Sybase 8-K Sybase Reports Strong 2005 Second Quarter Results, Exceeding First Call Consensus Estimates

Exhibit 99.1

For Financial Inquiries, Contact:
Lynne Farris
Sybase Investor Relations
lfarris@sybase.com
(925) 236-8797

For Press Inquiries, Contact:
Heather Peterson
Sybase Public Relations
heatherp@sybase.com
(925) 236-6517

SYBASE REPORTS STRONG 2005 SECOND QUARTER RESULTS,
EXCEEDING FIRST CALL CONSENSUS ESTIMATES

Year-Over-Year Synopsis:

s	Total Revenue Increases 9%
s	Database License Revenue Increases 19%
s	Mobile & Wireless Business Grows 21%
s	Pro Forma and GAAP Operating Income Increase 48%and 76%, Respectively

DUBLIN, Calif. – July 21, 2005 –Sybase, Inc. (NYSE: SY), a leading provider of enterprise infrastructure and wireless software, today reported that total revenues for the quarter increased 9% to $204.4 million from total revenues of $188.0 million for the second quarter of 2004. License revenues increased 12% to $67.9 million for the second quarter ended June 30, 2005 compared with the same quarter a year ago.

     Pro forma operating income for the 2005 second quarter increased to $34.3 million, representing 17% operating margin, compared with pro forma operating income of $23.1 million, or 12% operating margin, for the second quarter of 2004.

     Operating income for the 2005 second quarter calculated in accordance with generally accepted accounting principles (GAAP) increased to $28.1 million, representing 14% operating margin, compared with operating income of $16.0 million, or 8% operating margin for the second quarter of 2004.

     Pro forma net income for the second quarter reached $25.0 million, or earnings of $0.27 per share on a diluted basis (EPS). This compares with pro forma net income of

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$17.3 million, or EPS of $0.18 for the 2004 second quarter. GAAP net income for the 2005 second quarter was $15.9 million, or EPS of $0.17. This compares with GAAP net income of $12.8 million, or EPS of $0.13 for the second quarter of 2004. Pro forma amounts exclude amortization of certain expenses including certain purchased intangibles, unearned stock-based compensation, and restructuring costs. Accompanying this release is a reconciliation of pro forma and GAAP amounts for the second quarter ended June 30, 2005.

     “We’re very pleased with the better-than-expected results this quarter, as we executed well across all segments of our business,” said John Chen, chairman, CEO, and president of Sybase. “Our flagship database business continued to generate strong license revenue gains this quarter, and the mobile/wireless segment remains a healthy growth driver. Furthermore, cash flow from operations remains strong, and operating margins improved significantly year-over-year, even as we invested in two technology acquisitions and increased headcount.

     “Everything came together well this quarter. The business pipeline appears solid, the sales execution is strong, and our leading-edge technology is winning new customers. We have many reasons to be optimistic about our prospects for the future,” concluded Mr. Chen.

Balance Sheet and Other Data

     At June 30, 2005, Sybase reported $913.4 million in cash and cash investments, including restricted cash of $7.7 million. The company generated $46.8 million in cash flow from operations in the second quarter.

     Sybase repurchased approximately $5.0 million worth of its stock during the 2005 second quarter. Approximately $93.7 million remains authorized in the company’s current share repurchase program.

     Days sales outstanding for the second quarter was 46 days.

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Conference Call and Webcast Information

     The Sybase 2005 second quarter conference call and simultaneous Webcast is scheduled to begin at 7:30 a.m., Pacific Time/10:30 a.m. Eastern Time, on Thursday, July 21, 2005. To access the live Webcast, please visit www.fulldisclosure.com or Sybase’s Website at www.sybase.com at least 20 minutes prior to the call to download any necessary audio or plug-in software. A telephone replay will be available approximately two hours after the conference call ends and will be available until 10 p.m. Pacific Time on July 28, 2005. To access the replay, please dial (888) 203-1112 for domestic access and (719) 457-0820 for international callers; the access code for the telephone replay is #8940888. Additionally, the archived Webcast will be available through October 19, 2005.

About Sybase, Inc.

     Sybase is the largest global enterprise software company exclusively focused on managing and mobilizing information from the data center to the point of action. Sybase provides open, cross-platform solutions that securely deliver information anytime, anywhere, enabling customers to create an information edge. The world’s most critical data in commerce, finance, government, healthcare, and defense runs on Sybase. For more information, visit the Sybase Website:http://www.sybase.com.

Forward-Looking Statements

     Certain statements in this release concerning Sybase, Inc. and its prospects and future growth are forward-looking and 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, but are not limited to, the performance of the global economy and growth in software industry sales; possible disruptive effects of organizational or personnel changes; the success of certain business

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combinations engaged in by the company or by competitors; 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; and other factors described in Sybase, Inc.’s reports filed with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2004 and its quarterly report on Form 10-Q for the three-month period ended March 31, 2005.

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Sybase Second Quarter 2005 Selected Highlights

Sybase announcements during the second quarter of 2005 expanded upon the company’s leadership in the mobile enterprise computing market, with particular focus on the extension of new product offerings. Additionally, Sybase broadened its reach with key strategic acquisitions and partnerships.

In Q2 2005, Sybase:

Mobile Enterprise Computing:

• Announced additional investments in Sybase’s information management technology portfolio with the acquisition of Avaki Corporation’s technology and assets:http://www.sybase.com/detail?id=1035535

• Acquired ISDD Ltd., a privately held provider of unstructured data management solutions, to expand and differentiate the company’s innovative information management and mobility solutions:http://www.sybase.com/detail?id=1035536

• Announced the availability of RFID Enterprise, an end-to-end RFID solution:http://www.sybase.com/detail?id=1035269

• Debuted availability for AvantGo®, a service of Sybase subsidiary iAnywhere Solutions™, on the Research in Motion BlackBerry platform, providing millions of BlackBerry users wireless access to the service, demonstrating continued leadership in mobile content delivery:http://www.ianywhere.com/press_releases/bb_avantgo.html

• Announced extended support for SQL Anywhere Studio® from Sybase subsidiary iAnywhere Solutions to include Microsoft Windows x64 platforms, furthering the company’s successful track record of developing innovative and industry-leading solutions to meet enterprise-class customer needs:http://www.ianywhere.com/press_releases/sqlany_windows_x64.html

• Debuted an upgraded version of Afaria® frontline management and security software from Sybase subsidiary iAnywhere Solutions, expanding management and security capabilities for wireless devices and allowing enterprises to easily leverage the always-on capabilities of this rapidly growing class of mobile technology:http://www.ianywhere.com/press_releases/afaria_53.html

New Product Initiatives:

•	Announced general availability of Risk Analytics Platform, a unique consolidated risk and trade data repository capable of capturing and consolidating high-volume market data feeds with massive historical data sets for faster, more effective trading applications:http://www.sybase.com/detail?id=1035696
•	Announced Sybase WorkSpace, a unified Eclipse-based application development environment, enabling developers to quickly build and deliver applications for service-oriented architectures (SOA):http://www.sybase.com/detail?id=1036200
	Announced Financial Fusion’s TradeForce™ Suite that specializes in electronic trading connectivity and financial messaging, extends its support to include STEP, a FIX 4.4 based trading message protocol, a new securities trading standard of the Chinese Securities Regulatory Commission (CSRC):http://www.sybase.com/detail?id=1036794

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Customer Deployments:

• Announced that Cesar Castillo, a pharmaceutical and consumer products wholesale distributor and third-party logistics provider in Puerto Rico, has adopted Sybase RFID Enterprise as the data repository and integration platform to extend the capabilities of its inventory management systems:http://www.sybase.com/detail?id=1035270

• Revealed Kwik Trip, one of the largest independently held convenience store chains in the United States, is using iAnywhere Solutions’ Afaria to centrally manage, deliver and deploy Microsoft software patches:http://www.ianywhere.com/press_releases/kwik_trip_afaria.html

Partnerships:

• Announced a strategic alliance by Sybase subsidiary iAnywhere Solutions with Eleven Technologies to deliver next-generation handheld solutions to the CPG industry:http://www.ianywhere.com/press_releases/eleven_technology_allia nce.html

• Debuted Mobile Sales for BlackBerry Early Adopter Program from Sybase subsidiary iAnywhere Solutions, which will offer support for BlackBerry devices from Research In Motion to extend custom and packaged CRM systems to handheld devices:http://www.ianywhere.com/press_releases/bb_eap.html

• Extended alliance with Sun to include Sybase support for the Solaris OS on the x64 platform in ASE, IQ and ASA:http://www.sybase.com/detail?id=1035559

Industry Accolades:

• Recognized byNetwork Computing’s annual Well-Connected Awards for Sybase subsidiary iAnywhere Solutions’ Afaria mobile device management product, marking the third time Afaria has received top honors in this highly competitive category:http://www.ianywhere.com/press_releases/afaria_well_connected_a ward.html

• Acknowledged by the Software and Information Industry Association (SIIA) Codie Awards for subsidiary iAnywhere Solutions’ AvantGo mobile Internet service as “Best Mobile Content Service”:http://www.ianywhere.com/press_releases/siia_2005_codie_award.html

• Announced that nine of its Computerworld Honors Laureates were selected as worldwide finalists and three received the 21st Century Achievement award; the customers were acknowledged as distinguished organizations and institutions leading the global information technology revolution:http://www.ianywhere.com/press_releases/sybase_computerworld.html

Events:

s Conducted a 6-city mobility executive seminar series with Intel and HP, spotlighting subsidiary iAnywhere Solutions’ customers and its Always Available Computing model:http://www.ianywhere.com/press_releases/mobility_seminar.html

Sybase, Afaria, Avaki, AvantGo, Financial Fusion, iAnywhere Solutions, SQL Anywhere Studio and TradeForce are trademarks of Sybase, Inc. or its subsidiaries. All other names may be trademarks of the companies with which they are associated.

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SYBASE, INC.
RECONCILIATION TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(UNAUDITED)

	Three Months Ended June 30, 2004							Three Months Ended June 30, 2005
(In thousands, except per share data)			Pro forma								Pro forma
	GAAP		Adjustments (2)			Pro forma		GAAP			Adjustments (2)			Pro forma
Revenues:
License fees	$	67,915		—		$	67,915	$	60,427			—		$	60,427
Services		136,493		—			136,493		127,603			—			127,603
Total revenues		204,408		—			204,408		188,030			—			188,030
Costs and expenses:
Cost of license fees		11,721		(2,341	) a		9,380		15,558			(4,567	) a		10,991
Cost of services		39,928		(99	) b		39,829		41,517			(62	) b		41,455
Sales and marketing		65,360		(131	) b		65,229		62,194			(128	) b		62,066
Product development and engineering		34,305		(7	) b		34,298		29,141			(20	) b		29,121
General and administrative		23,077		(1,703	) b		21,374		22,634			(1,334	) b		21,300
Amortization of other purchased intangibles		1,677		(1,677	) a		—		1,285			(1,285	) a		—
Cost (Reversal) of restructure		289		(289	) c		—		(253	)		253	c		—
Total costs and expenses		176,357		(6,247	)		170,110		172,076			(7,143	)		164,933
Operating income		28,051		6,247			34,298		15,954			7,143			23,097
Interest income and expense and other, net		3,631		—			3,631		2,387			—			2,387
Income before income taxes		31,682		6,247			37,929		18,341			7,143			25,484
Provision for income taxes		15,827		(2,931	) d		12,896		5,519			2,636	d		8,155
Net income	$	15,855	$	9,178		$	25,033	$	12,822		$	4,507		$	17,329
Basic net income per share	$	0.18	$	0.10		$	0.28	$	0.13		$	0.05		$	0.18
Shares used in computing basic net income per share		88,905		88,905			88,905		96,130			96,130			96,130
Diluted net income per share	$	0.17	$	0.10		$	0.27	$	0.13		$	0.05		$	0.18
Shares used in computing diluted net income per share		91,323		91,323			91,323		98,612			98,612			98,612

(1)	Use of Pro Forma Financial Information
	To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), Sybase uses pro forma measures of operating results, net income and earnings per share, which are adjusted from GAAP-based results to exclude certain costs and expenses. These pro forma adjustments are provided to enhance an overall understanding of our current financial performance and our prospects for the future, and are one of the primary indicators management uses for planning and forecasting future periods. We have excluded such items, including purchase accounting adjustments in connection with acquisitions, and the cost of restructuring because we do not believe they are indicative of our core business. Even though such items have recurred in the past and may recur in future periods, they are driven by events (such as acquisitions and restructurings) that occur sporadically and are not directly related to our ongoing core business operations. Pro forma financial information is never intended to be considered in isolation from, or as a substitute for, financial results prepared in accordance with GAAP.
(2)	Proforma adjustments
	Proforma adjustments include the following: (a) amortization of purchased intangibles; (b) amortization of unearned stock compensation; (c) cost of restructuring charges; (d) income tax effect of proforma adjustments.

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SYBASE, INC.
RECONCILIATION TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(UNAUDITED)

	Six Months Ended June 30, 2004							Six Months Ended June 30, 2005
(In thousands, except per share data)			Pro forma								Pro forma
	GAAP		Adjustments (2)			Pro forma		GAAP			Adjustments (2)			Pro forma
Revenues:
License fees	$	130,623		—		$	130,623	$	118,332			—		$	118,332
Services		265,696		—			265,696		252,857			—			252,857
Total revenues		396,319		—			396,319		371,189			—			371,189
Costs and expenses:
Cost of license fees		25,979		(7,051	) a		18,928		29,138			(8,398	) a		20,740
Cost of services		80,268		(166	) b		80,102		83,146			(107	) b		83,039
Sales and marketing		124,938		(224	) b		124,714		120,434			(196	) b		120,238
Product development and engineering		67,832		(16	) b		67,816		59,808			(39	) b		59,769
General and administrative		45,310		(2,991	) b		42,319		43,577			(2,504	) b		41,073
Amortization of other purchased intangibles		3,354		(3,354	) a		—		1,785			(1,785	) a		—
Cost (Reversal) of restructure		281		(281	) c		—		(128	)		128	c		—
Total costs and expenses		347,962		(14,083	)		333,879		337,760			(12,901	)		324,859
Operating income		48,357		14,083			62,440		33,429			12,901			46,330
Interest income and expense and other, net		6,739		—			6,739		5,977			—			5,977
Income before income taxes		55,096		14,083			69,179		39,406			12,901			52,307
Provision for income taxes		25,895		(2,374	) d		23,521		13,398			3,340	d		16,738
Net income	$	29,201	$	16,457		$	45,658	$	26,008		$	9,561		$	35,569
Basic net income per share	$	0.32	$	0.18		$	0.50	$	0.27		$	0.10		$	0.37
Shares used in computing basic net income per share		90,787		90,787			90,787		96,710			96,710			96,710
Diluted net income per share	$	0.31	$	0.18		$	0.49	$	0.26		$	0.10		$	0.36
Shares used in computing diluted net income per share		93,231		93,231			93,231		99,826			99,826			99,826

(1)	Use of Pro Forma Financial Information
	To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), Sybase uses pro forma measures of operating results, net income and earnings per share, which are adjusted from GAAP-based results to exclude certain costs and expenses. These pro forma adjustments are provided to enhance an overall understanding of our current financial performance and our prospects for the future, and are one of the primary indicators management uses for planning and forecasting future periods. We have excluded such items, including purchase accounting adjustments in connection with acquisitions, and the cost of restructuring because we do not believe they are indicative of our core business. Even though such items have recurred in the past and may recur in future periods, they are driven by events (such as acquisitions and restructurings) that occur sporadically and are not directly related to our ongoing core business operations. Pro forma financial information is never intended to be considered in isolation from, or as a substitute for, financial results prepared in accordance with GAAP.
(2)	Proforma adjustments
	Proforma adjustments include the following: (a) amortization of purchased intangibles; (b) amortization of unearned stock compensation; (c) cost of restructuring charges; (d) income tax effect of proforma adjustments.

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SYBASE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,
(In thousands, except share and per share data)	2005			2004
	(Unaudited)
Current assets:
Cash and cash equivalents	$	417,436		$	321,417
Short-term investments		468,264			158,217
Total cash, cash equivalents and short-term cash investments		885,700			479,634
Restricted cash		5,098			5,356
Accounts receivable, net		104,592			157,897
Deferred income taxes		11,179			11,205
Other current assets		19,999			14,790
Total current assets		1,026,568			668,882
Long-term cash investments		20,022			33,998
Restricted long-term cash investments		2,600			2,600
Property, equipment and improvements, net		58,543			64,371
Deferred income taxes		40,822			39,440
Capitalized software, net		65,629			61,771
Goodwill, net		215,062			214,110
Other purchased intangibles, net		64,455			67,208
Other assets		39,166			31,142
Total assets	$	1,532,867		$	1,183,522
Current liabilities:
Accounts payable	$	10,010		$	11,962
Accrued compensation and related expenses		39,893			43,632
Accrued income taxes		58,042			32,595
Other accrued liabilities		71,706			81,715
Deferred revenue		203,314			208,741
Total current liabilities		382,965			378,645
Other liabilities		34,330			33,121
Long-term deferred revenue		5,899			10,170
Minority interest		5,030			5,030
Long-term convertible debt		460,000			—
Stockholders’ equity:
Preferred stock, $0.001 par value, 8,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.001 par value, 200,000,000 shares authorized; 105,337,362 shares issued (2004 - 105,337,362)		105			105
Additional paid-in capital		952,577			940,806
Accumulated deficit		(39,075	)		(66,690	)
Other comprehensive income		21,355			49,356
Less: Cost of treasury stock (15,442,337 shares and 2004 - 9,818,385)		(274,497	)		(159,617	)
Unearned compensation		(15,822	)		(7,404	)
Total stockholders’ equity		644,643			756,556
Total liabilities and stockholders’ equity	$	1,532,867		$	1,183,522

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SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, AND STOCK COMPENSATION EXPENSE
(UNAUDITED)

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except per share data)	2005		2004		2005		2004
Revenues:
License fees	$	67,915	$	60,427	$	130,623	$	118,332
Services		136,493		127,603		265,696		252,857
Total revenues		204,408		188,030		396,319		371,189
Costs and expenses:
Cost of license fees		9,380		10,991		18,928		20,740
Cost of services		39,829		41,455		80,102		83,039
Sales and marketing		65,229		62,066		124,714		120,238
Product development and engineering		34,298		29,121		67,816		59,769
General and administrative		21,374		21,300		42,319		41,073
Total costs and expenses		170,110		164,933		333,879		324,859
Operating income		34,298		23,097		62,440		46,330
Interest income and expense and other, net		3,631		2,387		6,739		5,977
Income before income taxes		37,929		25,484		69,179		52,307
Provision for income taxes		12,896		8,155		23,521		16,738
Net income	$	25,033	$	17,329	$	45,658	$	35,569
Basic net income per share	$	0.28	$	0.18	$	0.50	$	0.37
Shares used in computing basic net income per share		88,905		96,130		90,787		96,710
Diluted net income per share	$	0.27	$	0.18	$	0.49	$	0.36
Shares used in computing diluted net income per share		91,323		98,612		93,231		99,826

Note: The pro forma statement of operations is intended to present the Company’s operating results excluding purchase accounting adjustments associated with the acquisitions of Home Financial Network, Inc., New Era of Networks, Inc., AvantGo Inc., Dejima, Inc., XcelleNet, Inc., Avaki, Inc., and ISDD Ltd. and other purchased intangibles. Such purchase accounting adjustments would include amortization of developed technology, amortization of intangibles, goodwill impairment loss, in-process research and development costs, and related adjustments for income tax provision. The pro forma statement of operations also excludes stock compensation expense, restructuring costs, and cumulative effect of an accounting change which we do not believe are indicative of our core business. Even though such items have recurred in the past and may recur in future periods, they are driven by events (such as acquisitions and restructurings) that occur sporadically and are not directly related to our ongoing core business operations. Pro forma financial information is never intended to be considered in isolation from, or as a substitute for, financial results prepared in accordance with GAAP.

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SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands, except per share data)	2005		2004			2005		2004
Revenues:
License fees	$	67,915	$	60,427		$	130,623	$	118,332
Services		136,493		127,603			265,696		252,857
Total revenues		204,408		188,030			396,319		371,189
Costs and expenses:
Cost of license fees		11,721		15,558			25,979		29,138
Cost of services		39,928		41,517			80,268		83,146
Sales and marketing		65,360		62,194			124,938		120,434
Product development and engineering		34,305		29,141			67,832		59,808
General and administrative		23,077		22,634			45,310		43,577
Amortization of other purchased intangibles		1,677		1,285			3,354		1,785
Cost (Reversal) of restructure		289		(253	)		281		(128	)
Total costs and expenses		176,357		172,076			347,962		337,760
Operating income		28,051		15,954			48,357		33,429
Interest income and expense and other, net		3,631		2,387			6,739		5,977
Income before income taxes		31,682		18,341			55,096		39,406
Provision for income taxes		15,827		5,519			25,895		13,398
Net income	$	15,855	$	12,822		$	29,201	$	26,008
Basic net income per share	$	0.18	$	0.13		$	0.32	$	0.27
Shares used in computing basic net income per share		88,905		96,130			90,787		96,710
Diluted net income per share	$	0.17	$	0.13		$	0.31	$	0.26
Shares used in computing diluted net income per share		91,323		98,612			93,231		99,826

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SYBASE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Six Months Ended
	June 30,
(Dollars in thousands)	2005			2004
Cash and cash equivalents, beginning of year	$	321,417		$	315,404
Cash flows from operating activities:
Net income		29,201			26,008
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		38,097			41,325
Write-off of assets in restructuring		—			427
Loss on disposal of assets		254			224
Deferred income taxes		(3,247	)		(2,130	)
Amortization of deferred stock-based compensation		3,397			2,845
Amortization of note issuance costs		691			—
Changes in assets and liabilities:
Accounts receivable		51,031			28,868
Other current assets		(5,206	)		(580	)
Other assets – operating		1,057			1,322
Accounts payable		(1,955	)		3,793
Accrued compensation and related expenses		(3,736	)		(4,113	)
Accrued income taxes		25,549			(1,299	)
Other accrued liabilities		(9,810	)		(25,814	)
Deferred revenues		(9,907	)		10,175
Other liabilities		1,376			3,221
Net cash provided by operating activities		116,792			84,272
Cash flows from investing activities:
(Increase) Decrease in restricted cash		258			(95	)
Purchases of available-for-sale cash investments		(520,887	)		(101,307	)
Maturities of available-for-sale cash investments		193,384			88,134
Sales of available-for-sale cash investments		30,958			71,673
Business combinations, net of cash acquired		(6,754	)		(81,270	)
Purchases of property, equipment and improvements		(8,230	)		(14,553	)
Proceeds from sale of fixed assets		9			110
Capitalized software development costs		(18,108	)		(17,772	)
(Increase) Decrease in other assets – investing		(15	)		1
Net cash used for investing activities		(329,385	)		(55,079	)
Cash flows from financing activities:
Proceeds from the issuance of convertible subordinated notes, net of issuance costs		450,251			—
Repayments of long-term obligations		(959	)		(22,173	)
Payments on capital lease		(158	)		—
Net proceeds from the issuance of common stock and reissuance of treasury stock		18,442			20,408
Purchases of treasury stock		(134,952	)		(84,417	)
Net cash provided by (used for) financing activities		332,624			(86,182	)
Effect of exchange rate changes on cash		(24,012	)		(5,626	)
Net increase (decrease) in cash and cash equivalents		96,019			(62,615	)
Cash and cash equivalents, end of period		417,436			252,789
Cash investments, end of period		488,286			198,681
Total cash, cash equivalents and cash investments, end of period	$	905,722		$	451,470

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SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, AND STOCK COMPENSATION EXPENSE
FOR THE THREE MONTHS ENDED JUNE 30, 2005
(UNAUDITED)

(In thousands, except per share data)
	Infrastructure		iAnywhere					Consolidated
	Platform Group		Solutions		Eliminations			Total
Revenues:
License fees
Infrastructure	$	46,611	$	36	$	—		$	46,647
Mobile and Embedded		7,158		12,766		—			19,924
Financial Fusion products		1,344		—		—			1,344
Subtotal license fees		55,113		12,802		—			67,915
Intersegment license revenues		21		5,957		(5,978	)		—
Total license fees		55,134		18,759		(5,978	)		67,915
Services
Direct service revenue		119,486		9,500		—			128,986
Financial Fusion services		7,507		—		—			7,507
Intersegment service revenues		—		6,789		(6,789	)		—
Total services		126,993		16,289		(6,789	)		136,493
Total revenues		182,127		35,048		(12,767	)		204,408
Total allocated costs and expenses		156,187		28,098		(12,767	)		171,518
Operating income before unallocated costs	$	25,940	$	6,950	$	—		$	32,890
Other unallocated cost savings									(1,408	)
Operating income after unallocated expenses									34,298
Interest income and expense and other, net									3,631
Income before income taxes									37,929
Provision for income taxes									12,896
Net income								$	25,033
Basic net income per share								$	0.28
Shares used in computing basic net income per share									88,905
Diluted net income per share								$	0.27
Shares used in computing diluted net income per share									91,323

Note: The pro forma statement of operations is intended to present the Company’s operating results excluding purchase accounting adjustments associated with the acquisitions of Home Financial Network, Inc., New Era of Networks, Inc., AvantGo Inc., Dejima, Inc., XcelleNet, Inc., Avaki, Inc., and ISDD Ltd. and other purchased intangibles. Such purchase accounting adjustments would include amortization of developed technology, amortization of intangibles, goodwill impairment loss, in-process research and development costs, and related adjustments for income tax provision. The pro forma statement of operations also excludes stock compensation expense, restructuring costs, and cumulative effect of an accounting change which we do not believe are indicative of our core business. Even though such items have recurred in the past and may recur in future periods, they are driven by events (such as acquisitions and restructurings) that occur sporadically and are not directly related to our ongoing core business operations. Pro forma financial information is never intended to be considered in isolation from, or as a substitute for, financial results prepared in accordance with GAAP.

- 13 -

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, AND STOCK COMPENSATION EXPENSE
FOR THE SIX MONTHS ENDED JUNE 30, 2005
(UNAUDITED)

(In thousands, except per share data)
	Infrastructure		iAnywhere					Consolidated
	Platform Group		Solutions		Eliminations			Total
Revenues:
License fees
Infrastructure	$	93,472	$	48	$	—		$	93,520
Mobile and Embedded		12,580		22,886		—			35,466
Financial Fusion products		1,637		—		—			1,637
Subtotal license fees		107,689		22,934		—			130,623
Intersegment license revenues		43		10,466		(10,509	)		—
Total license fees		107,732		33,400		(10,509	)		130,623
Services
Direct service revenue		232,878		18,440		—			251,318
Financial Fusion services		14,378		—		—			14,378
Intersegment service revenues		6		13,288		(13,294	)		—
Total services		247,262		31,728		(13,294	)		265,696
Total revenues		354,994		65,128		(23,803	)		396,319
Total allocated costs and expenses		305,049		55,556		(23,803	)		336,802
Operating income before unallocated costs	$	49,945	$	9,572	$	—		$	59,517
Other unallocated cost savings									(2,923	)
Operating income after unallocated expenses									62,440
Interest income and expense and other, net									6,739
Income before income taxes									69,179
Provision for income taxes									23,521
Net income								$	45,658
Basic net income per share								$	0.50
Shares used in computing basic net income per share									90,787
Diluted net income per share								$	0.49
Shares used in computing diluted net income per share									93,231

Note: The pro forma statement of operations is intended to present the Company’s operating results excluding purchase accounting adjustments associated with the acquisitions of Home Financial Network, Inc., New Era of Networks, Inc., AvantGo Inc., Dejima, Inc., XcelleNet, Inc., Avaki, Inc., and ISDD Ltd. and other purchased intangibles. Such purchase accounting adjustments would include amortization of developed technology, amortization of intangibles, goodwill impairment loss, in-process research and development costs, and related adjustments for income tax provision. The pro forma statement of operations also excludes stock compensation expense, restructuring costs, and cumulative effect of an accounting change which we do not believe are indicative of our core business. Even though such items have recurred in the past and may recur in future periods, they are driven by events (such as acquisitions and restructurings) that occur sporadically and are not directly related to our ongoing core business operations. Pro forma financial information is never intended to be considered in isolation from, or as a substitute for, financial results prepared in accordance with GAAP.

- 14 -

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED JUNE 30, 2005
(UNAUDITED)

(In thousands, except per share data)
	Infrastructure		iAnywhere					Consolidated
	Platform Group		Solutions		Eliminations			Total
Revenues:
License fees
Infrastructure	$	46,611	$	36	$	—		$	46,647
Mobile and Embedded		7,158		12,766		—			19,924
Financial Fusion products		1,344		—		—			1,344
Subtotal license fees		55,113		12,802		—			67,915
Intersegment license revenues		21		5,957		(5,978	)		—
Total license fees		55,134		18,759		(5,978	)		67,915
Services
Direct service revenue		119,486		9,500		—			128,986
Financial Fusion services		7,507		—		—			7,507
Intersegment service revenues		—		6,789		(6,789	)		—
Total services		126,993		16,289		(6,789	)		136,493
Total revenues		182,127		35,048		(12,767	)		204,408
Total allocated costs and expenses before cost of restructure and amortization of customer lists, covenant not to compete, and purchased technology		156,187		28,098		(12,767	)		171,518
Operating income before cost of restructure and amortization of customer lists, covenant not to compete, and purchased technology		25,940		6,950		—			32,890
Cost of restructure - 2005 Activity		289		—		—			289
Amortization of customer lists		500		711		—			1,211
Amortization of covenant not to compete		—		466		—			466
Amortization of purchased technology		1,362		979		—			2,341
Operating income before unallocated costs	$	23,789	$	4,794	$	—		$	28,583
Other unallocated costs									532
Operating income after unallocated expenses									28,051
Interest income and expense and other, net									3,631
Income before income taxes									31,682
Provision for income taxes									15,827
Net income								$	15,855
Basic net income per share								$	0.18
Shares used in computing basic net income per share									88,905
Diluted net income per share								$	0.17
Shares used in computing diluted net income per share									91,323

- 15 -

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE SIX MONTHS ENDED JUNE 30, 2005
(UNAUDITED)

(In thousands, except per share data)
	Infrastructure		iAnywhere					Consolidated
	Platform Group		Solutions		Eliminations			Total
Revenues:
License fees
Infrastructure	$	93,472	$	48	$	—		$	93,520
Mobile and Embedded		12,580		22,886		—			35,466
Financial Fusion products		1,637		—		—			1,637
Subtotal license fees		107,689		22,934		—			130,623
Intersegment license revenues		43		10,466		(10,509	)		—
Total license fees		107,732		33,400		(10,509	)		130,623
Services
Direct service revenue		232,878		18,440		—			251,318
Financial Fusion services		14,378		—		—			14,378
Intersegment service revenues		6		13,288		(13,294	)		—
Total services		247,262		31,728		(13,294	)		265,696
Total revenues		354,994		65,128		(23,803	)		396,319
Total allocated costs and expenses before cost of restructure and amortization of customer lists, covenant not to compete, and purchased technology		305,049		55,556		(23,803	)		336,802
Operating income before cost of restructure and amortization of customer lists, covenant not to compete, and purchased technology		49,945		9,572		—			59,517
Cost of restructure - 2005 Activity		281		—		—			281
Amortization of customer lists		1,000		1,422		—			2,422
Amortization of covenant not to compete		—		932		—			932
Amortization of purchased technology		5,093		1,958		—			7,051
Operating income before unallocated costs	$	43,571	$	5,260	$	—		$	48,831
Other unallocated costs									474
Operating income after unallocated expenses									48,357
Interest income and expense and other, net									6,739
Income before income taxes									55,096
Provision for income taxes									25,895
Net income								$	29,201
Basic net income per share								$	0.32
Shares used in computing basic net income per share									90,787
Diluted net income per share								$	0.31
Shares used in computing diluted net income per share									93,231

- 16 -