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CyberMedia, Inc. Announces Record Second Quarter Revenues

SANTA MONICA, Calif., July 22 /PRNewswire/ -- CyberMedia, Inc. (Nasdaq-NNM:CYBR), the leader in automatic service and support, today announced its operating results for the quarter and six months ended June 30, 1997.

For the quarter ended June 30, 1997, the company reported revenues of $20,447,000, a 159% increase over the $7,891,000 reported for the same period in 1996. Net income before one-time in-process R&D and acquisition related charges was $1,840,000 or $.14 per share versus a loss of $1,212,000 or $.15 per share the previous year. A one time charge of $9,091,000 was incurred during the quarter related to the acquisitions of MicroHelp UnInstaller and Walk Softly, Inc. resulting in a net loss for the quarter of $6,706,000 or $.55 per share.

Revenues for the six months ended June 30, 1997 were $36,980,000, a 165% increase from the $13,949,000 reported during the same period last year. Net income before one-time in-process R&D and acquisition related charges was $3,172,000 or $.23 per share versus a loss of $2,229,000 or $.28 per share for the first six months of 1996. After one-time in-process R&D and acquisition related charges CyberMedia reported a net loss of $5,374,000 or $.45 per share for the first six months of 1997.

Quarterly Highlights
During the quarter, CyberMedia completed two acquisitions. CyberMedia acquired MicroHelp UnInstaller the top rated PC Windows cleanup technology and successfully launched CyberMedia UnInstaller 4.5. In addition, CyberMedia acquired Walk Softly, Inc., a leading provider of privacy and security technology, which enabled the Company to announce the beta availability of PC Guard Dog, the first comprehensive personal Internet security and privacy software product designed for Windows 95 users. During June, CyberMedia also launched a significant upgrade to its award-winning Oil Change automatic update software for Windows 95 users. This quarter the Company also entered the Japanese market with the formation of CyberMedia K.K., a wholly-owned subsidiary of CyberMedia, Inc., and the launch of Japanese versions of its best-selling automatic service and support products, First Aid 97, First Aid 97 Deluxe and UnInstaller. CyberMedia continued to expand its strategic relationships within the PC industry by announcing a new bundling agreement with CompUSA and an expanded strategic partnership with Sony.

About CyberMedia
CyberMedia's mission is to empower computer users to fix computer problems on their own, before they need to call technical support hotline for help. The leading supplier of automatic service and support solutions for PC users; the CyberMedia's ActiveHelp product line includes First Aid(R), Oil Change(TM), UnInstaller(TM), PC Guard Dog(TM) and the Tech Support Yellow Pages.

CyberMedia products are distributed through more than 10,000 retail stores in the United States, including WalMart and CompUSA. They are also distributed internationally in Germany, Canada, Japan, Italy, France, Austria, Switzerland, the United Kingdom and Australia. CyberMedia products are also available from OEM distribution partners, including AST, Sony, Fujitsu, Packard Bell-NEC and Phoenix Technologies. They are also available for sale on the Internet through leading online resellers as well as the CyberMedia web site. Founded in 1991, CyberMedia (Nasdaq:CYBR) employs more than 200 people, with company headquarters in Santa Monica, CA and offices in San Jose, CA and Japan. For additional information contact CyberMedia, Inc., 3000 Ocean Park Boulevard, Santa Monica, CA 90405; phone 310-581-4700; fax 310-581-4720; e-mail info@cybermedia.com or visit the CyberMedia web site.

                               CYBERMEDIA,INC.
                           STATEMENTS OF OPERATIONS
                                 (Unaudited)

                               Quarter      Quarter    Six Months  Six Months
                                Ended        Ended       Ended        Ended
                               June 30,     June 30,    June 30,     June 30,
                                 1997         1996        1997         1996

     Revenue              $20,447,000   $7,891,000 $36,980,000  $13,949,000
     Cost of goods sold     3,875,000    2,787,000   8,088,000    4,888,000
     Gross profit          16,572,000    5,104,000  28,892,000    9,061,000

     Expenses
     Research and development2,740,000     669,000   4,285,000    1,143,000
     Sales & marketing      9,584,000    4,730,000  17,739,000    8,609,000
     General &
       administrative       1,679,000      902,000   2,649,000    1,513,000
     One-time in-process R&D
       and acquisition
       expenses             9,091,000           --   9,091,000           --
     Total Operating
       expenses            23,094,000    6,301,000  33,764,000   11,265,000
     Operating
       income (loss)      (6,522,000)  (1,197,000) (4,872,000)  (2,204,000)
     Other income (expense)   398,000     (15,000)     919,000     (25,000)
     Profit (loss) before
       income taxes       (6,124,000)  (1,212,000) (3,953,000)  (2,229,000)
     Provision for
       income taxes           582,000           --   1,421,000           --
     Net income (loss)   $(6,706,000) $(1,212,000)$(5,374,000) $(2,229,000)
     Net income (loss)
       per share              $(0.55)      $(0.15)     $(0.45)      $(0.28)
     Shares used in
       computing net income
       (loss) per share    12,178,000    7,890,000  12,050,000    7,890,000


                                 CYBERMEDIA, INC.
                       SUPPLEMENTAL STATEMENTS OF OPERATIONS
          EXCLUDING ONE TIME WRITE-OFF OF R & D AND ACQUISITION EXPENSES


                               Quarter      Quarter    Six Months  Six Months
                                Ended        Ended       Ended        Ended
                               June 30,     June 30,    June 30,     June 30,
                                 1997         1996        1997         1996

     Revenue              $20,447,000   $7,891,000 $36,980,000  $13,949,000
     Cost of goods sold     3,875,000    2,787,000   8,088,000    4,888,000
     Gross profit          16,572,000    5,104,000  28,892,000    9,061,000
     Total operating
       expenses            14,003,000    6,301,000  24,673,000   11,265,000
     Operating income (loss)2,569,000  (1,197,000)   4,219,000  (2,204,000)
     Other income (expense)   398,000     (15,000)     919,000     (25,000)
     Profit (loss) before
       income taxes         2,967,000  (1,212,000)   5,138,000  (2,229,000)
     Provision for
       income taxes         1,127,000           --   1,966,000           --
     Net income (loss)     $1,840,000 $(1,212,000)  $3,172,000 $(2,229,000)
     Net income (loss)
       per share                $0.14      $(0.15)       $0.23      $(0.28)
     Share's used in
       computing net income
       (loss) per share    13,598,000    7,890,000  13,510,000    7,890,000

Note -- does not include $9,091,000 of one-time R & D and acquisition expenses incurred in the quarter and six months ended June 30, 1997.

                               CYBERMEDIA, INC.
                                BALANCE SHEETS


                                              June 30,1997 December 31, 1996,
                                               Unaudited        Audited
         Assets

     Current assets:
       Cash and cash equivalents              $22,646,000    $39,322,000
       Marketable securities                    6,869,000             --
       Trade accounts receivable, net          23,953,000     12,318,000
       Inventory                                1,671,000      2,365,000
       Prepaid expenses                           923,000      1,270,000
       Other current assets                       220,000        185,000
        Total current assets                   56,282,000     55,460,000

       Goodwill, net                              231,000             --
       Furniture, fixtures and equipment, net   1,732,000        990,000

     Total assets                             $58,245,000    $56,450,000

Liabilities and Stockholders' Equity
Current liabilities

       Accounts payable                        $8,123,000     $7,004,000
       Accrued expenses                         2,764,000      1,247,000
       Unearned revenue                         3,662,000      4,024,000
       Grant payable                                4,000        413,000
       Current portion of capital lease            31,000         45,000
       Liability to technology vendor           1,589,000             --
        Total current liabilities              16,173,000     12,733,000

       Capital lease obligation                    49,000         49,000
       Liability to technology vendor           2,812,000             --

        Total liabilities                      19,034,000     12,782,000

     Stockholders' equity
       Common stock                               122,000        119,000
       Additional paid-in capital              53,607,000     52,583,000
       Accumulated deficit                   (14,408,000)    (9,034,000)
       Currency Translation                     (110,000)             --
        Total Stockholders' Equity             39,211,000     43,668,000

     Total liabilities and stockholders' equity$58,245,000   $56,450,000