ParcPlace-Digitalk Unveils Company and Product Strategy.

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 1, 1995--ParcPlace Systems, Inc. (Nasdaq: PARQ) and Digitalk, Inc. today jointly announced their new corporate and product strategy to 1100 attendees at their combined international users conference, taking place July 31 through August 2 at the Fairmont Hotel in San Jose, California.

In May, ParcPlace and Digitalk announced a definitive agreement to merge the two companies. After the merger, expected to be completed before the end of August, the new company -- to be named ParcPlace-Digitalk, Inc. -- will be the largest independent company dedicated to object-oriented technology, with $55 million in combined revenues. ParcPlace-Digitalk's mission is to be the object leader for computing in the enterprise.

The new company unveiled its vision for enterprise computing, embodied in the following four maxims for information technology (IT): -0-

-- IT keeps pace with business change

-- IT builds business systems from components

-- IT enables better interaction with the customer

-- IT expands the boundaries of the enterprise -0-

"The goal of the new ParcPlace-Digitalk is to offer more customer focus, better products and faster time to market," said Bill Lyons, president and CEO of ParcPlace-Digitalk. "Our strategy is to offer customers the best of both worlds by combining the strengths of the VisualWorks and Visual Smalltalk Enterprise product lines."

Product Strategy

The company announced its product strategy to merge the two companies' product plans: -0-

-- Release the previously announced upgraded versions of both the

VisualWorks and Visual Smalltalk Enterprise (VSE) product lines

-- Integrate ParcPlace and Digitalk's core product lines into one

product based on VisualWorks and incorporating key features

from VSE

-- Develop new products and features -0-

In the short term, ParcPlace-Digitalk will release the upgraded versions of VisualWorks and VSE in the fourth quarter of 1995 with enhancements that will make them more compatible with the future combined product. The company will immediately begin to combine the two product lines into a single product line, code-named VanGogh, available by the second quarter of 1996. The company will start with 100% language and syntax compliance with the next releases of VSE and VisualWorks, as well as a road map of the Smalltalk language "classes" to be included in the converged product line allowing customers' investments in both technologies will be protected.

In addition, ParcPlace-Digitalk will launch new product initiatives. Today at the users conference, ParcPlace-Digitalk gave technology previews of two new product directions. The first, code-named Wadsworth, will allow customers to deploy applications on the World Wide Web. The second, code-named ServerWorks, is an optimized server environment designed to improve server performance and scalability.

"ParcPlace-Digitalk's mission is to be the object leader for enterprise computing," said Jim Anderson, co-chairman of ParcPlace-Digitalk. "To achieve this mission, we will offer our customers the most choices in terms of hardware platforms, operating systems, databases, components, object and networking standards, and consulting services."

Future Product Direction

ParcPlace-Digitalk has made some key decisions about merging the current ParcPlace and Digitalk technologies. The first decision is to use VisualWorks as the foundation for the future. The VisualWorks base will include its rich set of Smalltalk class libraries, tools, cross-platform portability, and compatibility with the draft Smalltalk standard from the ANSI X3J20 committee.

The following key parts of Digitalk's product line will be added to the VisualWorks base: -0-

-- PARTS Workbench and the visual wiring paradigm

-- The Team/V development infrastructure (while maintaining

support for Object Technology Inc.'s ENVY/Developer)

-- SLL's (Smalltalk Link Libraries)

-- Windows 95 compliance

-- Legacy integration -0-

In addition to combining current VisualWorks and VSE features, ParcPlace-Digitalk plans to introduce support for: -0-

-- Data and object communication standards, including: OLE,

SOM/DSOM and CORBA 

-- Optimized server environment, including enhancements that

improve server performance and scalability

-- Class library support to enable developers to plug different

libraries into their environment

-- Learning tools to ease the transition to object technology -0- The professional services groups will consolidate and continue to provide consulting and training for both product lines.

Digitalk, Inc.

Digitalk, founded in 1983, was the first company to deliver pure object-oriented programming on personal computers, with its Smalltalk/V products. The company markets worldwide its pure object-oriented Visual Smalltalk and Visual Smalltalk Enterprise development environments for Windows, Windows NT and OS/2. Digitalk provides consulting and training for all of its products, and in object-oriented analysis and Responsibility-Driven Design, through its Professional Services Group.

ParcPlace Systems, Inc.

ParcPlace's mission is to be the object leader for computing in the enterprise. ParcPlace develops, markets and supports object-oriented solutions for corporate developers. The company also provides a comprehensive range of services, including customer support, training, on-site assistance and consulting. With headquarters in Sunnyvale, California, the company maintains offices across the Unites States with international subsidiaries in Germany and the United Kingdom and a network of distributors throughout the world.

CONTACT: ParcPlace Systems, Inc.

Sue Ann Nichols, 408/720-7514

or

Cunningham Communication, Inc.

Allyson Ebel, 408/764-0760