Press Release: Borland forming CodeGear to focus exclusively on developer productivity

By: David Intersimone

Abstract: This press release announces CodeGear - formerly Borland's Developer Tools Group.

FOR IMMEDIATE RELEASE

Borland Forming CodeGear to Focus Exclusively on Developer Productivity

CodeGear – Formerly Borland’s Developer Tools Group – Expected to Become a Separate Wholly Owned Subsidiary by Early 2007

CUPERTINO, Calif., November 14, 2006 — Borland Software Corporation (NASDAQ: BORL, www.borland.com), today announced its decision to separate the Developer Tools Group into a wholly-owned subsidiary focused on maximizing developer productivity. The newly formed operation, CodeGear, will be responsible for advancing the four primary product lines formerly associated with Borland’s Integrated Development Environment (IDE) business. These include Developer Studio (Delphi®, C++Builder® and C#Builder®), JBuilder® (including the upcoming Eclipse-based “Peloton” offering), Turbo® and Interbase.

“After much consideration, we made the decision to establish CodeGear as a separate subsidiary,” said Tod Nielsen, Borland president and chief executive officer. “We have always stated our intention to find the right buyer for this business – one who was committed to our developer community, who would continue innovation in our products and who would offer a sum that matched the value of the business. After a lengthy due diligence process with several serious bidders, we feel the CodeGear decision is in the best interests of our customers, shareholders and employees.”

Nielsen continued, “We believe by creating two separate operations, Borland and CodeGear can both obtain the necessary focus and dedicated resources to serve two important, but distinct markets. We will continue to partner and share a mutual view of customer success. However, going forward Borland will be completely focused on leading the Application Lifecycle Management (ALM) market, while CodeGear will be focused on the software developer.”

CodeGear will be led by Ben Smith, who was appointed today as its chief executive officer. Smith, a seasoned technology executive who has been working with Borland and the Developer Tools Group for the past 12 months, will expand his role working closely with CodeGear’s existing leadership team to deliver on the business plan and product roadmaps created throughout the divestiture process. As a subsidiary of Borland, CodeGear will have a separate brand, management team, research and development organization, sales and marketing strategy and global operating infrastructure.

“I am extremely excited to play a leadership role in this new company’s future, working closely with the talented individuals that I’ve come to know well over the past year,” said Ben Smith, chief executive officer of CodeGear. “CodeGear has a strong product portfolio and a large and loyal developer base. I am confident that with the right attention and focus, we will continue to do great things that have a substantial and positive impact on the global developer community.”

Announcement Background

In February of this year Borland laid out an aggressive plan to accelerate its ALM growth engine – including its intent to divest the IDE business and acquire Segue Software, a leading testing company that would expand its ALM portfolio into the growing Lifecycle Quality Management space. The divestiture will now take the form of a wholly-owned subsidiary, and the Segue product set and team have been fully integrated into Borland’s business. With today’s announcement, Borland now has a clear focus on the enterprise and the portfolio necessary to be a global leader in ALM. In its Q3 earnings announcement today, Borland reported that it has seen total ALM revenues increase 90 percent annually and has achieved sequential strong double digit ALM growth in each of the past three quarters.

Editor’s Note: Borland will provide further details of this new subsidiary on its Q3 quarterly earnings call today at 2:00pm PST. To access the conference call, dial (800) 257-1836 for the US or Canada and (303) 205-0066 for international callers. The Webcast will be available live on the Investor Relations section of Borland’s website. A replay will be available approximately two hours after the conference call ends and will be available until January 14, 2007 at 12:00 a.m. Pacific Time. Please dial (800) 405-2236 or (303) 590-3000, with passcode 11072881 to access the replay.

About Borland

Founded in 1983, Borland (NASDAQ: BORL) is a global leader in application lifecycle management (ALM), providing solutions that make software delivery a more manageable, efficient and predictable business process. Borland provides the software, services and training that enable companies to achieve Software Delivery Optimization and maximize the business value of software.  To learn more about delivering quality software, on time and within budget, visit http://www.borland.com.

About CodeGear

CodeGear delivers innovative, high-productivity development tools for a wide spectrum of software developers ranging from individuals to enterprise teams. CodeGear’s products enable developers to freely develop on their platform of choice while focusing on simplifying complex technologies and tasks so they can concentrate on application design, not infrastructure, to ensure on-time project delivery.

Borland and all other Borland brand and product names are trademarks or registered trademarks of Borland Software Corporation in the United States and other countries. All other marks are the property of their respective owners.

Forward-Looking Statements

Statements made in this release that are not historical facts are “forward-looking statements” and accordingly involve risk and uncertainties that could cause actual results to differ materially from those described in this release. Forward-looking statements include, for example, all statements relating to projected financial performance (including statements involving projection of revenues, income, earnings, capital expenditures, dividends, capital structure, or other financial items), the plans and objectives of management for future operations, products or services; and future performance in economic terms or other any other measures.

Forward-looking statements in this release involve potential risks and uncertainties that could cause results to differ materially including, among others, our ability to successfully re-focus the company on the development and sales of enterprise software development solutions and to become a global leader in ALM, our ability to predict revenue growth from our ALM products, our ability to efficiently separate part of our business relating to our IDE assets and deliver on the business plan for these products. These and other risks may be detailed from time to time in Borland’s periodic reports filed with the Securities and Exchange Commission, including, but not limited to its latest Annual Report on Form 10-K, and its latest quarterly report on Form 10-Q, copies of which may be obtained from http://www.sec.gov. The forward-looking statements in this release are based on information available to Borland today and Borland assumes no obligation to update such forward-looking statements.

Media Contact:                                            Investor Contact:

Michelle Swan                                           Erica Abrams

Borland Software                                       The Blueshirt Group for Borland

408-863-2962                                             415-217-5864

Michelle.swan@borland.com                       erica@blueshirtgroup.com

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