Enghouse Systems Limited Announces Fourth Quarter Results.

MARKHAM, Ontario--(BUSINESS WIRE)--Dec. 8, 1995--ENGHOUSE SYSTEMS (CANADIAN DEALING NETWORK: ENGX) Enghouse Systems Limited is pleased to announce preliminary financial results for the fourth quarter and for the fiscal year ended October 31, 1995.

Revenues for the fourth quarter were $4.0 million, an 83 percent increase over revenues for the same period in the prior year. Revenues for the year ended October 31, 1995 were $13.0 million (preliminary), a 50 percent increase over revenues for the prior year. Net income for the fourth quarter was $641,000 as compared to a loss of $1.7 million for the fourth quarter in the prior year. Net income for the year ended October 31, 1995 was $1.5 million (preliminary) compared to a loss of $3.2 million for the prior year. Earnings for the fourth quarter are $59,000 greater than for the third quarter (10 percent). Earnings per share have decreased due to the issuance of a further 1.3 million common shares resulting in net proceeds of $6.5 million to be used to fund future growth.

Claudette MacKay-Lassonde, Chairman and Chief Executive Officer of Enghouse Systems Limited, attributes the breakthrough performance this year to the company's work in research and development in the last few years and its investment in sales and marketing resources earlier in this year. She believes the financial results achieved in the third and fourth quarters are indicative of the true potential of the company.

All amounts in the following table are in thousands of dollars except for per share data and number of shares outstanding.

Unaudited Preliminary     Fourth Quarter    Twelve months
 Results                                     to October 31
                           1995     1994      1995     1994

Revenues                 $4,046   $2,213    $12,994    $8,641

Net Income/(Loss)          $641  $(1,717)    $1,500   $(3,224)

Basic Earnings/(Loss)
  per share (see note 1)  $0.13   $(0.43)     $0.56    $(1.42)

Fully Diluted/(Loss)
  per share (see note 1)  $0.09   $(0.43)     $0.38    $(1.42)

Shares outstanding at
end of period         5,718,187 1,060,080 5,718,187 1,060,080

Enghouse Systems Limited is a publicly traded corporation, having listed its stock on the Canadian Dealing Network under the trading symbol ENGX.

Enghouse Systems Limited is a leading supplier of Automated Mapping/Facilities Management solutions to telephone companies and other utilities. The software combines geographical and network performance data into a single integrated database, facilitating network design, rebuilding, work order processing and a wide range of management functions.

Enghouse Systems Limited markets its CableCad and GoeNet software through both a direct sales force and agents internationally. Application packages are available for Telephone, Power, Gas, and CATV industries.

Note -

(1) Basic earnings per share are calculated based on the weighted average number of shares issued and outstanding in the period.

Fully diluted earnings per share are calculated based on the weighted average of shares, options and warrants, as if the warrants and options had been converted to common shares on June 16, 1995, the date of the Company's initial public offering.

As of October 31, 1995, there were 1.2 million warrants outstanding that could be converted to an equal number of common shares at a price of $2.00 per share, and 0.6 million options that could be converted to common share at prices ranging from $1.65 to $6.00 per share.

CONTACT: Enghouse Systems Limited

Carmine Tucci, Manager Corporate Affairs

905-477-1212

905-477-1466 (FAX)