American Software Reports Fourth Quarter Results / Continues

Profitable Trend - Exceeds Analysts' Estimates ATLANTA (PROTEXT) - American Software, Inc. (Nasdaq: AMSWA)today reported financial results for the fourth quarter andfiscal year ended April 30, 1999. Fourth quarter resultsrepresent a continued improvement of increased revenues andprofitability and exceeded analysts' revenue and earningsestimates. For the fourth quarter ended April 30, 1999, net income was$4.9 million or $.22 per diluted share which includes $3.7million or $.17 per diluted share of non-recurring benefits.This compares to net income of $1.0 million or $.05 per share forthe proceeding quarter and net income of $2.6 million or $.11 perdiluted share for the comparable period last year. Softwarelicense fees for the quarter were $6.0 million, a 6% improvementover the third quarter. Services revenues contributed $16.6million, a 5% increase from the third quarter. Maintenancerevenues were $6.2 million, a 6% decrease over the third quarter.Total revenues for the quarter were $28.8 million, a 3%improvement over the preceding quarter. For the year ended April 30, 1999, total revenues were $109.2million, a 2% increase over the comparable period last year. Forthe year ended April 30, 1999, the Company incurred a net loss of$8.5 million or $.38 per diluted share excluding nonrecurringitems. This compares to net income of $7.8 million or $.32 perdiluted share for the prior year. "American Software continues to show revenue and profitabilityimprovement as a result of actions taken earlier in this fiscalyear in response to the overall enterprise application marketslowdown. We are especially excited by the improvement inlicense fees in the second half of our fiscal '99 year and theincreasing recognition of American Software's competitive andhighly flexible Intelliprise(TM) and Flow Manufacturing(R)product offerings," stated James C. Edenfield, president and CEOof American Software. James C. Edenfield continued, "As we begin Fiscal Year 2000,we see positive trends in the sales activities within most of ourbusinesses. Most notably, Logility closed the largest sale inits history in May. This deal of over $3.0 million in licenserevenues is with one of the largest food companies in the worldand gives the combined Company an excellent start to Fiscal Year2000. Additionally, our e-business strategies continue to growwith increasing sales by our majority owned subsidiaryIntellimedia Commerce, our expanded ECON product suite and ournetwork hosting business, AmQUEST. The overall financial condition of the Company remains verystrong with cash and investments of approximately $49.0 millionand long-term debt of less than $1 million. Cash andInvestments, including the Company's portion of Logility's cash,is $44.9 million or approximately $2.04 per diluted share. The Company continued its share buyback plan under which theBoard of Directors has authorized the purchase of up to 2.7million shares in open market transactions. During the quarter,approximately 283,500 shares were purchased at an average priceof $3.29, bringing the total shares purchased under the plan tonearly 1.3 million shares. Business Highlights Include: Logility

* The Company's 84% owned subsidiary, Logility (Nasdaq:LGTY), the leading supplier of collaborative value chain planningsolutions via the Internet, added some notable new customersincluding, CONDEA Vista Company, Wickes Furniture, Tyco Plasticsand Adhesives, US Ceramic Tile Company and Thomaston Mills, Inc.In addition, existing customers including BritishTelecommunications, Mercury Marine and ConAgra, Inc. placedadditional orders for Logility products.

* Voyager XPS(TM) launched as a new addition to the productsuite, Logility Value Chain Solutions(TM). Voyager XPS is anInternet-based value chain management application that allows theuser to implement a business process for collaborative planning,forecasting and replenishment (CPFR) that crosses traditionalboundaries with trading partners.

* The selection of WarehousePRO, part of the Logility ValueChain Solutions suite, as Product of the Year by readers ofManaging Automation Magazine.

* Logility extended its international partner program withtwo new partners, Burns Bridge Nagel Pty Ltd. in Australia andEberle Systems in Germany, for implementation and/or sales ofLogility Value Chain Solutions. Burns Bridge Nagel Pty Ltd. isthe Logistics and Supply Chain Management division of BurnsBridge, a consulting group providing Business InfrastructureSolutions to its clients. Eberle Systems is a leading supplierof simulation software to some of the largest German industrialcompanies.

E-Business

* The Company's majority owned subsidiary, IntellimediaCommerce, provider of technology-based services for four primaryphases of the e-business cycle: customer acquisition, transactionexecution, customer retention, and customer service, announced anew venture, Intellimedia Security, that is developing a newonline service, safedepositbox.com. Rivaling traditional safe-deposit boxes, safedepositbox.com(TM) will provide the protectionof valuable and confidential electronic documents and files usingsecure online storage. NetB@nk, (Nasdaq: NTBK) the largest FDIC-insured bank operating solely on the Internet, is providingfunding and distribution as a launch partner of the site.

* Expanded the Company's internet-based applications-ECON(Electronic Commerce Over the Net) product family with theintroductions of ECON/Expenses(TM) and ECON/Order(TM).ECON/Expense is an Internet- based solution that enablescompanies to significantly reduce administrative costs associatedwith travel & entertainment (T&E), that are typically the thirdlargest corporate expense item. ECON/Order enables companies toleverage the Internet to allow customers, dealers, distributorsand a remote sales force to securely enter and track orders,helping companies increase service, reduce inventories and makemore informed business decisions.

* PNC Bank, one of the nation's largest financial servicescompanies, began piloting a program to streamline its purchasingprocess using ECON/Catalog(TM) for Internet-based procurement toconsolidate orders, eliminate maverick buying, control costs andbetter manage suppliers.

* The Company's AmQUEST subsidiary, which provides e-business services, continues to show significant revenue growthby providing hosting services for notable customers like KomatsuAmerica, WestPoint Stevens, University Hospital, Oce PrintingSystems US, Inc., Saftey-Kleen, Snap- on, Inc., and VWRScientific Products.

Enterprise Solutions

* Mayville Metals, a manufacturer of sheet metal enclosuresfor the high tech and telecommunications industries, became a newcustomer licensing the full Intelliprise product suite to manageand optimize its customer focused flow manufacturing operationsat three plants.

* Extended Intelliprise Business Intelligence offering withthe addition of an Inventory Performance data mart. InventoryPerformance, along with the Channel Performance data mart alsodelivered during the '99 fiscal year, provides a dashboard-likegraphical interface that visually indicates the currentperformance of the company. Intelliprise incorporates out-of-the-box key performance indicators following the guidelines ofGenerally Accepted Accounting Principles (GAAP) and the SupplyChain Reference Model (SCOR) to provide comprehensive financialand operational views for quick business insight.

* Whittman-Hart, a leading provider of informationtechnology (IT) consulting and integration services for middlemarket and growing companies, was named a preferred provider forIntelliprise implementation services.

* A number of notable customers, including SC JohnsonPolymer, Norton Chemical, and US Ceramic Tile, went "live" duringthe year and are now managing their enterprises with theIntelliprise product suite.

* New Generation Computing, the Company's recent acquisitionand a leader in the apparel software industry, has significantlyexceeded forecasted revenue and earnings targets for the ninemonths ended April 30, 1999. Customers include William Carter,HartMarx, HugoBoss, Unifirst and Maidenform. The Company added to its management strength by elevatingJames M. Modak to the position of Senior Vice President and ChiefFinancial Officer. Mr. Modak, who has been serving as the ChiefFinancial Officer of Logility Inc., the Company's 84% ownedsubsidiary will continue to serve in that capacity as well.

Headquartered in Atlanta, American Software develops, marketsand supports the industry's most comprehensive offering ofintegrated business applications, including enterprise-wide,supply chain management, financial and manufacturing packages.Intelliprise(TM) is a total ERP/supply chain management suite,which leverages Internet connectivity and includes multiplemanufacturing methodologies, flexible international organizationsand integrated data marts. The Company's Flow Manufacturing(R)solution is the first dedicated application for automatingdemand-based manufacturing operations as a best-of-classclient/server extension to existing ERP systems. Additionally,American Software holds 84% ownership in Logility Inc., theleading supplier of collaborative value chain planning solutionsvia 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.Such factors 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, 1998 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. Safedepositbox.com is a registeredtrademark of Intellimedia Commerce, Inc. Voyager XPS is aregistered trademark of Logility, Inc.

AMERICAN SOFTWARE, INC.

Sequential Quarterly Performance

(In thousands except per share data)

(Unaudited)

Quarter Ended

April 30,

January 31,Pct

1999

1999Chg.

Revenues:

License

$6,009

$5,6506%

Services

16,556

15,7575%

Maintenance

6,185

6,598(6%)

Total Revenues

28,750

28,0053%

Cost of Revenues:

License

1,035

86320%

Services

12,120

11,6304%

Maintenance

2,705

2,5835%

Total Cost of Revenues

15,860

15,0765%

Gross Margin

12,890

12,9290%

Operating expenses:

Research and development

5,342

5,1404%

Less: capitalized development (2,613)

(2,768)(6%)

Sales and marketing

5,950

6,618(10%)

General and administrative

3,764

3,5257%

Credit for impaired

asset adjustment

(1,442)

---nm

Total operating expenses

11,001

12,515(12%)

Operating income

1,889

414nm

Other income

822

926(11%)

Minority interest

45

(154)nm

Income before taxes

2,756

1,186nm

Income taxes expense/

(benefit)

(2,138)

173nm

Net Income after

non-recurring credits

$4,894

$1,013nm

Net Income before

non-recurring credits

$1,165

$1,013nm

Net income per common share

after non-recurring

credits - Diluted

$0.22

$0.05nm

Net income per common share

before non-recurring

credits - Diluted

$0.05

$0.05nm

Weighted average

common shares - Diluted

21,991

22,019 nm - not meaningful

AMERICAN SOFTWARE, INC.

Statements of Operations

(In thousands except per share data)

(Unaudited)

Fourth Quarter Ended

Year Ended

April 30,

April 30,

PctPct

1999

1998

Chg.

1999

1998Chg.

Revenues:

License

$6,009

$ 8,790 (32%) $19,602 $33,548(42%)

Services

16,556

14,927 11% 63,572

50,09027%

Maintenance

6,185

6,223 (1%) 26,003

23,8349%

Total Revenues 28,750

29,940 (4%) 109,177 107,4722%

Cost of Revenues:

License

1,035

2,117 (51%) 8,254

8,1821%

Services

12,120

9,348 30% 45,343

33,43936%

Maintenance

2,705

1,765 53% 10,338

7,64235%

Total Cost

of Revenues

15,860

13,230 20% 63,935

49,26330%

Gross Margin

12,890

16,710 (23%) 45,242

58,209(22%)

Operating expenses:

Research and

development

5,342

5,498 (3%) 22,413

20,9397%

Less: capitalized

development

(2,613)

(2,364) 11% (10,902) (8,82724%

Sales and

marketing

5,950

7,312 (19%) 28,859

25,91511%

General and

administrative 3,764

3,129 20% 16,307

11,53041%

Charge for write-off

of software development

costs ($24.2 million),

In-Process R&D

($1.8 million),

impaired asset

($0.4 million) &

Restructuring

($0.2 million) (1,442)

---

nm 26,563

--- nm

Total operating

expenses

11,001

13,575

(86%) 83,24049,557 nm

Operating income

(loss)

1,889

3,135

(74%) (37,998)8,652 nm

Other income

822

1,584

nm

2,0204,279 nm

Minority interest 45

(206)

nm

1,396(488)nm

Income (loss)

before taxes

2,756

4,513

nm (34,582)12,443 nm

Income taxes expense/

(benefit)

(2,138)

1,939

nm (1,765)4,648 nm

Net Income (loss)

after non-recurring

charge/(credit) $4,894

$ 2,574

nm $(32,817)$7,795 nm

Net Income (loss)

before non-recurring

charge/(credit) $1,165

$ 2,574

nm $(8,541)$7,795 nm

Net income per common

share after

non-recurring

credits - Diluted $0.22

$0.11

nm $(1.47)$0.32 nm

Net income per common

share before

non-recurring

credits - Diluted $0.05

$0.11

nm $(0.38)$0.32 nm

Weighted average common

shares - Diluted 21,991

24,153

22,32024,415

nm - not meaningful

Capsule Balance Sheet Information

(in thousands)

(Unaudited)

April 30,

1999

Cash and investments

$48,864

Accounts receivable:

Billed

17,534

Unbilled

3,539

Total accounts receivable

21,073

Working capital

43,713

Deferred revenues

16,297

Stockholders' equity

67,198 otsOriginal Text Service: American Software, Inc. Internet:http://www.newsaktuell.de CONTACT: Vince Klinges, VicePresident of Finance of American Software, Inc., 404-264-5477/Web site: http://www.amsoftware.com /