Hyperion Software Reports Record Fourth Quarter Revenues; Earnings Rose 59% Before Nonrecurring Charges.

STAMFORD, Conn.--(BUSINESS WIRE)--July 17, 1997--Hyperion Software (NASDAQ: HYSW) today reported revenues of $73.6 million for its fourth quarter ended June 30, 1997, a 26 percent increase over revenues of $58.6 million for the same period of the prior year. Net income, before nonrecurring charges, increased to $8.6 million from $5.4 million for the same quarter last year. On a per share basis, Hyperion reported $.31, which reflects nonrecurring charges of $.15 per share or $4.4 million ($2.8 million net of tax benefits) for asset valuation and restructuring costs related to Hyperion's development venture with The Baan Company for future accounting products. Without giving effect to the one-time charges, Hyperion's net income for the quarter would have been $.46 per share. For the fourth quarter a year ago, the company reported $.30 per share.

Revenues for the fiscal year ended June 30, 1997 were $222.8 million and net income was $11.9 million, or $.64 per share. Revenues and net income increased 29 percent and 26 percent, respectively, from $172.8 million and $9.5 million, or $.53 per share, for fiscal year 1996. The company generated cash of $47.1 million from its 1997 operating activities.

Software sales rose 24 percent for the year to $112.1 million. Strong revenue growth was realized across all product lines and geographic regions, including Asia, Europe and North America.

James A. Perakis, Chairman and CEO of Hyperion Software, commented, "We are pleased to report record fourth quarter operating results that reflect the demand we're experiencing in our markets. We're seeing particularly strong growth for our budgeting and business analysis products. In its first year of release, Hyperion OLAP has been licensed to over 130 corporations. Our Enterprise product line also continues to do well and to drive much of our international growth."

Added Perakis, "Our strategic partnership with Baan is producing early results. We've begun to realize benefits from cooperative marketing and we look forward to the joint development of accounting lanning and budgeting product. Pillar Release 3 addresses the needs of both financial users and line manafrom numerous ease-of-use and on-line help enhang and budgeting, accounting, multi-source consolidation, and business reporting and analysis. The company The company is ranked first worldwide in budgetrating in INPUT's 1996 survey of financial software suppliers. The company is headquartered in Stamford, Connecticut and has more than 1,200 employees. Additional information is available at the company's Web site at http://www.hyperion.com or by calling 1-800-286-8000.

This press release contains statements that are forward looking. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will vary because of factors such as product ship schedules, life cycles, terms and conditions, product mix, competitive products and pricing, customer demand, technological shifts and other issues discussed in the company's filings with the Securities and Exchange Commission. -0-

                     Hyperion Software Corporation
                      Consolidated Financial Data
                  (In thousands, except per share data)

                                 Quarter Ended         Year Ended
                                    June 30,             June 30,
                                1997       1996       1997       1996
Statement of Income Data:
Software license revenues     $41,799     $35,110   $112,115   $ 90,304
License renewals &
  service revenues             31,825      23,500    110,715     82,520
Total revenues                 73,624      58,610    222,830    172,824
Cost of revenues               22,792      17,341     76,211     58,038
Sales & marketing expenses     22,842      19,593     72,277     55,484
Product development expenses    9,441       7,992     33,046     26,839
Asset valuation &
  restructuring costs           4,400                  4,400
Purchased research
   & development                                                  2,000
General & administrative
  expenses                      5,186       5,261     19,216     16,443
Net income                      5,886(a)    5,351     11,878      9,457
Earnings per share                .31(a)      .30        .64        .53

R&D Spending                 $ 10,951    $  9,292  $  37,838  $  34,637
-0-

                                              June 30,
                                        1997           1996
Balance Sheet Data:
Cash & cash equivalents              $  67,059       $  42,361
Accounts receivable, net                64,831          55,674
Working capital                         42,236          27,449
Total assets                           218,639         179,448
Mortgage payable                         7,823           8,336
Stockholders equity                    113,037          90,003

(a) Includes one-time charges relating to a joint development venture for future accounting products, which had the effect of reducing net income by approximately $2.8 million or $.15 per share. -0-

Hyperion, Hyperion Software, Hyperion Financials, Hyperion Forms, Hyperion Ledger, Hyperion Payables, Hyperion Admin, Hyperion Tools, Hyperion Assets, Hyperion Retrieve, Hyperion Analyst, Hyperion Pillar, Hyperion OLAP, Hyperion Receivables, LedgerLink, Micro Control, Pillar, Financial Intelligence and Business Intelligence are registered trademarks and Hyperion Enterprise, Hyperion Reporting, Hyperion OnTrack, Hyperion Analytical Ledger, Hyperion Purchasing and Build&Link are trademarks of Hyperion Software Operations Inc., a wholly-owned subsidiary of Hyperion Software Corporation. Marvel Comics, Spider-Man:TM and copyright 1996 Marvel Characters, Inc. all rights reserved. All other trademarks and company names mentioned are the property of their respective owners.

For further information, refer to the Hyperion Software Corporation annual report on Form 10-K for the year ended June 30, 1996.

CONTACT: Hyperion Software Corp.

Lucy Ricciardi 203/703-3705

Michael Manto 203/703-3889