GemStone Announces Record Growth for First Quarter; Achieves 75 Percent Java Revenue Increase; Lands 30 New Customers.

Business Editors

BEAVERTON, Ore.--(BUSINESS WIRE)--April 25, 2000

GemStone Systems, Inc., the software infrastructure technology leader for the new B2B economy, today announced record first-quarter revenue with Q1 2000 revenues exceeding the first quarters of the previous two years.

The company also announced an impressive 30 new customer wins for the same period.

Customer Wins

GemStone secured 30 new Java(TM)-based license agreements in the first quarter showing increased momentum, as it added the following businesses to its client roster: AlliedSignal, Bell South Telecommunications, BMW AG, First Rand Bank e-Commerce Group, HB Fuller, Interadnet, IntercontinentalExchange, Momentum Life, Swedbank, and VISA.

"GemStone's e-business software solution is a `best-of-breed' platform for our marketplace needs. It accommodates the rapid pace and demand for new features in the OTC commodities trading markets that our developers need to make many changes rapidly while ensuring a high quality of service," said Edwin Marcial, Vice President of IT at IntercontinentalExchange. "Its Extreme Clustering(TM) technology provides us with the scalability and adaptability required for a high-volume, real-time exchange."

Powered by GemStone, IntercontinentalExchange will be the world's first internet-based exchange for the trading of OTC commodities and derivatives when it begins operation later in 2000. It will initially focus on the trading of energy and metal OTC derivative products, but will expand into other related areas over time.

"We are committed to providing our customers with the most effective industry solutions to fully optimize their advertising campaigns," said Steven Peterson, CTO for Interadnet. "The GemStone/J(R) e-business solution, with its Persistent Cache Architecture(TM) (PCA) technology, is the best application server platform to work in conjunction with our statistical engine. With these technologies working hand in hand, our customers can make necessary changes to their advertising campaigns in real-time." Interadnet is a leading provider of unbiased, automated ad tracking technology and a suite of services that optimize agencies' and advertisers' Internet advertising while respecting customer privacy.

Java Growth in Licenses and Professional Services 

Total Java-related revenue for Q1 2000 increased by more than 75 percent compared to the company's first quarter 1999 revenue, while Java licenses increased more than 65 percent over the same period last year. This indicates continuing strong license order growth. GemStone shipped its first customer copy of GemStone/J in 1998.

Additional momentum to GemStone's growth was attributed to the increasing demand for GemStone's Java Success technology initiative. Offered through GemStone's Professional Services (GPS) organization, this technology provides a combination of e-business know-how and best practices, which, when combined with architectural consulting, can significantly reduce an e-business' time-to-market. Total Java-related service revenue increased 89 percent over Q1 of last year.

"This is a very exciting time for GemStone. The rapidly growing acceptance of our Java Success technology initiative and Extreme Clustering architecture clearly demonstrates that technology does matter in gaining time-to-market advantage," said Ken Irinaga, president and CEO of GemStone Systems. "The growth in our Java-based revenue is clear evidence that GemStone is gaining market momentum. This, coupled with the continuing strong contribution from our non-Java-based products and services, bodes well for our future."

About GemStone Systems, Inc.

GemStone Systems, Inc. has today's platform for tomorrow's business-to-business Internet commerce applications and sites. GemStone's Java Success technology initiative provides e-businesses with faster time-to-market and enhanced competitive advantage for their Internet marketplaces. The GemStone e-business software solution combines a mix of unique technologies and industry standards in the most advanced, integrated architecture of any product in its class. Today, customers are deploying production environments using GemStone's Extreme Clustering technology in all walks of the dot-com world. From B2B auction sites to vertical portals, from Internet communities to supply chain management, from highly complex dot-com sites to application service providers, GemStone is customer-tested and proven scalable, secure, adaptable, and reliable.

Headquartered in Beaverton, Oregon, GemStone distributes and services its products worldwide through offices in the United States, UK, France, Germany, Sweden, and Switzerland, as well as through a network of distributors. For detailed product and company information, please visit www.gemstone.com.

GemStone, GemStone/J are registered trademarks, and Extreme Clustering is a trademark of GemStone Systems, Inc.

Sun, Sun Microsystems, the Sun logo, Java, Enterprise JavaBeans, Java Servlets, Java Server Pages, are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries.