Forte Software Reports Earnings For Fourth Quarter and Full Year Fiscal 1996.

OAKLAND, Calif.--(BUSINESS WIRE)--April 29, 1996--Forte Software, Inc. (NASDAQ: FRTE) today reported a 187% increase in revenues to $11.1 million for the fourth quarter ended March 31, 1996 compared to revenues of $3.9 million for the fourth quarter of fiscal 1995.

Net income for the fourth quarter was $955,000 or $0.05 per share. For the corresponding quarter in fiscal 1995, the Company reported a net loss of $2.1 million or a pro forma loss of $0.12 per share.

Revenues for the fiscal year ended March 31, 1996 increased 200% to $30.0 million, compared to $10.0 million for fiscal 1995. Net loss for fiscal 1996 was $2.0 million or a loss of $0.11 per share, compared to a loss of $7.4 million or a pro forma loss of $0.45 per share for fiscal 1995. The following table provides a summary of Forte's fourth quarter and fiscal 1996 results (in thousands, except per share data): -0-

                                   Quarter Ended      Year Ended
                                     March 31,          March 31,
                                  1996      1995     1996      1995

Revenues                       $11,142   $ 3,879   $30,045   $10,007
Operating income (loss)            922    (2,086)   (2,160)   (7,393)
Net income (loss)                  955    (2,083)   (1,988)   (7,350)
Income (loss) per share           0.05     (0.12)    (0.11)    (0.45)
-0-

    "We are extremely pleased with our strong fourth quarter
results," said Marty Sprinzen, President and CEO of Forte Software.
"We see a growing market demand for an application development and
deployment environment for high-end client/server applications."
    "We continue to experience significant growth in our customer
base.  Notable additions during the fourth quarter were Airborne
Express, Bank of America, British Steel, Pagenet, Piper Jaffray,
Hewlett-Packard, Hitachi, Hong Kong Telephone, Nynex, Transamerica
and TransCanada Pipeline.  In addition, recent successful Forte
deployments, such as New York City's new 911 system, demonstrate the
maturity of our technology for mission-critical applications."
    Forte Software recently announced further extensions to its
product line to meet the growing demand for high-end client/server
applications.  On April 2, the Company announced Forte Web SDK which
is designed to allow enterprise applications to easily take advantage
of the Internet's World Wide Web.  Forte Express, an add-on optional
code generator that further simplifies the building of high-end
client/server applications, was announced in January and delivered in
March.
    On March 11, 1996, Forte Software completed its initial public
offering, selling 1,822,500 shares at $21.00 per share, raising $35
million.
    Forte Software, Inc. designs, develops, markets, and supports
the Forte Application Environment for the development, deployment
and management of high-end client/server applications.  Headquartered
in Oakland, Calif., Forte Software has direct operations in North
America and subsidiaries in the United Kingdom, France, Germany and
Australia.  Forte is also marketed and sold worldwide through
distributors and value-added resellers.  Forte has been adopted by
customers in a wide variety of industries, including banking,
finance, healthcare/pharmaceuticals, insurance and
telecommunications.
    Detailed information on Forte Software products, news
announcements, service and support is available on the World Wide Web
at http://www.forte.com.
-0-
    NOTE TO EDITORS: The statements in this release that relate to
future plans, events or performance are forward-looking statements.
Actual results might differ materially due to a variety of factors.
Additional information about these factors is contained in Forte
Software's Registration Statement on Form S-1 filed with the
Securities and Exchange Commission and effective as of March 11,
1996, under the section entitled Risk Factors, and will be contained
in future Reports on Form 10-Q and Form 10-K under the section
entitled Management's Discussion and Analysis of Financial Condition
and Results of Operations.
    Forte, Forte Web SDK, Forte Application Environment, Forte
Express and the Forte logo are trademarks of Forte Software, Inc.
Other brand or product names may be trademarks or registered
trademarks of their respective companies.
-0-

                         Forte Software, Inc.
          Condensed Consolidated Statements Of Operations
              (in thousands, except per share amounts)

                                Three months ended    Years ended
                                     March 31,          March 31,
                                  1996      1995     1996      1995

Revenues:
 License fees                  $ 8,467   $ 3,005  $ 21,357   $ 7,974
 Maintenance and service         2,675       874     8,688     2,033

Total revenues                  11,142     3,879    30,045    10,007

Operating expenses:
 Cost of license fees              124        60       456       142
 Cost of maintenance and
  service                        1,824       570     5,452     2,000
 Sales and marketing             5,143     2,999    15,060     7,869
 Product development and
  engineering                    2,246     1,636     8,069     5,515
 General and administrative        883       700     3,168     1,874

Total operating expenses        10,220     5,965    32,205    17,400

Income (loss) from operations      922    (2,086)   (2,160)   (7,393)

Interest income and expense        112       107       286       147

Income (loss) before income
  taxes                          1,034    (1,979)   (1,874)   (7,246)
Provision for income taxes         (79)     (104)     (114)     (104)

Net income (loss)              $   955   $(2,083) $ (1,988)  $(7,350)

Income (loss) per share(a)     $  0.05   $ (0.12) $  (0.11)  $ (0.45)

Shares used in computing profit
(loss) per share(a)             19,225    17,283    17,517    16,248

    (a) Pro forma shares reflecting conversion of preferred stock
used for the year and months ended March 31, 1995.  Pro forma shares
include the common equivalent shares from convertible preferred stock
that converted to common stock at the closing of the initial public
offering using the as-if-converted method.

                         Forte Software Inc.
               Condensed Consolidated Balance Sheets
                           (in thousands)

                                                   March 31,
                                               1996        1995

ASSETS
Current assets:
 Cash and equivalents                        $35,081      $9,860
 Short-term investments                        6,236       2,915
 Accounts receivable, net of
  allowances of $531 ($365 in 1995)           11,059       2,960
 Prepaid expenses and other current assets       839         383
Total current assets                         $53,215     $16,118

Equipment and leasehold improvements,
 net                                           3,903       1,847
Other assets                                     173         177

Total assets                                 $57,291     $18,142

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                              1,066         365
 Accrued expenses and other liabilities        5,410       2,305
 Deferred revenue                              5,941       2,567
 Current portion of capital lease
  obligations and notes payable                1,084         811
Total current liabilities                     13,501       6,048

Capital lease obligations and notes
 payable, due after one year                   1,714       1,290
Deferred revenue                               2,032       3,355

Commitments
Stockholders' equity:
 Convertible preferred stock                      -          120
 Common stock                                    183          37
 Additional paid-in capital                   62,618      28,015
 Accumulated deficit                         (22,735)    (20,747)
 Foreign currency translation
  adjustments                                    (22)         24
Total stockholders' equity                    40,044       7,449

Total liabilities and stockholders'
 equity                                      $57,291     $18,142

CONTACT: Forte Software Inc.

Rodger Weismann, 510/869-3435

[e-mail]