ParcPlace to Acquire Objectshare Systems, Inc.

SUNNYVALE, Calif.--(BUSINESS WIRE)--July 16, 1996-- ParcPlace-Digitalk, Inc. (NASDAQ: PARQ) today announced that it has entered into a definitive agreement to acquire privately held Objectshare Systems, Inc.

Financial details of the acquisition have not been made public.

The boards of both companies have approved the acquisition and expect its completion by August 31, at which time Objectshare will become an independent business unit of ParcPlace-Digitalk.

Objectshare Systems, Inc. is the 11th fastest growing privately held company in Silicon Valley based on percent revenue growth from 1992-1994, according to a list recently compiled by the San Jose Business Journal. The company provides graphical application development tools based on leading-edge object technology for the Smalltalk and Java development environments. Objectshare's Smalltalk products -- WindowBuilder Pro/V, WidgetKit/Professional, WidgetKit/Business Graphics, WidgetKit/CUA'91, and Subpanes/V -- support ParcPlace's Visual Smalltalk Enterprise product line, as well as IBM's VisualAge Smalltalk environment. ParcPlace and its new Objectshare business unit will continue to sell and support the existing Objectshare products, while providing the resources necessary to drive development and delivery of the company's next-generation technology.

"Objectshare fits perfectly into ParcPlace's strategy for delivering multilingual products for distributed computing," noted Bill Lyons, president and CEO of ParcPlace. "We gain well-regarded tools for our Visual Smalltalk Enterprise product line, an entry into IBM's VisualAge marketplace, a core group of experienced Smalltalk/Java developers and Java products that are currently under development and which we will be announcing later this year -- all of which will serve to rapidly enhance our growing suite of client/server/web development tools. Conversely, we'll be able to offer Objectshare the expanded resources it needs to meet its aggressive product development and delivery schedule."

According to Robert Yerex, president and CEO of Objectshare: "We're excited by the possibilities presented by this acquisition; in fact, I'm confident that Objectshare will be able to make an immediate technological contribution to ParcPlace. I also think it will be good for the customers of both companies, as well as for the Smalltalk market as a whole."

ParcPlace

ParcPlace is a leader in client/server/web application development tools. The Company's mission is to help our customers build software that keeps pace with their business. ParcPlace products support open computing, portability, and industry standards for distributed and web-based enterprise computing.

The Company also provides a comprehensive range of services, including customer support, training, on-site assistance and consulting. With headquarters in Sunnyvale, the company maintains offices across the United States and internationally with subsidiaries in France, Germany, and the United Kingdom and a network of distributors throughout the world. For more information, visit our Web site at www.parcplace.com or call us at 800/759-PARC. -0-

Note to Editors: ParcPlace, Digitalk, and Parts are registered trademarks of ParcPlace-Digitalk, Inc. Java is a trademark of Sun Microsystems, Inc., and refers to Sun's technology. Other product or service names may be trademarks of their respective companies.

CONTACT: ParcPlace-Digitalk, Inc.

Richard Dym, 408/481-9090

[e-mail]

or

Sterling Communications, Inc.

Carol Nash, 408/441-4100

[e-mail]