configure an application; and
     the cost of managing updates on tens of thousands of computing
     devices must be considered.

--   Execution location of the application: The choice of where an
     application actually runs -- on the server, on the client or some
     distributed combination -- determines what is required to access
     the application. If executed locally, the device must be capable
     of running the application. If the application is downloaded from
     a server to run locally, ample network bandwidth must be
     available to provide the necessary level of responsiveness and
     performance.

--   Physical location of the data: The location of stored data can
     determine the speed at which information is available, as well as
     the cost associated with protecting and backing up valuable
     corporate data.

--   Location and connectivity of users: A user's location and network
     connectivity can have a dramatic impact on the cost and
     complexity of deploying an application. Other cost factors
     include support personnel, network infrastructure and the amount
     of bandwidth required.

With Citrix's server-based computing model, all applications reside and execute on the server. Since only the application's user interface is distributed to the client, virtually any device can access even the most sophisticated applications. This client-independent approach significantly improves the performance and productivity of WAN, Internet-connected and remote dial-up users by as much as ten times, while leveraging existing network infrastructure.

Calculating TCA Benefits

Citrix and The Tolly Group have developed a tool for accurately calculating TCA within the enterprise. This tool, called the TCA Calculator, will be available from Citrix in Q3 for scenario analysis to compare the total application cost of ownership of various application deployment models.

About The Tolly Group

The Tolly Group, an independent testing and strategic consulting organization based in Manasquan, N.J., is recognized worldwide for its expertise in assessing leading edge technologies. For more information on The Tolly Group's services, visit its Web site at http://www.tolly.com, email at [e-mail], call 1-800-933-1699, or fax [phone].

About Citrix

Founded in 1989, Citrix Systems, Inc. is the nation's 13th largest software company and world leader in system software for server-based computing. The MetaFrame(TM) and WinFrame(R) product lines and Independent Computing Architecture (ICA(R)) technology give organizations the independence, speed and flexibility needed to extend any application to anyone, anywhere. The company's server-based computing solutions are marketed through a worldwide business alliance of value-added resellers, system integrators, OEM licensees and industry associates. Citrix is based in Fort Lauderdale, Fla. and is traded on the Nasdaq National Market under the symbol CTXS.

For Citrix Investors

Forward-looking statements in this release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, as well as statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements which involve risks and uncertainties, including, without limitation, risks associated with the company's reliance upon its strategic relationships with Microsoft and other strategic partners, dependence upon broad-based acceptance of the company's ICA protocol, management of growth, market acceptance of new products or new versions of existing products, the possibility of undetected software errors, and dependence on proprietary technology, as well as risks of downturns in economic conditions generally, and in the software industry specifically, and risks associated with competition, competitive pricing pressures and year 2000 compliance efforts of the company and third parties on which the company is dependent. For a more detailed description of the risk factors associated with the company, please refer to the company's Annual Report or Form 10-K for the year ended December 31, 1998 and the company's Form 10-Q for the quarter ended March 31, 1999 on file with the Securities and Exchange Commission.

Citrix(R), WinFrame(R) and ICA(R) are registered trademarks of Citrix Systems, Inc. MultiWin(TM) and MetaFrame(TM) are trademarks of Citrix Systems, Inc. for which there are pending applications for registration in the U.S. Patent and Trademark Office. Cisco IOS is a registered trademark of Cisco Systems, Inc. in the USA and other countries. All other trademarks and registered trademarks are property of their respective owners.