Baan Company Reports First-Quarter 1999 Results /

Closes Record Number of Customer Transactions in the Quarter BARNEVELD, The Netherlands and RESTON, Va. (PROTEXT) - BaanCompany N.V. (ASE: BAAN; Nasdaq: BAANF) today announced resultsfor its first quarter ended March 31, 1999. Revenues for thefirst quarter 1999 were $176 million compared with revenues of$179 million in the first quarter of last year. The net loss forthe quarter was ($19) million, or ($0.09) per diluted share,compared with net income of $2 million, or $0.01 per dilutedshare in the first quarter 1998. License revenue for the first quarter of 1999 was $65 million.The Company recorded a record of over 600 license transactionsduring the quarter, a 75% increase over the prior year. TheCompany reported a 28% increase in maintenance and servicerevenues to a record $111 million, or 63% of total revenue ascompared to 48% the year prior. Deferred revenue at the end offirst quarter 1999 was $163 million, approximately equal to theyear-end 1998 levels. Operating expense and cost of revenues fellby approximately 20% to $202 million, compared to the thirdquarter 1998 prior to the commencement of the restructuring. Cashbalances on March 31, 1999 were $125 million. Excludingnon-recurring items, cash used in operations was ($24) million. "Results for the quarter were better than the analysts'consensus projection," said Jim Mooney, Chief Financial Officer,Baan Company. "In the first quarter, the Company achieved itspreviously announced cost reduction targets and we believe ourcost structure moving forward positions us well in what we expectwill continue to be a difficult and challenging market. Tofurther bolster the Company's financial resources, we are workingwith a consortium of international banks to increase our line ofcredit to $75 million." Operating Highlights The Company continued to achieve its goals and noted thefollowing accomplishments since its last earnings announcement. * Significant new customers, and those committing toadditional seats include: Paccar, Simplex, Thomson and USINORadopted Baan ERP; Akzo, Barclays, EDS and Volvo purchasedBaanFrontOffice solutions; Booze Allen Hamilton, Caterpillar andHitachi purchased Baan Supply Chain and Logistics products; andAir Afrique, Navion and UUNET embraced the CODA and BaanFinancials products. * The shareholders approved a new Supervisory Board ofDirectors. Existing directors William Grabe, David Hodgson andHans Wortmann were re-appointed. New directors include newChairman of the Supervisory Board, Pierre Jean Everaert -- FormerCEO of Koninklijke Ahold and former member of the board ofmanagement of Philips Electronics N.V.; John W. Barter -- FormerExecutive Vice President and CFO, AlliedSignal, Inc.; Henk vanden Breemen -- Former Chief of Defense Staff, Dutch Armed Forces(retired); Joop P.M. Janssen -- Chairman of the Board ofDirectors of Heijmans, N.V.; and Koichi Nishimura -- Chairman ofthe Board, President and CEO of Solectron Corporation. * Baan Company continues to attract strong individuals to itsleadership team. Recent management appointments include: James F.Mooney, Chief Financial Officer -- previously VP and ChiefFinancial Officer, Americas, IBM Corporation; Andrew Dailey, Sr.VP Product Marketing -- previously Research Director, EnterpriseResource Planning (ERP), Gartner Group; Ronald Florisson, VPCorporate Communications -- previously Director of Informationfor the Ministry of Finance of The Netherlands; Katrina Roche, GMSupply Chain Solutions -- previously president and CEO of CygnusTechnology. Other executive promotions include Steve Pugh, GMCODA. "The record number of transactions in the first quarter, alongwith the seasoned additions to the management team and board ofdirectors demonstrate Baan Company is back as a leading player inthe enterprise applications market," said Tom Tinsley, Chairmanand CEO of Baan Company. "Our strategy to increase the portion ofrevenue from our 2,000 person-strong customer servicesorganization is working to help provide a more-predictable andsustainable revenue source." Recent Product Announcements * Baan Company recently launched the Baan E-Enterprise(TM)suite of Web-enabled enterprise software applications thatfacilitate business between the entire "value chain" ofemployees, partners, resellers and suppliers. The suite includesBaan E-Collaboration(TM), Baan E-Sales(TM), and BaanE-Procurement(TM). Baan E-Collaboration is an XML-based supplychain collaboration solution that provides greater access toenterprise information. It enables business partners to interactonline to improve accuracy of communications, decrease supplychain cycle times, and reduce overall cost of doing business.Baan E-Sales is an Internet-based, unassisted sales solution thatenables businesses to sell direct or through channel partners.Baan E-Procurement is an intranet-based, indirect procurementsolution for Baan ERP that can reduce cost of procurement by 80%compared to paper-based systems. Components of the BaanE-Enterprise are available beginning in April, 1999. * The Company also shipped several new products including:BidPro, a new product to assist manufacturers in evaluatingtransportation alternatives and select carriers from competingbids; BaanEDM, Baan's analytical application suite that allowsintegrated analysis of information across the complete suite ofBaan Company products; BaanFrontOffice '99 including support fornine European and Asian languages; and BaanInternetConfigurator,an Internet-based interactive selling solution. * Baan Education announced BaanEASE, a revolutionaryElectronic Performance Support System, and BaanLIVE, a Web-baseddistance learning environment where an instructor can teachstudents remotely via the Internet. * Baan Company received numerous industry awards during thequarter. A recent survey by Dataquest of 5000 IT users inSoutheast Asia gave Baan Company the highest customersatisfaction level of any of the ERP vendors in the region; BaanEducation won an International Merit Award from the Society forTechnical Communications for its BaanFrontOffice Coursematerials. "Investment in research and development remains a top priorityfor Baan Company," said Mary Coleman, President of Baan Company."There are approximately 1,600 members of the Research andDevelopment teams around the globe. Total net R&D expense wasover $37 million last quarter alone. Baan Company is committed tomaintaining its leadership role with innovative products andmarket-leading vision for enterprise applications." About Baan Company Founded in 1978, Baan Company (ASE: BAAN; Nasdaq: BAANF) is aleading global provider of enterprise business software. BaanCompany offers a comprehensive portfolio of best-in-class,component-based applications for front office, corporate office,and back office automation are in use at approximately 12,000customer sites worldwide. Baan Company products reducecomplexity, improve core business processes, are faster toimplement and use, are more flexible than our competitors' inadapting to business changes, and optimize the management ofinformation throughout the entire value chain. Baan Company has dual headquarters in Barneveld, TheNetherlands and Reston, Virginia, USA and can be found on theWorld Wide Web at www.baan.com . Statements in this press release using the words "believes,""expects," "anticipates," and the like are forward-lookingstatements within the meaning of the Securities Exchange Act of1934, as amended, and as such are subject to a number of risksand uncertainties that could significantly affect outcomes.Actual outcomes, therefore, may differ materially from theexpectations, estimates, or assumptions expressed in or impliedby any such statements. Typical risks and uncertainties may bereviewed in the Baan Company's public filings on file with theU.S. Securities and Exchange Commission (including its mostrecent Form 20-F and 6-K). "Baan" is a registered trademark of Baan Company, and anytrade, product, or service name referenced in this release usingthe name "Baan" is a trademark and/or property of Baan Company.All other company, product, and service names may be trademarksof their respective owners. For more information, please contact: Baan Company (For Investor Relations) Mark Wabschall or David Spille Phone: +1.703.467.3201 and +31.(0)34.242.8609 Email: dspille@baan.com Baan Company (For Media) Ronald Florisson, Vice President of Corporate Communications Phone: +31(0)34.242.8786 (Europe) or +1 703-467-3000 (North America) BAAN COMPANY N.V. CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)

March 31, 1999

December 31,1998

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$ 125,332 $ 205,751

Short-term marketable securities

266

1,080

Trade accounts receivable, net

241,066 252,129

Income tax receivable

41,259

45,045

Other current assets

72,263

67,032

TOTAL CURRENT ASSETS

480,186 571,037 Property and equipment, at cost

122,830 129,267

Less accumulated depreciation

(70,434)(66,569)

Net property and equipment

52,396

62,698 Software development costs, net

77,438

78,319

Intangible assets, net

91,570

52,644

Other non current assets

41,945

52,156 TOTAL ASSETS

$ 743,535 $ 816,854

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Short-term borrowings from banks

$

556 $

523

Accounts payable and other

current liabilities

219,325 255,269

Income taxes payable

25,619

43,441

Deferred revenue

144,144 147,933

TOTAL CURRENT LIABILITIES

389,644 447,166 Long-term debt

190,505 191,013

Other long-term liabilities

22,495

4,084

Long-term deferred revenue

19,045

17,831 Common stock and additional paid-in-capital 395,100 393,599

Accumulated deficit

(254,339)(235,261)

Accumulated translation adjustment

(18,915)(1,578)

SHAREHOLDERS' EQUITY

121,846 156,760 TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 743,535 $ 816,854

BAAN COMPANY

CONSOLIDATED STATEMENT OF OPERATIONS

($ in thousands, except per share amounts)

(Unaudited)

Three MonthsEnded March 31,

1999

1998

Net revenues:

License revenue

$ 65,178 $ 92,905

Maintenance and service revenue

110,593 86,572

Total net revenues

175,771 179,477

Cost of revenues:

Cost of license revenue

14,392

7,176

Cost of maintenance and service revenue

84,545 68,996

Total cost of revenues

98,937 76,172

Gross profit

76,834 103,305

Operating expenses:

Sales and marketing

49,057 47,531

Research and development

36,788 30,675

General and administrative

16,862 22,307

Total operating expenses

102,707 100,513

Income (loss) from operations

(25,873) 2,792

Other income (expense), net

(1,382)

349

Income (loss) before income taxes

(27,255) 3,141

(Provision) benefit for income taxes

8,177 (1,005) Net income (loss)

$(19,078)$ 2,136

Net income (loss) per share:

Basic

$ (0.09)$ 0.01

Diluted

$ (0.09)$ 0.01

Shares used in computing per share amounts:

Basic

205,038 194,630

Diluted

205,038 211,398ots Original Text Service: Baan Company N.V. Internet:http://www.newsaktuell.de Contact: Investor Relations -- MarkWabschall or David Spille, 703-467-3201 and +31-0-34-242-8609 ordspille@baan.com, or Media -- Ronald Florisson, Vice Presidentof Corporate Communications, +31-0-34-242-8786, Europe, or703-467-3000, North America, all of Baan Web site:http://www.baan.com

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