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STERLING SOFTWARE ANNOUNCES ANOTHER YEAR OF HIGHER REVENUE AND EARNINGS

STERLING SOFTWARE ANNOUNCES ANOTHER YEAR OF HIGHER REVENUE AND EARNINGS
 DALLAS, Oct. 29 /PRNewswire/ -- Sterling Software, Inc. (NYSE: SSW) announced today results for its fiscal year ended Sept. 30, 1992. Revenue for the year rose 17 percent to $259.3 million from $220.7 million last year. Earnings per share increased 47 percent to $1.19 from 81 cents in 1991.
 Sterling reported fourth quarter per share of 34 cents, up 42 percent from 24 cents last year, on revenue of $74.6 million, up 19 percent from $62.9 million a year ago. Sterling said the fourth quarter represented the company's 16th consecutive quarter of year-to-year growth in revenue and earnings.
 Sterling L. Williams, the company's president and chief executive officer, said operating results were excellent in each of Sterling's three business groups -- EDI, Systems Software and Federal Systems, "Each group improved its performance over last year while remaining focused on future growth opportunities. Through a combination of excellent financial results, product development, carefully selected acquisitions and strategic reorganizations within our groups, we are extremely well poised for the opportunities we see in 1993 and beyond."
 Sterling said the company's EDI Group grew considerably during the year while moving to expand its EDI software and services offerings to encompass the larger electronic commerce market. Revenues and earnings hit record levels and a significant number of EDI customers were added in North America and Europe. New industry verticals were added as well including banking and government. During the first quarter of the year, Sterling acquired National Systems Corporation, Inc., a company specializing in banking EDI products.
 Sterling said its Systems Software Group achieved record sales in North America and internationally while continuing to move its products more rapidly into the client/server environment. Sterling said the company increased development within four product niches -- storage management, information management, applications development, and data communications -- to provide next-generation products that operate in a client/server environment. Sterling also said the company acquired a new lab in Tokyo, Japan, to focus on developing products to run on Japanese platforms.
 Sterling's Federal Systems Group increased its revenue during the year and secured new contracts and contract renewals valued at approximately $256 million over the next seven years. Most of the contracts were expansions or extensions of ongoing technical support services to NASA and the Department of Defense, including a $174 million contract renewal to provide supercomputer services to NASA Ames Research Center in California.
 During the first quarter of the year, Sterling acquired Knowledge Systems Concepts, Inc., a high technology company also providing professional services to the DoD.
 Sterling also said it was listed as one of "America's 200 Best Small Companies" in Forbes magazine's Nov. 9, 1992 issue. Forbes compiled its prestigious list from over 4,000 U.S. public companies having revenue greater than $5 million and less than $350 million. According to Forbes, the top 200 companies were selected based on various measurements including return on equity, sales and earnings growth rates, debt to equity, and stock performance and trading volume.
 Sterling Software, headquartered in Dallas, specializes in EDI and systems software products and services, and technical professional services to the federal government.
 STERLING SOFTWARE, INC.
 Results of Operations
 (in $ thousands, except per share data, unaudited)
 Three Months Ended Year Ended
 Sept. 30 Sept. 30
 1992 1991(A) 1992 1991(A)
 Revenue $74,587 $62,858 $259,261 $220,738
 Income before extra-
 ordinary gain 4,372 2,950 13,798 10,056
 Extraordinary gain(B) --- --- --- 396
 Net income 4,372 2,950 13,798 10,452
 Preferred dividends (49) (860) (392) (3,402)
 Earnings to common 4,323 2,090 13,406 7,050
 Earnings per share
 Before extraordinary gain $.34 $.24 $1.19 $.81
 After extraordinary gain .34 .24 1.19 .85
 Average shares
 outstanding (000's) 9,952 6,227 9,024 6,077
 (A) The results of operations for the three months and year ended Sept. 30, 1991 have been restated in accordance with AICPA SOP 91-1 titled "Software Revenue Recognition" adopted Oct. 1, 1991 and applied retroactively.
 (B) Represents the tax effected net gain from the early retirement of $2,000,000 face amount of the company's 8 percent convertible debentures which were repurchased at a discount during the year ended Sept. 30, 1991. The company purchased $4,523,000 face amount of the 8 percent convertible debentures during the year ended Sept. 30, 1992 resulting in no material gain or loss.
 -0- 10/29/92
 /CONTACT: Anne Vahala, director-investor relations of Sterling Software, Inc., 214-891-8600/
 (SSW) CO: Sterling Software, Inc. ST: Texas IN: CPR SU: ERN


AH -- NY110 -- 6874 10/29/92 18:18 EST
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Date:Oct 29, 1992
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