Open Text Corporation Posts Record Results for First Quarter Fiscal 1999

Company Continues To Execute On Profitable Growth Strategy

Waterloo, ON - 1998-10-26 - Open Text Corporation (NASDAQ:OTEX, TSE:OTC), the worldwide leader of intranet-based collaborative knowledge management application software, today announced record revenues for its first quarter ended September 30, 1998.¹

Net income for the first quarter was US$2.3 million, which is $0.11 per share (diluted) compared to a net loss of $1.5 million, or a loss of $0.08 per share, for the year-earlier quarter.

For the eleventh consecutive quarter, Open Text reported the highest quarterly total revenues in the company's history. Total revenues for the quarter were US$17.3 million up 124 percent from $7.7 million for the year-earlier period. License revenues for the quarter ended September 30, 1998 were $9.5 million, up 115% compared to $4.4 million for the first quarter of fiscal 1998.

"We continue to execute on our profitable growth strategy resulting in another quarter of strong financial performance," said Tom Jenkins, Chief Executive Officer of Open Text Corporation. "We have moved into a solid, profitable growth position, today reporting our fourth consecutive quarter of profits while maintaining strong growth momentum."

"We continue to enjoy a leadership position in the enterprise knowledge management market, with customer adoption of Livelink at its all time high," added Jenkins. "We are also proceeding well with the acquisition of Information Dimensions Inc., which is now our Livelink BASIS division, and are pleased with the addition of this group to the overall performance of the company."

New accounts contributing to Open Text's first-quarter revenues included Eastman Chemical, AT&T Canada, Textron, Diebold, and the Ford Foundation. Existing accounts contributing to revenues included Molson Breweries, Caterpillar, Boeing, US Post Office, Philip Morris, the US Navy and many others. Open Text also signed its second major subscription service licensing agreement for Livelink, adding General Electric Information Services this quarter. Similar to Hewlett Packard's agreement with Open Text that was announced last quarter, General Electric Information Services will host and sell Livelink to their existing customer base.

"The addition of new enterprise accounts, expanded use of Livelink within current customer locations and maturation of the subscription service, further reinforces the value Livelink delivers in providing enterprise-wide knowledge management solutions that help the world's largest corporations get their work done," added Jenkins.

To review the Statements of Operations and Balance Sheet, please see Financials.

To review information about investing in Open Text Corporation, please see our Investor Information.

¹ Reported under U.S. Generally Accepted Accounting Principles (GAAP).

Trademark

Open Text, Livelink and Livelink BASIS are trademarks of Open Text Corporation. All other trademarks are the property of their respective companies.

Release Disclaimer

This news release may contain forward-looking statements relating to the future performance of Open Text Corporation. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the company's filings with the Securities and Exchange Commission (SEC), including the final prospectus for the company's initial public offering of common stock in January 1996, Form 10-K for the years ended June 30, 1997 and June 30, 1998, and Form 10-Q for the quarters ended September 30, 1997, December 31, 1997, and March 31, 1998.

For more information, please contact

Margaret E. Dobbin
Director, Industry Analyst Relations
Open Text Corporation
+1-519-888-7111 ext.2410
mdobbin@opentext.com