Computron Nearly Triples License Revenue in Record Third Quarter; E-Commerce-Related Sales Account for 90% of Software License Revenue.

Business Editors

RUTHERFORD, N.J.--(BUSINESS WIRE)--Oct. 31, 2000

Computron Software, Inc. (AMEX: CFW) today reported operating income, net income, basic net income per share and diluted net income per share for the quarter ended September 30, 2000, of $1.0 million, $0.9 million, $0.04 per share and $0.03 per share respectively, compared to operating losses, net losses, and basic and diluted net loss per share of $(1.6) million, $(1.7) million, and $(0.07) per share respectively, for the same period in 1999.

In addition, for the nine months ended September 30, 2000, the Company reported operating income, net income, basic net income per share and diluted net income per share of $1.1 million, $0.9 million, $0.04 per share and $0.03 per share respectively, compared to operating losses, net losses and basic and diluted net loss per share of $(2.5) million, $(3.2) million, and $(0.13) per share respectively, for the same period in 1999. The Company also reported revenues of $13.3 million and $37.5 million for the three and nine months ended September 30, 2000 compared to $12.2 million and $43.4 million for the corresponding periods last year. The results for the corresponding periods last year included operating results from the Company's previously owned French and German subsidiaries, as follows:

                    Three Months ended    Nine Months ended
Revenues:           September 30, 1999    September 30, 1999
                    ------------------    ------------------

License Fees              $    11,000              $   496,000

Services                      756,000                4,377,000
                          -----------              -----------

Total Revenues                767,000                4,873,000
                          -----------              -----------

Operating Loss            $(1,058,000)             $(2,320,000)
                          ===========              ===========

"Since the start of the year an average of one world-class customer per week has chosen one of our new e-Cellerator(TM) e-commerce solutions, which drove license revenue up by almost 300% from the comparable quarter last year. This new line of B2B commerce and information sharing solutions already comprise 90% of total license sales for the quarter and more than 60% year-to-date," said John Rade, CEO and President. "e-Cellerator(TM) solutions enable our customers to work with their customers, partners and vendors over the Internet while still being able to utilize their existing systems. That's a tremendous advantage. We look forward to an exciting year." added Mr. Rade.

Computron Software, Inc. Background Information

Founded in 1978, Computron Software, Inc. (AMEX: CFW) is a provider of e-Cellerator(TM) electronic commerce (e-commerce) solutions. These solutions facilitate the transformation of traditional bricks and mortar organizations into clicks and mortar organizations. In addition, Computron's Professional Services Automation division offers a comprehensive suite of Internet products, which help professional services companies fully utilize their resources and maximize their revenues and profits. It has over 20 years of experience in designing and building process-centric business solutions for global organizations. Computron has a proven track record in developing robust, high-volume, scalable, secure and effective business solutions for global 2000 sized organizations. For further information on Computron, its products, services and customers, visit the Computron web site at http://www.computronsoftware.com.

Computron is a registered trademark, and e-Cellerator, TransAXS and AXSPoint are trademarks, of Computron Software, Inc. in the US.

                       COMPUTRON SOFTWARE, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)
                              (unaudited)


                                 Three Months Ended  Nine Months Ended
                                     September 30,     September 30,
                                 ------------------- -----------------
                                      1999     2000     1999     2000
                                     ------- -------  ------- -------
Revenues:
  License fees                       $ 1,160 $ 3,393  $ 7,009 $ 7,126
  Services                            11,063   9,921   36,390  30,374
                                     ------- -------  ------- -------
    Total revenues                    12,223  13,314   43,399  37,500
                                     ------- -------  ------- -------

Operating expenses:
  Cost of license fees                   310     324    1,526   1,021
  Cost of services                     5,793   4,871   19,354  15,812
  Sales and marketing                  2,547   3,106    8,920   7,595
  Research and development             1,806   1,652    5,915   5,174
  General and administrative           2,749   2,356    9,618   6,782
  Goodwill impairment                    573       -      573       -
                                     ------- -------  ------- -------
    Total operating expenses          13,778  12,309   45,906  36,384
                                     ------- -------  ------- -------
Operating income (loss)               (1,555)  1,005   (2,507)  1,116
                                     ------- -------  ------- -------
Other income (expense):
    Loss on sale of subsidiary            -       -      (261)      -
    Interest income                       14      12       71      56
    Interest expense                    (110)    (99)    (326)   (297)
    Other expense                        (71)    (25)    (142)     (5)
                                     ------- -------  ------- -------
      Other expense, net                (167)   (112)    (658)   (246)
                                     ------- -------  ------- -------
Net income (loss)                   $ (1,722)  $ 893 $ (3,165)  $ 870
                                    ======== ======= ======== =======
Basic net income (loss)
 per common share                   $  (0.07) $ 0.04  $ (0.13) $ 0.04
                                    ======== ======= ======== =======
Diluted net income (loss)
 per common share                   $  (0.07) $ 0.03  $ (0.13) $ 0.03
                                    ======== ======= ======== =======
Weighted average basic
 common shares outstanding            23,914  24,785   23,914  24,570
                                    ======== ======= ======== =======
Weighted average diluted
 common shares outstanding            23,914  25,603   23,914  25,995
                                    ======== ======= ======== =======

The unaudited consolidated financial information included in this document is intended only as a summary provided for your convenience, and should be read in conjunction with the complete consolidated financial statements of the Company (including the Notes thereto, which set forth important information) contained in its Reports on Form 10-K and 10-Q filed by the Company with the U.S. Securities and Exchange Commission (SEC). Such reports are available on the public EDGAR electronic filing system maintained by the SEC.

This press release contains forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the Company's documents and reports filed from time to time with the Securities and Exchange Commission.