SYBASE EXCEEDS ANALYST EXPECTATIONS WITH FOURTH QUARTER PRO FORMA EPS OF $0.30

 "Sybase delivered strong fourth quarter results and we ended 2002 on a positive note," said John Chen, chairman, president, and CEO of Sybase. "Despite another challenging year for the software industry we generated more than $164 million in cash flow from operations and increased our pro forma operating margins to 16 percent.  Our integration products gained further traction in 2002 as we continue to redefine the middleware market with end-to-end solutions from data management to mobile and wireless solutions.  We’ve never been in a better market position than we are today, and our financial strength clearly reflects our success," said Chen.

 Total revenues for the fourth quarter 2002 were $210.6 million compared to fourth quarter revenues 2001 $236.7 million.  Total revenues for the full year 2002 were $829.9 million compared to $927.9 million reported for 2001.

 Pro forma net income for the fourth quarter of 2002 was $29.3 million versus $31.3 million for the fourth quarter of 2001.  Full year 2002 pro forma net income was $101.4 million versus $96.6 million reported in 2001.  Pro forma diluted EPS for the fourth quarter 2002 was $0.30 while pro forma diluted EPS for the full year 2002 was $1.02.  This compares to 2001 fourth quarter pro forma diluted EPS of $0.31, and full year pro forma diluted EPS of $0.99.

 Pro forma results exclude amortization of goodwill and purchased intangibles, stock compensation expense, restructuring and other related charges, a goodwill impairment loss of $12.3 million in the fourth quarter of 2002, and the cumulative effect of an accounting change upon adoption of FAS 142, "Goodwill and Other Intangible Assets," which resulted in a non-cash write off of $132.5 million for the full year 2002.

 On an as reported basis, fourth quarter 2002 net income (loss) was
($9.8) million, compared to $6.1 million in the fourth quarter 2001. Full year 2002 net income (loss) was ($94.7) million compared to ($25.5) million reported in 2001.  Fourth quarter 2002 EPS was ($0.10) on a diluted basis compared to $0.06 reported in the same period of 2001. Full year 2002 EPS was ($0.95) on a diluted basis compared to ($0.27) reported in 2001.

 The fourth quarter and full year 2002 results included the impact of a goodwill impairment loss, a write-off upon adoption of FAS 142, the cost of restructure charges and the amortization of other purchase intangibles.  A detailed reconciliation and description of the company’s pro forma and as reported results are described in the financial exhibits accompanying this release.

   As of December 31, 2002, Sybase reported $392.8 million in cash and cash investments, including restricted cash of $5.7 million, representing approximately $4.15 per outstanding share at the end of the fourth quarter.  Also during the fourth quarter, Sybase repurchased an additional $10.8 million of its stock.  Days sales outstanding was 72 days for the three months ending December 31, 2002.

 During the fourth quarter, Sybase won a number of new and competitive customers, engaged several new partners, and was recognized by analysts and other industry leaders for a range of its innovative technology solutions.  These successes are highlighted at the end of this release, and on our Web site at www.sybase.com/press.

About Sybase, Inc.
      Sybase pioneers software that integrates platforms, databases and applications. Sybase solutions create Information Liquidity — transforming data into economic value.  With Sybase, companies can attain maximum value from their data assets by getting the right information to the right people at the right time.  For more information, visit the Sybase Web site:  http://www.sybase.com.

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Sybase, Adaptive Server, iAnywhere Solutions, and Industry Warehouse Studio are trademarks of Sybase, Inc. or its subsidiaries.  "®" indicates trademark registration in the United States of America.

All other company and product names mentioned may be trademarks of the respective companies with which they are associated.

Forward Looking Statements: Statements in this release concerning Sybase, Inc. and its prospects and future growth are forward looking statements that involve a number of uncertainties and risks. Factors that could cause actual events or results to differ materially from those suggested by these forward looking statements include sales productivity; possible disruptive effects of organizational or personnel changes, political unrest or acts of war; market acceptance of the company’s products and services; customer and industry analyst perception of the company and its technology vision and future prospects; rapid technological changes; competitive factors; unanticipated delays in scheduled product availability dates; interoperability of the company’s products with other leading software application products; general business conditions; volatility of the stock markets generally, market growth rates in the client/server and Internet software markets; and other factors described in Sybase, Inc.’s  reports filed with the Securities Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2002, and its Annual Report on Form 10-K for the year ended December 31, 2001.

Sybase Fourth Quarter 2002 Selected Highlights
During the fourth quarter of 2002, Sybase, Inc. continued its market momentum with a number of product, market, customer and partner announcements.  Key announcements for the quarter include:

* Sybase agreed to acquire AvantGo, a leading provider of mobile enterprise software, further extending Sybase’s mobile and wireless leadership. http://www.sybase.com/detail/1,6904,1023107,00.html

* Sybase and BearingPoint announced plans to create a global strategic alliance, offering enterprise integration solutions that leverage their experience in key industries and geographic markets. http://www.sybase.com/detail/1,6904,1023429,00.html

* Sybase introduced Enterprise Portal 5.0, the only portal to offer integrated development, deployment and monitoring to reduce the overall time and cost associated with portal projects.http://www.sybase.com/detail/1,6904,1021926,00.html

* Sybase announced a partnership with China’s largest systems integrator ? Digital China - to provide eBusiness solutions. http://www.sybase.com/detail/1,6904,1022749,00.html

* Sybase and SuSE Linux AG announced new global partnership that will provide joint customers an easy-to-use Linux platform for Adaptive Server® Enterprise (ASE). http://www.sybase.com/detail/1,6904,1022363,00.html

* Sybase and HP announced plans for Sybase ASE to run on HP-UX and Red Hat Linux operating systems powered by HP’s Itanium 2-based servers. http://www.sybase.com/detail/1,6904,1023007,00.html

* Sybase announced Portlet Developer Initiative (PDI) offering ISVs and SIs the tools needed to "portal enable" applications without time consuming and costly programming. http://www.sybase.com/detail/1,6904,1021779,00.html

* Sybase announced that Casino Group, a $30.6 billion worldwide retailer, has selected its comprehensive EAI solutions to better integrate ERP applications and optimize business processes between headquarters and more than 7,000 retail outlets.  http://www.sybase.com/detail/1,6904,1021639,00.html

* Sybase Industry Warehouse Studio™ (IWS) was selected by the Los Angeles Times to increase the analytical capabilities of its pre-print advertising business enabling the daily newspaper to leverage its huge circulation data stores and unsurpassed delivery capabilities to provide new levels of value and service for advertisers. http://www.sybase.com/detail/1,6904,1022779,00.html

* iAnywhere Solutions™ announced its sixth consecutive year of leadership in the mobile database market — research from Gartner Dataquest revealed that iAnywhere holds 73 percent of the mobile database market. http://www.ianywhere.com/press_releases/top_mobile_database_market.html

* iAnywhere Solutions announced the general availability of SQL Anywhere® Studio 8.0.2 — the latest version of the market-leading mobile data management and enterprise synchronization solution. http://www.ianywhere.com/press_releases/new_sql_with_ultralite.html