NEON Reports Record Second Quarter Profit; Revenues Grow 140%.

ENGLEWOOD, Colo.--(BUSINESS WIRE)--July 22, 1998--New Era of Networks(tm), Inc. (NASDAQ:NEON) today reported record revenue and its seventh consecutive quarter of profit improvement.

NEON's second quarter revenues were $11.5 million, an increase of 140 percent compared to revenues of $4.8 million for the same period last year. Excluding the impact of the one-time charge for purchased research and development -- associated with the Company's acquisition of Menhir Limited in September 1997 and the acquisition of MSB Consultants Limited in June 1998 -- revenue and profit for the most recent five quarters were:

-0-

$Thousands               Q297      Q397      Q497     Q198     Q298

Revenue                 4,779     5,921     8,272    9,582   11,460
Net income (loss)(a)     (529)     (135)      543      792    1,382
Per Share(a)           ($0.08)   ($0.01)    $0.06    $0.08    $0.12

 (a) Excluding $2.6 million and $3.7 million charges for acquired
     in-process R&D in Q397 and Q298, respectively. Quarterly
     financials are unaudited. See financial tables.

     For the six months ended June 30, 1998, revenues were $21.0
million, an increase of 149 percent compared to revenues of $8.5
million for the same six-month period last year.
     "Since NEON's initial public offering in June 1997, the Company
has achieved triple-digit revenue growth and continued profit
improvement," said Rick Adam, NEON chief executive officer. "We have
achieved this growth through the dedication and hard work of our
staff, strong product offerings, our business partners, and our
emphasis on understanding and meeting our clients' needs. Our close
client relationships continue to enhance our ability to bring
solutions to market more quickly and to deliver our products and
services to an expanding worldwide base."
     NEON's suite of products and services for customer management and
Enterprise Application Integration (EAI), including the Company's
NEONet(tm), MQIntegrator, and Rapport packaged solutions, have been
purchased by more than 170 customers around the world. Approximately
30 percent of 1998 second quarter revenues were from markets outside
the U.S.
     In June 1998, the Company acquired for cash and stock all of the
outstanding shares of MSB Consultants Limited, a United Kingdom-based
consulting firm. MSB is a leader and innovator in middleware,
integration, and global financial networks. As part of this
transaction, the Company recorded a one-time charge of $3.7 million
for acquired in-process R&D.
     In May 1998, NEON completed a secondary stock offering of
3,450,000 shares - including 2,378,500 new shares sold by the Company
-- raising approximately $51 million for general corporate purposes,
including working capital. At June 30, 1998, cash and short-term
investments were $72.0 million, compared to $22.7 million at December
31, 1997. The Company had total assets of $96.7 million and no
long-term debt.

Comments by Rick Adam, NEON Chief Executive Officer:

     "We are pleased to report we have already realized tangible
results of our relationship with IBM. Earlier this year, we announced
a joint software development and distribution agreement that combines
NEON's real-time intelligent rules routing and data transformation
capabilities with IBM's award-winning MQSeries for data messaging and
queuing. The product of this partnership, MQIntegrator (MQI) became
generally available in May 1998, and we have already closed five
sales. MQI customers include two major Wall Street securities firms,
one of which is building an infrastructure for data transformation and
message routing; a major U.S. government agency; a large European
insurance company; and a provider of Internet computer services to
enterprise customers worldwide. Customer interest is high, and
MQIntegrator will continue to be sold worldwide by NEON's sales force
and by IBM's 8,000 direct sales representatives.
     "Our direct sales organization had a strong second quarter with
new and add-on business in the banking, insurance, telecommunications
and manufacturing industries. Significant customers in the quarter
included Computer Sciences Corporation (CSC), DLJ/Pershing, Jefferies
& Co., Federal Home Loan Mortgage Corporation (FHLMC), National
Securities Clearing Corporation (NSCC), RaboBank Nederland,
USinternetworking, and Wachovia Bank. We also achieved a major sale of
the new browser version of Rapport to Robert Fleming and Company for
some 500 users globally.
     "In June we announced an agreement with Candle Corporation, a
leading independent provider of solutions for networked businesses.
Candle will re-sell the NEONet Rules and Formatting engine as a
component of their Roma product offering. This will allow Roma to be
deployed as an open bridge between messaging systems, regardless of
the application's API or platform.
     "Also in June, we announced an agreement with Cambridge
Technology Partners to provide EAI solutions to the securities
industry to meet their business-critical objectives for electronic
data transfer. The jointly developed product, called NEONfix, will
allow the electronic transfer of complete trading record information
between internal applications and external interfaces such as the
Society for Worldwide Interbank Financial Telecommunication
(S.W.I.F.T.) and the Financial Information Exchange (FIX).
     "Our NEONet Product Suite was recently awarded the 'SWIFTReady'
Gold label by S.W.I.F.T., a bank-owned cooperative supplying secure
messaging services and interface software to over 6,000 financial
institutions in 174 countries. The Gold label certifies that NEONet is
in full compliance with S.W.I.F.T. standards, services and
straight-through processing (STP) guidelines, and confirms our
commitment to EAI solutions for our customers in banking, brokerage,
asset management and industry utilities.
     "NEON's technical expertise was recently recognized when the
Mountain States Council of the American Electronics Association (AEA)
presented MQIntegrator with the annual "Significant Technical
Achievement Award." The award recognizes outstanding contributions in
the high technology industry and products that provide a technical
break-through or unique application for a product or service. We were
pleased to be recognized as a leading technology provider by an
independent panel of industry experts.
     "Our recent acquisition of MSB Consultants, with offices in
London and New York, furthers our reach in both the U.S. and
international markets. MSB specializes in trading software, middleware
applications, and data management delivery projects for the financial
services industry. MSB clients include Citibank, Credit Suisse, Den
Danske, Eastern Electric, Morgan Stanley Dean Witter and Nomura
International. This acquisition provides NEON with key technical
resources and increases our depth of expertise in the financial
services sector.
     "To further increase our presence in the growing Asia/Pacific
market, we have expanded our office in Sydney, Australia. This office
serves as NEON's Asia/Pacific regional headquarters and covers
Australia, Southeast Asia and Japan. This expansion, coupled with the
distribution agreement we finalized with NIWS of Japan during the
first quarter, will allow us to better serve our clients and more
quickly and effectively capitalize on opportunities in the entire
Asia/Pacific region. NIWS, a joint venture between Nomura Research
Institute and IBM Japan, will service Japan and the Far East. We are
pleased to have such a capable and established partner in our efforts
to further develop these prominent markets.

About New Era of Networks

     New Era of Networks, Inc. (NASDAQ:NEON) is a leader in providing
EAI solutions to financial services, banking, brokerage,
telecommunications, utilities, manufacturing, healthcare, and other
industries. NEON is the first company to provide packaged solutions
that successfully integrate legacy applications, client/server and
web-based applications, as well as popular ERP applications. NEON
Rapport products help clients integrate and coordinate client
management and interaction. With more than 170 customers worldwide,
NEON has demonstrated that its products shorten implementation cycles,
integrate disparate platforms, and allow information to be shared and
managed across the enterprise. The NEON product suite supports EAI
across the most popular hardware platforms, operating systems, and
database types. NEON offers prepackaged format libraries for many
popular applications such as PeopleSoft, SAP and S.W.I.F.T. (Society
for Worldwide Interbank Financial Telecommunication). NEON
distribution partners include IBM, Compaq/Tandem, PeopleSoft, SunGard
and NIWS (Japan).
     For more information call 800/815-6366 or visit NEON's World Wide
Web site at http://www.neonsoft.com.
     This news release contains forward-looking statements based on
current expectations that involve risks and uncertainties. NEON's
actual results may differ materially from the results discussed in the
forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to, those discussed in
the Company's public reports filed from time to time with the
Securities and Exchange Commission, including the Company's report on
Form 10-K for its fiscal year ended December 31, 1997, and the
Company's Prospectus dated May 20, 1998.

     Note to Editors: New Era of Networks, the NEON logotype, NEONet,
NEONweb, Neonsoft, NEONaccess, NEONreplication, NEONmsgtrak,
NEONenrich, NEONfix, Business EventManager, Enterprise
ProcessExecutive, Rapport and OpenBroker are trademarks of New Era of
Networks, Inc. IBM and MQSeries are registered trademarks of the IBM
Corporation. MQIntegrator is a trademark of IBM Corporation. All other
trademarks and registered trademarks are the property of the
respective trademark owners.
     A full-text copy of this announcement may be obtained by calling
the Company's fax retrieval line at 888/329-2312 and selecting option
"two." The announcement may also be downloaded from the Web; access
http://www.businesswire.com/iponet.htm and select "New Era of
Networks."

                       NEW ERA OF NETWORKS, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)
                              (unaudited)

                            Three months ended    Six months ended
                                 June 30,             June 30,
                             1998       1997       1998       1997
Revenues:
Software licenses          $  7,268   $  3,213   $ 13,841   $  5,660
Services and maintenance      4,192      1,566      7,201      2,793
  Total revenues             11,460      4,779     21,042      8,453

Cost of revenues:
 Cost of software licenses      442        166        664        416
 Cost of services
  and maintenance             2,135      1,240      3,661      2,040
   Total cost of revenues     2,577      1,406      4,325      2,456

Gross profit                  8,883      3,373     16,717      5,997

Operating Expenses
 Sales and marketing          3,828      1,988      7,434      3,678
 Research and development     2,915      1,560      5,606      2,782
 General and administrative   1,168        371      2,160        866
 Charge for acquired
  in-process R&D              3,740          0      3,740          0
 Amortization of intangibles     81          0        130          0
   Total operating expenses  11,732      3,919     19,070      7,326

Loss from operations         (2,849)      (546)    (2,353)    (1,329)
Other income, net               491         17        787         16
Loss before provision for
 income taxes                (2,358)      (529)    (1,566)    (1,313)
 Provision for income
  taxes                          --         --         --         --
Net loss                   $ (2,358)  $   (529) $  (1,566)  $ (1,313)
Basic loss per common
 share                     $  (0.23)  $  (0.22) $   (0.16)  $  (0.69)

Weighted average shares
 of common stock
 outstanding, basic      10,338,506  2,422,915  9,746,574  1,899,261

Excluding charge for
 acquired in-process R&D:
Net earnings (loss)        $  1,382   $   (529) $   2,174   $ (1,313)
Diluted earnings (loss)
 per common share          $   0.12   $  (0.22) $    0.20   $  (0.69)

Weighted average shares
 of common stock
 outstanding, diluted    11,675,777  2,422,915 10,943,987  1,899,261


                       NEW ERA OF NETWORKS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS

                             (In Thousands)

                                           June 30,     Dec. 31,
                                             1998         1997
   ASSETS                                (unaudited)
Current assets:
 Cash and cash equivalents                $  54,972    $   7,150
 Short-term investments                      17,049       15,574
 Accounts receivable, net                    13,279       11,073
 Unbilled revenue                             2,412        1,668
 Prepaid expenses and other                   1,730        1,020
   Total current assets                   $  89,442    $  36,485

 Property and equipment, net                  4,315        2,416
 Other assets, net                            2,982        1,328
   Total assets                           $  96,739    $  40,229

  LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                         $   3,126    $   2,172
 Accrued liabilities                          3,537        2,082
 Deferred revenue                             1,503        1,177
 Current portion of bank borrowings              47           67
   Total current liabilities                  8,213        5,498
Stockholders' equity:
 Common stock, $.0001 par value,
  45,000,000 shares authorized,
  11,775,930 and 9,106,157 shares issued
  and outstanding, respectively                   1            1
 Additional paid-in capital                 101,476       46,191
 Cumulative translation adjustment              133           57
 Accumulated deficit                        (13,084)     (11,518)
   Total stockholders' equity                88,526       34,731
   Total liabilities and stockholders'
    equity                                   96,739    $  40,229


    CONTACT: New Era of Networks, Inc.
              Cynthia King, 303/486-9369
              [e-mail]