Sybase Reports Quarterly Earnings of $0.25 Per Share

Pro Forma EPS Increases 19 Percent; Net Income Up 16 Percent Year-Over-Year

Company Projects Full-Year 2001 Pro Forma Earnings Between $1.10 -$1.20

Per Share



Apr 19, 2001, 01:00 ET from Sybase, Inc.

    EMERYVILLE, Calif., April 19 /PRNewswire/ -- Sybase, Inc. (Nasdaq: SYBS),
 a leading e-Business infrastructure solutions provider, today reported
 first quarter pro forma earnings excluding acquisition related expenses of
 $0.25 per share on a fully diluted basis, up 19 percent over $0.21 per share
 reported in the same period last year.  Reported earnings for the
 first quarter including acquisition related expenses grew 129 percent to
 $0.16 per share on a fully diluted basis compared to $0.07 per share reported
 in the first quarter last year.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001013/SYBSLOGO )
     Net income for the first quarter on a pro forma basis increased 16 percent
 to $22.7 million, compared to $19.5 million for the same period last year.
 Reported net income for the first quarter including acquisition related
 expenses was $14.9 million, compared to $6.7 million in the first quarter
 2000, reflecting an increase of 122 percent.
     Revenues in the first quarter 2001 were $229.1 million, compared with
 $226.8 million reported in 2000.  Total license revenue in the first quarter
 was $98.8 million, versus $110.7 million reported in the same period last
 year.  Services revenue was $130.3 million, compared to $116.1 million in the
 first quarter last year.  Sybase ended the first quarter with approximately
 $342 million in cash and cash investments, after the repurchase of
 approximately $52 million in stock.  Days sales outstanding (DSO) for the
 three months ending March 31, 2001 was 67 days.
     "Sybase has never been in a more competitive position than it is today,
 despite the fact that a generally slowing economy limited our first quarter
 revenue growth," said John Chen, Sybase chairman, CEO and president.  "We
 remain committed to aligning our cost structure with current market
 conditions, and delivering outstanding value to our customers.  With our
 recent acquisition of New Era of Networks, Inc., Sybase will be able to
 deliver a more complete stack of advanced e-Business infrastructure products
 and services to complement our award winning application server and database
 technology, and provide our customers with faster implementation and an even
 greater technology ROI."
     Sybase currently holds approximately 75 percent of the stock of New Era of
 Networks, Inc. (Nasdaq: NEON), and expects to complete its offering for the
 remaining shares of NEON shortly.
     Significant customer wins during the quarter included AOL, AT&T, Comerica,
 ECR Software, Marquette.com, MBNA America Bank, Nielsen Media Research,
 Norfolk Southern Railroad, Northwestern Mutual Life, Novell, Inc., Power
 Measurement Corp., Prometric, State Street Bank, Steelcase, Inc., UBS Warburg,
 and United States Army CECOM.
     The company believes slower economic growth, offset by efficiency gains
 and expanded product and solution offerings, will result in full year
 2001 pro forma earnings per share in the $1.10 per share to $1.20 per share
 range.  Sybase's preliminary full year 2001 revenue expectation is around
 $1.1 billion.
 
     About Sybase, Inc.
     Sybase provides enterprise-class software solutions that fuel e-Business
 and enable access to information anytime, anyplace.  With its industry-leading
 Enterprise Portal (EP), mobile and wireless and vertical market solutions,
 Sybase is one of the largest global independent software companies in the
 world.  For more information, visit the Sybase Web site:
 http://www.sybase.com .
 
     About NEON
     NEON enables e-Business with a suite of products designed to overcome the
 inherent "language barriers" of a company's various applications, systems,
 platforms, and protocols.  By allowing these disparate operations to share
 information and "talk" with one another -- as well as the Internet-businesses
 can automate end-to-end processes seamlessly, profiting from Internet speed
 and increased volume.  For more information, visit the NEON Web site:
 http://www.neonsoft.com .
 
     NOTE:  Sybase and the names of its products mentioned are trademarks of
 Sybase, Inc., or its subsidiaries.  All other company and product names
 mentioned may be trademarks of the respective companies with which they are
 associated.
     Forward Looking Statements:  Statements in this release concerning Sybase,
 Inc.'s targeted 2001 earnings and revenues and the company's future growth,
 earnings, operating results, and prospects, are forward-looking statements
 that involve a number of uncertainties and risks.  Factors that could cause
 actual events or results to differ materially include sales productivity;
 possible disruptive effects of organizational or personnel changes; shifts in
 customer demand; market acceptance of the Company's products and services;
 customer and industry analyst perception of the Company and its technology
 vision and future prospects; rapid technological changes; competitive factors;
 unanticipated delays in scheduled product availability dates; interoperability
 of the Company's products with other leading software application products;
 general business conditions, and market growth rates in the client/server and
 Internet software markets; and other factors described in the Company's
 reports filed with the Securities Exchange Commission, including its
 Annual Report on Form 10-K for the year ended December 31, 2000.
     NEON Acquisition Note:  This release also contains statements regarding
 Sybase's acquisition of NEON, including regarding the effect of this
 transaction on Sybase's earnings and its business, Sybase's expectations
 regarding the success of NEON's products in Sybase's product lines, and
 Sybase's expectations regarding the growth of the e-Business market generally.
 Factors that may affect actual results include the risks inherent in
 completing the acquisition of NEON on a timely basis, if at all, the
 successful integration of NEON into Sybase's business, the, timely development
 and market acceptance of the products and services of the combined companies,
 Sybase's ability to remain competitive in a highly competitive and rapidly
 changing marketplace, and the other risks detailed from time to time in each
 company's periodic reports filed with the Securities and Exchange Commission,
 including those mentioned above.
     Additional Information:  We urge investors and security holders to read
 the following documents, when they become available, because they will contain
 important information about Sybase, NEON, the acquisition and related matters:
 
     -- Sybase's preliminary prospectus, prospectus supplements, final
        prospectus, and tender offer materials.
     -- Sybase's Registration Statement on Form S-4 and Schedule TO containing
        or incorporating by reference such documents and other information.
     -- NEON' Solicitation/Recommendation Statement on Schedule 14D-9.
 
     These documents and amendments to these documents will be filed with the
 U.S. Securities and Exchange Commission.  In addition to these documents,
 Sybase and NEON file annual, quarterly and special reports, proxy statements
 and other information with the SEC.  You may read and copy any reports,
 statements and other information filed by Sybase and NEON at the SEC public
 reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549 or at the
 SEC's other public reference rooms in New York, New York and Chicago,
 Illinois.  Please call the SEC at 800-SEC-0330 for further information on
 public reference rooms.  Sybase's and NEON's filings with the SEC are also
 available to the public from commercial document-retrieval services and the
 Web site maintained by the SEC at http://www.sec.gov .
 
                      Sybase, Inc. Q1 Selected Highlights
 
     During the First Quarter 2001, Sybase, Inc. continued its market momentum
 to be one of the leading vendors of enterprise e-Business solutions.
 Highlights of the quarter include:
 
     -- Sybase announced its intent to acquire Enterprise Application
 Integration (EAI) vendor NEON software in a stock-for-stock exchange.  The
 inclusion of EAI capabilities into Sybase's portfolio significantly enhances
 the company's e-Business infrastructure strategy.
 http://www.sybase.com/detail/1,3693,1011783,00.html
     -- A global strategic alliance with EDS to deliver comprehensive
 enterprise-level e-Business solutions based of Sybase EP and EDS E.solutions
 consulting services.  http://www.sybase.com/detail/1,3693,1011882,00.html
 
     New product announcements such as:
 
     -- The availability of Sybase's flagship e-Business Solution, Enterprise
 Portal 2.0 (EP 2.0).  EP 2.0 is an extensible portal foundation that reaches
 across traditional corporate boundaries by seamlessly integrating an
 enterprise with its trading partners, as well as e-marketplaces, and mobile
 and wireless users.  http://www.sybase.com/detail/1,3693,1011876,00.html
     -- The availability of PowerDesigner 8.0, featuring both object-modeling
 and data-modeling capabilities.
 http://www.sybase.com/detail/1,3693,1011933,00.html
     -- The availability of Industry Warehouse Solution 3.2; featuring improved
 customer profitability analysis for the telecommunications and insurance
 industries.  http://www.sybase.com/detail/1,3693,1011642,00.html
     -- The availability of the beta version of Sybase Adaptive Server
 Enterprise (ASE) 12.5, the e-Business Database.
 http://www.sybase.com/detail/1,3693,1011518,00.html
 
     Key new partnerships including:
 
     -- PricewaterhouseCoopers which formed a partnership with iAnywhere
 Solutions to deliver Mobile SAP solutions
 http://www.sybase.com/detail/1,3693,1011899,00.html.
     -- Partnerships for EAServer, including:  Sims Computing, which integrated
 EAServer with its job scheduling software; Inspired Design, an ASP offering
 sales and CRM programs to financial institutions.
 http://www.sybase.com/detail/1,3693,1011833,00.html
 http://www.sybase.com/detail/1,3693,1011565,00.html
 
     iAnywhere solutions made inroads in key verticals including retail and
 healthcare; providing mobile and wireless solutions to ETS, Inc., The Pinnacle
 Corporation, PixelPoint, Creative Solutions, drugmagnet.ca, MediNotes and
 MEDS.  http://www.sybase.com/detail/1,3693,1011630,00.html
 http://www.sybase.com/detail/1,3693,1011469,00.html
 
     Financial Fusion, a wholly-owned subsidiary of Sybase, was ranked as the
 #1 provider of online banking solutions for large financial institutions by
 Celent Communications.  http://www.sybase.com/detail/1,3693,1012262,00.html .
 
 
                                  Sybase, Inc.
                     Condensed Consolidated Balance Sheets
                                  (Unaudited)
 
 
      (In thousands, except share and               March 31,       Dec. 31,
       per share data)                                   2001           2000
 
     Current assets:
      Cash and cash equivalents                      $234,146       $235,588
      Short-term investments                           57,748         78,386
        Total cash, cash equivalents
         and short-term cash investments              291,894        313,974
 
      Accounts receivable, net                        169,303        213,224
      Deferred income taxes                            28,566         28,594
      Other current assets                             21,450         18,321
 
        Total current assets                          511,213        574,113
 
     Long-term cash investments                        49,796         40,638
     Property, equipment and improvements, net         57,206         59,296
     Deferred income taxes                             19,020         19,020
     Capitalized software, net                         35,216         33,794
     Goodwill and other purchased intangibles, net    143,399        147,513
     Other assets                                      39,238         40,666
 
       Total assets                                  $855,088       $915,040
 
     Current liabilities:
      Accounts payable                                $18,277        $16,094
      Accrued compensation and related expenses        39,412         55,237
      Accrued income taxes                             40,736         38,679
      Other accrued liabilities                        82,207         99,641
      Deferred revenue                                210,739        206,976
 
        Total current liabilities                     391,371        416,627
 
     Other liabilities                                  5,781          5,795
     Minority interest                                  1,873          1,866
 
     Stockholders' equity:
      Preferred stock, $0.001 par value, 8,000,000
       shares authorized; none issued or outstanding       --             --
 
      Common stock, $0.001 par value, 200,000,000
       shares authorized; 90,546,392 shares issued
       (2000 - 90,546,392)                                 91             91
      Additional paid-in capital                      582,972        582,972
      Accumulated earnings (deficit)                      949        (6,940)
      Other comprehensive loss                       (31,055)       (22,305)
      Less: Cost of treasury stock
       (4,437,366 shares and 2000 - 2,889,932)       (96,894)       (63,066)
 
        Total stockholders' equity                    456,063        490,752
 
       Total liabilities and stockholders' equity    $855,088       $915,040
 
                                  Sybase, Inc.
                Consolidated Statement of Operations by Segment
                   For the Three Months Ended March 31, 2001
                                  (Unaudited)
 
      (In thousands)     Enterprise      Internet    iAnywhere      Business
                          Solutions  Applications   Solutions,  Intelligence
     Revenues:             Division      Division         Inc.      Division
 
      License fees
       Enterprise           $55,652           $19         $162            $4
       Internet Technology    6,616        10,883           10            --
       Mobile and Embedded    9,624             3        9,765            --
       E-Finance                350            --           --            --
       Datawarehouse          3,213            --           --           194
        Subtotal license
         fees                75,455        10,905        9,937           198
       Intersegment license
        revenues                 47         5,453        8,056         2,677
       Total license fees    75,502        16,358       17,993         2,875
 
      Services              125,911           138          535           466
       Intersegment service
        revenues                277            --        2,154           600
        Total services      126,188           138        2,689         1,066
 
      Total revenues        201,690        16,496       20,682         3,941
 
     Total allocated costs
      and expenses before
      amortization of
      goodwill and other
      purchased intangibles,
      write off of in
      process research and
      development, and
      amortization of
      purchased technology  169,087        14,784       15,580         8,685
 
     Operating income (loss)
      before amortization of
      goodwill and other
      purchased intangibles,
      write off of in
      process research and
      development and
      amortization of
      purchased technology   32,603         1,712        5,102       (4,744)
 
     Amortization of
      goodwill and other
      purchased intangibles   1,326            --           10         1,090
     Amortization of
      purchased technology      393            --           --            --
 
     Operating income (loss)
      before unallocated
      costs                 $30,884        $1,712       $5,092      $(5,834)
 
     Other unallocated
      expenses
     Operating income after
      unallocated expenses
 
     Interest income and
      expense and other, net
     Minority interest
 
     Income before
      income taxes
 
     Provision for
      income taxes
 
     Net income
 
     Basic net income
      per share
 
     Shares used in
      computing basic net
      income per share
 
     Diluted net income
      per share
 
     Shares used in
      computing diluted net
      income per share
 
                                  Sybase, Inc.
                Consolidated Statement of Operations by Segment
                   For the Three Months Ended March 31, 2001
                                    (Unaudited)
 
      (In thousands)
                                   Financial                  Consolidated
     Revenues:                  Fusion, Inc.    Eliminations         Total
 
      License fees
       Enterprise                        $--             $--       $55,837
       Internet Technology                --              --        17,509
       Mobile and Embedded                --              --        19,392
       E-Finance                       2,297              --         2,647
       Datawarehouse                      --              --         3,407
        Subtotal license fees          2,297              --        98,792
       Intersegment license
        revenues                         205        (16,438)            --
        Total license fees             2,502        (16,438)        98,792
 
     Services                          3,230              --       130,280
 
      Intersegment service
       revenues                          361         (3,392)            --
        Total services                 3,591         (3,392)       130,280
 
      Total revenues                   6,093        (19,830)       229,072
 
     Total allocated costs
      and expenses before
      amortization of
      goodwill and other
      purchased intangible
      write off of in
      process research and
      development, and
      amortization of
      purchased technology            17,101        (19,830)       205,407
 
     Operating income (loss)
      before amortization
      goodwill and other
      purchased intangible
      write off of in
      process research and
      development and
      amortization of
      purchased technology          (11,008)              --        23,665
 
     Amortization of
      goodwill and other
      purchased intangibles            4,747              --         7,173
     Amortization of
      purchased technology               750              --         1,143
 
 
     Operating income (loss)
      before unallocated
      costs                        $(16,505)             $--       $15,349
 
     Other unallocated
      expenses                                                     (4,095)
     Operating income after
      unallocated expenses                                          19,444
 
     Interest income and
      expense and other, net                                         4,228
     Minority interest                                                 (8)
 
     Income before
      income taxes                                                  23,664
 
     Provision for
      income taxes                                                   8,756
 
     Net income                                                    $14,908
 
     Basic net income
      per share                                                      $0.17
 
     Shares used in
      computing basic net
      income per share                                              87,350
 
     Diluted net income
      per share                                                      $0.16
 
     Shares used in
      computing diluted net
      income per share                                              90,667
 
                                    Sybase, Inc.
                  Consolidated Statements of Operations by Segment
                     For the Three Months Ended March 31, 2001
                        Proforma Without Purchase Accounting
                                    (Unaudited)
 
     (In thousands)      Enterprise      Internet    iAnywhere      Business
                          Solutions  Applications   Solutions,  Intelligence
     Revenues:             Division      Division         Inc.      Division
 
      License fees
       Enterprise           $55,652           $19         $162            $4
       Internet Technology    6,616        10,883           10            --
       Mobile and Embedded    9,624             3        9,765            --
       E-Finance                350            --           --            --
       Datawarehouse          3,213            --           --           194
        Subtotal license
         fees                75,455        10,905        9,937           198
       Intersegment license
        revenues                 47         5,453        8,056         2,677
        Total license fees   75,502        16,358       17,993         2,875
 
     Services               125,911           138          535           466
      Intersegment service
       revenues                 277             -        2,154           600
        Total services      126,188           138        2,689         1,066
 
       Total revenues       201,690        16,496       20,682         3,941
 
     Total allocated
      costs and expenses    169,087        14,784       15,580         8,685
 
     Operating income
      (loss) before
      unallocated expenses  $32,603        $1,712       $5,102      $(4,744)
 
     Other unallocated
      expenses
 
     Operating income
      after unallocated
      expenses
 
     Interest income and
      expense and other,
      net
     Minority interest
 
     Income before income
      taxes
 
     Provision for income
      taxes
 
     Net income
 
     Basic net income
      per share
 
     Shares used in
      computing basic
      net income per share
 
     Diluted net income
      per share
 
     Shares used in
      computing diluted
      net income per share
 
                                    Sybase, Inc.
                  Consolidated Statements of Operations by Segment
                     For the Three Months Ended March 31, 2001
                        Proforma Without Purchase Accounting
                                    (Unaudited)
 
     (In thousands)
                                   Financial                  Consolidated
     Revenues:                  Fusion, Inc.     Elimination         Total
 
      License fees
       Enterprise                        $--             $--       $55,837
       Internet Technology                --              --        17,509
       Mobile and Embedded                --              --        19,392
       E-Finance                       2,297              --         2,647
       Datawarehouse                      --              --         3,407
        Subtotal license
         fees                          2,297              --        98,792
       Intersegment license
        revenues                         205        (16,438)            --
        Total license fees             2,502        (16,438)        98,792
 
     Services                          3,230              --       130,280
      Intersegment service
       revenues                          361         (3,392)            --
      Total services                   3,591         (3,392)       130,280
 
     Total revenues                    6,093        (19,830)       229,072
 
     Total allocated
      costs and expenses              17,101        (19,830)       205,407
 
     Operating income
      (loss) before
      unallocated expenses         $(11,008)             $--       $23,665
 
     Other unallocated
      expenses                                                     (4,095)
 
     Operating income
      after unallocated
      expenses                                                      27,760
 
     Interest income and
      expense and other,
      net                                                            4,228
     Minority interest                                                 (8)
 
     Income before income
      taxes                                                         31,980
 
     Provision for income
      taxes                                                          9,274
 
     Net income                                                    $22,706
 
     Basic net income
      per share                                                      $0.26
 
     Shares used in
      computing basic
      net income per share                                          87,350
 
     Diluted net income
      per share                                                      $0.25
 
     Shares used in
      computing diluted
      net income per share                                          90,667
 
     Note:  The pro forma statement of operations is intended to present the
 Company's operating results excluding purchase accounting adjustments
 associated with acquisitions, primarily Home Financial Network, Inc.  Such
 purchase accounting adjustments would include amortization of developed
 technology, amortization of goodwill and other purchased intangibles,
 in-process research and development costs, and related adjustments for income
 tax provision.
 
                                  Sybase, Inc.
                  Condensed Consolidated Statements of Income
                                  (Unaudited)
 
                                                Three Months Ended March 31,
      (In thousands, except per share data)            2001           2000
 
     Revenues:
      License fees                                    $98,792       $110,668
      Services                                        130,280        116,099
 
       Total revenues                                 229,072        226,767
 
     Costs and expenses:
      Cost of license fees                              8,593         10,827
      Cost of services                                 61,717         60,785
      Sales and marketing                              85,149         83,268
      Product development and engineering              29,468         31,692
      General and administrative                       17,528         17,519
      Amortization of goodwill and other
       purchased intangibles                            7,173          7,308
      In-process research and development                  --          8,000
 
       Total costs and expenses                       209,628        219,399
 
     Operating income                                  19,444          7,368
 
     Interest income and expense and other, net         4,228          4,580
     Minority interest                                    (8)             --
 
     Income before income taxes                        23,664         11,948
 
     Provision for income taxes                         8,756          5,257
 
        Net income                                    $14,908         $6,691
 
     Basic net income per share                         $0.17          $0.08
 
     Shares used in computing basic net income
      per share                                        87,350         86,579
 
     Diluted net income per share                       $0.16          $0.07
 
     Shares used in computing diluted net income
      per share                                        90,667         91,553
 
                                  Sybase, Inc.
                  Condensed Consolidated Statements of Income
                                  (Unaudited)
                      Proforma Without Purchase Accounting
 
                                                Three Months Ended March 31,
      (In thousands, except per share data)            2001           2000
 
     Revenues:
      License fees                                    $98,792       $110,668
      Services                                        130,280        116,099
 
        Total revenues                                229,072        226,767
 
     Costs and expenses:
      Cost of license fees                              7,450          9,851
      Cost of services                                 61,717         60,785
      Sales and marketing                              85,149         83,268
      Product development and engineering              29,468         31,692
      General and administrative                       17,528         17,519
 
        Total costs and expenses                      201,312        203,115
 
     Operating income                                  27,760         23,652
 
     Interest income and expense and other, net         4,228          4,580
     Minority interest                                    (8)             --
 
     Income before income taxes                        31,980         28,232
 
     Provision for income taxes                         9,274          8,752
 
        Net income                                    $22,706        $19,480
 
     Basic net income per share                         $0.26          $0.22
 
     Shares used in computing basic net income
      per share                                        87,350         86,579
 
     Diluted net income per share                       $0.25          $0.21
 
     Shares used in computing diluted net income
      per share                                        90,667         91,553
 
     Note:  The pro forma statement of operations is intended to present the
 Company's operating results excluding purchase accounting adjustments
 associated with acquisitions, primarily Home Financial Network, Inc.  Such
 purchase accounting adjustments would include amortization of developed
 technology, amortization of goodwill and other purchased intangibles,
 in-process research and development costs, and related adjustments for income
 tax provision.
 
 

SOURCE Sybase, Inc.
    EMERYVILLE, Calif., April 19 /PRNewswire/ -- Sybase, Inc. (Nasdaq: SYBS),
 a leading e-Business infrastructure solutions provider, today reported
 first quarter pro forma earnings excluding acquisition related expenses of
 $0.25 per share on a fully diluted basis, up 19 percent over $0.21 per share
 reported in the same period last year.  Reported earnings for the
 first quarter including acquisition related expenses grew 129 percent to
 $0.16 per share on a fully diluted basis compared to $0.07 per share reported
 in the first quarter last year.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001013/SYBSLOGO )
     Net income for the first quarter on a pro forma basis increased 16 percent
 to $22.7 million, compared to $19.5 million for the same period last year.
 Reported net income for the first quarter including acquisition related
 expenses was $14.9 million, compared to $6.7 million in the first quarter
 2000, reflecting an increase of 122 percent.
     Revenues in the first quarter 2001 were $229.1 million, compared with
 $226.8 million reported in 2000.  Total license revenue in the first quarter
 was $98.8 million, versus $110.7 million reported in the same period last
 year.  Services revenue was $130.3 million, compared to $116.1 million in the
 first quarter last year.  Sybase ended the first quarter with approximately
 $342 million in cash and cash investments, after the repurchase of
 approximately $52 million in stock.  Days sales outstanding (DSO) for the
 three months ending March 31, 2001 was 67 days.
     "Sybase has never been in a more competitive position than it is today,
 despite the fact that a generally slowing economy limited our first quarter
 revenue growth," said John Chen, Sybase chairman, CEO and president.  "We
 remain committed to aligning our cost structure with current market
 conditions, and delivering outstanding value to our customers.  With our
 recent acquisition of New Era of Networks, Inc., Sybase will be able to
 deliver a more complete stack of advanced e-Business infrastructure products
 and services to complement our award winning application server and database
 technology, and provide our customers with faster implementation and an even
 greater technology ROI."
     Sybase currently holds approximately 75 percent of the stock of New Era of
 Networks, Inc. (Nasdaq: NEON), and expects to complete its offering for the
 remaining shares of NEON shortly.
     Significant customer wins during the quarter included AOL, AT&T, Comerica,
 ECR Software, Marquette.com, MBNA America Bank, Nielsen Media Research,
 Norfolk Southern Railroad, Northwestern Mutual Life, Novell, Inc., Power
 Measurement Corp., Prometric, State Street Bank, Steelcase, Inc., UBS Warburg,
 and United States Army CECOM.
     The company believes slower economic growth, offset by efficiency gains
 and expanded product and solution offerings, will result in full year
 2001 pro forma earnings per share in the $1.10 per share to $1.20 per share
 range.  Sybase's preliminary full year 2001 revenue expectation is around
 $1.1 billion.
 
     About Sybase, Inc.
     Sybase provides enterprise-class software solutions that fuel e-Business
 and enable access to information anytime, anyplace.  With its industry-leading
 Enterprise Portal (EP), mobile and wireless and vertical market solutions,
 Sybase is one of the largest global independent software companies in the
 world.  For more information, visit the Sybase Web site:
 http://www.sybase.com .
 
     About NEON
     NEON enables e-Business with a suite of products designed to overcome the
 inherent "language barriers" of a company's various applications, systems,
 platforms, and protocols.  By allowing these disparate operations to share
 information and "talk" with one another -- as well as the Internet-businesses
 can automate end-to-end processes seamlessly, profiting from Internet speed
 and increased volume.  For more information, visit the NEON Web site:
 http://www.neonsoft.com .
 
     NOTE:  Sybase and the names of its products mentioned are trademarks of
 Sybase, Inc., or its subsidiaries.  All other company and product names
 mentioned may be trademarks of the respective companies with which they are
 associated.
     Forward Looking Statements:  Statements in this release concerning Sybase,
 Inc.'s targeted 2001 earnings and revenues and the company's future growth,
 earnings, operating results, and prospects, are forward-looking statements
 that involve a number of uncertainties and risks.  Factors that could cause
 actual events or results to differ materially include sales productivity;
 possible disruptive effects of organizational or personnel changes; shifts in
 customer demand; market acceptance of the Company's products and services;
 customer and industry analyst perception of the Company and its technology
 vision and future prospects; rapid technological changes; competitive factors;
 unanticipated delays in scheduled product availability dates; interoperability
 of the Company's products with other leading software application products;
 general business conditions, and market growth rates in the client/server and
 Internet software markets; and other factors described in the Company's
 reports filed with the Securities Exchange Commission, including its
 Annual Report on Form 10-K for the year ended December 31, 2000.
     NEON Acquisition Note:  This release also contains statements regarding
 Sybase's acquisition of NEON, including regarding the effect of this
 transaction on Sybase's earnings and its business, Sybase's expectations
 regarding the success of NEON's products in Sybase's product lines, and
 Sybase's expectations regarding the growth of the e-Business market generally.
 Factors that may affect actual results include the risks inherent in
 completing the acquisition of NEON on a timely basis, if at all, the
 successful integration of NEON into Sybase's business, the, timely development
 and market acceptance of the products and services of the combined companies,
 Sybase's ability to remain competitive in a highly competitive and rapidly
 changing marketplace, and the other risks detailed from time to time in each
 company's periodic reports filed with the Securities and Exchange Commission,
 including those mentioned above.
     Additional Information:  We urge investors and security holders to read
 the following documents, when they become available, because they will contain
 important information about Sybase, NEON, the acquisition and related matters:
 
     -- Sybase's preliminary prospectus, prospectus supplements, final
        prospectus, and tender offer materials.
     -- Sybase's Registration Statement on Form S-4 and Schedule TO containing
        or incorporating by reference such documents and other information.
     -- NEON' Solicitation/Recommendation Statement on Schedule 14D-9.
 
     These documents and amendments to these documents will be filed with the
 U.S. Securities and Exchange Commission.  In addition to these documents,
 Sybase and NEON file annual, quarterly and special reports, proxy statements
 and other information with the SEC.  You may read and copy any reports,
 statements and other information filed by Sybase and NEON at the SEC public
 reference rooms at 450 Fifth Street, N.W., Washington, D.C. 20549 or at the
 SEC's other public reference rooms in New York, New York and Chicago,
 Illinois.  Please call the SEC at 800-SEC-0330 for further information on
 public reference rooms.  Sybase's and NEON's filings with the SEC are also
 available to the public from commercial document-retrieval services and the
 Web site maintained by the SEC at http://www.sec.gov .
 
                      Sybase, Inc. Q1 Selected Highlights
 
     During the First Quarter 2001, Sybase, Inc. continued its market momentum
 to be one of the leading vendors of enterprise e-Business solutions.
 Highlights of the quarter include:
 
     -- Sybase announced its intent to acquire Enterprise Application
 Integration (EAI) vendor NEON software in a stock-for-stock exchange.  The
 inclusion of EAI capabilities into Sybase's portfolio significantly enhances
 the company's e-Business infrastructure strategy.
 http://www.sybase.com/detail/1,3693,1011783,00.html
     -- A global strategic alliance with EDS to deliver comprehensive
 enterprise-level e-Business solutions based of Sybase EP and EDS E.solutions
 consulting services.  http://www.sybase.com/detail/1,3693,1011882,00.html
 
     New product announcements such as:
 
     -- The availability of Sybase's flagship e-Business Solution, Enterprise
 Portal 2.0 (EP 2.0).  EP 2.0 is an extensible portal foundation that reaches
 across traditional corporate boundaries by seamlessly integrating an
 enterprise with its trading partners, as well as e-marketplaces, and mobile
 and wireless users.  http://www.sybase.com/detail/1,3693,1011876,00.html
     -- The availability of PowerDesigner 8.0, featuring both object-modeling
 and data-modeling capabilities.
 http://www.sybase.com/detail/1,3693,1011933,00.html
     -- The availability of Industry Warehouse Solution 3.2; featuring improved
 customer profitability analysis for the telecommunications and insurance
 industries.  http://www.sybase.com/detail/1,3693,1011642,00.html
     -- The availability of the beta version of Sybase Adaptive Server
 Enterprise (ASE) 12.5, the e-Business Database.
 http://www.sybase.com/detail/1,3693,1011518,00.html
 
     Key new partnerships including:
 
     -- PricewaterhouseCoopers which formed a partnership with iAnywhere
 Solutions to deliver Mobile SAP solutions
 http://www.sybase.com/detail/1,3693,1011899,00.html.
     -- Partnerships for EAServer, including:  Sims Computing, which integrated
 EAServer with its job scheduling software; Inspired Design, an ASP offering
 sales and CRM programs to financial institutions.
 http://www.sybase.com/detail/1,3693,1011833,00.html
 http://www.sybase.com/detail/1,3693,1011565,00.html
 
     iAnywhere solutions made inroads in key verticals including retail and
 healthcare; providing mobile and wireless solutions to ETS, Inc., The Pinnacle
 Corporation, PixelPoint, Creative Solutions, drugmagnet.ca, MediNotes and
 MEDS.  http://www.sybase.com/detail/1,3693,1011630,00.html
 http://www.sybase.com/detail/1,3693,1011469,00.html
 
     Financial Fusion, a wholly-owned subsidiary of Sybase, was ranked as the
 #1 provider of online banking solutions for large financial institutions by
 Celent Communications.  http://www.sybase.com/detail/1,3693,1012262,00.html .
 
 
                                  Sybase, Inc.
                     Condensed Consolidated Balance Sheets
                                  (Unaudited)
 
 
      (In thousands, except share and               March 31,       Dec. 31,
       per share data)                                   2001           2000
 
     Current assets:
      Cash and cash equivalents                      $234,146       $235,588
      Short-term investments                           57,748         78,386
        Total cash, cash equivalents
         and short-term cash investments              291,894        313,974
 
      Accounts receivable, net                        169,303        213,224
      Deferred income taxes                            28,566         28,594
      Other current assets                             21,450         18,321
 
        Total current assets                          511,213        574,113
 
     Long-term cash investments                        49,796         40,638
     Property, equipment and improvements, net         57,206         59,296
     Deferred income taxes                             19,020         19,020
     Capitalized software, net                         35,216         33,794
     Goodwill and other purchased intangibles, net    143,399        147,513
     Other assets                                      39,238         40,666
 
       Total assets                                  $855,088       $915,040
 
     Current liabilities:
      Accounts payable                                $18,277        $16,094
      Accrued compensation and related expenses        39,412         55,237
      Accrued income taxes                             40,736         38,679
      Other accrued liabilities                        82,207         99,641
      Deferred revenue                                210,739        206,976
 
        Total current liabilities                     391,371        416,627
 
     Other liabilities                                  5,781          5,795
     Minority interest                                  1,873          1,866
 
     Stockholders' equity:
      Preferred stock, $0.001 par value, 8,000,000
       shares authorized; none issued or outstanding       --             --
 
      Common stock, $0.001 par value, 200,000,000
       shares authorized; 90,546,392 shares issued
       (2000 - 90,546,392)                                 91             91
      Additional paid-in capital                      582,972        582,972
      Accumulated earnings (deficit)                      949        (6,940)
      Other comprehensive loss                       (31,055)       (22,305)
      Less: Cost of treasury stock
       (4,437,366 shares and 2000 - 2,889,932)       (96,894)       (63,066)
 
        Total stockholders' equity                    456,063        490,752
 
       Total liabilities and stockholders' equity    $855,088       $915,040
 
                                  Sybase, Inc.
                Consolidated Statement of Operations by Segment
                   For the Three Months Ended March 31, 2001
                                  (Unaudited)
 
      (In thousands)     Enterprise      Internet    iAnywhere      Business
                          Solutions  Applications   Solutions,  Intelligence
     Revenues:             Division      Division         Inc.      Division
 
      License fees
       Enterprise           $55,652           $19         $162            $4
       Internet Technology    6,616        10,883           10            --
       Mobile and Embedded    9,624             3        9,765            --
       E-Finance                350            --           --            --
       Datawarehouse          3,213            --           --           194
        Subtotal license
         fees                75,455        10,905        9,937           198
       Intersegment license
        revenues                 47         5,453        8,056         2,677
       Total license fees    75,502        16,358       17,993         2,875
 
      Services              125,911           138          535           466
       Intersegment service
        revenues                277            --        2,154           600
        Total services      126,188           138        2,689         1,066
 
      Total revenues        201,690        16,496       20,682         3,941
 
     Total allocated costs
      and expenses before
      amortization of
      goodwill and other
      purchased intangibles,
      write off of in
      process research and
      development, and
      amortization of
      purchased technology  169,087        14,784       15,580         8,685
 
     Operating income (loss)
      before amortization of
      goodwill and other
      purchased intangibles,
      write off of in
      process research and
      development and
      amortization of
      purchased technology   32,603         1,712        5,102       (4,744)
 
     Amortization of
      goodwill and other
      purchased intangibles   1,326            --           10         1,090
     Amortization of
      purchased technology      393            --           --            --
 
     Operating income (loss)
      before unallocated
      costs                 $30,884        $1,712       $5,092      $(5,834)
 
     Other unallocated
      expenses
     Operating income after
      unallocated expenses
 
     Interest income and
      expense and other, net
     Minority interest
 
     Income before
      income taxes
 
     Provision for
      income taxes
 
     Net income
 
     Basic net income
      per share
 
     Shares used in
      computing basic net
      income per share
 
     Diluted net income
      per share
 
     Shares used in
      computing diluted net
      income per share
 
                                  Sybase, Inc.
                Consolidated Statement of Operations by Segment
                   For the Three Months Ended March 31, 2001
                                    (Unaudited)
 
      (In thousands)
                                   Financial                  Consolidated
     Revenues:                  Fusion, Inc.    Eliminations         Total
 
      License fees
       Enterprise                        $--             $--       $55,837
       Internet Technology                --              --        17,509
       Mobile and Embedded                --              --        19,392
       E-Finance                       2,297              --         2,647
       Datawarehouse                      --              --         3,407
        Subtotal license fees          2,297              --        98,792
       Intersegment license
        revenues                         205        (16,438)            --
        Total license fees             2,502        (16,438)        98,792
 
     Services                          3,230              --       130,280
 
      Intersegment service
       revenues                          361         (3,392)            --
        Total services                 3,591         (3,392)       130,280
 
      Total revenues                   6,093        (19,830)       229,072
 
     Total allocated costs
      and expenses before
      amortization of
      goodwill and other
      purchased intangible
      write off of in
      process research and
      development, and
      amortization of
      purchased technology            17,101        (19,830)       205,407
 
     Operating income (loss)
      before amortization
      goodwill and other
      purchased intangible
      write off of in
      process research and
      development and
      amortization of
      purchased technology          (11,008)              --        23,665
 
     Amortization of
      goodwill and other
      purchased intangibles            4,747              --         7,173
     Amortization of
      purchased technology               750              --         1,143
 
 
     Operating income (loss)
      before unallocated
      costs                        $(16,505)             $--       $15,349
 
     Other unallocated
      expenses                                                     (4,095)
     Operating income after
      unallocated expenses                                          19,444
 
     Interest income and
      expense and other, net                                         4,228
     Minority interest                                                 (8)
 
     Income before
      income taxes                                                  23,664
 
     Provision for
      income taxes                                                   8,756
 
     Net income                                                    $14,908
 
     Basic net income
      per share                                                      $0.17
 
     Shares used in
      computing basic net
      income per share                                              87,350
 
     Diluted net income
      per share                                                      $0.16
 
     Shares used in
      computing diluted net
      income per share                                              90,667
 
                                    Sybase, Inc.
                  Consolidated Statements of Operations by Segment
                     For the Three Months Ended March 31, 2001
                        Proforma Without Purchase Accounting
                                    (Unaudited)
 
     (In thousands)      Enterprise      Internet    iAnywhere      Business
                          Solutions  Applications   Solutions,  Intelligence
     Revenues:             Division      Division         Inc.      Division
 
      License fees
       Enterprise           $55,652           $19         $162            $4
       Internet Technology    6,616        10,883           10            --
       Mobile and Embedded    9,624             3        9,765            --
       E-Finance                350            --           --            --
       Datawarehouse          3,213            --           --           194
        Subtotal license
         fees                75,455        10,905        9,937           198
       Intersegment license
        revenues                 47         5,453        8,056         2,677
        Total license fees   75,502        16,358       17,993         2,875
 
     Services               125,911           138          535           466
      Intersegment service
       revenues                 277             -        2,154           600
        Total services      126,188           138        2,689         1,066
 
       Total revenues       201,690        16,496       20,682         3,941
 
     Total allocated
      costs and expenses    169,087        14,784       15,580         8,685
 
     Operating income
      (loss) before
      unallocated expenses  $32,603        $1,712       $5,102      $(4,744)
 
     Other unallocated
      expenses
 
     Operating income
      after unallocated
      expenses
 
     Interest income and
      expense and other,
      net
     Minority interest
 
     Income before income
      taxes
 
     Provision for income
      taxes
 
     Net income
 
     Basic net income
      per share
 
     Shares used in
      computing basic
      net income per share
 
     Diluted net income
      per share
 
     Shares used in
      computing diluted
      net income per share
 
                                    Sybase, Inc.
                  Consolidated Statements of Operations by Segment
                     For the Three Months Ended March 31, 2001
                        Proforma Without Purchase Accounting
                                    (Unaudited)
 
     (In thousands)
                                   Financial                  Consolidated
     Revenues:                  Fusion, Inc.     Elimination         Total
 
      License fees
       Enterprise                        $--             $--       $55,837
       Internet Technology                --              --        17,509
       Mobile and Embedded                --              --        19,392
       E-Finance                       2,297              --         2,647
       Datawarehouse                      --              --         3,407
        Subtotal license
         fees                          2,297              --        98,792
       Intersegment license
        revenues                         205        (16,438)            --
        Total license fees             2,502        (16,438)        98,792
 
     Services                          3,230              --       130,280
      Intersegment service
       revenues                          361         (3,392)            --
      Total services                   3,591         (3,392)       130,280
 
     Total revenues                    6,093        (19,830)       229,072
 
     Total allocated
      costs and expenses              17,101        (19,830)       205,407
 
     Operating income
      (loss) before
      unallocated expenses         $(11,008)             $--       $23,665
 
     Other unallocated
      expenses                                                     (4,095)
 
     Operating income
      after unallocated
      expenses                                                      27,760
 
     Interest income and
      expense and other,
      net                                                            4,228
     Minority interest                                                 (8)
 
     Income before income
      taxes                                                         31,980
 
     Provision for income
      taxes                                                          9,274
 
     Net income                                                    $22,706
 
     Basic net income
      per share                                                      $0.26
 
     Shares used in
      computing basic
      net income per share                                          87,350
 
     Diluted net income
      per share                                                      $0.25
 
     Shares used in
      computing diluted
      net income per share                                          90,667
 
     Note:  The pro forma statement of operations is intended to present the
 Company's operating results excluding purchase accounting adjustments
 associated with acquisitions, primarily Home Financial Network, Inc.  Such
 purchase accounting adjustments would include amortization of developed
 technology, amortization of goodwill and other purchased intangibles,
 in-process research and development costs, and related adjustments for income
 tax provision.
 
                                  Sybase, Inc.
                  Condensed Consolidated Statements of Income
                                  (Unaudited)
 
                                                Three Months Ended March 31,
      (In thousands, except per share data)            2001           2000
 
     Revenues:
      License fees                                    $98,792       $110,668
      Services                                        130,280        116,099
 
       Total revenues                                 229,072        226,767
 
     Costs and expenses:
      Cost of license fees                              8,593         10,827
      Cost of services                                 61,717         60,785
      Sales and marketing                              85,149         83,268
      Product development and engineering              29,468         31,692
      General and administrative                       17,528         17,519
      Amortization of goodwill and other
       purchased intangibles                            7,173          7,308
      In-process research and development                  --          8,000
 
       Total costs and expenses                       209,628        219,399
 
     Operating income                                  19,444          7,368
 
     Interest income and expense and other, net         4,228          4,580
     Minority interest                                    (8)             --
 
     Income before income taxes                        23,664         11,948
 
     Provision for income taxes                         8,756          5,257
 
        Net income                                    $14,908         $6,691
 
     Basic net income per share                         $0.17          $0.08
 
     Shares used in computing basic net income
      per share                                        87,350         86,579
 
     Diluted net income per share                       $0.16          $0.07
 
     Shares used in computing diluted net income
      per share                                        90,667         91,553
 
                                  Sybase, Inc.
                  Condensed Consolidated Statements of Income
                                  (Unaudited)
                      Proforma Without Purchase Accounting
 
                                                Three Months Ended March 31,
      (In thousands, except per share data)            2001           2000
 
     Revenues:
      License fees                                    $98,792       $110,668
      Services                                        130,280        116,099
 
        Total revenues                                229,072        226,767
 
     Costs and expenses:
      Cost of license fees                              7,450          9,851
      Cost of services                                 61,717         60,785
      Sales and marketing                              85,149         83,268
      Product development and engineering              29,468         31,692
      General and administrative                       17,528         17,519
 
        Total costs and expenses                      201,312        203,115
 
     Operating income                                  27,760         23,652
 
     Interest income and expense and other, net         4,228          4,580
     Minority interest                                    (8)             --
 
     Income before income taxes                        31,980         28,232
 
     Provision for income taxes                         9,274          8,752
 
        Net income                                    $22,706        $19,480
 
     Basic net income per share                         $0.26          $0.22
 
     Shares used in computing basic net income
      per share                                        87,350         86,579
 
     Diluted net income per share                       $0.25          $0.21
 
     Shares used in computing diluted net income
      per share                                        90,667         91,553
 
     Note:  The pro forma statement of operations is intended to present the
 Company's operating results excluding purchase accounting adjustments
 associated with acquisitions, primarily Home Financial Network, Inc.  Such
 purchase accounting adjustments would include amortization of developed
 technology, amortization of goodwill and other purchased intangibles,
 in-process research and development costs, and related adjustments for income
 tax provision.
 
 SOURCE  Sybase, Inc.