COMPUTER ASSOCIATES (R)
<PAGE>
Forward-Looking Statements Contained Herein
Statements in this release concerning the Company's future prospects are
"forward-looking statements" under the Private Securities Litigation Reform Act
of 1995. There can be no assurances that future results will be achieved, and
actual results could differ materially from forecasts and estimates. Important
factors that could cause actual results to differ materially include: the
significant percentage of CA's quarterly sales consummated in the last few days
of the quarter making financial predictions especially difficult and raising a
substantial risk of variance in actual results; changes in industry accounting
guidance; the risks associated with changes in the company's business model; the
risks associated with changes in the way in which the company accounts for
license revenue; the difficulties of compiling pro forma financial information,
given acquisitions over time; instability resulting from changes to the
company's business model; the emergence of new competitive initiatives resulting
from rapid technological advances or changes in pricing in the market; the risks
associated with new product introductions as well as the uncertainty of customer
acceptance of these new or enhanced products from either CA or its competition;
risks associated with the entry into new markets such as professional services;
the risks associated with integrating newly acquired businesses and
technologies; increasing dependency on large dollar licensing transactions;
delays in product delivery; reliance on mainframe capacity growth; the ability
to recruit and retain qualified personnel; business conditions in the
distributed systems and mainframe software and hardware markets; uncertainty and
volatility associated with Internet and eBusiness related activities; use of
software patent rights to attempt to limit competition; fluctuations in foreign
currency exchange rates and interest rates; the volatility of the international
marketplace; uncertainties relative to global economic conditions; and other
risks described in filings with the Securities and Exchange Commission.
<PAGE>
Update to Historical Pro-Forma Pro-Rata Revenue and EPS
-On October 25, 2000, CA provided pro-forma pro-rata revenue and operating
EPS amounts for FY 2000 of $5.256 Billion and $1.31 respectively.
-CA'sauditors, KPMG LLP, have issued an attestation report on the pro-forma
statement of operations for fiscal year 2000.
-For further clarity, CA has provided quarterly breakdown of the annual FY
2000 pro-forma pro-rata revenue and operating EPS amounts.
<PAGE>
Current Year Impact
<TABLE>
<CAPTION>
FY00 FY00 FY00 FY00 FY00
Q1 Q2 Q3 Q4 Total
---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
Pro-Forma:
Total Revenue $1,240 $1,294 $1,332 $1,390 $5,256
Operating-EPS* $0.30 $0.34 $0.32 $0.34 $1.31
</TABLE>
[FN]
*Sum of quarters may not equal FY total due to changes in shares outstanding
</FN>
<PAGE>
Forward-Looking Statements Contained Herein
Statements in this release concerning the Company's future prospects are
"forward-looking statements" under the Private Securities Litigation Reform Act
of 1995. There can be no assurances that future results will be achieved, and
actual results could differ materially from forecasts and estimates. Important
factors that could cause actual results to differ materially include: the
significant percentage of CA's quarterly sales consummated in the last few days
of the quarter making financial predictions especially difficult and raising a
substantial risk of variance in actual results; changes in industry accounting
guidance; the risks associated with changes in the company's business model; the
risks associated with changes in the way in which the company accounts for
license revenue; the difficulties of compiling pro forma financial information,
given acquisitions over time; instability resulting from changes to the
company's business model; the emergence of new competitive initiatives resulting
from rapid technological advances or changes in pricing in the market; the risks
associated with new product introductions as well as the uncertainty of customer
acceptance of these new or enhanced products from either CA or its competition;
risks associated with the entry into new markets such as professional services;
the risks associated with integrating newly acquired businesses and
technologies; increasing dependency on large dollar licensing transactions;
delays in product delivery; reliance on mainframe capacity growth; the ability
to recruit and retain qualified personnel; business conditions in the
distributed systems and mainframe software and hardware markets; uncertainty and
volatility associated with Internet and eBusiness related activities; use of
software patent rights to attempt to limit competition; fluctuations in foreign
currency exchange rates and interest rates; the volatility of the international
marketplace; uncertainties relative to global economic conditions; and other
risks described in filings with the Securities and Exchange Commission.
<PAGE>
COMPUTER ASSOCIATES (R)
