PR 11/01 0705 SYNCRONYS REPORTS RAPID NET REVENUE RAMP-UP TO MORE Summary of major announcements made today: -- Quarterly revenues of $10.5 million and earnings of 29 cents per share represent exceptional ramp-up of financial results. -- SoftRAM95 expected to contribute to strong revenues and earnings for full fiscal year ending June 30, 1996. -- PC Magazine lists SoftRAM95 top selling retail software in September. -- New product program on track to contribute to financial results late in FY`96. -- Low return rate reported by sellers indicates good customer satisfaction. CULVER CITY, Calif., Nov. 1 /PRNewswire/ -- Syncronys Softcorp (OTC: SYCR) today reported rapid ramp up of revenue to more than $10 million and earnings to 29 cents per share during the company's first fiscal quarter ended September 30, 1995, due to broad demand for Syncronys' flagship product SoftRAM95. The company said continuing demand for SoftRAM95 is expected to produce strong contributions to revenues and earnings throughout the fiscal year ending June 30, 1996, although management cautioned not to expect sales levels to match first quarter results. Also, the company reported that it expects to launch more than one major new product in the coming months which will begin contributing to financial results late in the fiscal year. Market results In its November 7, 1995 edition, PC Magazine listed SoftRAM95 as the #1 selling personal computer retail software. PC Magazine's list ranks PC business programs according to the total number of copies shipped to over 12,000 stores and resellers in the week ending September 9, 1995. Syncronys has shipped more than 650,000 units of SoftRAM95 and its predecessor, SoftRAM, since the product's release in May 1995. Financial results Net revenues for the quarter were $10,543,174 versus pro forma revenues of $189,131 in the first fiscal period a year ago. Net income for the quarter, which includes an additional one-time reserve for returns, was $4,122,957, or $0.29 cents per share, versus a pro forma loss of $50,936, or $0.00 per share, for the quarter ended September 30, 1994. Product performance The company also announced today that it expects the results of a commissioned evaluation of SoftRAM95 by an independent testing company, XXCAL Labs, Inc. of Los Angeles, CA, details of which are expected to be released shortly. "Preliminary results from XXCAL Labs, Inc. testing laboratories indicate that the Windows 3.1(TM) version of SoftRAM95 offers robust and verifiable improvements for users who need more memory to run the application," said Operations Manager Tom Bonner. Since announcing on October 20, 1995, that a problem exists with the Windows95(TM) version of SoftRAM95, Syncronys has not experienced any significant increase in the rate of product returns. The distribution channel has reported that, since its introduction, SoftRAM95 has had a return rate that is markedly below the industry average for PC utility software programs. Work on the upgrade to SoftRAM95 for Windows 95(TM) that overcomes the previously-announced problem continues on schedule. Source of growth President and Chief Executive Officer Rainer Poertner said, "The strong demand for SoftRAM95 and the lower than average return rate we are experiencing point toward Syncronys' continued rapid growth. We have experienced challenges from competitors and others in the first months of our existence as a public company which I believe, based on these results, we have clearly overcome." He said, "Syncronys, after only a few months of existence, has emerged as a significant participant in the marketplace with one market- leading software product, SoftRAM95. In the coming months, we will be introducing other products as we build on the success SoftRAM95 has provided." Financial strength The company reported that operating income for the quarter was $6.9 million and that this strong performance increased Syncronys' current assets position to $10.9 million at September 30, 1995. Also at that time, the company reported total assets increased to $11.1 million and shareholders' equity increased to $6.5 million. Poertner said, "We are in an excellent position to take advantage of immediate opportunities and have broad flexibility, either internally or through additional financings, to develop funding for new opportunities as they emerge." SoftRAM95 is an innovative software product that effectively doubles the amount of memory available to Windows applications. Unique among memory products, SoftRAM95 uses proprietary compression technology that actually enhances physical RAM. SoftRAM95 works with any 386, 486 or Pentium PC, desktop or notebook and offers additional features over the best-selling original version of SoftRAM. Headquartered in Culver City, California, Syncronys Softcorp is a leader in the business of providing memory-enhancement and other performance-improving software for PCs. Syncronys' diversified complement of software products are sold through distribution channels worldwide. SYNCRONYS SOFTCORP CONSOLIDATED STATEMENT OF OPERATIONS For the Three Months Ended September 30 1995 1994 Net Revenues $10,543,174 $189,131 Cost of Revenues $1,304,175 $10,254 Gross Profit $9,238,999 $178,877 Operating Expenses: Research & Development $224,403 $101,399 Marketing & Selling $1,796,366 $78,793 General & Administrative $359,392 $49,641 Total Operating Expenses $2,380,161 $229,833 Operating Income $6,858,838 ($50,956) Other income and expenses $12,757 $20 Earnings before income taxes $6,871,595 ($50,936) Provision for income taxes $2,748,638 $0 Net Income $4,122,957 ($50,936) Net Income per Share $0.29 $0.00 Shares Used in Computing Net Earnings per Share 14,411,159 0 SYNCRONYS SOFTCORP CONSOLIDATED BALANCE SHEET September 30, 1995 Current Assets: Cash and cash equivalents $2,545,486 Accounts receivable (net) 7,342,930 Inventories 45,000 Deferred tax asset 230,000 Prepaid expenses and other current assets 734,012 Total current assets 10,897,486 Net property and equipment at cost 114,400 Other assets 130,200 $11,142,028 Current Liabilities: Accounts payable 899,058 Accrued expenses 678,603 Taxes payable 2,796,900 Current portion of long term debt 107,059 Total current liabilites 4,481,620 Long Term Debt 181,139 Shareholders' Equity 1,988,915 Common Stock 4,490,354 Retained Earnings 6,479,269 $11,142,028 -0- 11/1/95 /CONTACT: Rainer Poertner, President of Syncronys, 310-842-9203; or Timothy C. Kent, News Media Information, or Moira Conlon, Analyst/Broker Contact, of The Financial Relations Board, Inc., 310-442-0599/ (SYCR) CO: Syncronys Softcorp ST: California IN: CPR SU: ERN