CrossZ Software Corporation Announces Financial Results for Fiscal Year 1997; Company Completes Transition Year from Services Company to Software Products Company.

UNIONDALE, N.Y.--(BUSINESS WIRE)--March 3, 1998--CrossZ Software Corporation (NASDAQ:CRSZ) today announced financial results for the fiscal year ended December 31, 1997. Total revenues for the year were $1,012,159. Net loss before extraordinary items were $8,933,990 ($3.19 loss per basic common share). An extraordinary loss of $1,629,494 relates to the write-off of the unamortized debt discount and debt issuance costs associated with the Company's bridge financing, which was repaid from the proceeds of the IPO during the fourth quarter. The resulting net loss for the year was $10,563,484 ($3.77 loss per basic common share).

Total revenues for the fourth quarter ended December 31, 1997 were $225,553, which was comprised of software license and maintenance revenue of 64% and service revenue of 36%. Net loss before the extraordinary items noted above was $2,953,866 ($.90 loss per basic common share). The resulting net loss for the quarter was $4,583,360 ($1.48 loss per basic common share).

"1997 was a watershed year for CrossZ, and we believe that the fiscal results are in line with both investor and analyst expectations established at the time of the Company's initial public offering completed in late November," says Mark Chroscielewski, Chairman. "The company has substantially completed the transition from a services-based revenue model to a product-based model, and the product development costs associated with this change in business format are substantially behind us. Now the company is focusing on building the sales and marketing infrastructures necessary to leverage the product strength and establish QueryObject(TM) System as a product leader in the analytical data mart market."

In the two months since the close of the last fiscal year, the company announced a number of partner relationships including agreements with Hewlett Packard Americas Local Products Organization, Empower Geographics Incorporated, Customer Dynamics Incorporated and IBEX Object Systems. The agreements permit these partners to resell the QueryObject(TM) System as part of their integrated business intelligence solutions.

"Our business plan is to develop a highly leveraged sales and distribution model for QueryObject(TM) System," continued Chroscielewski. "While we are not forecasting a substantial revenue yield from this model through the first half of the year, and as a result, we anticipate continued operating losses, I am optimistic that these distribution agreements and others will be the building blocks of the future business."

About QueryObject System

QueryObject System is an analytical data mart which, because of its unique approach to representing data through complex polynomial equations, provides efficient, responsive access to high data volumes within a small data mart footprint. QueryObject System further breaks down the limits of traditional data marts by supporting a wide number of concurrent users in client-centric, client-server or Intranet environments. The polymorphic nature of the QueryObject schema allows for interaction with most industry-standard analytical techniques, from spreadsheet reports through ad hoc query and multidimensional analysis, to data mining.

About CrossZ Software Corporation

CrossZ Software Corporation is a publicly held company headquartered in Uniondale, New York, with European Headquarters in the United Kingdom. QueryObject System, which runs on MVS, UNIX and NT servers and Windows clients, allows organizations to enhance their Business Intelligence productivity by building specialized, high-performance analytical data marts that can be queried using their choice of industry-leading ODBC compliant analytical and data visualization tools.

For more information on QueryObject System or CrossZ Software Corporation contact the company at [phone] or visit our Web site at http: //www.crossz.com. -0-

CrossZ and QueryObject are trademarks of CrossZ Software Corporation. All other trademarks and registered trademarks referenced in this document are the property of their respective holders. -0-

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created hereby. Investors are cautioned that all forward- looking statements involve risks and uncertainty, including without limitation, the Company's development as a software products company, and the ability of certain partnerships to aid in that growth; the capability of the companies products to perform as optimized analytical data marts; and the ability of the companies products to support the performance of other business intelligence tools. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

CONTACT: Harpell/Martins

Mark Williams, 978/461-0202 x24

[e-mail]

or

CrossZ Software

Robert Thompson, 516/228-8500

[e-mail]