Oracle (ORCL) 8-K Oracle Reports Q4 Gaap Eps of 24 Cents, Non-gaap Eps of 29 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 Q4 GAAP EPS OF 24 CENTS, NON-GAAP EPS OF 29 CENTS

Applications New License Revenues Up 83%, Database and Middleware New License Revenues Up 18%

REDWOOD SHORES, Calif., June 22, 2006 — Oracle Corporation (NASDAQ: ORCL) today announced fiscal 2006 Q4 GAAP earnings per share of $0.24, up 24% compared to the same quarter last year. Fourth quarter GAAP revenues were up 25% to $4.9 billion, while quarterly GAAP net income was up 27% to $1.3 billion. Total GAAP software revenues were up 28% to $4.0 billion with GAAP database and middleware new license revenues up 18% and GAAP applications new license revenues up 83%. GAAP services revenues were $857 million, up 13% compared to the same quarter last year.

Non-GAAP earnings per share were $0.29 in Q4, up 11% compared to the same quarter last year. Non-GAAP net income was up 13% to $1.5 billion compared to Q4 last year.

Fiscal year 2006 GAAP earnings per share were $0.64, up 16% compared to the prior year. Fiscal year 2006 GAAP revenues were up 22% to $14.4 billion, while annual GAAP net income was up 17% to $3.4 billion. Total GAAP software revenues for the full year were up 23% to $11.5 billion with annual GAAP database and middleware new license revenues up 9% and annual GAAP applications new license revenues up 66%. Annual GAAP services revenues were $2.8 billion, up 19% compared to the year ago period.

Fiscal year 2006 non-GAAP earnings per share were $0.80, up 19% year over year. Annual non-GAAP net income was up 20% to $4.2 billion compared to fiscal year 2005.

“We reported record revenues and earnings for the fourth quarter and fiscal year 2006,” said Oracle President and CFO, Safra Catz. “In two years, our non-GAAP EPS is up 56%. That is well above our stated goal of a 20% average annual growth rate.”

“In Q4 Oracle delivered accelerating revenue growth across virtually all product lines and geographies,” said Oracle President, Charles Phillips. “Our applications business was especially strong with new license sales growing 83% including acquisitions, and 56% growth on an organic basis. At these very high growth rates, Oracle is rapidly increasing its share of the applications market.”

“Oracle’s database and middleware business grew 18% in the quarter and 9% for the full year,” said CEO, Larry Ellison. “We are growing faster than the overall database market because we are winning share from our competitors. The latest Gartner and IDC reports confirm that Oracle is increasing its lead over the number two database, IBM’s DB2, as more and more companies move their applications off of mainframes and onto Oracle Database Grids.”

###

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

“Safe Harbor” Statement:Statements in this press release relating to Oracle’s results and 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 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, as amended, and Form 10-Q, particularly under the heading “Factors That May Affect Our Future Results or the Market Price of Our Stock.” Copies of these filings are available online from the SEC atwww.sec.gov 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 at http://www.oracle.com/investor. All information set forth in this release is current as of June 22, 2006. Oracle undertakes no duty to update any statement in light of new information or future events.

ORACLE CORPORATION

Q4 FISCAL 2006 QUARTER TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

	Three Months Ended May 31,										% Increase (Decrease) in US $		% Increase (Decrease) in Constant Currency (1)
	2006			% of Revenues		2005			% of Revenues
REVENUES
New software licenses	$	2,121		43%		$	1,609		42%		32%		32%
Software license updates and product support		1,873		39%			1,514		39%		24%		25%
Software Revenues		3,994		82%			3,123		81%		28%		28%
Services		857		18%			755		19%		13%		14%
Total Revenues		4,851		100%			3,878		100%		25%		26%
OPERATING EXPENSES
Sales and marketing		1,100		23%			807		21%		36%		37%
Software license updates and product support		206		4%			180		4%		14%		15%
Cost of services		758		16%			611		16%		24%		25%
Research and development		536		11%			457		12%		17%		18%
General and administrative		145		3%			150		4%		(3%	)	0%
Amortization of intangible assets		185		4%			121		3%		53%		53%
Acquisition related		16		0%			105		3%		(85%	)	(86%	)
Restructuring		48		1%			40		1%		19%		20%
Total Operating Expenses		2,994		62%			2,471		64%		21%		22%
OPERATING INCOME		1,857		38%			1,407		36%		32%		32%
Interest expense		(83	)	(2%	)		(66	)	(1%	)	26%		26%
Non-operating income, net		104		2%			46		1%		127%		130%
INCOME BEFORE PROVISION FOR INCOME TAXES		1,878		38%			1,387		36%		35%		36%
Provision for income taxes		578		12%			365		10%		58%		58%
NET INCOME	$	1,300		26%		$	1,022		26%		27%		27%
EARNINGS PER SHARE:
Basic	$	0.25				$	0.20				24%
Diluted	$	0.24				$	0.20				24%
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		5,278					5,145				3%
Diluted		5,373					5,234				3%

(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, 2005, 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 strengthened relative to major international currencies in the three months ended May 31, 2006 compared with the corresponding prior year period, reducing revenue and operating expense growth by 1 percentage point.

ORACLE CORPORATION

Q4 FISCAL 2006 QUARTER TO DATE

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

(in millions, except per share data)

	Three Months Ended May 31,														% Increase (Decrease) in US $
	2006     GAAP		Adj.			2006 Non-GAAP		2005     GAAP		Adj.			2005 Non-GAAP		GAAP		Non-GAAP
TOTAL REVENUES (2)	$	4,851	$	86		$	4,937	$	3,878	$	178		$	4,056	25%		22%
TOTAL SOFTWARE REVENUES (2)	$	3,994	$	86		$	4,080	$	3,123	$	178		$	3,301	28%		24%
New software licenses		2,121		—			2,121		1,609		—			1,609	32%		32%
Software license updates and product support (2)		1,873		86			1,959		1,514		178			1,692	24%		16%
TOTAL OPERATING EXPENSES	$	2,994	$	(257	)	$	2,737	$	2,471	$	(281	)	$	2,190	21%		25%
Stock-based compensation (3)		8		(8	)		—		15		(15	)		—	(52%	)	0%
Amortization of intangible assets (4)		185		(185	)		—		121		(121	)		—	53%		0%
Acquisition related		16		(16	)		—		105		(105	)		—	(85%	)	0%
Restructuring		48		(48	)		—		40		(40	)		—	19%		0%
OPERATING INCOME	$	1,857	$	343		$	2,200	$	1,407	$	459		$	1,866	32%		18%
OPERATING MARGIN %		38%					45%		36%					46%	6%		(3%	)
INCOME BEFORE PROVISION FOR INCOME TAXES	$	1,878	$	343		$	2,221	$	1,387	$	459		$	1,846	35%		20%
Income tax effect on above adjustments (5)		578		106			684		365		126			491	58%		39%
NET INCOME	$	1,300	$	237		$	1,537	$	1,022	$	333		$	1,355	27%		13%
DILUTED EARNINGS PER SHARE	$	0.24				$	0.29	$	0.20				$	0.26	24%		11%

(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 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) Estimated revenues related to assumed support contracts, as of May 31, 2006, that will not be recognized in future periods due to business combination accounting rules are as follows:

	Year Ended May 31,
2007	$	137
2008		9
Total	$	146

(3) Stock-based compensation represents the portion of the intrinsic value of unvested options assumed from acquired companies related to future service and is included in the following GAAP operating expenses:

	Three Months Ended May 31, 2006							Three Months Ended May 31, 2005
	GAAP		Adj.			Non-GAAP		GAAP		Adj.			Non-GAAP
Sales and marketing	$	2	$	(2	)	$	—	$	4	$	(4	)	$	—
Software license updates and product support		1		(1	)		—		1		(1	)		—
Cost of services		2		(2	)		—		4		(4	)		—
Research and development		3		(3	)		—		6		(6	)		—
Total stock-based compensation	$	8	$	(8	)	$	—	$	15	$	(15	)	$	—

We will adopt FASB Statement 123R in the first quarter of fiscal 2007. Under Statement 123R, the fair value of all stock-based compensation awards will be reflected as an expense. We estimate that stock-based compensation expense will reduce diluted earnings per share by $0.02 to $0.03 in fiscal 2007.

(4) Estimated future amortization expense related to intangible assets as of May 31, 2006 is as follows:

	Year Ended May 31,
2007	$	738
2008		727
2009		722
2010		615
2011		431
Thereafter		1,295
Total	$	4,528

(5) The income tax provision was calculated reflecting a tax rate of 30.8% and 27.5% in the fourth quarter of fiscal 2006 and 2005, respectively.

ORACLE CORPORATION

FISCAL 2006 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

	Year Ended May 31,										% Increase (Decrease) in US $		% Increase (Decrease) in Constant Currency (1)
	2006			% of Revenues		2005			% of Revenues
REVENUES
New software licenses	$	4,905		34%		$	4,091		35%		20%		21%
Software license updates and product support		6,636		46%			5,330		45%		25%		26%
Software Revenues		11,541		80%			9,421		80%		23%		24%
Services		2,839		20%			2,378		20%		19%		21%
Total Revenues		14,380		100%			11,799		100%		22%		23%
OPERATING EXPENSES
Sales and marketing		3,177		22%			2,511		21%		27%		28%
Software license updates and product support		719		5%			618		5%		16%		18%
Cost of services		2,516		17%			2,033		17%		24%		25%
Research and development		1,872		13%			1,491		13%		25%		26%
General and administrative		555		4%			550		5%		1%		3%
Amortization of intangible assets		583		4%			219		2%		167%		167%
Acquisition related		137		1%			208		2%		(34%	)	(35%	)
Restructuring		85		1%			147		1%		(42%	)	(41%	)
Total Operating Expenses		9,644		67%			7,777		66%		24%		25%
OPERATING INCOME		4,736		33%			4,022		34%		18%		20%
Interest expense		(169	)	(1%	)		(135	)	(1%	)	25%		26%
Non-operating income, net		243		1%			164		1%		49%		50%
INCOME BEFORE PROVISION FOR INCOME TAXES		4,810		33%			4,051		34%		19%		21%
Provision for income taxes		1,429		9%			1,165		10%		23%		23%
NET INCOME	$	3,381		24%		$	2,886		24%		17%		20%
EARNINGS PER SHARE :
Basic	$	0.65				$	0.56				16%
Diluted	$	0.64				$	0.55				16%
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic		5,196					5,136				1%
Diluted		5,287					5,231				1%

(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, 2005, 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 strengthened relative to major international currencies for the year ended May 31, 2006 compared with the corresponding prior year period, reducing revenue and operating expense growth by 1 percentage point and operating income growth by 2 percentage points.

ORACLE CORPORATION

FISCAL 2006 YEAR TO DATE

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (1)

(in millions, except per share data)

	Year Ended May 31,														% Increase (Decrease) in US $
	2006     GAAP		Adj.			2006 Non-GAAP		2005     GAAP		Adj.			2005 Non-GAAP		GAAP		Non-GAAP
TOTAL REVENUES (2)	$	14,380	$	391		$	14,771	$	11,799	$	320		$	12,119	22%		22%
TOTAL SOFTWARE REVENUES (2)	$	11,541	$	391		$	11,932	$	9,421	$	320		$	9,741	23%		22%
New software licenses		4,905		—			4,905		4,091		—			4,091	20%		20%
Software license updates and product support (2)		6,636		391			7,027		5,330		320			5,650	25%		24%
TOTAL OPERATING EXPENSES	$	9,644	$	(836	)	$	8,808	$	7,777	$	(599	)	$	7,178	24%		23%
Stock-based compensation (3)		31		(31	)		—		25		(25	)		—	26%		0%
Amortization of intangible assets (4)		583		(583	)		—		219		(219	)		—	167%		0%
Acquisition related		137		(137	)		—		208		(208	)		—	(34%	)	0%
Restructuring		85		(85	)		—		147		(147	)		—	(42%	)	0%
OPERATING INCOME	$	4,736	$	1,227		$	5,963	$	4,022	$	919		$	4,941	18%		21%
OPERATING MARGIN %		33%					40%		34%					41%	(3%	)	(1%	)
INCOME BEFORE PROVISION FOR INCOME TAXES	$	4,810	$	1,227		$	6,037	$	4,051	$	919		$	4,970	19%		21%
Income tax effect on above adjustments (5)		1,429		362			1,791		1,165		264			1,429	23%		25%
NET INCOME	$	3,381	$	865		$	4,246	$	2,886	$	655		$	3,541	17%		20%
DILUTED EARNINGS PER SHARE	$	0.64				$	0.80	$	0.55				$	0.68	16%		19%

(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 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) Estimated revenues related to assumed support contracts, as of May 31, 2006, that will not be recognized in future periods due to business combination accounting rules are as follows:

	Year Ended May 31,
2007	$	137
2008		9
Total	$	146

(3) Stock-based compensation represents the portion of the intrinsic value of unvested options assumed from acquired companies related to future service and is included in the following GAAP operating expenses:

	Year Ended May 31, 2006							Year Ended May 31, 2005
	GAAP		Adj.			Non-GAAP		GAAP		Adj.			Non-GAAP
Sales and marketing	$	8	$	(8	)	$	—	$	6	$	(6	)	$	—
Software license updates and product support		3		(3	)		—		2		(2	)		—
Cost of services		7		(7	)		—		7		(7	)		—
Research and development		13		(13	)		—		10		(10	)		—
Total stock-based compensation	$	31	$	(31	)	$	—	$	25	$	(25	)	$	—

We will adopt FASB Statement 123R in the first quarter of fiscal 2007. Under Statement 123R, the fair value of all stock-based compensation awards will be reflected as an expense. We estimate that stock-based compensation expense will reduce diluted earnings per share by $0.02 to $0.03 in fiscal 2007.

(4) Estimated future amortization expense related to intangible assets as of May 31, 2006 is as follows:

	Year Ended May 31,
2007	$	738
2008		727
2009		722
2010		615
2011		431
Thereafter		1,295
Total	$	4,528

(5) The income tax provision was calculated to reflect a 29.7% and 28.8% tax rate in fiscal year 2006 and 2005, respectively.

ORACLE CORPORATION

FISCAL 2006 FINANCIAL RESULTS

CONDENSED CONSOLIDATED BALANCE SHEETS (1)

($ in millions)

	May 31, 2006		May 31, 2005
ASSETS
Current Assets:
Cash and cash equivalents	$	6,659	$	3,894
Marketable securities		946		877
Trade receivables, net		3,022		2,570
Deferred tax assets		558		486
Other current assets		633		621
Total Current Assets		11,818		8,448
Non-Current Assets:
Property, net		1,391		1,442
Intangible assets, net		4,528		3,373
Goodwill		9,809		7,003
Other assets		1,327		421
Total Non-Current Assets		17,055		12,239
TOTAL ASSETS	$	28,873	$	20,687
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term borrowings and current portion of long-term debt	$	159	$	2,693
Accounts payable		268		230
Income taxes payable		810		904
Accrued compensation and related benefits		1,172		923
Accrued restructuring		412		156
Deferred revenues		2,830		2,289
Other current liabilities		1,279		868
Total Current Liabilities		6,930		8,063
Non-Current Liabilities:
Long-term debt		5,735		159
Deferred tax liabilities		408		1,010
Accrued restructuring		273		120
Deferred revenues		114		126
Other long-term liabilities		401		372
Total Non-Current Liabilities		6,931		1,787
Stockholders’ Equity		15,012		10,837
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	28,873	$	20,687

(1) Certain prior period balances have been reclassified to conform to the current period presentation.

ORACLE CORPORATION

FISCAL 2006 YEAR TO DATE FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1)

($ in millions)

	Year Ended May 31,
	2006			2005
Cash Flows From Operating Activities:
Net income	$	3,381		$	2,886
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		223			206
Amortization of intangible assets		583			219
Provision for trade receivable allowances		241			197
Deferred income taxes		(40	)		(66	)
Minority interests in income		41			42
Stock-based compensation		49			72
Non cash restructuring		—			33
In-process research and development		78			46
Net investment gains related to equity securities		(39	)		(2	)
Changes in operating assets and liabilities, net of effects from acquisitions:
Increase in trade receivables		(355	)		(88	)
Decrease in prepaid expenses and other assets		14			164
Increase (decrease) in accounts payable and other liabilities		23			(533	)
Increase (decrease) in income taxes payable		64			(18	)
Increase in deferred revenues		278			394
Net cash provided by operating activities		4,541			3,552
Cash Flows From Investing Activities:
Purchases of investments		(2,128	)		(7,101	)
Proceeds from maturities and sale of investments		3,676			12,194
Acquisitions, net of cash acquired		(3,953	)		(10,656	)
Purchases of equity and other investments		(858	)		(2	)
Capital expenditures		(236	)		(188	)
Proceeds from sales of property		140			—
Net cash used for investing activities		(3,359	)		(5,753	)
Cash Flows From Financing Activities:
Payments for repurchase of common stock		(2,067	)		(1,343	)
Proceeds from issuance of common stock		632			596
Proceeds from borrowings, net of financing costs		12,636			12,505
Payments of debt		(9,635	)		(9,830	)
Distributions to minority interests		(39	)		(44	)
Net cash provided by financing activities		1,527			1,884
Effect of exchange rate changes on cash and cash equivalents		56			73
Net increase (decrease) in cash and cash equivalents		2,765			(244	)
Cash and cash equivalents at beginning of period		3,894			4,138
Cash and cash equivalents at end of period	$	6,659		$	3,894

(1) Certain prior period balances have been reclassified to conform to the current period presentation.

ORACLE CORPORATION

FISCAL 2006 FINANCIAL RESULTS

FREE CASH FLOW—TRAILING 4-QUARTERS (1)

($ in millions)

	Fiscal 2005												Fiscal 2006
	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
GAAP Operating Cash Flow	$	3,350		$	3,386		$	3,575		$	3,552		$	3,596		$	3,509		$	3,857		$	4,541
Capital Expenditures (2)		(147	)		(178	)		(195	)		(188	)		(206	)		(182	)		(199	)		(236	)
Free Cash Flow	$	3,203		$	3,208		$	3,380		$	3,364		$	3,390		$	3,327		$	3,658		$	4,305
% Growth		16%			12%			27%			12%			6%			4%			8%			28%
GAAP Net Income	$	2,749		$	2,948		$	2,854		$	2,886		$	2,896		$	2,878		$	3,103		$	3,381
Free Cash Flow as a % of Net Income		117%			109%			118%			117%			117%			116%			118%			127%

(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 of our cash flow statements presented in accordance with U.S. generally accepted accounting principles.

ORACLE CORPORATION

FISCAL 2006 FINANCIAL RESULTS

SUPPLEMENTAL ANALYSIS OF GAAP REVENUES AND HEADCOUNT (1)

(in millions, except headcount data)

	Fiscal 2005												Fiscal 2006
	Q1			Q2			Q3		Q4		TOTAL		Q1		Q2		Q3		Q4		TOTAL
REVENUES
New software licenses	$	563		$	971		$	947	$	1,609	$	4,091	$	629	$	1,058	$	1,096	$	2,121	$	4,905
Software license updates and product support		1,176			1,252			1,389		1,514		5,330		1,502		1,559		1,703		1,873		6,636
Software Revenues		1,739			2,223			2,336		3,123		9,421		2,131		2,617		2,799		3,994		11,541
Consulting		355			395			470		589		1,810		481		506		501		632		2,120
On Demand		71			72			76		80		299		84		87		96		130		397
Education		50			66			68		86		269		72		82		74		95		322
Services Revenues		476			533			614		755		2,378		637		675		671		857		2,839
Total Revenues	$	2,215		$	2,756		$	2,950	$	3,878	$	11,799	$	2,768	$	3,292	$	3,470	$	4,851	$	14,380
AS REPORTED REVENUE GROWTH RATES
New software licenses		7%			14%			12%		23%		16%		12%		9%		16%		32%		20%
Software license updates and product support		14%			12%			18%		26%		18%		28%		25%		23%		24%		25%
Software Revenues		11%			13%			15%		24%		17%		23%		18%		20%		28%		23%
Consulting		(10%	)		0%			26%		40%		14%		36%		28%		7%		7%		17%
On Demand		18%			11%			23%		12%		16%		18%		20%		26%		62%		32%
Education		(11%	)		(4%	)		37%		32%		13%		42%		25%		9%		11%		20%
Services Revenues		(7%	)		1%			27%		35%		14%		34%		26%		9%		13%		19%
Total Revenues		7%			10%			18%		26%		16%		25%		19%		18%		25%		22%
CONSTANT CURRENCY GROWTH RATES
New software licenses		3%			9%			8%		20%		12%		10%		12%		20%		32%		21%
Software license updates and product support		10%			8%			15%		22%		14%		26%		27%		27%		25%		26%
Software Revenues		8%			8%			12%		21%		13%		21%		20%		24%		28%		24%
Consulting		(13%	)		(4%	)		23%		36%		10%		34%		31%		10%		8%		19%
On Demand		14%			7%			20%		9%		12%		17%		22%		29%		63%		33%
Education		(14%	)		(9%	)		33%		28%		8%		40%		27%		13%		12%		21%
Services Revenues		(10%	)		(3%	)		23%		32%		10%		32%		29%		13%		14%		21%
Total Revenues		3%			6%			14%		23%		12%		23%		22%		22%		26%		23%
GEOGRAPHIC REVENUES
REVENUES
Americas	$	1,091		$	1,292		$	1,437	$	1,977	$	5,798	$	1,475	$	1,733	$	1,848	$	2,595	$	7,652
Europe, Middle East & Africa		778			1,062			1,088		1,361		4,288		883		1,090		1,164		1,572		4,708
Asia Pacific		346			402			425		540		1,713		410		469		458		684		2,020
Total Revenues	$	2,215		$	2,756		$	2,950	$	3,878	$	11,799	$	2,768	$	3,292	$	3,470	$	4,851	$	14,380
HEADCOUNT
GEOGRAPHIC AREA
Domestic		16,458			16,347			21,774		21,544				21,198		21,133		23,256		23,209
International		25,610			26,233			29,107		28,328				28,318		30,021		32,326		32,924
Total Company		42,068			42,580			50,881		49,872				49,516		51,154		55,582		56,133

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

ORACLE CORPORATION

FISCAL 2006 FINANCIAL RESULTS

SUPPLEMENTAL TOTAL SOFTWARE PRODUCT REVENUE ANALYSIS (1)

($ in millions)

	Fiscal 2005											Fiscal 2006
	Q1			Q2		Q3		Q4		Total		Q1		Q2		Q3		Q4		Total
APPLICATIONS REVENUES
New software licenses	$	69		$	215	$	152	$	350	$	785	$	127	$	266	$	269	$	641	$	1,303
Software license updates and product support		238			254		351		445		1,288		466		502		608		676		2,252
Software Revenues		307			469		503		795		2,073		593		768		877		1,317		3,555
AS REPORTED GROWTH RATES
New software licenses		(36%	)		57%		9%		52%		28%		84%		24%		77%		83%		66%
Software license updates and product support		8%			7%		48%		86%		38%		96%		98%		73%		52%		75%
Software Revenues		(6%	)		25%		34%		69%		34%		93%		64%		74%		66%		71%
CONSTANT CURRENCY GROWTH RATES
New software licenses		(38%	)		51%		7%		49%		25%		82%		27%		82%		83%		67%
Software license updates and product support		4%			3%		43%		80%		33%		93%		101%		79%		53%		77%
Software Revenues		(9%	)		21%		30%		65%		30%		91%		67%		80%		66%		72%
DATABASE & MIDDLEWARE REVENUES
New software licenses	$	494		$	756	$	795	$	1,259	$	3,306	$	502	$	792	$	827	$	1,480	$	3,602
Software license updates and product support		938			998		1,038		1,069		4,042		1,036		1,057		1,095		1,197		4,384
Software Revenues		1,432			1,754		1,833		2,328		7,349		1,538		1,849		1,922		2,677		7,986
AS REPORTED GROWTH RATES
New software licenses		18%			5%		12%		16%		13%		2%		5%		4%		18%		9%
Software license updates and product support		15%			14%		11%		11%		12%		10%		6%		6%		12%		8%
Software Revenues		16%			10%		11%		14%		13%		7%		5%		5%		15%		9%
CONSTANT CURRENCY GROWTH RATES
New software licenses		14%			1%		9%		13%		9%		0%		8%		8%		18%		10%
Software license updates and product support		11%			10%		7%		7%		9%		9%		8%		9%		13%		9%
Software Revenues		12%			6%		8%		10%		9%		6%		8%		9%		15%		10%

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

ORACLE CORPORATION

FISCAL 2006 FINANCIAL RESULTS

SUPPLEMENTAL GEOGRAPHIC NEW SOFTWARE LICENSE REVENUES ANALYSIS (1) (2)

($ in millions)

	Fiscal 2005												Fiscal 2006
	Q1			Q2			Q3		Q4		TOTAL		Q1			Q2			Q3			Q4		TOTAL
AMERICAS
Database & Middleware	$	197		$	285		$	289	$	542	$	1,313	$	194		$	327		$	334		$	662	$	1,518
Applications		30			116			91		229		466		75			163			148			395		782
New Software License Revenues	$	227		$	401		$	380	$	771	$	1,779	$	269		$	490		$	482		$	1,057	$	2,300
AS REPORTED GROWTH RATES
Database & Middleware		22%			(5%	)		14%		29%		16%		(2%	)		15%			16%			22%		16%
Applications		(27%	)		53%			7%		71%		39%		150%			41%			61%			73%		67%
New Software License Revenues		12%			7%			12%		39%		21%		19%			22%			27%			37%		29%
CONSTANT CURRENCY GROWTH RATES
Database & Middleware		21%			(5%	)		12%		27%		15%		(4%	)		13%			14%			21%		14%
Applications		(27%	)		51%			7%		69%		38%		148%			40%			60%			72%		66%
New Software License Revenues		11%			7%			11%		37%		20%		17%			21%			25%			36%		28%
EUROPE / MIDDLE EAST / AFRICA
Database & Middleware	$	158		$	304		$	325	$	483	$	1,270	$	164		$	282		$	316		$	515	$	1,278
Applications		28			80			44		76		227		38			75			96			158		366
New Software License Revenues	$	186		$	384		$	369	$	559	$	1,497	$	202		$	357		$	412		$	673	$	1,644
AS REPORTED GROWTH RATES
Database & Middleware		10%			16%			12%		7%		11%		4%			(7%	)		(3%	)		7%		1%
Applications		(49%	)		67%			7%		6%		5%		38%			(6%	)		119%			108%		61%
New Software License Revenues		(6%	)		23%			11%		7%		10%		9%			(7%	)		12%			20%		10%
CONSTANT CURRENCY GROWTH RATES
Database & Middleware		3%			5%			6%		3%		4%		3%			0%			6%			7%		5%
Applications		(53%	)		54%			2%		3%		0%		36%			1%			138%			108%		67%
New Software License Revenues		(12%	)		13%			6%		3%		4%		8%			0%			22%			21%		14%
ASIA PACIFIC
Database & Middleware	$	131		$	160		$	168	$	222	$	682	$	134		$	176		$	170		$	292	$	771
Applications		11			19			17		45		92		14			28			25			88		155
New Software License Revenues	$	142		$	179		$	185	$	267	$	774	$	148		$	203		$	195		$	380	$	926
AS REPORTED GROWTH RATES
Database & Middleware		27%			7%			8%		10%		12%		2%			9%			1%			31%		13%
Applications		0%			46%			21%		80%		46%		28%			48%			52%			94%		69%
New Software License Revenues		25%			10%			9%		18%		15%		4%			13%			5%			42%		20%
CONSTANT CURRENCY GROWTH RATES
Database & Middleware		21%			3%			3%		7%		8%		0%			14%			6%			34%		16%
Applications		0%			38%			23%		72%		42%		23%			50%			60%			96%		71%
New Software License Revenues		19%			6%			5%		14%		11%		2%			18%			11%			45%		23%
TOTAL COMPANY
Database & Middleware	$	486		$	749		$	782	$	1,247	$	3,265	$	492		$	785		$	820		$	1,469	$	3,567
Applications		69			215			152		350		785		127			266			269			641		1,303
New Software License Revenues	$	555		$	964		$	934	$	1,597	$	4,050	$	619		$	1,051		$	1,089		$	2,110	$	4,870
AS REPORTED GROWTH RATES
Database & Middleware		19%			5%			12%		16%		13%		1%			5%			5%			18%		9%
Applications		(36%	)		57%			9%		52%		28%		84%			24%			77%			83%		66%
New Software License Revenues		8%			14%			11%		22%		15%		12%			9%			17%			32%		20%
CONSTANT CURRENCY GROWTH RATES
Database & Middleware		14%			1%			8%		13%		9%		0%			8%			9%			18%		10%
Applications		(38%	)		51%			7%		49%		25%		82%			27%			82%			83%		67%
New Software License Revenues		4%			9%			8%		20%		12%		10%			12%			21%			32%		21%

(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

FISCAL 2006 FINANCIAL RESULTS

EXPLANATION OF NON-GAAP MEASURES

Due to a series of acquisitions, our results of operations have undergone significant change. 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 and other significant expenses, 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 effect:

• Support deferred revenue: Business combination accounting rules require us to account for the fair value of support contracts assumed in connection with acquisitions. Because these are typically one-year contracts, our GAAP revenues for the one-year period subsequent to acquisitions do not reflect the full amount of revenue on assumed contracts that would have otherwise been recorded by the acquired entities. The non-GAAP adjustment is intended to reflect the full amount of such revenue. 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 assure that customers will renew these contracts.

• Stock-based compensation: Certain of our operating expenses include stock-based compensation related to unvested stock options assumed in connection with acquisitions. We believe it is useful to highlight the effect of stock-based compensation related to acquisitions because, in compliance with our historical practices under SFAS 123, we do not otherwise expense Oracle stock-based compensation in the current or in past reporting periods. However, stock-based compensation is a key incentive offered to our employees, and we believe it contributed to the revenue earned during the period and will contribute to our future revenue generation. Stock-based compensation expenses will recur in future periods.

• Amortization of intangible assets: We have excluded the effect of amortization of intangibles from our non-GAAP net income. We believe this is useful because, prior to the PeopleSoft acquisition in the third quarter of fiscal 2005, we did not incur significant charges of this nature, and the exclusion of this amount helps investors understand a significant reason why our GAAP operating expenses increased in periods subsequent to the PeopleSoft acquisition. Investors should note that the use of intangible assets contributed to revenue earned during the period and will contribute to future revenue generation and should also note that these amortization expenses are recurring.

• Acquisition related charges and restructuring costs: We incurred significant expenses in connection with acquisitions, principally PeopleSoft and Siebel, which we would not have otherwise incurred. 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 costs for transitional employees. Stock-based compensation 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 costs 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 charges in connection with future acquisitions.