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SPINNAKER SOFTWARE CORPORATION ANNOUNCES FOURTH QUARTER AND FISCAL YEAR RESULTS

 CAMBRIDGE, Mass., Oct. 1 /PRNewswire/ -- Spinnaker Software Corporation (NASDAQ: SPKR) today reported a fourth quarter loss from continuing operations for the period ended June 30, 1993 of $3,935,000 or 29 cents per share compared to a loss from continuing operations of $130,000 or 1 cent per share for the comparable fourth quarter period ended June 30, 1992. The loss from continuing operations for the full fiscal year was $18,563,000 or $1.52 per share compared to a profit of $2,527,000 or 22 cents per share for the fiscal 1992 year.
 The fiscal 1993 fourth quarter loss includes charges totaling $1,693,000 resulting from the write down of certain assets to estimated net realizable value. The loss for the fiscal year also includes a charge of $14,051,000 for purchased research and development in connection with the company's March 30, 1993 acquisition of Power Up Software Corporation.
 Net loss for the quarter and year ended June 30, 1993 was $3,935,000 or 29 cents per share and $22,648,000 or $1.86 per share, respectively, compared to $4,834,000 or 42 cents per share and $3,752,000 or 32 cents per share in the comparable fiscal 1992 periods. The net loss includes a loss from discontinued operations for the year ended June 30, 1993 of $4,085,000 or 34 cents per share compared to $6,279,000 or 54 cents per share for fiscal year 1992. The loss from discontinued operations in the fourth quarter of fiscal 1992 was $4,704,000 or 41 cents per share. The loss from discontinued operations results from the company's decision during the third quarter to concentrate its business strategy and resources on the home office and small business personal productivity software market and to discontinue its corporate information products line of business which was comprised of Plus and Personal Access products for corporate end-users in large enterprise environments.
 Revenues for the fourth quarter ended June 30, 1993 were $11,123,000 compared to $6,160,000 in the fourth quarter of fiscal 1992. For the full fiscal year 1993, revenues were $30,685,000 compared to $27,619,000 for fiscal 1992. The increase in fourth quarter and annual revenues results from the inclusion, beginning on March 30, 1993, of revenues derived from the sale of Power Up products and through the Power Up catalog.
 Commenting on the current results, C. David Seuss, Spinnaker's chairman and chief executive officer, stated, "Although Spinnaker experienced revenue growth through the Power Up acquisition, Spinnaker's revenues were negatively impacted by a lower level of new product introductions during fiscal 1993 compared to the prior year.
 "Spinnaker's products, pricing strategy and marketing programs for the fall and Holiday season, traditionally the strongest quarters for retail sales, have positioned the company to capitalize on the growing demand for high quality, value-priced consumer software," Seuss stated.
 On Aug. 17, Spinnaker announced plans to merge with SoftKey Software Products Inc. (NASDAQ: SKEYF, TSE: SSK) and WordStar International Inc. (NASDAQ: WDST) to create a new $130 million consumer software company called SoftKey Software Products International. The new company would be based in Cambridge in Spinnaker's existing facilities. It is anticipated that the merger, subject to approvals by shareholders of the three companies and authorities in the U.S. and Canada, will be completed by December.
 Spinnaker also announced that it has entered into a six month, $5,000,000 secured revolving line of credit with a subsidiary of SoftKey Software Products, Inc. of which $3,000,000 was initially advanced. In the event that the Spinnaker shareholders do not vote for approval of the merger, or if Spinnaker otherwise breaches the merger agreement, the amounts borrowed will become payable on demand.
 Spinnaker is a leading supplier of consumer productivity software solutions for individuals and small business professionals.
 SPINNAKER SOFTWARE CORPORATION
 CONDENSED SUMMARY OF OPERATION
 (in thousands except per share and share information)
 Three Months Ended Year Ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Revenue, net $11,123 $6,160 $30,685 $27,619
 Income (loss)
 from continuing
 operations $(3,935) $(130) $(18,563) $2,527
 Discontinued
 operations --- (4,704) (4,085) (6,279)
 Net loss $(3,935) $(4,834) $(22,648) $(3,752)
 Income (loss)
 per share:
 Continuing
 operations (29 cents) (1 cent) ($1.52) 22 cents
 Discontinued
 operations --- (41 cents) (34 cents) (54 cents)
 Net loss per
 share (29 cents) (42 cents) ($1.86) (32 cents)
 Weighted average
 shares
 outstanding 13,691,470 11,611,125 12,190,812 11,574,531
 /NOTE TO EDITORS: The loss from continuing operations for the year ended June 30, 1993 included a one time charge of $14,051,000 for purchased research and development in connection with the company's acquisition of Power Up Software Corporation on March 30, 1993./
 -0- 10/1/93
 /CONTACT: Lynne Weiss of Spinnaker, 617-494-1200, ext. 335/
 (SPKR SKEYF SSK WDST)


CO: Spinnaker Software Corp.; SoftKey Software Products, Inc.;
 WordStar International Inc. ST: Massachusetts IN: CPR SU: ERN


DJ-CM -- NE011 -- 7970 10/01/93 17:15 EDT
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Date:Oct 1, 1993
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