CyberMedia Inc. announces third quarter and nine months results for 1996.

SANTA MONICA, Calif.--(BUSINESS WIRE)--Oct. 31, 1996--CyberMedia Inc. (Nasdaq/NMS: CYBR) Thursday announced its operating results for the quarter and the nine months ended Sept. 30, 1996.

For the quarter ended Sept. 30, 1996, the company reported revenues of $8,730,000, a 735 percent increase over the $1,046,000 reported for the same period in 1995. Net loss was $1,322,000 or 17 cents per share vs. a loss of $739,000 or 9 cents per share the previous year.

Revenues for the nine months ended Sept. 30, 1996 were $22,680,000, a 719 percent increase from the $2,770,000 reported during the same period last year. Net loss was $3,550,000, as compared with $797,000 for the first nine months of 1995. Loss per share of 45 cents vs. 10 cents was reported for the nine month periods ending Sept. 30, 1996 and 1995 respectively.

During the quarter, CyberMedia launched Oil Change, its new product designed to offer PC users a one-stop solution for automatically updating their software applications and device drivers over the Internet.

In addition, during the third quarter CyberMedia began shipping localized versions of its best-selling First Aid 95 for the German, British and Australian markets. First Aid 95 enables PC users to diagnose and resolve problems automatically without relying on costly and increasingly scarce technical support resources.

Unni Warrier, chairman and CEO of CyberMedia said: "We are pleased with the initial reception from the marketplace for both Oil Change and the international versions of First Aid 95. We expect these new additions to our product portfolio to help us maintain a leading position in the market for automated technical service and support."

CyberMedia, founded in 1991, develops and markets software products that help Windows PC users fix or avoid problems on their own, reducing their dependency on vendor or help desk technical support. Its First Aid 95 product family has ranked in the top 10 of all Windows 95 business applications sold in the United States each month since November 1995. Its new Oil Change software automates Windows software updates over the Internet.

For additional information contact CyberMedia Inc., 3000 Ocean Park Blvd., Santa Monica, CA 90405; phone [phone]; fax [phone]; e-mail [e-mail]; World Wide Web URL: http://www.cybermedia.com -0-

                          CYBERMEDIA INC.
                     STATEMENTS OF OPERATIONS

                           Three months ended       Nine months ended
                               Sept. 30,                Sept. 30,
                           1996        1995         1996       1995

Net revenues            $8,730,000  $1,046,000  $22,680,000  $2,770,000

Cost of revenues         2,391,000     356,000    7,280,000     718,000

  Gross profit           6,339,000     690,000   15,400,000   2,052,000

Operating expenses:

  Research and
   development             929,000     240,000    2,072,000     695,000
  Sales and marketing    5,817,000   1,003,000   14,426,000   1,680,000
  General and
   administrative          916,000     172,000    2,429,000     376,000

Total operating expenses 7,662,000   1,415,000   18,927,000   2,751,000

Loss from operations    (1,323,000)   (725,000)  (3,527,000)   (699,000)

Other income (expense)       1,000     (14,000)     (23,000)    (98,000)

Loss before
 income taxes           (1,322,000)   (739,000)  (3,550,000)   (797,000)

Income tax expense            -           -            -           -

Net loss               ($1,322,000)  ($739,000) ($3,550,000)  ($797,000)

Net loss per share          ($0.17)     ($0.09)      ($0.45)     ($0.10)

Shares used in computing
 net loss per share      7,889,000   7,864,000    7,872,000   7,860,000
-0-

                            CYBERMEDIA INC.
                             BALANCE SHEET

                                      Dec. 31,     Sept. 30,
                                       1995          1996
ASSETS

Current assets:
  Cash and cash equivalents        $2,050,000     $1,727,000
  Trade accounts receivable, net    1,182,000      6,919,000
  Inventory                           412,000      1,295,000
  Prepaid expenses                    111,000      1,020,000
  Other current assets                 10,000         10,000
    Total current assets            3,765,000     10,971,000

Furniture, fixtures and
 equipment, net                        90,000        813,000

                                   $3,855,000    $11,784,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                 $1,621,000    $ 3,948,000
  Accrued expenses                    419,000      1,067,000
  Unearned income                     677,000      3,884,000
  Current portion of grant payable    607,000        795,000
  Current portion of notes payable          0              0
  Current portion of capital lease      8,000         12,000
    Total current liabilities       3,332,000      9,706,000

  Lease obligation                     17,000         12,000
  Notes payable, less
   current portion                    500,000        450,000

    Total liabilities               3,849,000     10,168,000

Stockholders' equity
  Series A preferred stock             30,000         30,000
  Series B preferred stock             64,000         64,000
  Series C preferred stock                  0         11,000
  Common stock                         13,000         25,000
  Additional paid-in capital        5,451,000     10,588,000
  Accumulated deficit              (5,552,000)    (9,102,000)

    Net stockholders' equity            6,000      1,616,000

                                   $3,855,000    $11,784,000

CONTACT: CyberMedia Inc.

Investor Relations:

Jeffrey Beaumont, 310/581-5955

Media Contact:

Giselle Bisson, 310/581-5961