Forecross Announces 2nd Quarter 1999 Results.

SAN FRANCISCO--(BUSINESS WIRE)--May 17, 1999--

Forecross(R) Corporation (OTC BB:FRXX), a legacy migration and year 2000 solution company, announced today its operating results for the three months ended March 31, 1999.

Second quarter revenues were $960,618 as compared to $2,001,181 for the corresponding period in 1998. The Company's net loss amounted to $566,701 (or $0.05 per share) for the three months ended March 31, 1999, as compared to $480,798 (or $0.04 per share) for the three months ended March 31, 1998. -0-

     Operating results for the quarter ended March 31, include:

                           Three Months Ended     Three Months Ended
                               March 31, 1999         March 31, 1998

Revenues                             $960,618             $2,001,181
Cost of Revenues                      697,111              1,116,120
Operating Expenses                    716,413              1,292,419
Loss from Operations                 (452,906)              (407,358)
Other Expense                        (112,995)               (72,640)
Net Loss                             (566,701)              (480,798)
Net Loss per share                      (0.05)                 (0.04)
Weighted Average Number            12,087,361             11,763,612
    of Shares Outstanding

-0-

"While we have not realized the amount of revenue that we hoped for, we have made strides in streamlining our costs, so that any significant increase in revenue should be substantially reflected on our bottom line," said Bernadette C. Castello, Senior Vice President and Chief Financial Officer.

The decrease in revenues for the period primarily reflected a decline in the Company's core migration services. Migration services revenues in the second quarter 1999 were $270,000 versus second quarter 1998 of $1,030,000. The Company considers this a temporary development resulting from the pressure placed on many of its prospective customers to address their year 2000 problem to the exclusion of most or all other non-mission-critical projects. Of the decrease, one major migration and year 2000 project that was completed early in second fiscal quarter 1999 had accounted for more than half of the migration services revenues during the three months ending March 31, 1998.

There was also an overall decrease in revenues from year 2000 services, but the Company's revenues in the second fiscal quarter resulted in large part from demand for Complete/2000(R) and Confirm/2000(TM) services. Year 2000 services and related revenues of $691,000 representing 72% of total revenues in the three months ended March 31, 1999. This compares to revenues of $971,000 representing 49% of the Company's total revenues in the three months ended March 31, 1998. Although year 2000 revenues represent a significant percentage of current reported revenues, they have not reached the level anticipated by the Company or by the industry in general.

At March 31, 1999, the Company's backlog was $375,000. Two factors had significant impact on the reduction in backlog. First, is the substantial completion during fiscal 1998 of the major migration and year 2000 project noted previously. This project was significantly larger in terms of dollar value than most Forecross contracts, and therefore made the backlog at March 31, 1998, substantially larger than its historical norms. Second, is that year 2000 contracts, unlike application migration projects, are typically of much shorter duration. This is a significant factor with year 2000 services representing 72% of the quarter's revenues as compared with 49% in the corresponding 1998 period. The average application migration project takes from six-to-eighteen months to complete, whereas the average year 2000 project can be completed in eight weeks or less. Therefore, revenue associated with year 2000 projects may be booked, recognized and completed without appearing in the quarterly or annual backlog amount. Third, the Company believes that many customers have temporarily diverted resources and attention away from migration projects toward addressing year 2000 concerns, and have also attempted to perform much of the year 2000 work internally, which has had a temporary adverse affect on the backlog.

About Forecross Year 2000 Solutions

Forecross provides automated solutions for all phases of year 2000 projects including assessment, renovation and independent verification and validation (IV&V). A variety of languages are supported by Complete/2000(R) and Confirm/2000(TM) including COBOL, CA-ADS, APS, C, C++, CSP, CA-Easytrieve, CA-IDEAL, IMSADF II, PL/I, PowerBuilder, CA-TELON, CA-MetaCOBOL. COBOL solutions are available for AS/400, DEC/VAX, HP, MVS, Tandem, Unisys, VM, VSE and Wang.

Forecross Confirm/2000(TM) for independent verification and validation accurately identifies source statements that have code that is compliant, non-compliant or needs to be investigated. Confirm/2000(TM) provides detailed documentation of the results, including the degree of compliance, creating a comprehensive audit-trail.

About Forecross

Founded in 1982 as a high-technology software development laboratory, Forecross Corporation is dedicated to the design and development of innovative conversion software. Clients have included such leading corporations as Aetna Life Insurance Company, Brown Brothers Harriman & Company, Charles Schwab & Co., IBM Corporation and Bank of America NTSA for its migration software services. Teaming partners of Forecross Corporation for its Complete/2000(R) offerings include AASKI Technologies, Ltd., Alydaar Software Corporation, TRW, Inc. (BDM International), CIBER, Inc., Information Sciences Group, Inc., Marconi Information Systems (a business division of Marconi North America Enterprise Solutions, formerly known as Tracor, Inc.), SCB Computer Technology, Inc., and Sapiens Americas (a subsidiary of Sapiens International).

On Behalf of the Board of Directors,

Bernadette C. Castello Senior Vice-President and CFO FORECROSS CORPORATION

Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new product and service development, the effect of the company's accounting policies and other risk factors detailed in the Company's SEC and BCSC filings.

The U.S. Securities and Exchange Commission has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release, which has been prepared by the Company.

Note to Editors: Forecross is a registered trademark of the Forecross Corporation. Complete/2000 is a registered service mark of Forecross Corporation. Confirm/2000 is a service mark of Forecross Corporation.