Oracle (ORCL) 8-K Oracle Reports Q1 Gaap Eps Up 28% to 16 Cents, Non-gaap Eps Up 27% to 22 Cents

Exhibit 99.1

For Immediate Release

Contacts:	Krista Bessinger	Bob Wynne
	Oracle Investor Relations	Oracle Corporate Communications
	+1.650.506.4073	+1.650.506.5834
	investor_us@oracle.com	bob.wynne@oracle.com

ORACLE REPORTS Q1 GAAP EPS UP 28% TO 16 CENTS, NON-GAAP EPS UP 27% TO 22 CENTS

Applications New License Revenues Up 65%, Database and Middleware New License Revenues Up 23%

     REDWOOD SHORES, Calif., Sept. 20, 2007 — Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2008 Q1 GAAP earnings per share were up 28% to $0.16, compared to the same quarter last year. First quarter total GAAP revenues were up 26% to $4.5 billion, while quarterly GAAP net income was up 25% to $840 million. Total GAAP software revenues were up 26% to $3.5 billion with GAAP new software license revenues up 35% to $1.1 billion. Database and middleware new license revenues were up 23% and applications new license revenues were up 65%. Services revenues were up 25% to $1.1 billion, compared to the same quarter last year.

     First quarter non-GAAP earnings per share were up 27% to $0.22, and non-GAAP net income was up 25% to $1.2 billion, compared to the same quarter last year.

     “We reported new software license revenues up 35%, the strongest growth of any quarter in ten years,” said Oracle President and CFO, Safra Catz, “and that software sales growth is translating nicely into EPS growth. We’ve now completed thirteen quarters of our five year EPS growth plan of 20% per year, and we are delivering earnings growth well ahead of that target.”

     “We continue to take applications market share from SAP,” said Oracle President, Charles Phillips. “In Q1 Oracle’s applications new license sales grew 65% compared to SAP’s new license sales growth rate of 18% in their most recently completed quarter. We like our growth strategy of expanding into high-end industry specific vertical

software as opposed to SAP’s growth strategy of moving down market to sell software to small companies.”

     “Our Q1 database and middleware new license sales growth rate of 23% was the highest in seven years,” said CEO, Larry Ellison. “Oracle passed IBM to become the number one database company a long time ago. If we continue to grow our middleware software business at the same rate we grew it this quarter, Oracle will challenge IBM for the number one position in middleware by the end of this year.”

Q1 Earnings Announcement

Oracle will hold a conference call and web broadcast today to discuss these results at 2:00 p.m. (PDT) / 5:00 p.m. (EDT). To access the live web broadcast of this event, please visit the Oracle Investor Relations website athttp://www.oracle.com/investor. Please hold down your control key while pressing refresh to ensure that the weblink is visible.

About Oracle

Oracle is the world’s largest enterprise software company. For more information about Oracle, including supplemental financial information, please visithttp://www.oracle.com/investor or call Investor Relations at (650) 506-4073.

# # #

Trademarks

Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

“Safe Harbor” Statement:Statements in this press release relating to Oracle’s future plans and prospects are “forward-looking statements” and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. We presently consider the following to be among the important factors that could cause actual results to differ materially from expectations: (1) Economic, political and market conditions could adversely affect our revenue growth and profitability through reductions in IT budgets and expenditures. (2)

We may fail to achieve our financial forecasts due to such factors as delays or size reductions in transactions, fewer large transactions in a particular quarter, unanticipated fluctuations in currency exchange rates, delays in delivery of new products or releases, or a decline in our renewal rates for software license updates and product support. (3) We cannot assure market acceptance of new products or new versions of existing or acquired products. (4) We have an active acquisition program and our acquisitions may not be successful, may involve unanticipated costs or other integration issues, or may disrupt our existing operations. (5) Periodic changes to our pricing model and sales organization could temporarily disrupt operations and cause a decline or delay in sales. (6) Intense competitive forces demand rapid technological advances and frequent new product introductions, and could require us to reduce prices. A detailed discussion of these factors and other risks that affect our business is contained in our SEC filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” Copies of these filings are available online from the SEC or by contacting Oracle Corporation’s Investor Relations Department at (650) 506-4073 or by clicking on SEC Filings on Oracle’s Investor Relations website athttp://www.oracle.com/investor. All information set forth in this release is current as of September 20, 2007. Oracle undertakes no duty to update any statement in light of new information or future events.

ORACLE CORPORATION


Q1 FISCAL 2008 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)

																% Increase
	Three Months Ended August 31,												% Increase			(Decrease)
				% of						% of			(Decrease)			in Constant
	2007			Revenues			2006			Revenues			in US $			Currency (1)
REVENUES
New software licenses	$	1,087			24	%	$	804			22	%		35	%		32	%
Software license updates and product support		2,383			53	%		1,941			54	%		23	%		19	%
Software Revenues		3,470			77	%		2,745			76	%		26	%		23	%
Services		1,059			23	%		846			24	%		25	%		21	%
Total Revenues		4,529			100	%		3,591			100	%		26	%		22	%
OPERATING EXPENSES
Sales and marketing		974			22	%		750			21	%		30	%		26	%
Software license updates and product support		228			5	%		200			6	%		14	%		10	%
Cost of services		931			21	%		780			22	%		19	%		15	%
Research and development		652			14	%		506			14	%		29	%		26	%
General and administrative		195			4	%		157			4	%		24	%		20	%
Amortization of intangible assets		285			6	%		198			6	%		44	%		44	%
Acquisition related		47			1	%		48			1	%		(3	%)		(3	%)
Restructuring		—			0	%		9			0	%		(100	%)		(100	%)
Total Operating Expenses		3,312			73	%		2,648			74	%		25	%		21	%
OPERATING INCOME		1,217			27	%		943			26	%		29	%		24	%
Interest expense		(94	)		(2	%)		(83	)		(2	%)		12	%		12	%
Non-operating income, net		77			2	%		102			3	%		(24	%)		(26	%)
INCOME BEFORE PROVISION FOR INCOME TAXES		1,200			27	%		962			27	%		25	%		20	%
Provision for income taxes		360			8	%		292			8	%		23	%		23	%
NET INCOME	$	840			19	%	$	670			19	%		25	%		19	%
EARNINGS PER SHARE:
Basic	$	0.16					$	0.13						28	%
Diluted	$	0.16					$	0.13						28	%
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		5,110						5,217						(2	%)
Diluted		5,217						5,307						(2	%)

(1) We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rate in effect on May 31, 2007, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. The United States dollar weakened relative to major international currencies in the three months ended August 31, 2007 compared with the corresponding prior year period, contributing 4 percentage points of revenue, 4 percentage points of operating expense and 5 percentage points of operating income growth.

ORACLE CORPORATION

Q1 FISCAL 2008 FINANCIAL RESULTS
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(in millions, except per share data)

																			% Increase (Decrease)
	Three Months Ended August 31,																		in US $
	2007						2007			2006						2006
	GAAP			Adj.			Non-GAAP			GAAP			Adj.			Non-GAAP			GAAP			Non-GAAP
TOTAL REVENUES (2)	$	4,529		$	64		$	4,593		$	3,591		$	70		$	3,661			26	%		25	%
TOTAL SOFTWARE REVENUES (2)	$	3,470		$	64		$	3,534		$	2,745		$	70		$	2,815			26	%		26	%
New software licenses		1,087			—			1,087			804			—			804			35	%		35	%
Software license updates and product support (2)		2,383			64			2,447			1,941			70			2,011			23	%		22	%
TOTAL OPERATING EXPENSES	$	3,312		$	(401	)	$	2,911		$	2,648		$	(305	)	$	2,343			25	%		24	%
Stock-based compensation (3)		69			(69	)		—			50			(50	)		—			36	%
Amortization of intangible assets (4)		285			(285	)		—			198			(198	)		—			44	%
Acquisition related		47			(47	)		—			48			(48	)		—			(3	%)
Restructuring		—			—			—			9			(9	)		—			(100	%)
OPERATING INCOME	$	1,217		$	465		$	1,682		$	943		$	375		$	1,318			29	%		28	%
OPERATING MARGIN %		27	%					37	%		26	%					36	%		1	%		1	%
INCOME TAX EFFECTS ON ABOVE ADJUSTMENTS (5)	$	360		$	140		$	500		$	292		$	114		$	406			23	%		23	%
NET INCOME	$	840		$	325		$	1,165		$	670		$	261		$	931			25	%		25	%
DILUTED EARNINGS PER SHARE (6)	$	0.16					$	0.22		$	0.13					$	0.18			28	%		27	%
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (6)		5,217			3			5,220			5,307			7			5,314			(2	%)		(2	%)

(1)	This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. For a detailed explanation of the adjustments made to comparable GAAP measures, the reasons why management uses these measures, the usefulness of these measures and the material limitations on the usefulness of these measures, please see Appendix A.
(2)	As of August 31, 2007, approximately $76 million in estimated revenues related to assumed support contracts will not be recognized in fiscal 2008 due to business combination accounting rules.
(3)	Stock-based compensation is included in the following GAAP operating expense categories:

	Three Months Ended							Three Months Ended
	August 31, 2007							August 31, 2006
	GAAP		Adj.			Non-GAAP		GAAP		Adj.			Non-GAAP
Sales and marketing	$	13	$	(13	)	$	—	$	10	$	(10	)	$	—
Software license updates and product support		4		(4	)		—		3		(3	)		—
Cost of services		4		(4	)		—		3		(3	)		—
Research and development		28		(28	)		—		22		(22	)		—
General and administrative		20		(20	)		—		12		(12	)		—
Subtotal		69		(69	)		—		50		(50	)		—
Acquisition related		32		(32	)		—		—		—			—
Total stock-based compensation	$	101	$	(101	)	$	—	$	50	$	(50	)	$	—

(4) Estimated future annual amortization expense related to intangible assets as of August 31, 2007 is as follows:

Remainder of Fiscal 2008	$	871
2009		1,147
2010		1,021
2011		794
2012		656
2013		506
Thereafter		940
Total	$	5,935

(5)	The income tax provision was calculated reflecting an effective tax rate of 30.0% and 30.4% in the first quarter of fiscal 2008 and 2007, respectively.
(6)	Non-GAAP diluted earnings per share and non-GAAP diluted weighted average common shares outstanding were calculated excluding the effects of adopting Statement 123R.

ORACLE CORPORATION

Q1 FISCAL 2008 FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)

	August 31,		May 31,
	2007		2007
ASSETS
Current Assets:
Cash and cash equivalents	$	6,455	$	6,218
Marketable securities		1,288		802
Trade receivables, net		2,735		4,074
Deferred tax assets		981		968
Other current assets		714		821
Total Current Assets		12,173		12,883
Non-Current Assets:
Property, net		1,633		1,603
Intangible assets, net		5,935		5,964
Goodwill		13,544		13,479
Deferred tax assets		385		48
Other assets		645		595
Total Non-Current Assets		22,142		21,689
TOTAL ASSETS	$	34,315	$	34,572
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings and current portion of long-term debt	$	2	$	1,358
Accounts payable		298		315
Income taxes payable		—		1,237
Accrued compensation and related benefits		1,090		1,349
Accrued restructuring		188		201
Deferred revenues		4,121		3,492
Other current liabilities		1,098		1,435
Total Current Liabilities		6,797		9,387
Non-Current Liabilities:
Long-term debt		6,236		6,235
Income taxes payable		1,291		—
Deferred tax liabilities		1,121		1,121
Accrued restructuring		251		258
Deferred revenues		270		93
Minority interests		308		316
Other long-term liabilities		256		243
Total Non-Current Liabilities		9,733		8,266
Stockholders’ Equity		17,785		16,919
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	34,315	$	34,572

ORACLE CORPORATION

Q1 FISCAL 2008 FINANCIAL RESULTS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)

	Three Months Ended August 31,
	2007			2006
Cash Flows From Operating Activities:
Net income	$	840		$	670
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		67			59
Amortization of intangible assets		285			198
Deferred income taxes		24			(6	)
Minority interests in income		12			12
Stock-based compensation		101			50
Tax benefit on the exercise of stock options		129			49
Excess tax benefits from stock-based compensation		(82	)		(30	)
In-process research and development		7			43
Net investment gains and earnings related to equity investments		—			(15	)
Changes in operating assets and liabilities, net of effects from acquisitions:
Decrease in trade receivables		1,381			1,040
Decrease in prepaid expenses and other assets		161			86
Decrease in accounts payable and other liabilities		(679	)		(900	)
Decrease in income taxes payable		(301	)		(6	)
Increase in deferred revenues		756			373
Net cash provided by operating activities		2,701			1,623
Cash Flows From Investing Activities:
Purchases of marketable securities and investments		(896	)		(2,430	)
Proceeds from maturities and sales of marketable securities and investments		561			642
Acquisitions, net of cash acquired		(546	)		(225	)
Capital expenditures		(87	)		(49	)
Net cash used for investing activities		(968	)		(2,062	)
Cash Flows From Financing Activities:
Payments for repurchases of common stock		(530	)		(936	)
Proceeds from issuance of common stock		317			162
Payments of debt		(1,361	)		(7	)
Excess tax benefits from stock-based compensation		82			30
Distributions to minority interests		(28	)		(25	)
Net cash used for financing activities		(1,520	)		(776	)
Effect of exchange rate changes on cash and cash equivalents		24			2
Net increase (decrease) in cash and cash equivalents		237			(1,213	)
Cash and cash equivalents at beginning of period		6,218			6,659
Cash and cash equivalents at end of period	$	6,455		$	5,446

ORACLE CORPORATION

Q1 FISCAL 2008 FINANCIAL RESULTS
FREE CASH FLOW — TRAILING 4-QUARTERS (1)
($ in millions)

	Fiscal 2007												Fiscal 2008
	Q1			Q2			Q3			Q4			Q1			Q2	Q3	Q4
GAAP Operating Cash Flow	$	4,706		$	4,651		$	4,984		$	5,520		$	6,598
Capital Expenditures (2)		(233	)		(256	)		(258	)		(319	)		(357	)
Free Cash Flow	$	4,473		$	4,395		$	4,726		$	5,201		$	6,241
% Growth over prior year		32	%		32	%		29	%		21	%		40	%
GAAP Net Income	$	3,532		$	3,702		$	3,970		$	4,274		$	4,444
Free Cash Flow as a % of Net Income		127	%		119	%		119	%		122	%		140	%

(1)

To supplement our statements of cash flows presented on a GAAP basis, we use non-GAAP measures of cash flows on a trailing 4-quarter basis to analyze cash flow generated from operations. We believe free cash flow is also useful as one of the bases for comparing our performance with our competitors. The presentation of non-GAAP free cash flow is not meant to be considered in isolation or as an alternative to net income as an indicator of our performance, or as an alternative to cash flows from operating activities as a measure of liquidity.

(2)

Represents capital expenditures as reported in cash flows from investing activities on our cash flow statements presented in accordance with GAAP.

ORACLE CORPORATION

Q1 FISCAL 2008 FINANCIAL RESULTS
SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)
(in millions, except headcount data)

	Fiscal 2007															Fiscal 2008
	Q1			Q2			Q3			Q4			TOTAL			Q1			Q2	Q3	Q4	TOTAL
REVENUES
New software licenses	$	804		$	1,207		$	1,390		$	2,481		$	5,882		$	1,087					$	1,087
Software license updates and product support		1,941			2,007			2,108			2,272			8,329			2,383						2,383
Software Revenues		2,745			3,214			3,498			4,753			14,211			3,470						3,470
Consulting		640			716			694			819			2,869			801						801
On Demand		125			140			142			151			557			158						158
Education		81			93			80			105			359			100						100
Services Revenues		846			949			916			1,075			3,785			1,059						1,059
Total Revenues	$	3,591		$	4,163		$	4,414		$	5,828		$	17,996		$	4,529					$	4,529
AS REPORTED REVENUE GROWTH RATES
New software licenses		28	%		14	%		27	%		17	%		20	%		35	%					35	%
Software license updates and product support		29	%		29	%		24	%		21	%		25	%		23	%					23	%
Software Revenues		29	%		23	%		25	%		19	%		23	%		26	%					26	%
Consulting		33	%		42	%		38	%		30	%		35	%		25	%					25	%
On Demand		49	%		61	%		48	%		16	%		40	%		27	%					27	%
Education		13	%		14	%		8	%		10	%		11	%		24	%					24	%
Services Revenues		33	%		41	%		36	%		26	%		33	%		25	%					25	%
Total Revenues		30	%		26	%		27	%		20	%		25	%		26	%					26	%
CONSTANT CURRENCY GROWTH RATES
New software licenses		26	%		10	%		23	%		13	%		17	%		32	%					32	%
Software license updates and product support		27	%		25	%		20	%		17	%		22	%		19	%					19	%
Software Revenues		27	%		19	%		21	%		15	%		20	%		23	%					23	%
Consulting		31	%		37	%		34	%		24	%		31	%		20	%					20	%
On Demand		47	%		56	%		43	%		12	%		37	%		23	%					23	%
Education		11	%		11	%		4	%		6	%		8	%		20	%					20	%
Services Revenues		31	%		36	%		32	%		20	%		29	%		21	%					21	%
Total Revenues		28	%		23	%		23	%		16	%		22	%		22	%					22	%
GEOGRAPHIC REVENUES
REVENUES
Americas	$	1,956		$	2,170		$	2,315		$	3,018		$	9,460		$	2,375					$	2,375
Europe, Middle East & Africa		1,140			1,422			1,484			1,992			6,037			1,530						1,530
Asia Pacific		495			571			615			818			2,499			624						624
Total Revenues	$	3,591		$	4,163		$	4,414		$	5,828		$	17,996		$	4,529					$	4,529
HEADCOUNT (2)
GEOGRAPHIC AREA
Americas		26,798			27,444			27,874			29,830						30,455
Europe, Middle East & Africa		14,199			14,640			14,758			15,680						15,985
Asia Pacific		24,129			26,350			27,850			29,164						31,212
Total Company		65,126			68,434			70,481			74,674						77,652

(1)	The sum of the quarterly financial information may vary from year-to-date financial information due to rounding.
(2)	Headcount has increased primarily due to our acquisitions.

ORACLE CORPORATION

Q1 FISCAL 2008 FINANCIAL RESULTS
SUPPLEMENTAL TOTAL SOFTWARE PRODUCT REVENUE ANALYSIS (1)
($ in millions)

	Fiscal 2007															Fiscal 2008
	Q1			Q2			Q3			Q4			TOTAL			Q1			Q2	Q3	Q4	TOTAL
APPLICATIONS REVENUES
New software licenses	$	228		$	340		$	423		$	726		$	1,716		$	376					$	376
Software license updates and product support		703			728			769			832			3,032			886						886
Software Revenues	$	931		$	1,068		$	1,192		$	1,558		$	4,748		$	1,262					$	1,262
AS REPORTED GROWTH RATES
New software licenses		80	%		28	%		57	%		13	%		32	%		65	%					65	%
Software license updates and product support		51	%		45	%		27	%		23	%		35	%		26	%					26	%
Software Revenues		57	%		39	%		36	%		18	%		34	%		36	%					36	%
CONSTANT CURRENCY GROWTH RATES
New software licenses		78	%		25	%		52	%		10	%		29	%		61	%					61	%
Software license updates and product support		49	%		41	%		23	%		19	%		32	%		22	%					22	%
Software Revenues		55	%		35	%		32	%		15	%		31	%		32	%					32	%
DATABASE & MIDDLEWARE REVENUES
New software licenses	$	576		$	867		$	967		$	1,755		$	4,166		$	711					$	711
Software license updates and product support		1,238			1,279			1,339			1,440			5,297			1,497						1,497
Software Revenues	$	1,814		$	2,146		$	2,306		$	3,195		$	9,463		$	2,208					$	2,208
AS REPORTED GROWTH RATES
New software licenses		15	%		9	%		17	%		18	%		16	%		23	%					23	%
Software license updates and product support		19	%		21	%		22	%		20	%		21	%		21	%					21	%
Software Revenues		18	%		16	%		20	%		19	%		18	%		22	%					22	%
CONSTANT CURRENCY GROWTH RATES
New software licenses		13	%		5	%		13	%		15	%		12	%		20	%					20	%
Software license updates and product support		18	%		18	%		19	%		17	%		18	%		17	%					17	%
Software Revenues		16	%		13	%		16	%		16	%		15	%		18	%					18	%

(1) The sum of the quarterly financial information may vary from year-to-date financial information due to rounding.

ORACLE CORPORATION

Q1 FISCAL 2008 FINANCIAL RESULTS
SUPPLEMENTAL GEOGRAPHIC NEW SOFTWARE LICENSE REVENUE ANALYSIS (1) (2)
($ in millions)

	Fiscal 2007															Fiscal 2008
	Q1			Q2			Q3			Q4			TOTAL			Q1			Q2	Q3	Q4	TOTAL
AMERICAS
Database & Middleware	$	232		$	333		$	383		$	795		$	1,743		$	286					$	286
Applications		126			195			250			415			986			199						199
New Software License Revenues	$	358		$	528		$	633		$	1,210		$	2,729		$	485					$	485
AS REPORTED GROWTH RATES
Database & Middleware		19	%		2	%		15	%		20	%		15	%		23	%					23	%
Applications		69	%		19	%		69	%		5	%		26	%		58	%					58	%
New Software License Revenues		33	%		8	%		31	%		14	%		19	%		35	%					35	%
CONSTANT CURRENCY GROWTH RATES
Database & Middleware		18	%		2	%		15	%		19	%		14	%		22	%					22	%
Applications		69	%		19	%		69	%		4	%		26	%		57	%					57	%
New Software License Revenues		32	%		7	%		31	%		13	%		18	%		34	%					34	%
EUROPE / MIDDLE EAST / AFRICA
Database & Middleware	$	184		$	341		$	363		$	619		$	1,507		$	253					$	253
Applications		69			101			124			224			518			123						123
New Software License Revenues	$	253		$	442		$	487		$	843		$	2,025		$	376					$	376
AS REPORTED GROWTH RATES
Database & Middleware		12	%		21	%		15	%		20	%		18	%		38	%					38	%
Applications		83	%		35	%		29	%		42	%		42	%		77	%					77	%
New Software License Revenues		25	%		24	%		18	%		25	%		23	%		49	%					49	%
CONSTANT CURRENCY GROWTH RATES
Database & Middleware		8	%		11	%		6	%		12	%		10	%		30	%					30	%
Applications		78	%		25	%		19	%		34	%		33	%		69	%					69	%
New Software License Revenues		21	%		14	%		9	%		18	%		15	%		41	%					41	%
ASIA PACIFIC
Database & Middleware	$	149		$	185		$	213		$	322		$	869		$	155					$	155
Applications		33			44			49			87			212			54						54
New Software License Revenues	$	182		$	229		$	262		$	409		$	1,081		$	209					$	209
AS REPORTED GROWTH RATES
Database & Middleware		12	%		5	%		26	%		10	%		13	%		4	%					4	%
Applications		126	%		58	%		89	%		(1	%)		36	%		67	%					67	%
New Software License Revenues		23	%		12	%		34	%		8	%		17	%		15	%					15	%
CONSTANT CURRENCY GROWTH RATES
Database & Middleware		13	%		2	%		24	%		7	%		11	%		1	%					1	%
Applications		124	%		53	%		83	%		(4	%)		33	%		60	%					60	%
New Software License Revenues		24	%		9	%		32	%		5	%		15	%		12	%					12	%
TOTAL COMPANY
Database & Middleware	$	565		$	859		$	959		$	1,736		$	4,119		$	694					$	694
Applications		228			340			423			726			1,716			376						376
New Software License Revenues (2)	$	793		$	1,199		$	1,382		$	2,462		$	5,835		$	1,070					$	1,070
AS REPORTED GROWTH RATES
Database & Middleware		15	%		9	%		17	%		18	%		15	%		23	%					23	%
Applications		80	%		28	%		57	%		13	%		32	%		65	%					65	%
New Software License Revenues		28	%		14	%		27	%		17	%		20	%		35	%					35	%
CONSTANT CURRENCY GROWTH RATES
Database & Middleware		13	%		5	%		13	%		14	%		12	%		19	%					19	%
Applications		78	%		25	%		52	%		10	%		29	%		61	%					61	%
New Software License Revenues		27	%		10	%		23	%		13	%		16	%		31	%					31	%

(1)	The sum of the quarterly financial information may vary from year-to-date financial information due to rounding.
(2)	New Software License Revenues presented exclude documentation and miscellaneous revenues.

APPENDIX A

ORACLE CORPORATION
Q1 FISCAL 2008 FINANCIAL RESULTS
EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the table, which exclude certain business combination accounting entries and expenses related to acquisitions as well as other significant expenses including stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Compensation of our executives is based in part on the performance of our business based on these non-GAAP measures. Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:

•   Support deferred revenue: Business combination accounting rules require us to account for the fair value of support contracts assumed in connection with our acquisitions. Because these are typically one-year contracts, our GAAP revenues for the one-year period subsequent to our acquisitions do not reflect the full amount of software license updates and product support revenues on assumed support contracts that would have otherwise been recorded by the acquired entities. The non-GAAP adjustment is intended to reflect the full amount of such revenues. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business because we have historically experienced high renewal rates on support contracts, although we cannot be certain that customers will renew these contracts.

•    Stock-based compensation expenses: We have excluded the effect of stock-based compensation expenses from our non-GAAP operating expenses and net income. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.

•   Amortization of intangible assets expenses: We have excluded the effect of amortization of intangibles from our non-GAAP operating expenses and net income. Amortization of intangible assets expense is inconsistent in amount and frequency and is significantly affected by the timing and size of our acquisitions. Investors should note that the use of intangible assets contributed to revenues earned during the periods presented and will contribute to future period revenues as well. Amortization expenses will recur in future periods.

•    Acquisition related charges and restructuring expenses: We incurred significant expenses in connection with acquisitions, which we would not have otherwise incurred in the periods presented. Acquisition related charges primarily consist of in-process research and development expenses, integration-related professional services, stock-based compensation expenses (in addition to the stock-based compensation expenses described above) and personnel related expenses for transitional employees. Stock-based compensation expenses included in acquisition related charges resulted from unvested options assumed in acquisitions whose vesting was fully accelerated upon termination of the employees pursuant to the terms of the options. Restructuring expenses consist of Oracle employee severance and Oracle duplicate facility closures in connection with acquisitions. We believe it is useful for investors to understand the effect of these expenses on our cost structure. Although acquisition related charges and restructuring costs are not recurring with respect to past acquisitions, we will incur these expenses in connection with future acquisitions.