Filing under Rule 425 under
the Securities Act of 1933
and deemed filed under Rule 14a-12
of the Securities Exchange Act of 1934
Filing by: BROKAT Infosystems AG
Subject Company: Blaze Software, Inc.
SEC File No. of Blaze: 000-29817
THE NEW BROKAT: BUSINESS AND FINANCIAL PERSPECTIVES
BROKAT, BLAZE AND GemStone JOIN FORCES
[graphic omitted]
June 20, 2000
<PAGE>
Filing under Rule 425 under
the Securities Act of 1933
and deemed filed under Rule 14a-12
of the Securities Exchange Act of 1934
Filing by: BROKAT Infosystems AG
Subject Company: Blaze Software, Inc.
SEC File No. of Blaze: 000-29817
Filings with the US SEC
BROKAT plans to file a Registration Statement on Form F-4 with the US SEC in
connection with the Blaze transaction. The Form F-4 will contain an exchange
offer prospectus, a proxy statement for Blaze's special meeting and other
documents. Blaze plans to mail the proxy statement/prospectus contained in the
Form F-4 to its stockholders. The Form F-4 and proxy statement/prospectus will
contain important information about BROKAT, Blaze, the Blaze transaction and
related matters. Investors and stockholders should read the proxy
statement/prospectus and the other documents filed with the US SEC in connection
with the Blaze transaction carefully before they make any decision with respect
to the Blaze transaction. A copy of the merger agreement with respect to the
Blaze transaction has been filed by Blaze as an exhibit to its Form 8-K dated
June 20, 2000. The Form F-4, the proxy statement/prospectus, the Form 8-K and
all other documents filed with the US SEC in connection with the transaction
will be available when filed free of charge at the US SEC's web site at
www.sec.gov. In addition, the proxy statement/prospectus, the Form 8-K and all
other documents filed with the US SEC in connection with the Blaze transaction
will be made available to investors free of charge by calling or writing to:
Brokat Infosystems AG
Silke Simon
Head of Investor Relations
Industriestr.3
70565 Stuttgart, Germany
Phone: +49-711-78844 298
Email: [email protected]
Blaze Software, Inc.
Gary Shroyer
Investor Relations Department
150 Almaden Blvd.
San Jose, CA 951134
(408) 535-1757
In addition to the Form F-4, the proxy statement/prospectus and the other
documents filed with the US SEC in connection with the Blaze transaction, Blaze
is obligated to file
<PAGE>
annual, quarterly and special reports, proxy statements and other information
with the US SEC. You may read and copy any reports, statements and other
information filed with the US SEC at the US SEC's public reference rooms at 450
Fifth Street, N.W., Washington, D.C. 20549 or at the other public reference
rooms in New York, New York and Chicago, Illinois. Please call the US SEC at
1-800-SEC-0330 for further information on public reference rooms. Filings with
the US SEC also are available to the public from commercial document-retrieval
services and at the web site maintained by the US SEC at http//www.sec.gov.
Solicitation of Proxies; Interests of Certain Persons in the Transaction
The identity of the people who, under SEC rules, may be considered "participants
in the solicitation" of Blaze stockholders in connection with the proposed
merger, and a description of their interests, is available in an SEC filing on
Schedule 14A made by Blaze on June 21, 2000.
Forward-Looking Statements
This release contains statements that constitute forward looking statements
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward looking statements are statements other than historical information or
statements of current condition. These statements appear in a number of places
in this release and include statements concerning the parties' intent, belief or
current expectations regarding future events, including: the transactions; other
transactions to which the parties may be a party; competition in the industry;
changing technology and future demand for products; changes in business strategy
or development plans; ability to attract and retain qualified personnel;
worldwide economic and business conditions; regulatory, legislative and judicial
developments; financing plans; and trends affecting the parties' financial
condition or results of operations. Forward looking statements are not
guarantees of future performance and involve risks and uncertainties, and actual
results may differ materially from those in the forward looking statements as a
result of various factors. Although management of the parties believe that their
expectations reflected in the forward looking statements are reasonable based on
information currently available to them, they cannot assure you that the
expectations will prove to have been correct. Accordingly, you should not place
undue reliance on these forward looking statements. In any event, these
statements speak only as of the date of this release. The parties undertake no
obligation to revise or update any of them to reflect events or circumstances
after the date of this release, or to reflect new information or the occurrence
of unanticipated events. Readers are referred to Blaze's Annual Report to
Stockholders and BROKAT's and Blaze's other filings with the US SEC for a
discussion of these and other important risk factors concerning the parties and
their respective operations.
<PAGE>
THREE LEADING E-INFRASTRUCTURE PLAYERS JOIN FORCES
CREATING AN INTERNATIONAL e-BUSINESS POWERHOUSE
Brokat acquires Blaze and GemStone
We will be deliver an integrated e-Services Platform
o Flexible, future-proof, and customer-focused e-Business solutions with
shorter time-to-market for Services providers
o Partner readiness through improved functionality and industry standard
compliance
CRM-enabling
J2EE-compliance
[graphic omitted]
2
<PAGE>
WHO IS BROKAT? AN OVERVIEW
Brokat mission
Providing a seamless fabric for instant e-Business
[graphic omitted]
Main products
e-Services Platform Twister: infrastructure platform to build e-Business
solutions
Application Packages for specific verticals (e-Finance, m-Commerce)
Main customer segments: Financial institutions (over 2000 customers)
Revenue CY 99 : USD 50.2 million (+160%)
Market cap. 6/2000 : ~USD 3 billion +
Number of employees : ~740
Headquarters : Stuttgart, Germany
[graphic omitted]
3
<PAGE>
BROKAT CUSTOMERS
Who's Who in Internet Banking and e-Commerce
e-Banking / e-Brokerage
[graphic omitted]
e-Commerce
[graphic omitted]
4
<PAGE>
WORLDWIDE PARTNER NETWORK
Brokat and His Tornado Partners
[graphic omitted]
5
<PAGE>
THE PLAYERS: EACH RESPECTED LEADER IN ITS FIELD OF e-BUSINESS
Overview Blaze
Blaze Mission
Supplying the leading infrastructure for rules-based application development and
rule runtime execution
[graphic omitted]
Main product
Blaze Advisor: Rule-based software infrastructure to build personalized
e-Business solutions
Main customer segments: Insurance, banking, telecommunications (more than 200
customers)
Revenue FY 99: USD 18.2 million* (+100%)
Market cap. 6/2000: USD 300+ million
Number of employees: 227
Headquarters: San Jose, CA USA
History: Founded in 1985 as Neuron Data
Advisor 1.0 1998
Renamed in 1999
IPO in March 2000
*FY end March 2000
6
<PAGE>
BLUECHIP CUSTOMERS AND PARTNERS IN THE FINANCIAL COMMUNITY
Blaze Software
Selected Clients [graphic omitted]
Selected Partners [graphic omitted]
7
<PAGE>
THE PLAYERS: EACH RESPECTED LEADER IN ITS FIELD OF e-BUSINESS
Overview GemStone
GemStone mission
GEMSTONE
[graphic omitted]
Supplying the most technologically advanced software infrastructure for the new
B2B economy
Main product
GemStone/J: Enterprise class Java application server for adaptable e-Business
solutions
Main customer segments: Financial Institutions, Telecommunications, B2B e-
Marketplaces and dPortals
Revenue FY 99: : USD 23,6 million
Market cap. 6/2000 : not publicly traded
Number of employees : 170 +
Headquarters: : Beaverton (Portland) OR, USA
History : founded in 1982
first Java product, GemStone/J
1.0, shipped 1997
8
<PAGE>
BLUECHIP CUSTOMERS AND PARTNERS
GemStone
Selected Clients
[graphic omitted]
Selected Partners
[graphic omitted]
9
<PAGE>
ANALYSTS STATEMENTS ON BLAZE AND GEMSTONE
BLAZESOFTWARE
"...The design philosophy here represents a significant departure from other
personalization vendors we've seen. While other vendors talk about business
rules based on customers, they often ignore the existing business rules a
company has already established in their pre-"e" existence. Essentially, other
personalization vendors are asking businesses to craft new, customer-centric
web-based rules while Blaze software encourages businesses to move apply
existing business rules to the new medium.
Appain
Web Personalization Report
www.appaincorp.com
[graphic omitted]
GEMSTONE
"GemStone/J is a strong product for B2B and other forms of Internet commerce.
The product's combination of a strong platform for logic development,
architecture for transaction and data management on the middle tier, a complete
security model, and integration of services under the Enterprise Java standards
stand out in this comparison...
Anne Thomas, Senior Analyst
Patricia Seybold Group
[graphic omitted]
10
<PAGE>
THE MARKET MOVES TOWARDS THE INTEGRATED PLATFORM
Application Development and Execution
o Transaction Processing
o Back-Office Integration
o Multi-Channel
o Messaging
o Security
o Standard Compliance
o (EJB/J2EE)
[graphic omitted]
"The vendors leading the pack today are those capable of covering the entire
scope of Web application development, including value-added components and
custom application development."
E-Business: Reshaping the Application Server Market? TechMetrix, June '00
o User Profiling/Customer Tracking
o Content Management
o e-Business Intelligence
o Message Notification
o Payment
o Teleweb
o Personalization (Business Rule Automation)
11
<PAGE>
EVOLUTION OF e-SERVICES PLATFORMS - GROWING REQUIREMENTS
"J2EE's distributed and object-oriented capability tend to be better suited to
large-scale projects. As a result, mind shares favor a J2EE-compliance
application server."
"e-business: Reshaping the Application Server Market? TechMetrix, Jun. '00
[graphic omitted] "EJB and CRM have been major trends in 2000.
Personalization..., has been a key enabling technology for bringing e-commerce
and CRM together. It will be important to be able to personalize consistently
across different applications as well as across all channels.
GigaGroup
12
<PAGE>
AIMING TO MOVE TO THE FOREFRONT IN e-SERVICES PLATFORMS
Improve Brokat's ability to execute
GemStone is a leading provider of EJB Enterprise Application Server
o Local platform sales/marketing in the US
o Installed base and ISV/IHV relationships
o Large Developer's community (www.javasuccess.com)
Blaze is a leading provider of rules based software infrastructure for
personalization and CRM
o Major EAS players as OEMs for CRM/Personalization
o Partnerships with CRM vendors (Autonomy, Chordiant, Click Action, ...)
o Local platform sales/marketing in the U.S.
Position of Brokat, Blaze and GemStone in the new contest of players
[graphic omitted]
Source: Brokat, Blaze, Gartner
13
<PAGE>
ENRICHMENT OF E-SERVICES PLATFORM
BROKAT TWISTER: INFRASTRUCTURE FOR THE e-FRONT OFFICE
[Blaze logo]
Blaze Advisor: Rule Engine that allows personalization
[graphic omitted]
[GemStone logo]
GemStone/J:
J2EE-based
Enterprise Application Server
14
<PAGE>
REASONS FOR THE ACQUISITIONS: BECAUSE OF CUSTOMER BENEFITS...
Improved customer attractiveness
GemStone:
o Investment protection through industry-standard compliance
o Faster time-to-market via lower Java entry barrier & best practices
(www.javasuccess.com)
o Lower cost of ownership through more efficient server architecture
(Extreme Clustering(TM))
Blaze:
Rapidly changing applications due to volatile market conditions or customer
behavior
o Improved Customer Relationship Management across all channels
o Cost reduction through business process automation (intelligent
e-Self-Services)
Brokat:
o CORBA Enterprise Application Server
o Multi-Channel Customer Interaction
o Enterprise Application Integration
o Business Services (Payment, Collaboration)
[graphic omitted]
15
<PAGE>
...AS WELL AS PARTNERS
"System integrators need building blocks to conciliate productivity and
openness. Vendors who provide business solutions above their application server
have put together the winning cocktail."
-TechMetrix, Nov. '99
Improved partner attractiveness
GemStone:
o Improved completeness and openness through J2EE industry-standard
support
o Large developer's community for steep learning curve (knowledge
transfer) and best practices (www.javasuccess.com)
Blaze:
o Enhanced completeness of platform through CRM functionality (new CRM
scenarios can be addressed)
o Frameworks for ASP models
Brokat:
o CORBA Enterprise Application Server
o Multi-Channel Customer interaction
o Enterprise Application Integration
o Business Services (Payment, Collaboration)
[graphic omitted]
16
<PAGE>
MARKETING GOAL: STRENGTHEN GLOBAL BRAND BY US CORE MARKET
PRESENCE
Induce Strengthening of Global Brand
Strengthen US Core Market Presence
[graphic omitted]
17
<PAGE>
COMBINING BROKAT, GemStone & BLAZE FIELD ORGANIZATIONS
Challenging growth opportunities
o One strong US field organization
o Increasing customer base
o Enlarged product portfolio and the offering of an integrated platform
solution
o An-organic growth by combined skilled resources
Portland
San Jose
Atlanta
Brokat US Field Organization
o Sales
o Professional Services
o Customer Support
o Marketing
[graphic omitted]
18
<PAGE>
FIELD ORGANIZATION GOALS: UTILIZE OF SYNERGIES IN COMBINED OPERATIONS
Growing market share by consolidating market
Higher market penetration due to better customer access in combined customer
base
Blaze
Brokat
GemStone
Faster growth of scarce human resources
Increase of human capital by knowledge combination and exchange
[graphic omitted]
19
<PAGE>
CONSOLIDATED INCOME STATEMENT BROKAT
DMm CY*1998 CY*1999
--------------------------------------------------------------------------------
Revenues 36.1 94.0
Cost of sales (19.1) (43.9)
--------------------------------------------------------------------------------
Gross Profit 17.0 50.2
--------------------------------------------------------------------------------
Selling expenses (25.1) (51.0)
General and administrative expenses (6.6) (19.1)
Research and development (6.9) (17.6)
--------------------------------------------------------------------------------
Operating result (21.6) (37.6)
--------------------------------------------------------------------------------
Other income, net 5.8 3.6
--------------------------------------------------------------------------------
EBITDASO (14.1) (28.9)
--------------------------------------------------------------------------------
Amortization costs - (19.5)
Cost of employee participation - (28.6)
--------------------------------------------------------------------------------
EBIT (15.8) (82.0)
--------------------------------------------------------------------------------
Net interest 0.4 (0.8)
Income taxes, net - (0.2)
Extraordinary loss (4.2) -
--------------------------------------------------------------------------------
Net Loss (19.6) (83.1)
--------------------------------------------------------------------------------
* CY 98 and CY 99 numbers are
unaudited because of change
of fiscal year and are
reported for comparison
purposes only.
20
<PAGE>
BROKAT: REVENUE DEVELOPMENT BY SEGMENT
[GRAPHIC OMITTED]
21
<PAGE>
BROKAT: CONSOLIDATED BALANCE SHEET
March 31, 2000
DM'000
------
Assets
Current assets 256,630
Fixed assets 11,195
Intangible assets 169,928
Financial assets 5,309
Deferred tax assets 2,433
Total assets 445,495
Liabilities & Shareholders' Equity
Current Liabilities 44,278
Long-term debt 248,552
Shareholders equity 152,302
Total liabilities and shareholders equity 445,495
22
<PAGE>
BROKAT: EMPLOYEES
BUILD UP OF AN INTERNATIONAL EMPLOYEE STRUCTURE
March 2000
----------
BROKAT Germany* 412
BROKAT Europe 59
BROKAT Australasia 59
BROKAT USA 113
BROKAT total 643
Finance & Organization 95
Research & Development 201
Customer & Professional Service 195
Marketing/Product 152
Management/Sales
* Including Me Technology that was merged in May 2000
23
<PAGE>
Blaze Financial Statements FY 1998/99 FY 1999/2000
FY end March - 000's of US$
Total Total
----- -----
Revenues
Product licenses 3,722 8,486
Service/other 5,332 9,710
Total revenues 9,054 18,196
Cost of revenues 2,932 6,875
Gross Profit 6,122 11,321
Operating expenses 11,634 37,490
Operating income (5,512) (26,169)
EBITDASO* (5,512) (9,769)
Interest income & other (249) (102)
Pretax income (5,761) (26,271)
Taxes 87 153
Net Income (5,848) (26,424)
* Excludes nil and US $16.4 M in stock-based compensation amortization
recognized in FY1999 and FY 2000, respectively.
24
<PAGE>
BLAZE: REVENUE ANALYSIS
1999/00 revenues by product 1999/00 revenues by geography
[Graphic Omitted] [Graphic Omitted]
Service/other 53% France 3%
Japan 5%
Product licenses 47% Germany 4%
UK 5%
US 83%
25
<PAGE>
BLAZE: SELECTED BALANCE SHEET ITEMS AS OF MARCH 31, 2000
US$ Millions 31/03/00
Cash 69.3
Current Assets 75.3
Total Assets 78.4
Total Debt 0.4
26
<PAGE>
BLAZE: EMPLOYEE STRUCTURE
BLAZE USA
o R&D : 41
o Sales & Marketing : 62
o Professional Serv. : 50
o G&A : 37
o BLAZE UK : 15
o BLAZE France : 4
o BLAZE Germany : 8
o BLAZE Japan : 8
o BLAZE Australia : 2
Total 227
27
<PAGE>
Gemstone: Historical P&L
Gemstone financial statements 1998 1999
FY end Dec. '000s of US$
Revenues
Licenses
Java 3,934 6,810
Smalltalk 6,629 5,350
Total Licenses 10,563 12,160
Services
Java 2,218 4,186
Smalltalk 8,318 7,294
Total Services 10,536 11,480
Total Revenues 21,099 23,640
Cost of Revenues 6,685 7,098
Gross profit 14,414 16,542
Operating expenses 18,301 20,695
Operating income (3,887) (4,153)
EBITDASO (2,786) (3,240)
Interest income & other (52) (217)
Pretax income (3,939) (4,370)
Taxes (77) (166)
Net Income (4,016) (4,536)
28
<PAGE>
GEMSTONE: REVENUE ANALYSIS
1999 Revenues by product 1999 Revenues by geography
[Graphic Omitted] [Graphic Omitted]
Service/other 49% International 17%
Product licenses 51% US 83%
o A presence mainly in the United States
29
<PAGE>
GEMSTONE: SELECTED BALANCE SHEET ITEMSAS OF MARCH 31, 2000
US$ Millions 31/03/00
Cash 0.5
Current Assets 7.8
Total Assets 9.0
Total Debt 6.5
30
<PAGE>
GEMSTONE: EMPLOYEE STRUCTURE
o R&D : 66
o Sales & Marketing : 51
o Professional Services : 35
o G&A : 21
Total : 173
31
<PAGE>
PRO-FORMA REVENUE ANALYSIS OF THE COMBINED ENTITY
THE PRO-FORMA REVENUE FOR THE COMBINED ENTITY IS $88.5 MILLION
Calendar 1999 revenues by product Estimated Calendar 1999 revenues by
geography*
Service/other 58% Rest of the World 29%
Product licenses 42% US 46%
Germany 25%
[Graphic Omitted] [Graphic Omitted]
USA becomes the largest revenue generator with 45% of overall revenues
* Includes Blaze discontinued operations; geography revenue breakdown for Brokat
based on short 1999 FY.
32
<PAGE>
EFFECTS OF PURCHASE ACCOUNTING
Gemstone Blaze
-------- -----
Purchased Equity Value US$271.2* US$560.5*m
Financed by new shares new shares
Period of amortization 7 years 7 years
Annual goodwill amortization* US$39.8m US$70.7m
*Approximate number
33
<PAGE>
FINANCIAL IMPACT OF TRANSACTION
- After consolidation immediate accretion on a revenue and gross margin
basis
- Improved revenue growth through cross selling opportunities
- Better branding could reduce marketing spending
- Opportunity for further US expansion at reduced cost due to joint sales
and marketing force
- Brokat will improve its financing with a cash position of about USD 160
million
Our goal is to use expected cost savings and synergies to shorten the time to
profitability
34
<PAGE>
WHAT COULD THE FUTURE BRING?
EARLIER PROFITABILITY
Reasons for optimal fit
Shared vision of e-Services Platform
Product Development
- Java-based EAS and CRM Engine are strategic additions to the Twister
e-Services Platform
- Shared view of development pipeline
- Complementary development skills reduce time-to-market
Field Operations
Marketing
- Enhanced credibility and branding especially in the US market
- Promotion of Twister platform
Sales & Services
- Complementary geographies, skill sets and services offerings
- Cross-selling/up-selling potential for all involved parties
- Leveraging of customer relationships
Culture/HR
- Employees share a culture of innovation and product excellence
[Graphic omitted]
35
<PAGE>
WHO'S BROKAT?
BROKAT IS AN E-BUSINESS HYPERGROWTH COMPANY
- September 17th 1994 founded in Germany by 5 partners
- Established European market leader in e-Banking
- Inroads into other verticals
- Strong international presence: 26 offices in 15 countries
- More than 2.5 million end-users in Europe are already doing Internet
banking and brokerage based on BROKAT technology today
- Over 2000 financial companies using BROKAT Twister-solutions worldwide
[Graphics omitted]
36
<PAGE>
BROKAT AS GLOBAL PLAYER
[graphics omitted]
15 Subsidiaries 11 Sales Offices
37
<PAGE>
THE PLAYERS: EACH A RESPECTED LEADER IN ITS FIELD OF E-BUSINESS -
BROKAT POSITIONING
A Blueprint for the e-Business
- Brokat supplies software infrastructure and applications for companies
that provide transactional services over electronic delivery channels
("e-services").
[Graphics omitted]
- Unlike other software vendors offering individual pieces of a puzzle,
Brokat delivers integrated e-Business Solutions that combine technology
and business infrastructure with applications.
- Vertically Brokate is focused on financial applications such as e-banking,
e- brokerage and e-payment.
- Horizontally Brokat is specialized in integrating electronic delivery
channels such as the internet and mobile phones, with a particular
emphasis on mobile authentication ("meSign").
38
<PAGE>
COMBINED TWISTER ENGINEERING UNITS
[Graphics omitted]
Beaverton, OR
- Twister EJB EAS
- Product: Twister GemStone/Professional Edition
San Jose, CA
- Twister Personalization and Rule Engine
- Product: Twister Advisor
Paderborn, D
- Twister Tools
- Twister SAP
Stuttgart, D
- Twister CORBA EAS/CI/EAI, e-Services Platform
- Products: Twister Enterprise EditionX
Twister Management Board
- Coordination for common architecture, release cycles, budgets, product
vision
39
<PAGE>
E-SERVICES PLATFORM VS. ENTERPRISE APP SERVER AND E-COMMERCE PLATFORMS
<TABLE>
<CAPTION>
Approach e-Services Platform Enterprise App e-Commerce
(Brokat) Server Platform
Functional
Building Blocks*
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Technical
infrastructure
CORBA App Dev [graphic omitted] [graphic omitted] - (no business logic)
---------------------------------------------------------------------------------------------------------
EJB App Dev [graphic omitted] [graphic omitted] -
---------------------------------------------------------------------------------------------------------
Integrated Dev Env [graphic omitted] [graphic omitted] -
---------------------------------------------------------------------------------------------------------
Adaptability of [graphic omitted] - -
Applications
---------------------------------------------------------------------------------------------------------
EAI functionality [graphic omitted] [graphic omitted] [graphic omitted]
---------------------------------------------------------------------------------------------------------
Multi-channel [graphic omitted] [graphic omitted] [graphic omitted]
Customer
interaction
---------------------------------------------------------------------------------------------------------
Distributed [graphic omitted [graphic omitted] [graphic omitted]
Transaction
processing
---------------------------------------------------------------------------------------------------------
Security [graphic omitted] [graphic omitted] [graphic omitted]
---------------------------------------------------------------------------------------------------------
Scalability [graphic omitted] [graphic omitted] [graphic omitted]
---------------------------------------------------------------------------------------------------------
Business
infrastructure
User [graphic omitted] [graphic omitted] [graphic omitted]
Tracking/Profiling
---------------------------------------------------------------------------------------------------------
Personalization of [graphic omitted] [graphic omitted] [graphic omitted]
content
---------------------------------------------------------------------------------------------------------
Personalization of
business processes
---------------------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
Content [graphic omitted] [graphic omitted] [graphic omitted]
Management
---------------------------------------------------------------------------------------------------------
Message [graphic omitted] [graphic omitted] [graphic omitted]
notification
---------------------------------------------------------------------------------------------------------
Payment [graphic omitted] [graphic omitted] [graphic omitted]
---------------------------------------------------------------------------------------------------------
Collaboration [graphic omitted] [graphic omitted] [graphic omitted]
---------------------------------------------------------------------------------------------------------
Mobile Electronic [graphic omitted] [graphic omitted] [graphic omitted]
Signature
---------------------------------------------------------------------------------------------------------
</TABLE>
* Referring to reports of Gartner (e-Business Platforms), Ovum (Enterprise App
Servers), Metagroup, IDC
41
<PAGE>
PRO-FORMA CALENDAR YEAR 1999 INCOME STATEMENT
Pro Forma P & L CY 1999 1/ Blaze GemStone Brokat 2/ Pro-Forma
--------------------------------------------------------------------------------
Total Revenues 14,761 23,640 50,150 88,520
Cost of Revenues 5,418 7,098 23,406 35,921
Gross Profit 9,343 16,542 26,744 52,599
Operating Expenses 27,179 20,695 72,350 120,181
Operating Income (17,836) (4,153) (45,606) (67,582)
EBIPDASO (5,786) (3,227) (28,872) (38,798)
Interest Income & Other (342) (217) (1,123) (1,216)
Pre-tax Income (18,178) (4,370) (44,484) (67,051)
Taxes (155) (166) (60) (261)
Net Income (18,333) (4,536) (44,424) (67,312)
--------------------------------------------------------------------------------
Notes:
1. Excluding all synergies
2. Average 1999 Euro/U.S. Dollar Exchange Rate: 0.9588
42
<PAGE>
COMBINED ENTITY
PRO-FORMA REVENUE ANALYSIS
Calendar 1999 revenues by product Estimated Calendar 1999 revenues by
geography*
[graphics omitted] [graphic omitted]
Service/other 58% Rest of the World 29%
Product licenses 42% US 46%
Germany 25%
* Includes Blaze discontinued operations; geography revenue breakdown for Brokat
based on short 1999 FY
43
<PAGE>
[graphic omitted]
COMBINED ENTITY
PRO-FORMA: SELECTED BALANCE SHEET ITEMS AS OF MARCH 31, 2000
--------------------------------------------------------------------------------
($ in millions)
Pro Forma Balance Pro Forma
Sheet 1 Brokat Blaze GemStone Total
--------------------------------------------------------------------------------
Cash & Cash
Equivalents $91.3 $69.3 $0.5 $161.1
--------------------------------------------------------------------------------
Total Current Assets 126.0 75.3 7.8 209.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Assets 2 $218.8 $548.2 $285.3 $1,052.3
--------------------------------------------------------------------------------
Total Debt 126.5 0.4 6.5 133.4
--------------------------------------------------------------------------------
[graphic omitted]
1) All figures are as of March 31, 2000. Brokat and GemStones figures are from
their respective managements. Blaze figures are from 4/26/00 Blaze press
release.
2) Includes estimated Goodwill for the Blaze and GemStone transactions based on
a purchase price of $20.00 per share for Blaze and $268.8 million for the
equity interests of GemStone.
44
<PAGE>
THE ADVERTISING CAMPAIGN
Text excerpt of ad published in connection with transactions in major newspapers
world-wide:
[Illustration: upper arm with triple biceps]
[Headline:]
There are two companies that can do some e-business things better than us. And
that's why we have decided to merge with them.
[Text:]
The acquisition of Blaze and GemStone means we can now draw on the expertise of
two companies. They are specialists in customer relations management and in the
development of the leading Enterprise Java Beans Server. Both complement our e-
services platform perfectly. Thanks to their support, we will be able to
stabilize our mobile-business platform. Furthermore, we will have an even more
powerful presence in the USA, the core market of the software industry. All of
which means we have taken another large step towards our goal of becoming
leaders in the e-business market. Further information:
[Logo:]
Brokat
45
