Unify Corp. Issues Letter to Stockholders.

Business Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--June 19, 2001

Unify Corporation (OTC System:UNFY), a leading provider of software that enables companies to quickly and cost-effectively develop and deploy successful business solutions, today issued the following letter to stockholders.

Dear Unify Stockholder:

Let me begin by thanking you for your patience and support of Unify. You know that this past year has been rocky and full of challenges. However, through it all we were able to set Unify on a positive course that resulted in a slight profit in the fourth quarter, as we just announced.

While we are excited about recording a slim profit in the fourth quarter of fiscal 2001, we are cautiously optimistic about our future. As previously disclosed, the Company is a party to several shareholder lawsuits which, until resolved, are a threat to the Company. Additionally, after recording the special charges for the financial and legal investigations and the impairment charge for an investment with a strategic partner, the Company has a negative equity balance as of April 30, 2001. Based on our financial plan for fiscal year 2002, we are optimistic this balance will be positive by the end of fiscal 2002.

Over the past several months, we have had the chance to take a closer look at our business -- from the products we offer, to the customers we serve, to the type of company we are striving to become. Three things became very clear, very quickly -- we sell great products, we have loyal and dedicated employees, and we have a sizeable and strong customer base.

As you may know, Unify began more than twenty years ago as a relational database management company. Over the years as technology evolved, so did Unify -- into the client/server and application development tools market and recently into the Internet infrastructure space with our Java(TM) based Unify eWave products. We are known as a company that develops great software products that helps companies solve business problems in less time and with lower costs. And we've been doing that for years. We have solid, high-performance products that range from database products to application development and deployment products for both Java and 4GL languages.

We have more than a 1,000 customers using Unify products throughout the world. And we have developed an expertise in working with other software application providers or VARs who take Unify software and embedded it into their packaged application that they then sell into a vertical market. Today, we are proud to have over 300 VAR customers worldwide.

I want to assure you that Unify continues to operate at full-steam. We have the energy and enthusiasm most often associated with a startup. Our product development and sales operations are in high gear; and we are serving our customers with the same, if not higher, standards of quality for which we are known. Over the past year, our focus was to stabilize the business and determine the future direction of the Company.

I am pleased to report that, in my opinion, we have successfully implemented many steps to attend to those issues. The executive management team that we assembled addressed these challenges with professionalism and perseverance. Our 90 employees rose to the occasion and remain dedicated. Highlights of these steps include:

      --  Improved financial operations and controls. We resolved the
        accounting issues, restated prior year's results, implemented
        re-written and enhanced sales and revenue recognition policies
        and procedures, reduced expenses through workforce reduction
        and focused on key operational initiatives. We increased
        employee incentives and realigned the business to achieve
        maximum productivity.

      --  Product Development. We aggressively continued our research
        and development on all our product lines. We launched two new
        versions of Unify eWave Engine and launched new releases of
        Unify DataServer, ACCELL/SQL and VISION. In these new
        releases, we provide our customers with an easy,
        cost-effective solution for taking their existing applications
        to the Web without having to completely rewrite their
        applications. Also, we've developed a 12-month product roadmap
        designed to keep our competitive advantage in the market.

      --  Sales and Distribution. We actively contacted our customers to
        reassure them of our ability and desire to support their
        business goals with customer support and improved account
        management. Additionally, we structured a customer-centric
        sales and order processing team based out of the U.S. to
        provide improved support to our international offices and
        distributors.

      --  Strategic Planning. We developed a strategic plan to guide us
        into fiscal 2002 and beyond designed to continue to improve
        business processes and efficiencies, enhance our customer
        focus and drive momentum for a profitable year.

In our strategic plan, we have identified four key critical success factors to guide us in the year ahead:

-- Improve our financial stability

-- Increase the productivity and effectiveness of employees

-- Increase our sales and marketing effectiveness

-- Become a market-driven and focused company

We believe we have set Unify upon a successful future course that will help rebuild your confidence in our Company in addition to building shareholder value. We look forward to sharing more of these plans with you as we progress throughout the year.

We also realize that one of the most frustrating aspects of the Company's situation, as a shareholder, is that Unify's stock has been trading over the counter on the pink sheets since October 2000. Please be assured that we are working diligently to complete the first, second and third quarter Form 10-Qs which will be filed with the Securities and Exchange Commission as soon as possible.

As soon as our SEC filings are current, we will work with market makers to become listed on the Over-The-Counter Bulletin Board, until the time we meet Nasdaq National Market listing requirements. Unfortunately, it is impossible at this time to predict when we will meet the Nasdaq listing requirements to become relisted.

We have worked hard to put the challenges of 2000 and 2001 behind us and are concentrating on our mission of "producing quality software and services that drive our customers' success, thereby ensuring our own." We believe that with your continued support, we can achieve our goals.

Very truly yours,

Todd Wille

Chief Executive Officer

This shareholder letter contains "forward-looking statements" as that term is defined in Section 21E of the Securities Exchange Act of 1934 as amended. Forward looking statements are denoted by phrases such as "...we are cautiously optimistic about our future" ...."...we've developed a 12 month product road map...."..."We developed a strategic plan to guide us into 2002 and beyond.." ..."we believe"...."successful future course"...."first, second and third Form 10-Qs...will be filed with the Securities and Exchange Commission as soon as possible"...."we can achieve" and similar words and phrases that refer to anticipated future events or performance of the Company. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by our forward looking statements. Such risks and uncertainties include, but are not limited to, the risk that the Company cannot settle or cannot settle on acceptable terms, the previously disclosed shareholder class actions and derivative lawsuits currently pending and currently subject to ongoing mediation efforts, general economic conditions in the computer and software industries, domestically and worldwide, the Company's ability to keep up with technological innovations in relation to its competitors, developments in patents, copyright or other intellectual property rights, product defects or delays, developments in the Company's relationships with its customers, distributors and suppliers, changes in pricing policies of the Company or its competitors, the Company's ability to attract and retain employees in key positions and the success of the Company's realignments of its organizational structure. Our ability to file our first, second and third quarter Form 10-Qs are subject to our ability to deploy resources to compile the required information and to complete the review by our outside accountants. In addition, Unify's forward looking statements should be considered in the context of other risks and uncertainties discussed in our SEC filings available for viewing on our web site at "Investor Relations," "SEC filings" or from the SEC at www.sec.gov.