For Information, Contact:
Susan Salvesen
Chief Financial Officer
Unify Corporation
408-467-4500
http://www.unify.com

San Jose, CA, August 20, 1996 - Unify Corporation (NASDAQ:UNFY), a leading provider of client/server software solutions for the development, deployment, and management of high-end, business critical applications for intranets and the Internet, announced today that for the 1997 fiscal first quarter, total revenues increased 48% to $9.0 million from $6.1 million for the three months ended July 31, 1995. Software license revenues grew 80% to $6.5 million, or 72% of total revenues, from $3.6 million, or 59% of total revenues in the 1996 fiscal first quarter. Of the total license revenues, the component attributable to the Company's VISION line of business critical client/server application development tools quadrupled to $2.2 million for the 1997 first quarter compared with the first quarter of fiscal 1996.

Net income and earnings per share were $187,000 and $0.03, respectively, compared with net loss and loss per share of $979,000 and $0.17, respectively, for the first quarter of fiscal 1996. Weighted average shares outstanding increased 31% to 7.45 million as a result of the Company's initial public offering in June 1996.

"We are pleased with our revenue growth and financial performance in the July quarter," observed Reza Mikailli, President and Chief Executive Officer. "Based on early feedback, we are enthusiastic about the opportunities our new VISION 3.0 and VISION/Web releases are creating in the marketplace. For the first time, customers can rapidly and cost-effectively develop business critical applications and deploy them on intranets and the Internet without the need for Java, HTML or CGI programming." VISION 3.0 and VISION/Web, companion products, are high-end application development tools designed to enable programmers to automatically generate Java code while building complex, transactional applications that run on both intranet and Internet clients and servers.

"Our strategy to invest in expanding international sales and marketing is already producing rapid returns," remarked Susan Salvesen, Chief Financial Officer. "In particular, business in Asia was stronger than we expected, offsetting some traditional first quarter seasonal weakness. Over the next several quarters, we will continue to focus resources in support of this important growth opportunity," continued Salvesen. International revenues totaled $6.8 million in fiscal 1997 first quarter.

This announcement may contain forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results described in such statements. Factors that might cause such a difference include, but are not limited to, those discussed in the "Risk Factors" section of the Company's Final Prospectus dated June 14, 1996 filed on Form S-1 with the Securities and Exchange Commission in connection with the Company's initial public offering, a copy of which is available on request from the Company.

Unify VISION and VISION/Web

Unify's flagship product, Unify VISION, is designed to enable organizations to develop, deploy and manage business critical applications with increased return on investment by providing the benefits of low cost of entry, rapid time-to-market and low cost of ownership. VISION and its companion product -VISION/Web- are the first advanced client/server development environments to generate Java code, without the need for Java programming, and to enable developers to build high-end transactional applications that run on both Web and non-Web clients and servers.

About Unify Corporation

Unify Corporation develops, markets and supports advanced application development environments for the development, deployment and management of high-end, business critical client/server applications. The Company's flagship product, Unify VISION, combines a powerful and scalable client/server architecture with a flexible and easy-to-use rapid application development technology. Additional Unify products include VISION AppMan, ACCELL/SQL and the DataServer product family.

Headquartered in San Jose, California, Unify has direct sales offices throughout North America, Europe and Japan, with a network of distributors, VARs, OEMs, and systems integrators worldwide. Unify has over 350,000 users worldwide, including leaders in telecommunications, financial services, commercial industries and government. Unify product and service information is located on the World Wide Web at http://www.unify.com.