American Software Reports First Quarter Results /

Exceeds Analysts' Revenue and Earnings Estimates Atlanta (PROTEXT) - American Software, Inc. (Nasdaq: AMSWA)today reported revenues and earnings for the first quarter offiscal year 2000, ended July 31, 1999. First quarter resultsrepresent a continued improvement in license fee revenues andprofitability and exceed analysts' revenue and earningsestimates. For the first quarter ended July 31, 1999, software licensefees were $6.3 million, a 22% improvement over the same periodlast year. Services revenues were $15.7 million, a 2% increasefrom the same quarter last year. Maintenance revenues were $6.2million, a 7% decrease over the same period in fiscal 1999. Totalrevenues for the quarter were $28.2 million, a 3% increase overthe same quarter last year. Net income was $904,000 or $.04 perdiluted share, a substantial improvement from last year's netloss of $3.6 million or $.16 per basic share excluding anonrecurring item of $1.8 million or $.08 per share for thecomparable period last year. "We are pleased to start the new fiscal year reportingcontinued revenue and profitability growth," stated James C.Edenfield, president and CEO of American Software. "We areexcited by the potential increased revenue contribution from ourInternet commerce initiatives spanning the new ECON (ElectronicCommerce Over the Net) product family, AmQUEST, our applicationservice provider, and the custom projects and services deliveredby our subsidiary, Intellimedia Commerce. "American Software has the unique ability to providecomprehensive solutions that leverage our broad portfolio ofproducts and services to help companies increase agility, reducesupplier costs, expand productivity and improve customerresponsiveness," Edenfield continued. "As an example, we aredelivering a unique combination of products, professionalservices and facilities outsourcing to manage and optimize themission critical logistics operations for one of the world'slargest digital wireless communications companies." The overall financial condition of the Company remains verystrong with cash and investments of approximately $50 million.The Company continued its share buyback plan under which theBoard of Directors has authorized the purchase of up to 2.2million shares in open market transactions. During the quarter,approximately 157,000 shares were purchased at an average priceof $3.96, bringing the total shares purchased under the plan tonearly 1.4 million shares. First Quarter Highlights Include: * American Software received a contract to deliver anexpanded array of products, professional services and outsourcingto optimize the logistics operations for one of the world'slargest digital wireless communications companies. * Prestige Plastics, Inc., Oshkosh Trucking and AmericanEfird became new American Software customers selecting a varietyof products and services to streamline their operations. * Intellimedia Commerce, Inc. continues to work with a numberof early stage clients to incubate and launch Internet basedventures. Intellimedia provides Internet commerce servicesincluding technical design and prototyping, business modeling,product development and execution of direct marketing programs. * The Company's 84% owned subsidiary, Logility (Nasdaq:LGTY), the leading supplier of collaborative value chain planningsolutions via the Internet, added ConAgra and Allied Signal asnotable new customers. * Logility launched its i-Commerce initiative, consisting offour levels of products and services:

1. Logility Value Chain Solutions -- internet-enabled end-to-end value chain applications

2. i-Commerce Collaboration Solutions -- solutions thatexpand the number of business processes that can be executedelectronically via the Internet such as collaborative planning,forecasting and replenishment (CPFR)

3. i-Community -- enabling companies to collaborate with anetwork of trading partners

4. i-Connection -- applications hosting and applicationsmanagement services * American Software was named # 27 in the annualManufacturing Systems survey of the top 100 software companies,noted by Inbound Logistics as one of the top 100 Logistics ITCompanies in April 1999 and named one of Start Magazines'"Hottest Companies of the Year" in the July, 1999 issue. Headquartered in Atlanta, American Software develops, marketsand supports the industry's most comprehensive offering ofintegrated business applications, including enterprise-wide,supply chain management, Internet commerce, financial, warehousemanagement and manufacturing packages. Intelliprise(TM) is atotal ERP/supply chain management suite, which leverages Internetconnectivity and includes multiple manufacturing methodologies,flexible international organizations and integrated data marts.The Company's Flow Manufacturing(R) solution is the firstdedicated application for automating demand-based manufacturingoperations as a best-of-class client/server extension to existingERP systems. Additionally, American Software holds 84% ownershipin Logility Inc., the leading supplier of collaborative valuechain planning solutions via the Internet. Forward-Looking Statements This press release contains forward-looking statements, whichare subject to substantial risks and uncertainties. There are anumber of factors that could cause actual results to differmaterially from those anticipated by statements made herein. Suchfactors include, but are not limited to, changes in generaleconomic conditions, technology and other changes in the marketfor the Company's products and services, the timely availabilityand market acceptance of these products and services, the effectof competitive products and pricing, and the irregular pattern ofthe Company's revenues as well as a number of other factors whichcould effect the future performance of the Company. For furtherinformation, please refer to the Company's Form 10-K for the yearended April 30, 1999 and other reports and documents subsequentlyfiled with the Securities and Exchange Commission. For more information, contact: American Software, 470 EastPaces Ferry Rd., Atlanta, GA 30305 800-726-2946. 404-261-4381.FAX: 404-264-5206 INTERNET: www.amsoftware.com or E-mail:ask@amsoftware.com Flow Manufacturing is a registered trademark and Intelliprise,ECON/Order, ECON/Expense and ECON/Catalog are trademarks ofAmerican Software, Inc.

AMERICAN SOFTWARE, INC.

Statements of Operations

(In thousands except per share data)

(Unaudited)

First Quarter Ended

July 31,

Pct

1999

1998

Chg. Revenues:

License

$6,277

$ 5,158

22%

Services

15,747

15,502

2%

Maintenance

6,211

6,707

(7%)

Total Revenues

28,235

27,367

3% Cost of Revenues:

License

1,328

3,216

(59%)

Services

11,583

9,692

20%

Maintenance

2,685

2,335

15%

Total Cost of Revenues

15,596

15,243

2% Gross Margin

12,639

12,124

4% Operating expenses:

Research and development, net 2,157

3,813

(43%)

Marketing and sales

6,492

8,393

(23%)

General and administrative

3,405

4,425

(23%)

Charge for In-Process R&D

---

1,800

nm

Total operating expenses 12,054

18,431

(35%) Operating income (loss)

585

(6,307)

nm

Other income

426

572

nm

Minority interest

(107)

529

nm Income (loss) before taxes

904

(5,206)

nm

Income taxes expense/(benefit) ---

200

nm Net Income (loss) after non-recurring charge/(credit)

$904

$(5,406)

nm Net Income (loss) before non-recurring charge/(credit)

$904

$(3,606)

nm Net income/(loss) per common share after non-recurring credits -- Diluted*

$0.04

$(0.24)

nm Net income/(loss) per common share before non-recurring credits -- Diluted*

$0.04

$(0.16)

nm Weighted average common shares -- Diluted *

22,280

22,739 * Diluted weighted average common shares outstanding are notincluded in the quarter ended July 31, 1998 calculation due tothe anti-dilution of the net loss. nm -- not meaningful

Capsule Balance Sheet Information

(in thousands)

(Unaudited)

July 31,

1999 Cash and investments

$49,564 Accounts receivable:

Billed

16,650

Unbilled

3,706 Total accounts receivable

20,356 Working capital

42,304 Deferred revenues

16,804 Stockholders' equity

67,487 ots Original TextService: American Software, Inc. Internet:http://www.newsaktuell.de Contact: Vincent C. Klinges VicePresident of Finance of American Software, Inc. (USA) 404-264-5477 Company News On-Call:http://www.prnewswire.com/comp/048263.html or Fax, 800-758-5804,ext. 048263 Web site: http://www.amsoftware.com

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