MARCAM REPORTS RECORD REVENUE DURING THIRD QUARTER FY95; Protean Product Line Continues To Gain Market Recognition.

NEWTON, Mass.--(BUSINESS WIRE)--July 24, 1995--Marcam Corporation (NASDAQ:MCAM) today reported increased revenues of $49.7 million for the third fiscal quarter ending June 30, 1995. This marks the fifth consecutive quarter that Marcam has posted increased revenues.

At the same time, however, Marcam reported a loss of $2.9 million, or $0.26 per share. "Our results this quarter reflect the occurrence of some atypical events," said George A. Chamberlain, Marcam's Chief Financial Officer. "While fixed costs were under control, we incurred higher sales commissions and royalties, and we experienced cost increases resulting from higher service volumes."

In addition, while the Company currently has no borrowings under its revolving credit facility, it is in default of certain of its covenants. Marcam is currently negotiating with the banks regarding the availability of credit. The company anticipates that it will need access to its credit facility during the current quarter.

During the quarter, Marcam shipped additional Production modules for its Protean line of object-oriented applications and added several large, multi-national customers to its portfolio, including National Chemical Products, a South African specialty chemicals producer, which has made a substantial commitment to implementation of Protean applications.

In addition, Wyeth-Ayerst International, Inc., a current customer of Marcam's PRISM product has committed to significantly expand its use of PRISM applications. Also, The company's MAPICS/XA business unit continued its investment and advances in the product by introducing a series of new modules and technology enhancements, including the addition of a graphical user interface.

"We believe that our new industry leading products put us in the best strategic position in our market," said Paul Margolis, President and CEO of Marcam. "The new customer commitments we received in the quarter, along with the continued endorsement of customers and the top industry analysts, make us more committed than ever to pursuing our plans to achieve our long-term goals."

Founded in 1980, Marcam is a leading supplier of open enterprise applications and services for industrial and distribution companies worldwide. The company's Protean, PRISM, MAPICS, MXP and Maintenance Management products have been installed in more than 15,000 customer locations worldwide and operate on platforms including IBM's AS/400 Advanced Series and RISC System/6000, Hewlett-Packard's HP-9000, and Intel-based personal computers. The Protean product line is Marcam's change-ready enterprise applications which employ object-oriented technology to enable rapid customization and facilitate change without modifying software code.

Represented in more than 60 countries, Marcam has 35 direct sales and support offices throughout North America, Europe, Africa, the Middle East, Asia-Pacific and Latin America complemented by a worldwide affiliate organization. Customers include such multinational companies as Coca-Cola USA, GAF, Emerson Electric, Kraft Foods, Ralston Purina, Rohm & Haas, Rhone-Poulenc and Westinghouse. -0-

Marcam and PRISM are registered trademarks, and Protean is a trademark, of Marcam Corporation. MAPICS is a registered trademark of IBM licensed to Mapics, Inc. and Marcam Corporation. AS/400 Advanced Series and RISC System/6000 are registered trademarks of IBM Corporation. HP-9000 is a trademark of Hewlett-Packard Corporation. Other products and company names mentioned may be trademarks and/or registered trademarks of their respective companies. -0-

                                Marcam Corp.
                              Results summary
                    (In thousands, except per share data)

                                Quarter Ended
                              June 30,   June 30,
                                1995       1994

Revenues                      $49,670    $45,027
Pre-Tax loss                  $(2,557)   $(4,896)
Net loss                      $(2,912)   $(3,365)
Loss per share                $ (0.26)   $ (0.30)

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                               Nine Months Ended
                              June 30,   June 30,
                                1995       1994

Revenues                     $146,677    $126,339
Pre-Tax loss                 $(3,403)    $(2,030)
Net loss                     $(3,471)    $(1,199)
Loss per share               $ (0.31)    $ (0.11)

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                               Marcam Corp.
                      Consolidated Income Statements
                    (In thousands, except per share data)

                             Three Months Ended     Nine Months Ended
                                  June 30,              June 30,
                              1995       1994       1995       1994
Revenues:
 Licenses                     $23,770    $25,130  $75,077    $65,992
 Services                      20,252    $14,768   54,424     45,901
 Mapics customer renewals       5,415      4,958   16,326     13,427
 Other                            233        171      850      1,019
   Total revenues              49,670     45,027  146,677    126,339

Operating expenses:
 Cost of revenues              16,768     14,010   47,159     37,129
 Selling and marketing         21,424     24,221   63,915     60,129
 Product development,
  enhancements and custom
  programming                  11,344      8,235   31,009     24,122
 General and administrative     2,079      2,630    6,094      6,289
   Total operating expenses    51,615     49,096  148,177    127,669

Operating loss                 (1,945)    (4,069)  (1,500)    (1,330)

Other expense, net               (612)      (827)  (1,903)      (700)

Loss before income tax
expense (benefit)              (2,557)    (4,896)  (3,403)    (2,030)

Income tax expense (benefit)      355     (1,531)      68       (831)

Net loss                      $(2,912)   $(3,365) $(3,471)   $(1,199)

Net loss per share            $ (0.26)   $ (0.30) $ (0.31)   $( 0.11)

Weighted average number of
 shares outstanding            11,218     11,069   11,188     10,999

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                              Marcam Corp.
                      Consolidated balance sheets
                             (In thousands)

                                 ASSETS

                              June 30,  March 31,
                                1995      1995
Current assets:
 Cash and equivalents        $  8,410   $ 10,946
 Accounts receivable, net      55,979     56,927
 Prepaid expenses and
  other current assets          5,827      2,413
Due from affiliates                --      5,257
   Total current assets        70,216     75,543

Property and equipment:
 Furniture and fixtures         3,787      3,655
 Computer equipment            15,738     14,949
 Leasehold improvements         2,196      2,170
                               21,721     20,774
Less accumulated depreciation
 and amortization             (12,824)   (11,592)
 Net property equipment         8,897      9,182

Other assets:
 Copmuter software costs, net  36,697     35,481
 MAPICS software and
  intangible costs, net        17,944     17,962
 Goodwill, net                  2,228      2,269
 Other assets                   3,745      3,904
    Total other assets         60,614     59,616

Total assets                 $139,727   $144,341

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                              Marcam Corp.
                       Consolidated Balance Sheets

                              (In thousands)

                   LIABILITIES AND STOCKHOLDERS' EQUITY

                            June 30,     March 31,
                              1995          1995

Current liabilities:
 Accounts payable          $ 10,773      $ 14,761
 Accrued expenses and
  other current
  liabilities                26,102        22,733
 Deferred revenue            27,612        29,540
 Current maturities of
  capital lease obligations     145           161
 Short-term borrowings and
  current portion of long-
  term debt                   1,346         1,496
 Total current liabilities   65,978        68,691

Other liabilities:
 Long-term debt, less current
  maturities                 25,229        25,232
 Deferred income taxes        1,748         1,694
 Mapics software purchase
  obligation                 12,295        11,198

  Total liabilities         105,250       106,815

Stockholders' equity:
 Preferred stock                 --            --
 Common stock                   112           112
 Additional paid-in capital  42,427        42,312
 Accumulated deficit         (5,584)       (2,673)
 Receivable from sale of
  stock                        (821)         (881)
 Cumulative translation
  adjustment                 (1,657)       (1,344)
   Total stockholders'
    equity                   34,477        37,526

   Total liabilities and
    stockholders' equity   $139,727      $144,341

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CONTACT: Marcam Corp.

George A. Chamberlain or Patricia Foye,

617/965-0220